Legal Disclaimer: This article is written for informational purposes only and does not constitute professional financial advice. Please reference section179.org and a professional accountant for advice on financial planning and filing taxes.
As 2020 comes to an end, you might be thinking about all of this year's expenses and wondering what you might be able to write off on your taxes. You may even be considering whether or not to make a big purchase, weighing the tax deductions you could get if you bought it this year versus next.
Is it worth buying that new lift before the year ends? Or should you put it off until 2021?
What is Section 179?
Section 179 of the IRS tax code allows business owners to write off the entire cost of a piece of equipment, renovations, or other assets in the first year instead of writing off an asset a little bit at a time over a five, seven, fifteen, or thirty-nine year period. To give an example, if a shop owner buys a new tire machine, they could either write off the taxes over a seven-year period, or they can use Section 179 to get the entire deduction in the first year.
What Type of Costs Qualify for Section 179?
Tangible business property, including machinery and equipment
Leasehold improvements
Computer software*
*Is Tekmetric Eligible for Section 179?
Generally speaking, off-the-shelf computer software that has been purchased outright is eligible for Section 179. Because Tekmetric is a web-based software and does not make users sign a contract, it is not eligible for section 179, but it does qualify for a standard tax deduction.
What are Leasehold Improvements?
Leasehold improvements are any repairs or modifications that you make to your building or property, including adding a new roof, installing security or safety systems, and remodeling parts of your building without expanding the footprint. Without Section 179, leasehold improvements depreciate over 15 or 39 years, depending on what the improvements are. With Section 179, you can receive the entire deduction in the first year.
How Often Does Section 179 Change?
Section 179 is typically adjusted every several years. Most recently, Section 179 was adjusted in 2018 when the deduction limit was doubled and more types of purchases were made eligible. Section 179 may change again in the following years.
When Should You Use Section 179?
If you know that you’re going to pay taxes this year, and you have made a major qualifying purchase, then you may want to consider using Section 179 to save on your taxes and free up some cash flow for 2021.
If you financed a major purchase, you may want to consider how soon you plan on paying off that purchase and whether or not you would like to receive a tax deduction in the following years as you pay it off. For example, if you have a loan on a piece of equipment that you plan on paying over five or ten years, you may want to opt for the regular depreciated tax reduction so that you have money to offset those taxes in the following years.
Should You Make a Major Purchase Before the Year Ends to Use Section 179?
It’s not the wisest decision to buy something just to save money. It is true that Section 179, and tax benefits in general, are the best that they’ve been in years, but consider only making a major purchase if it is already in your plan and budget. If it is something that you already planned on buying in the next six months, then you may want to make the purchase before the end of the year to leverage Section 179’s tax deductions.
Talk to the Auto Repair Accounting Experts
Every situation is different. Take a look at what your tax rates are and ask yourself, "Is my income low enough this year where I'm actually reducing taxes at a pretty low rate? What do I think the tax rates are going to be in the future? Or will this benefit me more in the coming years when I think I'll be making more money?"
Talk to your accountant to form a game plan for all of this.
This article was written with the guidance of automotive repair industry CPA Hunt Demarest of Paar, Melis, & Associates, P.C.
Need help planning your taxes for 2020? Contact Paar, Melis, & Associates.
When you started your shop, you probably had to get the word out there. Maybe you passed out cards at your gym or got your family to tell all their friends about your new business.
Today, you likely have a loyal customer base. Your regulars drop by whenever they need repairs, and they probably also recommend your shop to their friends and family. That word-of-mouth marketing is immensely valuable. After all, new folks can’t come to your shop if they don’t know about it!
But even with loyal customers who spread the good word about your shop, you’ll eventually hit a plateau. People don’t have an endless number of friends and family in the area that they can keep referring your shop to.
In the ever-evolving automotive industry, staying ahead of the curve means constantly learning and growing. For automotive service technicians, certifications aren’t just credentials—they’re powerful tools that open doors to better job opportunities, increased pay, and credibility with customers and employers alike.
Whether you're just starting out or already working in auto repair, understanding the most common types of mechanic certification can help you create a successful, long-lasting career. This guide will break down the most recognized certifications, how to attain them, and why they matter for every auto mechanic who wants to stand out.
Types of mechanic certifications
Mechanic certifications come in many forms, each tailored to different specializations and career goals. The most common types include:
1. ASE Certifications
Issued by the National Institute for Automotive Service Excellence (ASE), these certifications are the gold standard for automotive mechanics. They cover a wide range of specialties, from engine repair to electronic systems and air conditioning.
ASE certification is considered the most prestigious and widely accepted credential in the automotive world.
More about ASE
Founded in 1972, the National Institute for Automotive Service Excellence sets the benchmark for automotive service technicians. ASE offers over 50 different certification tests in categories like:
Engine Repair
Brake Systems
Air Conditioning and Heating
Suspension and Steering
Electrical/Electronic Systems
Engine Performance
Manual and Automatic Transmission/Transaxle
Light Truck and Diesel Engines
Master technicians
There’s also a separate path for master technician status, which is achieved by passing all certifications in the required testing areas for that series. For example, technicians certified in tests A1 through A8 are Master automobile technicians.
Master technician status is not for life. You must keep each one of those certifications current to maintain master technician status. If you lose master technician status due to the lapse of one or more required certifications, it can be reinstated by taking and passing the recertification tests.
How long does it take to become ASE certified?
To become ASE certified, expect to spend anywhere from 1–3 years, depending on your work experience and whether you’re currently enrolled in training programs. Each certification test typically takes 1 to 2 hours to complete and can be scheduled at a local test center.
Being ASE certified shows you’ve mastered the skills needed for the job. It’s a badge of excellence recognized by employers, repair shops, and even customers looking for reliable service.
2. Student certifications
Geared toward high school and post-secondary students in automotive technology programs, these ASE certifications offer a head start in proving foundational knowledge.
What are student certifications?
Student certifications validate entry-level knowledge in core areas of vehicle repair and maintenance. These don’t require work experience and serve as a stepping stone to full ASE status.
Programs approved by the ASE Education Foundation often include student certification exams as part of their curriculum. These are excellent options for students at auto mechanic schools or in a community college training program.
Student certifications are valid for two years and help you build confidence before entering the workforce as an entry-level technician.
3. Manufacturer certifications
These certifications are specific to vehicle manufacturers and offered by companies like Ford, Toyota, GM, and others. Often, auto technicians working in dealerships will pursue these to show mastery of brand-specific systems.
For repair technicians who want to specialize in a particular brand, manufacturer certifications are essential.
Manufacturer training programs
Toyota T-TEN
Ford ASSET
GM ASEP
Honda PACT
BMW STEP
These accredited programs often partner with dealerships to offer real-world, hands-on experience while you earn your credential. These programs can take anywhere from 12 to 24 months and typically require completion of automotive technology coursework alongside on-the-job work experience at a brand-affiliated repair center.
Why they matter
Manufacturer-certified auto technicians often have a faster path to high-paying roles within dealership networks and brand-specific repair shops. These certifications also prepare you to service increasingly complex vehicle systems, especially as brands continue to innovate with hybrid and electric vehicles.
4. Specialty certifications
You’ll also find credentials related to diesel engines, heavy truck systems, collision repair, and even hybrid/electric vehicles.
Each of these certification types plays a unique role in an automotive technician’s career path, and in many cases, earning more than one will make you significantly more marketable in repair shops and beyond.
Depending on your interests, you may also want to pursue:
A/C Refrigerant Certification - Necessary if you want to be able to to buy refrigerant and work on air conditioning service.
Diesel Mechanics Certification – Focused on diesel engines used in commercial fleets and heavy truck applications.
Collision Repair Certification – Great for auto mechanics looking to work in body shops.
Hybrid/Electric Vehicle Certification – A growing field with high demand.
Each of these certifications typically requires completion of a specialized training course and a passing score on certification exams. These programs may be part of a broader certificate program or offered as a standalone credential.
Tek-Tip: Another way to get ahead as a young technician is to be experienced with auto repair shop software so your employer doesn't have to teach you how to use their system.
Benefits of mechanic certifications
Getting certified is one of the most direct ways to turn your hands-on experience into a long-term career asset. Mechanic certifications do more than look good on a resume—they deliver real-world advantages. Here are some of the benefits of completing automotive certifications:
Increased Pay: Certified mechanics typically earn higher wages. According to the Bureau of Labor Statistics (BLS), certified automotive mechanics can earn higher hourly rates, especially in competitive markets.
Job Security: The more certifications you have, the more valuable you are to auto repair businesses.
Professional Credibility: Certification demonstrates a commitment to quality and standards, building trust with customers and employers.
Career Advancement: Certified automotive service technicians are more likely to advance to roles such as shop foreman, master technician, or service manager.
Mobility: Certifications make it easier to move between different types of employers—whether that’s independent repair shops, starting a mobile mechanic business, dealerships, or specialty service centers.
What does the certification process look like?
Most mechanic certifications follow a similar pathway but always refer to the specific instructions for your program.
Step 1: Enroll
Start by enrolling in an automotive technology program. These are offered by community colleges, trade schools, and accredited auto mechanic schools. Many programs are supported by the ASE Education Foundation, ensuring alignment with real-world industry standards.
Look for certificate programs or associate degrees that offer hands-on training. Financial aid is often available for eligible students.
Step 2: Gain work experience
Work experience is critical for most certifications. For ASE certification, for example, you need at least two years of on-the-job experience—or one year plus a diploma from an accredited program. You’ll need to show that you’ve worked on everything from brake systems and axles to manual drive train repairs and electrical systems.
Step 3: Pass certification tests
Most mechanic certifications require passing written or computer-based certification exams. These are typically held at a certified test center. The exams cover a variety of topics depending on the specialty, including engine performance, electronic systems, and automatic transmission repair.
Tek-Tip: Some auto shops/employers will pay your test fees for you.
Step 4: Maintain certification
Many certifications require recertification every five years. Staying current ensures you’re up to date with the latest automotive repair techniques, tools, and systems.
Final thoughts
Becoming a certified mechanic takes dedication, but the payoff is worth it. From better job prospects to increased credibility, mechanic certifications help you build a successful, respected career in automotive repair.
Invest in your future. Get trained, get certified, and become a leader in the ever-growing world of automotive repair.
With just the right tools for the job, every repair can be so much easier. There's a reason some car manufacturers produce their own unique tools, and while they might seem unnecessary, they can turn hours into seconds.
Even so much as a proprietary socket with a unique angle to remove an oil drain plug tucked right up against the subframe, as silly as it may seem, is worth the extra little investment. The adage still rings true, that ultimately time is money -- saving time keeps your shop running like a well-oiled, rear-midengined dry-sump V8.
Running an independent auto shop requires the right tools, and not just the right impact wrenches or the right alignment rack.
The right shop management system can revolutionize the way your shop runs, from the moment customers call or walk in, to receiving payments and getting vehicles back on the road.
Learn why Tekmetric is the right tool for the job for shop management from some of the brilliant minds behind the revolution:
The Biggest Benefits of The Right Shop Management System
Enhanced Customer Experience: Put your customers first with a suite of features that allows you to easily communicate to build the trust needed to run a successful repair shop. Simplified operations in your shop naturally lead to improved customer service.
Higher Efficiency: Save time on manual tasks with a set of features that allows you to run your shop the way you see fit with easy-to-build automation, custom RO labels, and templates across the shop. Focus on the customer, and not a computer screen.
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