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.
More than anything, partnerships should be mutually beneficial to everyone involved. When good partnerships are formed, the whole should be worth more than the sum of its parts.
Why Should Your Auto Business Partner with Other Brands?
For example, McDonald’s burgers make you thirsty enough to want a Coca-Cola, and sodas have a high margin. By partnering up, McDonald’s can lock in their costs on soda and improve their profit margins for the long term.
On the other hand, not all partnerships are beneficial. Partnerships can expand your opportunities but can also force you into making decisions you never intended to make. When McDonald’s decided to partner with Coca-Cola, they had to exclude other soda brands from their locations.
This exclusivity may have been worth it, but it meant removing options from customers, such as Dr. Pepper and Pepsi products. What may have made the partnership intriguing for McDonald’s is the fact that Coca-Cola owns a variety of beverages, including Diet Coke, Fanta, Sprite, Powerade, Minute Maid and Pibb Xtra.
Thanks to a variety of options, McDonald’s is able to satisfy most customers who ask for a Dr. Pepper by saying, “Will Pibb Xtra be okay?”
Partnerships in the Auto Repair Industry
In the auto repair industry, we face similar challenges when it comes to partnering with other businesses and brands.
Potential partnerships may include teaming up with parts suppliers, software companies, marketing and trade show affiliates, and any other service, resource or tool that could potentially improve your shop. In some cases, these partnerships will help shop owners enhance performance, save costs and drive revenue.
Other times, auto partnerships may bind you to an agreement that doesn’t pay off.
Here are some questions you can ask yourself to determine whether a partnership is mutually beneficial or if they’re asking you for more than you’re getting in return.
1. Are You Free to Choose the Tools and Solutions You Want?
One sign of a bad partnership is being forced to do something you don’t want to do. If partnering with another company means taking valuable options off the table, then you may be at a disadvantage.
If your partner implies or directs you not to do business with their competitors because they would like for you to instead use their services or their partner’s services, think it through.
Before officially entering a partnership, imagine your shop one year, five years and ten years down the road. Where will it be then? What will happen if your shop grows? What if innovation has slowed down with your partner? Will you be allowed to innovate your business by using new tools and solutions that become available in the future?
If you’re restricted in a way that prevents you from innovating or adapting to market conditions by testing other products, tools, solutions, and software, you may be handcuffed and unable to compete with other shops.
Tekmetric standardizes how every auto repair shop operates
Running multiple shops should mean more revenue, more repair orders, and more momentum. For most MSOs, it also means more complexity, inconsistency, and time spent putting out fires instead of building the business.
The problem isn't growth. It's that most shop management systems weren't built for it. Separate logins for each location. No unified view of revenue or performance. Processes that drift from shop to shop until every location is running differently and nobody can figure out why the numbers don't match. Tekmetric fixes that at the root — one platform, every location, standardized from day one.
Tekmetric shops see measurable revenue growth as they adopt platform features. Shops average $612 per repair order (ARO), but that number climbs to $741 when they use Digital Vehicle Inspections and reaches around $800 when they add MotoVisuals videos. The lift isn't about charging customers more; it's about transparency, showing them what their vehicle needs so they can make confident, informed decisions. It also builds trust.
The operators running on Tekmetric show what that looks like in practice. Main Street Auto, a nationwide network of community-rooted shops, grew from six locations to more than 115 with Tekmetric at the core of every one. Rush Automotive, in Austin, Texas, saw $9,000 in new revenue in the first month across five locations. CarTech Auto Center, operating across multiple locations in Puerto Rico, grew monthly revenue 48% in nine months. The platform didn't change their ambition. It gave them the infrastructure to act on it.
Customer Experience
Customers Don't Know Which Location Is Your Best. Tekmetric Ensures They Can't Tell the Difference.
Inconsistencies across locations cost you. Skipped DVI photos, estimate delays, and declined jobs that nobody follows up on quickly add up, decreasing your revenue, and negatively affecting customer experience.
The shops that grow their ARO, earn repeat business, and generate the kind of reviews that actually drive traffic all share the same foundation: customers trust them. And trust isn't built in a single interaction — it's built through consistent, transparent communication every single time a vehicle comes in.
Tekmetric gives you the tools to make that consistency automatic. Inspections follow the same template at every location, with photos and video built into the estimate. Customers get their quote by text, approve the work from their phone, and can pay before pickup with Tekmetric Payments built in. Text-to-Pay, card-on-file, and Buy Now, Pay Later options make checkout faster and remove friction from bigger approvals. Their vehicle history travels with them, so when a customer visits a different one of your locations, whoever's at the desk already knows their vehicle history.
With Tekmetric Marketing running in the background, customers get automated appointment reminders, follow-ups on declined services, and service reminders based on real vehicle data. Online booking lets them schedule service 24/7 without picking up the phone. Google Review requests go out automatically after every completed service, turning great work into lasting reputation.
When shops share eight or more inspection photos with customers, ARO goes up because customers can see the repairs their vehicle needs. Euro Car Doctors, in Orange County, Calif., used that approach and grew their average ARO to more than $900. Garagisti, in Houston, Texas, built a practice around transparent, DVI-driven customer communication from day one and has averaged a $1,600 ARO since opening.
What This Looks Like in Practice
Standardized DVIs, streamlined customer communication, and shared vehicle history across every location so every customer gets the same experience regardless of which shop they walk into
Text-to-Pay and Buy Now, Pay Later built into checkout to speed up payments and boost approval on bigger repairs
Automated follow-up on declined services and service reminders that run from real vehicle data, not generic time intervals
Online booking available 24/7 so customers can schedule service without waiting for business hours
Google Review requests sent automatically after every completed service — no manual steps required
Permissions & Access Roles
Tekmetric Puts the Right Data in Front of the Right People Across Every Location
When you add a location, you're not just adding bays, you're adding staff, risk, and the need for accountability at a distance. The right access structure makes all three manageable.
Most MSOs hit a wall when they try to manage growing teams without the right controls in place. Too much access creates risk such as errors in repair orders, incorrect discounts, and sensitive financial data visible to people who don't need it. Too little creates friction, leaving advisors waiting on approvals, technicians without job visibility, and managers unable to make calls on their own.
Tekmetric gives you granular, role-based controls across every location. Technicians see their job queue, their assignments, and their hours. Managers have what they need to run their shop without touching another location's data. Advisors can build estimates, communicate with in-store customers, and process payments. Owners see the full portfolio in real time from a single login.
Before switching to Tekmetric, Will Rivera, owner of CarTech Auto Center in Puerto Rico, had to log into each of his five stores separately just to check sales or inventory. There was no unified view of the business, no way to enforce consistency, and no clean data to make decisions from. Within nine months of switching, CarTech had grown monthly revenue by 48%. Once CarTech had the structure to run five locations cleanly, expansion became the goal instead of survival.
Cross-location visibility for owners and ops leaders, with shop-level access for everyone else. Accountability is built into the platform and not enforced manually.
Controlled access to sensitive actions like unposting ROs, giving the right people the ability to correct errors without opening the door to bigger ones
Change Management
Switching Shop Software Doesn't Have to Disrupt Your Business. Here's How MSOs Make It Work.
Adopting new software across multiple locations is a real operational challenge. Tekmetric is built for it, from contract to live in a few days.
Christian Brothers Automotive migrated about 200 stores to Tekmetric in three months. Main Street Auto onboards 20 to 25 new locations a year and keeps growing. These aren't small transitions executed by large IT teams — they're operational rollouts managed by auto repair shop employees, built around Tekmetric's onboarding process.
Every new Tekmetric customer gets a dedicated onboarding manager who builds a rollout plan around your schedule, not a generic timeline. Data migrates. Workflows get configured. And most teams are fully operational within a week of going live, with results measurable within 30 days. That's not a promise. It's a framework Tekmetric has built and refined across thousands of shop launches.
The platform itself is designed to be learned fast. SJ Automotive cut estimate creation time from 40 minutes to about 10 minutes after switching. That's not a team that spent weeks in training. That's a team that picked up an intuitive tool and immediately got more done. When the platform is easy to use, adoption isn't a change management project. It's what happens when the tool earns buy-in on its own.
What This Looks Like in Practice
A dedicated onboarding manager, data migration support, and a go-live timeline built around your shops, not a one-size-fits-all playbook
An intuitive platform with a training hub, knowledge base, and U.S.-based support, so your team gets productive fast and stays that way
Access to the Tekmetric User Group, a community sharing what works, so you grow alongside operators who have already been where you are
Inventory & Parts Sharing
Stop Paying for Parts You Already Own. Tekmetric Gives Every Location Real-Time Visibility Into Stock.
When parts data is fragmented across locations, technicians wait, repairs get delayed, and margin slips through the cracks. Tekmetric centralizes inventory across every shop so your team always knows what's in stock, what's on order, and where to find it.
Multi-location inventory has a way of quietly breaking down. Parts get ordered twice because one location didn't know another had them. Technicians start jobs they can't finish. Reconciliation eats hours at the end of every month. The fix is straightforward: one centralized view of what's in stock across every location, updated in real time.
With Tekmetric, every authorized user sees real-time parts availability across every location. Orders happen directly inside the repair order — no supplier portal, no manual entry, no switching systems. When a technician picks up a job, they can see immediately whether parts are in stock or on order, so they're never starting work they can't complete. And when inventory hits a minimum threshold, reorder alerts surface automatically.
What This Looks Like in Practice
Real-time parts visibility across every location, connected directly to the repair order workflow so technicians, advisors, and managers always know what’s in stock
Parts ordering through PartsTech and others, directly from inside the RO. No portal toggling, no duplicate entries.
Automatic reorder alerts, purchase order tracking, and parts usage reports that give ops leaders a clean view of inventory performance across the portfolio
Profitability & Reporting
The Gap Between Your Best Auto Repair Shop and the Rest Isn't a Mystery. It's a Data Issue.
You know which locations perform. Tekmetric shows you exactly why, in real time, so you can act before the day is done.
Most MSOs are managing with last week's numbers at best. Reports get built manually. Data gets pulled from separate systems. By the time you know there's a problem at a location, the opportunity to act quickly and solve it is gone. That lag doesn't just slow down your decisions, it costs you money in real time.
Tekmetric's portfolio dashboard puts every location's data in one live view. ARO, car count, close ratio, gross profit, and technician efficiency are all filterable by shop, advisor, and date range, giving you a complete picture of what's working and where the gaps are. Seeing your top performer and your underperformer side by side makes it clear exactly what the best shop is doing that the others aren't.
The operators who use this visibility don't just track results — they act on them. Branch Automotive used Tekmetric's real-time data to build nine straight month-over-month increases in ARO, driven by stronger inspections, clearer recommendations, and the kind of customer trust that leads to consistently higher-value work. These aren't outliers; they're what happens when operators finally have the data to make better calls.
What This Looks Like in Practice
A portfoliowide dashboard showing ARO, car count, close ratio, and gross profit across every location in real time with shop-level filtering so you can see the full picture or drill into one location
Built-in reporting on technician productivity, DVI impact on ARO, end-of-day reconciliation, and discount and fee analysis — no exports, no spreadsheets, no five-hour Friday afternoon
Labor and parts matrices that lock in consistent pricing across locations, protecting margins and making every shop’s numbers comparable
As 2023 winds down, it's a great time to reflect on the strides made across the independent auto repair industry.
Throughout the year, we’ve been collecting data, talking to shops that rely on Tekmetric every day, and gaining valuable insight into how your shop can prepare for the best year possible in 2024.
That’s why we released our latest Industry Index Report earlier this year, to give shops and industry resources to not only compare their performance against other shops but also some concrete tips and tricks they can implement at their shop.
This comprehensive analysis not only assesses the industry's vitality but also seamlessly integrates unique Tekmetric’s partner shop data, presenting a goldmine of opportunities for optimizing shop management.
The result is a compelling narrative that provides a bird's-eye view of auto repair in 2023 and delves into Tekmetric-specific data, to offer shops like yours the actionable insights you need for success in 2024.
Here’s how shops can take advantage of these trends in 2024.
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