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.
If you're running an auto repair shop, investing in a car lift is essential. A high-quality vehicle lift makes it easier to work on cars, increases efficiency, and ensures safety. But how much does it actually cost to install a car lift? That depends on the type of lift, installation costs, and other factors such as weight capacity and safety features. Let’s break it all down so you can pick the best automotive lift for your needs.
Do you need a car lift?
Car lifts are essential in auto repair shops because they provide mechanics with better access to a vehicle’s undercarriage, making inspections, repairs, and maintenance tasks safer, more efficient, and more comfortable. Unlike floor jacks, lifts offer a stable and elevated workspace, reducing the risk of injuries and improving workflow.
With a car lift, technicians can quickly perform tasks such as oil changes, brake repairs, exhaust system work, and suspension adjustments without having to crawl under the vehicle. This efficiency leads to faster turnaround times and higher shop productivity.
Additionally, lifts help maximize shop space by allowing vertical storage for vehicles, which is especially useful in high-volume repair shops. Overall, car hoists are a fundamental investment for any auto repair shop looking to enhance efficiency, safety, and the quality of service provided to customers.
Types of car lifts and their costs
Each type of lift has its pros and cons. Some lifts are better for oil change shops and some are better for tire or repair shops. In general, car lifts can cost between $1,000 and $20,000 depending on brand, lift capacity, lift height, and features. Here’s a comprehensive look at the most common lift options for your shop.
Two-Post car lifts
A two-post car lift is one of the most popular choices for auto repair shops. They are popular because they take up less space and can be affordable depending on features. Make sure to plan out your shop layout as these lifts are permanent and cannot be easily moved. These hoists come in asymmetric and symmetric configurations, allowing flexibility based on vehicle type.
Price: $3,000 - $10,000
Best For: General repair shops working on SUVs and smaller cars.
Lift capacity: 5,000 - 10,000 lbs.
Popular brands: BendPak, Rotary, Tuxedo.
Advantages: High lifting capacity while saving space for smaller shops.
Four-Post lifts
A four-post lift provides greater stability and weight capacity, making it ideal for heavier vehicles. If your shop works on a lot of trucks or heavy-duty vehicles, the four-post lift might be the best lift for you. Tire and brake shops should avoid these lifts as the tires sit on the lift making it difficult to work on these areas.
Price: $5,000 - $25,000
Best For: Dealerships and professional shops.
Lift capacity: 7,000 - 14,000 lbs.
Popular brands: BendPak, Titan, Tuxedo, Rotary.
Advantages: Heavier lifting capacity for larger vehicles.
Scissor lifts
If saving space is your top priority, the scissor lift may be your best option. They are almost invisible when not in use and lie flat on the ground to optimize garage space. Double check the lift capacity and height to make sure it can accommodate the types of vehicles you work on.
Price: $1,500 - $10,000
Best For: Quick repair shops where space is limited.
Lift capacity: 5,000 - 15,000 lbs.
Brands: QuickJack, BendPak, MaxJax
Advantages: Compact and cheaper.
In-Ground lifts
In-ground car lifts are a great choice for shops that work on heavier vehicles and want to save space. These lifts are the perfect balance of the space saving capabilities of a scissor lift while also providing optimal strength for large vehicles.
Price: $10,000 - $25,000
Best For: Repair shops and dealerships.
Lift capacity: 5,000 - 20,000 lbs.
Brands: BendPak, Rotary, Atlas
Advantages: Compact while also offering enough muscle.
Portable car lifts
If your shop layout frequently changes or you are a mobile mechanic, a portable lift may be the best option. These lifts can be easily moved around a garage or taken to a job site and are often the cheapest option. However, they can be less reliable and don’t provide the same level of strength as a stationary lift.
Price: $500 - $5,000
Best For: Home garages, mobile mechanics, DIY enthusiasts.
Lift capacity: 5,000 - 10,000 lbs.
Brands: QuickJack, MaxJax
Advantages: Affordable, compact, mobile.
Installation prices for car lifts
Installing a vehicle lift is not just about purchasing the unit. You also need to consider the installation costs, which can vary depending on the type of lift and garage setup. Here are the main factors affecting installation costs:
1. Concrete requirements
Most lifts, especially two-post car lifts and four-post lifts, require a thick concrete base. If your floor isn’t thick enough, you may need reinforcement, which adds to the cost.
2. Electrical setup
Lifts need power, and if your garage isn’t wired for it, you’ll need an electrician.
3. Air compressors & accessories
Some lifts require compressors and additional balancer tools for operation.
4. Professional installation
Hiring a pro ensures the lift is ALI-certified and meets safety regulations.
Choosing the right car lift for your auto repair shop
Each type of lift comes with its own advantages, making it important to choose the right one based on your needs. Here are some things to consider when making your decision:
How big is your shop?
Which repair services do you offer?
What is your budget?
Does the lift offer a warranty?
Will you garage layout change over time?
How important is a car lift warranty to you?
How heavy will the vehicles you work on be?
What is the average review rating of the lift?
How easy or hard is the lift to install?
How much will the maintenance cost?
Final thoughts
Installing a vehicle lift in your auto repair shop is a smart investment. Whether you choose a two-post car lift, scissor lifts, or portable lift, knowing the lift cost and installation costs upfront can help you budget wisely. Whatever you choose, ensure it’s ALI-certified for safety and performance. Lastly, don’t forget about regular maintenance and safety inspections to ensure your lift continues to run for many years.
Navigating the estimate and repair process starts with an automotive repair order form. And a manual process may create more work for your team. Your service advisors are trying to move everything along quickly and accurately, but they're human and mistakes do happen.
With a manual automotive repair order form process, it can be easy for service advisors to get lost in the hustle due to typos, illegible handwriting, or estimates saved in the wrong place.
You might also find that it’s difficult to guide your business with a manual estimate and repair order process because data collection can become an enormous challenge.
Using traditional automotive repair order forms is kind of like trying to navigate a road trip with a paper map: it can be easy to get lost in the process, and once you’re lost, it can be difficult to get back on track. Nowadays, paper maps are just one of our endless choices for navigation tools, and how many drivers still use them?
Automotive repair manuals are packed with detailed instructions. Instead of grappling with trial and error, technicians can follow step-by-step guides. This boosts confidence and reduces repair times. These manuals aren't just about fixing problems. They provide insights into preventive maintenance, helping technicians keep vehicles in tip-top shape. More uptime for a vehicle means happier clients and fewer surprise breakdowns.
Key Benefits of Auto Repair Manuals
Detailed Instructions: Clear, step-by-step procedures make repairs efficient and straightforward.
Accurate Information: Ensures that the latest techniques and specifications are being used.
Preventive Maintenance Tips: Helps keep vehicles in better shape for longer.
Enhanced Learning For New Techs: Fast-tracks new mechanics by providing valuable knowledge.
Good manuals go beyond just the basics. They often include diagrams, diagnostic trouble codes, and even tips from experienced technicians. This can be a game-changer, especially for those rare, hard-to-solve problems.
Quality manuals foster consistency. Regardless of which technician picks up the job, the repair approach remains standardized. This is essential for shops that aim to maintain a reputation for reliability.
In summary, investing time in finding and using quality car repair manuals is a no-brainer for any technician aiming for efficiency, accuracy, and safety in their work.
The Best Car Repair Manuals
1. Factory Service Manuals (FSM): The Gold Standard
When it comes to automotive repair, Factory Service Manuals (FSM) are considered the best in the market. These manuals come directly from the car manufacturer, providing the most accurate and detailed information available. FSMs are the backbone of any serious technician's toolkit. Their reliability and depth make them indispensable, ensuring that every nut and bolt is turned precisely according to manufacturer guidelines.
Pros
Accuracy: FSMs offer the exact specs and procedures recommended by the manufacturer. It's as close as you can get to OEM (Original Equipment Manufacturer) specifications.
Detail: These manuals feature in-depth diagrams, step-by-step procedures, and comprehensive troubleshooting instructions. They cover everything from basic maintenance to complex repairs.
Comprehensive Coverage: FSMs cover all models and variations of a particular vehicle. Whether you're dealing with a base model or a fully loaded version, the FSM has you covered.
Updates and Revisions: Manufacturers often update FSMs to include fixes for common issues, recall information, and software updates. You get the latest and greatest info.
Online Options: Manufacturer websites, auto forums, and E-commerce platforms often offer these manuals in digital format.
Cons
Cost: Depending on the manufacturer, these manuals can be more expensive than other options.
Learning Curve: Factory Service Manuals are written to professionals and do not offer as much explanation as other manuals.
Access: Online versions might require proprietary software or access through specific portals.
2. Chilton Repair Manuals: Accessible and Beginner-Friendly
Chilton auto repair manuals have earned a reputation for being highly accessible and easy-to-use, making them a favorite among DIY enthusiasts. These manuals provide detailed information that is crucial for diagnosing and repairing a wide range of vehicles. They also provide maintenance schedules to keep your cars on the road longer.
Pros
User-Friendly: Unlike Factory Service Manuals, Chilton uses clear and easy-to-understand language making even complex repairs easier to understand and execute.
Detailed Diagrams and Illustrations: Visual aids enhance comprehension, providing clarity on intricate parts and procedures.
Troubleshooting Sections: Identify problems quickly with systematic guidance to diagnose and fix common issues.
Layout: Chilton manuals are organized in a way that makes finding information quick and painless. Indexes and tabulated sections ensure that users can quickly navigate through the content without unnecessary hassle.
Online Options: Chilton auto repair manuals can now be accessed online, providing additional convenience for tech-savvy technicians and DIYers. Benefits include instant access, search functionality and regular updates.
Cost: Some libraries and websites feature these manuals for free making them a more budget-friendly option for DIY enthusiasts and small auto shops.
Cons
Generic Content: While comprehensive, Chilton manuals may not be as detailed as Factory Service Manuals, especially for complex repairs. Chilton tries to cover a range of models, which can sometimes lead to less specific guidance.
Visuals: Chilton can be stingy on visuals and may not be best for those technicians who prefer diagrams and graphics.
Complex Repairs: May lack the depth needed for very advanced or intricate repairs that professional mechanics might require.
New Models: May not always cover the very latest models immediately after they are released.
3. Haynes Repair Manuals: DIY Friendly Guides
Haynes auto repair manuals have been a go-to for DIY enthusiasts because they use easy-to-understand language and more visuals than other options. These guides excel in breaking down complex automotive tasks into simple, easy-to-follow steps. Each manual is backed by hands-on reviews, ensuring the steps and procedures actually work. This reliability adds a layer of trust, making these guides a dependable companion for any repair task.
Pros
Visuals: Haynes repair manuals offer more photos and illustrations than Chilton.
Comprehensive Coverage: Haynes auto repair manuals cover everything from maintenance and troubleshooting to engine and transmission repair. However, they do not offer as much depth as Factory Service Manuals.
Tips and Tricks: Cost and time saving tips from experts are included in Haynes manuals to speed up any repair project.
User-Friendly: Written in plain English withlarge text, headings and lie-flat design make this manual easy to read even with greasy hands.
Digital Options: Online versions are available and feature search functionality, zoomable images and bookmarks. Haynes is typically cheaper than Factory Service Manuals.
Cons
Shallow Content: While Haynes offers comprehensive coverage, more experienced mechanics prefer Factory Service Manuals for more specific guidance.
Coverage for New Models: May not immediately cover the latest vehicle models or recent changes in technology.
Specialized Repairs: Might not cover specialized or unique repairs that are specific to certain models or configurations.
4. AllDATAdiy: Online Subscription for Advanced Users
ALLDATAdiy repair manuals offer original factory repair information that professionals use, including maintenance schedules, diagrams, and repair procedures. However, they only offer an online subscription-based model with no print options. These manuals are typically preferred by professional technicians and have a larger learning curve for DIY enthusiasts.
Pros
Factory-direct: Information is straight from the factory and has not been edited.
Updates: Regular updates cover newer car models and reflect the latest information.
Accessibility: Online format enables you to take this with you wherever you need it (as long as you have a stable internet connection).
Comprehensive: Offers in-depth diagnostic and troubleshooting guides to help identify and fix issues accurately. ALLDATAdiy provides more advanced information than Haynes or Chilton.
Cons
Cost: ALLDATAdiy can be more expensive than other auto repair manual options because of the subscription-based pricing model.
Learning Curve: The information can be technical and may assume a certain level of expertise, which can be challenging for novice DIYers.
Interface: The digital platform might have a learning curve, particularly for those who are more accustomed to using printed manuals.
5. E-Manuals Online: Convenience in the Digital Age
Navigating car repairs has never been simpler, thanks to the rise of e-manuals. No more flipping through bulky paperback manuals—technicians now have repair information at their fingertips, right on their devices. The world of auto repair is rapidly evolving, and e-manuals are leading the charge toward a more efficient, convenient, and eco-friendly future.
Pros
Accessibility: Technicians can access manuals 24/7, whether in the shop or on-site at a customer's location. These manuals can be accessed digitally, printed or downloaded for offline use.
Search Functionality: Quickly locate specific information using keyword searches, saving precious time.
Environmentally Friendly: Reduces the need for printed materials, contributing to environmental sustainability.
Cost: Generally less expensive than printed manuals or subscription-based services like ALLDATAdiy.
Cons
Digital Proficiency: Users need a basic level of digital proficiency to navigate and use the manuals effectively.
Updates: Unlike subscription services, E-Manuals may not receive regular updates, potentially leading to outdated information, especially for newer vehicle models.
Technical Depth: E-Manuals may assume a certain level of mechanical knowledge, which can be challenging for beginners. They may lack the depth required for very advanced or specialized repairs compared to Factory Service Manuals.
6. MOTOR Auto Repair Manuals: Professional Grade Manuals
MOTOR vehicle service manuals are widely used by professional mechanics and automotive technicians. They provide extensive coverage, detailed diagnostics, and professional tools that are essential for efficient and reliable vehicle repairs. However, their cost, complexity, and professional focus may make them less suitable for casual DIY users.
Pros
Extensive Coverage: Provides detailed repair procedures, diagnostic information, and maintenance schedules for a wide range of vehicle makes and models.
Up-to-Date Information: Regularly updated to include the latest service bulletins, recalls, and technical updates from manufacturers.
Print and Digital: Available in both print and digital formats, catering to different preferences and needs.
Labor Time Guides: Includes labor time estimates for various repairs, which are useful for both professionals and customers to estimate repair costs.
Cons
Cost: Generally more expensive than consumer-oriented manuals like Haynes or Chilton with online options having recurring subscription fees.
Technical Language: Written for professionals, so the language and terminology may be difficult for novice or DIYers to understand.
Professional Orientation: Primarily targeted at professional mechanics, which means it may not always consider the needs of DIY enthusiasts.
7. Car Repair Forums and Online Communities
Auto repair forums and communities offer a treasure trove of knowledge that complements online auto repair manuals. Technicians can gain real-world insights, share experiences, and solve unique issues by participating in these interactive platforms. Top platforms include Reddit, YouTube, FaceBook, Instagram and more.
Pros
Build Relationships: Forums and communities provide opportunities to converse with fellow mechanics and learn from peers.
Relevant Information: Chances are that if you have had a question that someone else has asked it before you did. Provides up-to-date information.
First Hand Information: Learn from those in the field with first hand knowledge.
Cost: Most car repair forums are free to join and use, making them an affordable resource for information and troubleshooting.
Cons
Inconsistency: Each forum has different rules for members and it can take awhile to find the information you are looking for.
Quality of Information: Information can vary in accuracy, as advice is given by users with different levels of expertise and experience.
Standards: Solutions may vary in quality and reliability, and some suggestions may not follow professional or manufacturer guidelines.
How to Choose The Best Auto Repair Manual
Selecting the best auto repair manual can make a huge difference in terms of efficiency and ease of fixing vehicles. Technicians should consider a few key factors before settling on a manual:
Coverage: Make sure the manual covers the specific make and model of the vehicle being serviced. Some manuals offer broader coverage, while others are more specialized.
Detail: Look for manuals that provide step-by-step instructions, diagrams, and photos to make the repair process as clear as possible.
User Reviews: Check out what other techs are saying. Real-world feedback can offer insights into the manual's reliability and usefulness.
Updates: The automotive world changes constantly. Manuals that receive regular updates will always have the latest information and procedures.
Cost: Consider the price but also weigh it against what you’re getting. Sometimes paying a bit more means getting a lot more in value, other times it is best to opt for a free version from a library or website.
Accessibility: Evaluate how you will access the manual. Can it be easily viewed on a smartphone or tablet while you’re in the shop? Is there a downloadable option for offline use?
Always remember, the best manual is the one that fits your specific needs and workflow. Each repair shop is different, and what works for one might not work for another. Be strategic and thoughtful to ensure you’re choosing a resource that will serve you well in the long run.
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