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.
Your shop’s ability to grow, make a profit, and succeed hinges on clear and accurate invoicing.
If you’re still using pen and paper for your invoice software, you probably spend a lot of time reconciling records at the end of the day and may even have to stay late to put your books in order.
Paper means lots of copies, transposition of information, and a high probability of making mistakes. The same holds true if you’re using multiple software programs to juggle records at your shop to put together information for invoices. If you aren’t using a single, comprehensive system, there’s a good chance details will be incorrectly copied or left out.
Mechanics need the best tools to perform repairs efficiently and safely. With so many brands in the automotive industry, it can be hard to sift through the noise to find the right automotive tool brand for you. Whether you are a beginner or an expert mechanic, this guide will help identify the best brands for you.
Below, we have highlighted the top automotive tool brands to help you select the best tools for your needs. We have hand-selected these brands to provide a variety of price points and quality levels. Each brand has something unique to offer and we hope this guide helps you narrow down your choices.
Our Top-Rated Mechanic Tool Brands
While every mechanic tool brand has something unique to offer, these high-quality brands stood out to us based on value, reviews, durability, and performance. Tekmetric reviewed these brands without any affiliate commission to remove bias.
Matco Tools: Premium tools for everyone
Matco is a prominent brand in the automotive tool space because of its reputation for durable and reliable products. Featuring a wide variety of hand tools (and apparel) at reasonable prices, Matco has become a leading brand. Products include wrenches, sockets, ratchets, screwdrivers and more. This brand is a great option for mechanics looking for quality tools that are built to last.
Kobalt: Budget-friendly tools
Kobalt has become a popular choice for mechanics looking for professional-grade tools without breaking the bank. They have found the perfect balance of quality and price. Plus, they are easy to find and readily available at Lowes and Amazon. However, if you are looking for highly specialized tools, Kobalt may not offer every tool you need. In addition, you may find better quality from other brands but quality comes at a cost.
Wright Tool: American-made tools
Wright is an innovative USA tool supplier that has created a reputation for quality long-lasting tools. Wright features an extensive product range including wrenches, sockets, hammers, tool storage, screwdrivers, and more. Wright is a great option for those looking for innovation and American-made tools.
Snap-On Tools: Professional-grade hand tools
Snap-On has become synonymous with exceptional quality, precision, and durability, making it a preferred choice among professional automotive mechanics. The premium pricing will be easily justified by professional mechanics and those looking to make an investment but may not be the best choice for casual or DIYers. Snap-On is a great choice for those looking for top-notch quality and performance.
Craftsman Tools: Reliable and budget-friendly
Craftsman is another popular choice for mechanics looking for quality tools without the premium price tag. Craftsman offers a wide variety of tools including sockets, torque wrenches, and ergonomic power tools. Craftsman is a great choice for those looking to find a balance between price and quality. Craftsman is available at most of the large retailers including Amazon, Lowes, and Home Depot.
OTC: Diagnostic and specialty tools
OTC is a reputable brand offering specialty equipment for mechanics. OTC specializes in jacks, diagnostics and speciality equipment. They do not offer every tool you will need but they have select specialized tools that can be hard to find elsewhere. OTC is a great choice for mechanics looking for technical products or needing specialized equipment.
Tek-Tip: Don't forget to look at warranties when comparing the best mechanic tool brands.
Husky: Affordable quality tools
Husky is a big name in the automotive tool space because they have found the right balance of quality and price. They have a large selection of tools and back them up with a lifetime warranty. Products include mechanic tools sets, wrenches, sockets, and more. Husky is easy to find at Home Depot, Amazon, and other large retailers. Most users will like Husky but if you want to make a larger financial investment, you can find higher-quality brands elsewhere.
Proto: Durable and innovative tools
Proto is a reputable brand in the automotive tool industry, offering durable, high-quality tools that are often favorably compared to other brands. Products include adjustable wrenches, combination wrenches, screwdrivers, and more. They offer innovative designs and competitive pricing which make them a viable option for professional mechanics.
Blackhawk: Specialty shop equipment
Blackhawk is another specialty brand offering jacks, stands, ramps, creepers, and shop equipment. While they do not sell every product mechanics need, they specialize in a few key products and have made a good name for themselves. Blackhawk is available at some major retailers including Amazon and Northern Tool.
Milwaukee Tool: Cordless power tools
Milwaukee is a big name in the tool space in general and has been building its presence in the automotive space. Milwaukee offers a wide variety of tools including power tools, lighting, safety equipment, mechanic tool sets, wrenches, and more. They specialize in innovative cordless power tools and can be found at Amazon, Ace Hardware and Home Depot.
DeWalt: Reputable retail supplier
DeWalt is a large supplier of automotive tools and typically caters to both DIY and professional mechanics alike. They offer a comprehensive product line featuring wrenches, power tools, tool kits, storage, hand tools, and more. DeWalt is a great option for those looking for a reputable brand that is easy to find at Amazon, Lowes and Ace Hardware.
Mac Tools: Premium-grade tools
Mac Tools is a leading brand in the automotive space and is recognized for durability and quality. They offer almost every tool a mechanic will need but they are not available at most retailers (buy from a franchise or their website). Despite being harder to locate, Mac Tools is included in this list for a reason and has a lot to offer mechanics looking for professional-grade tools.
Makita: Automotive power tools and batteries
Makita is a reputable automotive tool company specializing in power tools and batteries. If you stay within the Makita ecosystem, their batteries can power over 325 different tools. Power tool products include drive impact wrenches, grinders, lighting, and more. Makita is a top choice for mechanics looking for cordless power tools at a good price.
SK Tools: Renowned quality
With over 100 years of experience, SK has created a reputation for delivering quality tools that last. SK offers mechanic tool sets, sockets, ratchets, wrenches, screwdrivers, tool storage, and more. You can purchase SK Tools on their website, Amazon, and other popular retailers. SK is a great choice for those looking for quality tools at an affordable price point.
How to Pick the Best Tool Brand for You
Price, durability, warranty, and brand reputation are some of the biggest factors when looking for the best tool brand for you. When selecting your brand, make sure it meets your specific needs, budget, and has a strong reputation.
Price
Price is an important factor to consider when looking for the best mechanic tool brand. Consider if it is worth it to purchase a higher quality brand to ensure your tools last longer and need to be replaced less frequently. Lastly, consider additional costs such as batteries, electricity, and storage.
Durability
When selecting your brand, durability is an important factor to consider. Some brands are cheaper but will cost you more over a lifetime if you have to replace them regularly. If the tool has an active lifetime warranty, then this factor holds less importance. Lastly, consider how much you use your tools. Every day? Once a month? If you use tools every day, the extra expense of quality tools may be justified.
Warranty
When looking for the best mechanic tool brands, warranties can be one of the most important factors to consider. Some brands offer lifetime warranties, others offer limited warranties or no warranty at all. Replacement costs can be substantial so make sure you research beforehand.
Reviews
Reviews offer first-hand perspectives of how the tool performed for others. Research each tool and also research the brand as a whole and see how other mechanics are liking the tool/brand.
Essential Tools for Mechanics
Every automotive mechanic should have these hand tools to assist with common repairs and streamline their workflow. While not exhaustive, this list will handle the majority of common car repairs.
Choosing the right mechanic tool brand is essential for maximizing performance and efficiency in your work. You can make an informed decision by considering your specific needs, researching brand reviews, and finding the right warranty. Our top brands mentioned in this blog have earned the trust of professionals for their reliability and durability, so invest wisely in the one that best suits your needs.
Compare your shop's performance against real data from thousands of auto repair shops by state.
Benchmarking data is only useful when it changes what you do next.
If you've run your shop's numbers through the Tekmetric Shop Index and seen where you rank on ARO, car count, parts margin, and effective labor rate — good. You have a diagnosis. Now you need a plan.
This post walks through what each gap in your TSI results is actually signaling, which operational levers move the needle on each one, and how to build a focused 90-day improvement target that gives your team something concrete to work toward.
Start With the Biggest Gap
Your TSI results will show you four rankings. Resist the temptation to try to improve all four at once. The shops that make the most progress pick the metric with the largest gap and stay focused on it for a full quarter before adding another priority.
Trying to improve ARO, car count, parts margin, and effective labor rate simultaneously often means improving none of them because the operational changes required for each are different and can compete for your team's attention.
So step one is simple: look at your four rankings, find the biggest gap from the industry benchmark, and start there.
Gap: ARO Below Benchmark
If your average repair order is lagging, the most common root cause is inspection performance. Either digital vehicle inspections (DVIs) aren't being completed consistently, or they're being completed but not converted into approved work.
A few questions to answer before you act:
What percentage of repair orders have a completed DVI attached?
Of the DVIs sent to customers, what percentage include photos or video?
What's your close ratio on recommended work?
If DVI completion is below 90%, that's almost always the first lever. Tekmetric's Inspection Report shows completion rates by technician, making it straightforward to identify who needs coaching and who's already performing well.
"Now I can look at everybody at a glance. I can be in a different state, different city and know exactly what's going on in each location all the time." — Leroy Ingram, Ooroo Auto Care, Tekmetric Customer
If DVI completion is strong but close ratio is low, the issue is likely in how inspections are being communicated to customers — photo and video quality, the language in findings, how quickly the estimate follows the inspection.
Shops on Tekmetric also have access to the Parts and Labor Matrix, which protects against underpricing. It can be a quiet ARO killer that doesn't show up until you look at margin data.
A car count gap can mean two different things depending on how it breaks down: you're not bringing in enough new customers, or your existing customers aren't returning at the rate they should. Both problems need attention, but they need different solutions.
For new customers, the questions are acquisition-focused. Tekmetric's online booking gives customers a way to find you and schedule an appointment 24/7 — filling bays without your team picking up the phone. The more friction you remove from the booking process, the more new customers follow through.
For returning customers, the questions shift to communication. Are declined jobs being followed up? Are customers receiving service reminders? Tekmetric Marketing automates follow-ups on declined work and scheduled maintenance intervals — so your team stays in contact with your car count without adding manual effort.
"Seven hundred and two dollars in ad spend has generated 11 net-new customers and $12,802 in new customer revenue — an 18.3x return on ad spend before factoring in the lifetime value of those customers returning for future visits." — Tanner Markham, Phase 2 Automotive, Tekmetric Customer
A parts margin gap is almost always a pricing problem — either your markup isn't keeping up with cost increases, you're applying flat markup where a tiered matrix would protect margin better, or your team is manually overriding prices inconsistently.
The fix starts with reviewing your Parts Matrix in Tekmetric. A well-structured matrix automatically applies the right markup based on part cost ranges, removing the inconsistency that comes from individual pricing decisions at the job level.
After updating the matrix, run your Parts Purchased Report to verify that retail pricing is reflecting the changes accurately. This is also a good time to cross-reference against recent vendor invoices — if costs have moved significantly in the last 6 months, your matrix thresholds may need updating.
If your effective labor rate is trailing your posted rate, the most common culprits are inconsistent discounting, flat-rate job structures that cap labor recovery, or package pricing that doesn't account for actual labor time.
Start by pulling your Discount Detail Report to see where and how often discounts are being applied. If they're being applied inconsistently across your team, that's a coaching conversation — and Tekmetric's real-time reporting makes it easy to see which service writers are discounting most frequently.
The Labor Matrix is the structural fix. Similar to the parts matrix, a tiered labor matrix adjusts the billed hours or dollar amount based on configured ranges, protecting margin without changing what customers see on the invoice.
Once you've identified your primary gap and the lever that addresses it, the last step is turning it into a measurable target for the next 90 days.
A good 90-day target is specific, tied to a leading indicator, and gives your team something to track week over week. For example:
ARO gap: "Increase DVI completion rate from 72% to 90% over 90 days, tracked weekly via Inspection Report"
Car count gap: "Launch declined-job follow-up automation within 30 days; track returning car count monthly for 90 days"
Parts margin gap: "Update Parts Matrix for all parts under $150 within two weeks; track parts margin weekly via Parts Purchased Report"
Labor rate gap: "Reduce average discount percentage by 15% over 90 days, tracked via Discount Detail Report"
These aren't arbitrary numbers — they're examples of the leading-indicator approach that lets you see progress before the outcome metric moves. Set yours based on where you're actually starting, not where you want to end.
Check Your Rankings Quarterly
Your TSI results are a snapshot. Set a reminder to re-run the benchmarking every quarter so you can see whether your numbers are moving relative to the industry — not just relative to your own history.
The shops that use benchmarking most effectively are the ones that treat it as a recurring discipline, not a one-time exercise.
"Thanks to Tekmetric, we've really enhanced our business and are looking to expand. We're the #1 shop, 6 years in a row in Upstate New York." — Chris Chevalier, AAA Auto Repair, Tekmetric Customer
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