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.
Some of the minds behind Tekmetric have been exactly where you are: running a shop and trying to maintain that fine balance between success for your team, success for your customers, and success for your business.
And we know there's always that extra .001 millimeter room for improvement, which is why we set out to help shops find and make those improvements. Everything about Tekmetric is about making your shop better!
But we also know that you spend a lot of time running your shop, and that’s why we’re happy to do that heavy lifting. Part of the natural byproduct of helping great shops get better is we have a lot of data and a lot of insight into how shops can, and maybe even should, operate.
That's the beauty of modern cloud-based shop management systems, they provide businesses like yours with a strong foundation of organization, simplicity, and functionality to run your shop, with the flexibility and freedom to run it in whatever way works best for you.
Looking specifically at the first half of 2023, we set out to gather a high-level view of the entire independent auto repair industry alongside unique Tekmetric shop data to understand how shops like yours can save time, improve operations, and bolster your profit margins.
The goal behind our latest industry index report was simple: we wanted to make it as easy as possible for shops like yours to take advantage of all that amazing data and industry expertise we've gathered along the way.
Keep cars on the road, customers happy, and your team supported for a successful business.
The automotive industry is one of the largest and most stable sectors in the U.S. economy, and becoming an automotive mechanic offers a rewarding, hands-on career path with plenty of opportunities for advancement.
Whether you're interested in working at local repair shops, car dealerships, or even starting your own garage, this guide will walk you through everything you need to know.
What do mechanics do?
Automotive technicians are responsible for diagnosing, maintaining, and repairing vehicles of all types—from compact cars to light trucks and SUVs. Their work involves inspecting brake systems, replacing worn parts, and performing routine services like oil changes. Many mechanics work in repair shops or at car dealerships, but others prefer to start their own repair shop.
Mechanics work with a variety of tools and diagnostic equipment. They often use computerized systems to identify issues and ensure the car is functioning properly. In today’s rapidly evolving automotive industry, mechanics are expected to stay current with new technologies, especially in hybrid and electric vehicles.
Below, you will find practical steps you can take today to start your path to becoming an auto mechanic.
6 Steps to becoming a car mechanic
Starting a new career path can be challenging, so we outlined 6 practical steps you can take to jump-start your career.
1. Do your homework
Before you start your career, it is wise to consider if this is the right job for you. Will it pay enough to support your needs? Will you be able to keep up with the physical demands of the job? These are just two of the questions you need to ask yourself before moving forward.
How Much Do Automotive Mechanics Make?
According to the U.S. Bureau of Labor Statistics, the average salary for automotive service technicians and mechanics in 2024 was approximately $49,670 per year, or about $23.88 per hour. However, salaries can vary based on several factors such as:
Location: Mechanics in cities or states with a higher cost of living tend to earn more.
Certifications: Holding ASE certifications or specializations can boost income.
Experience: Entry-level technicians typically earn less than seasoned professionals.
Industry: Working at car dealerships or as a mobile mechanic can pay differently than working in a small auto repair shop.
2. Training and education
Pursuing the right education, certifications, and training programs will set you on the right path to a successful career. Each path has unique benefits but it is best to select the path that will help you achieve your career goals.
Do I need to go to school to become a mechanic?
While formal training is not always required, it is highly recommended. Employers in both independent repair shops and dealerships prefer candidates with a solid educational background and certifications. If you opt not to pursue formal education, you will need to find a personal connection or an apprenticeship program where you can learn while working.
How long will it take to become a mechanic?
The timeline to becoming an auto mechanic depends on the education path you choose. In total, it may take anywhere from 6 months to 4 years to become job-ready, depending on the path and certifications you pursue. Here are the most common routes:
High School Diploma or GED: Most mechanic jobs require at least a high school diploma or equivalent.
Vocational Schools or Trade Schools: These typically offer certificate programs lasting 6 months to 1 year, giving students a fast track into entry-level roles.
Community College or Associate Degree: Completing an associate degree in an automotive technology program usually takes about 2 years and provides a deeper understanding of vehicle systems.
Apprenticeships: These allow students to earn while they learn and may last 2 to 4 years.
On-the-Job Training: Some auto mechanics begin their careers with no formal education and learn through hands-on experience at a repair shop or dealership.
3. Complete certifications
The most respected credential in the field is the ASE certification, offered by the National Institute for Automotive Service Excellence. Mechanics can earn ASE certification in areas such as engine repair, brake systems, electrical systems, automatic transmission, and heating/air conditioning.
To become ASE certified, you’ll need at least two years of work experience or a combination of formal training and on-the-job training. You’ll also need to pass one or more certification exams. Mechanics who pass tests in all major areas and have the required work experience can earn the title of Master Technician.
Being ASE certified shows employers and customers that you're a professional who meets industry standards. Many employers pay higher wages to certified auto mechanics, and some dealerships require ASE credentials for certain positions.
4. Prepare for your interview
Finding the right shop to start your career at can be a daunting task. It is often easiest to start at an express shop so you can get your feet wet before pursuing your career goals. Once you have applied to a shop, it is time to start preparing for the interview.
Mechanic Job Interview Questions
Whether you're aiming for a position at a dealership or local garage, be prepared for a formal interview. Here are common questions you may encounter:
Tell me about yourself and your experience as an automotive technician.
Why do you want to work for our company/shop?
How do you stay up to date with new automotive technologies and repair techniques?
What certifications do you currently hold (ASE, manufacturer-specific, etc.)?
Are you comfortable working weekends, evenings, or overtime if needed?
When answering, emphasize your hands-on training, work experience, and your commitment to continuous improvement. Don’t forget to highlight soft skills like teamwork, communication, and adaptability.
5. Utilize modern tools
The modern repair shop has embraced new technology to help improve efficiencies and revenue. Strive to have a solid understanding of modern diagnostic tools, apps, and software so you can hit the ground running. Another way to stand out to your future employer is to already have experience with their shop management system, so they don’t have to train you as much.
6. Get your hands dirty
Let the fun begin! Once you have landed your first job, learn to fail fast and ask questions as you meet more experienced technicians. Ask yourself each week if you are enjoying your job and if you think this is still the right career path for you. Don’t forget to make connections in the industry to boost your network and career path.
Final Thoughts
A career as an auto technician is more than just a job—it’s a skilled trade that keeps America moving. Whether you're working on a simple oil change or a complex engine repair, you'll be solving real-world problems and helping people stay safe on the road. With growing demand for mechanics who can service modern vehicles equipped with sophisticated electronic systems, the field is only becoming more essential.
We brought our entire team together in person to kick off the year in Houston, and to say I was anything short of blown away would be an understatement.
We pride ourselves on being a remote-first company and we’ll continue to build our team remotely with the best talent from across the world, but there sure was something special about having everyone in person at the same time, in the same place, uniting around the same goals.
When you have the opportunity to gather such an amazingly talented group in the same room, you’ll be surprised by what happens from the brainstorming, to the tactical collaboration – and well, all the fun we had together!
And this wasn’t all just about us. Because in the end, we’re here to support all the amazing independent auto repair shops that do great work every day getting cars back on the road.
Tekmetric's Dedication to Customer Obsession
A dozen of our customer shops were gracious enough to host folks across our teams as we spent time with shop owners, advisors, and technicians diving into the next batches of innovation the industry needs us to build into Tekmetric.
Running a repair shop is the background of everything we do. It's that partnership between Tekmetric and the auto repair shops that leverage the platform daily that enables us to build the absolute best tool for the job: running an independent auto repair shop.
As we continue to build Tekmetric, I’m especially keen to hear more than ever from technicians on this front.
At a time when industry continues to fight to keep up with challenges in educating, recruiting, and retaining top-quality techs, we’re taking a more intentional stance on the role a shop management system can play in helping your shop build and support the best team possible. Be sure to look for more from us throughout the year in this area.
We’ve always started anything we do at Tekmetric with a ‘customer obsession’ mindset – and I’m proud to extend this further down to the technician level this year.
As we grow, I’m also noticing how important it is to spend more of my time transferring real-world shop knowledge to every member of our team. In the early days, our Tekmetric office was the upper level of my shop, and I probably took for granted how easy it was for our team to observe the activities going on downstairs.
It's rejuvenating to now bring over 100 of our teammates to shops and immerse ourselves in the challenges our customers are facing. I smile when I see a well-drawn whiteboard with jobs listed out in columns, color-coded and sorted by promise time.
I think back on the early ideas that went into translating age-old management concepts into better versions of what are now standard features in Tekmetric.
I get even more joy when one of our new product managers builds well past my ideas, or I hear one of our onboarding managers asking a shop owner a question that even I’m not sure I would have thought of.
One thing is certain: the opportunity for our team to connect, collaborate, and brainstorm our next steps as a shop management system has ignited our drive for success.
Driving for Success in 2024
We are growing and maturing in real-time, and the pace of our new thinking and new innovation is mind-blowing.
If you’re a current customer, our doors are always open. Feedback from front-line employees, technicians, service writers, general managers, and of course shop owners, has turned into some of our most powerful features and functionality.
If you want to connect with our team, we welcome you to email us at support@tekmetric.com to set up a time with our product team to discuss ways we can improve, or set up a 1:1 consultation if you need additional support.
And if you haven’t made the switch to Tekmetric yet, what are you waiting for? Book some time with one of our Shop Advisors here to talk through how we might be able to help your shop run better than it ever has.
From our team to yours – thanks for your continued trust and support as we grow Tekmetric. 2024 figures to be a great year for us and for the industry. If there’s anything I can personally do to help your shop measure up to another level, please reach out!
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