Michigan Auto Repair Law

Educational summary only – not legal advice.

Executive Overview

Michigan strictly regulates motor vehicle repair facilities through the Motor Vehicle Service and Repair Act. The law is designed to prevent surprise charges, ensure transparency in estimates and invoices, and give consumers meaningful control over repair decisions. Non‑compliance can result in voided charges, civil liability, and criminal penalties.

This document decodes the law in practical terms.

What This Means for Consumers

1. You Control the Price

·       If repairs are $50 or more, you are entitled to a written estimate before work begins.

·       A shop cannot charge more than the estimate without your approval, except for a narrow tolerance:

o   Up to 10% or $50 (whichever is less) may be exceeded unless you demanded strict approval.

2. You Can Limit Costs in Advance

·       You may sign a written waiver of estimate, but it must:

o   Be voluntary

o   State a maximum dollar amount you authorize

o   Be clearly labeled and conspicuous

3. No Surprise Repairs

·       Any additional repairs discovered after work starts require your authorization before they are performed.

·       Insurance company approval does not replace your consent unless you authorized it in writing.

4. You Own the Old Parts

·       You have the right to receive replaced parts when repairs are complete.

·       Exceptions are limited (warranty returns, hazardous parts, oversized items).

·       If parts are not returned, the shop must keep them at least 2 business days.

5. You Get a Detailed Final Invoice

The shop must provide a written invoice showing: – All repairs requested and performed – Parts used (new, used, rebuilt, etc.) – Labor charges – Names of mechanics involved – Certification that repairs were completed properly

6. Strong Remedies If the Law Is Violated

·       Illegal charges may be unenforceable.

·       You may recover damages, attorney fees, and costs.

·       Willful violations can support double damages.

·       Complaints may be filed with the Michigan Department of State.

What This Means for Repair Shops

1. Written Estimates Are Mandatory at $50+

·       Estimates must itemize:

o   Parts (with condition/type)

o   Labor rates and hours

o   Diagnostic charges

o   Shop fees and disposal charges

·       Estimates must be provided before work begins.

2. Over‑Estimate Rules Are Strict

·       You may not exceed the estimate unless:

o   The overage is within 10% or $50, or

o   You obtain customer authorization in advance

·       Authorization can be oral or written but must be documented.

3. Waivers Must Be Done Correctly

·       Estimate waivers must:

o   Clearly state a maximum authorized amount

o   Be knowingly and voluntarily signed

o   Be obtained before repairs begin

4. Parts Handling Is Regulated

·       Replaced parts must be returned unless a statutory exception applies.

·       Parts not returned must be retained 2 business days.

·       Disposition without authorization is a violation.

5. Detailed Final Invoices Are Required

Invoices must include: – Repairs needed vs. performed – Actual costs vs. estimates – Identification of all parts – Mechanic identification – Repair completion certification

6. Recordkeeping Is Critical

·       Retain estimates, waivers, invoices, authorizations, and part records.

·       Records must be available for state inspection.

·       Warranty‑related records must be kept for the duration of the warranty.

7. Enforcement Is Serious

·       Violations may result in:

o   Misdemeanor charges (up to 1 year jail / $5,000 fine)

o   Civil lawsuits with attorney‑fee shifting

o   Licensing consequences

If the Law Is Silent

Where the Act does not specify a procedure, general Michigan consumer‑protection statutes apply, including prohibitions on deceptive, misleading, or unfair practices.

Bottom Line

If you run a repair shop in Michigan, compliance is not optional paperwork — it is a pricing and authorization control system enforced with criminal and civil penalties. If you are a consumer, Michigan law gives you leverage, documentation rights, and powerful remedies when repairs go wrong.