Repair facilities

To obtain a license, you will need to complete, sign, and submit a Repair Facility Application. Prior to doing applying for registration, it is also necessary to read through the Repair Facility Manual and Motor Vehicle Service and Repair Act and attest that you understand these requirements. 

If applying online, you must also complete a Repair Facility Certification statement. 

Repair Facility Original Application   

Repair Facility Application Signatures and Certification Page   

If closing a repair facility, you will need to submit a Michigan Repair Facility Closeout Statement to the Michigan Department of State, surrender or dispose of your registration, and cease all business performing vehicle repairs.  

Michigan Repair Facility Closeout Statement  

State law gives the Michigan Department of State the authority to deny, suspend, or revoke a license or certification if the licensee or applicant has not complied with the provisions of the Acts or Rules. Repair facilities may receive a written warning, be placed on probation, be fined, or have their license suspended if the actions cannot be resolved.

All administrative actions are reported through e-Services under Repair Facility Services.

Go to e-Services

A repair facility or mechanic who performs a motor vehicle repair without a license issued by the Michigan Department of State is in violation of the Motor Vehicle Service and Repair Act.

Information regarding an unlicensed repair facility or uncertified mechanic can be provided anonymously to the Michigan Department of State as follows:

Michigan Department of State
Regulatory Monitoring Division
P.O. Box 30046
Lansing, MI 48909-7546

Phone: 888-SOS-MICH (888-767-6424) 
Fax: 517-373-7419
Email: SOS-RMD-800@Michigan.gov

You can also file a complaint against a repair facility through e-Services. 

Go to e-Services

Repair facilities must keep the following records for every vehicle repaired at their business:

• Written estimate
• Final invoice
• Any waivers, warranties, or sublet invoices
• Part purchase receipts and any other documents that pertain to the repair transaction

Records must be kept for at least five years. Records of warranties, contracts or agreements that extend beyond 5 years must be maintained until the warranty or contract period expires.

Records are subject to inspection by law enforcement officials and Michigan Department of State investigators during unannounced visits to repair facilities.

Major Component Part Record 

Repair facilities are required by law to display a consumer information sign informing customers of their basic rights under the Motor Vehicle Service and Repair Act [MCL 257.1332a(1)]. 

Repair facilities must produce the signs in line with the following requirements:

• Includes the mailing address, email, and telephone number of the Michigan Department of State Office of Investigative Services. 
• Follows the size, construction, and wording regulations as defined by Appendix A of the Repair Facility Manual. 
• The sign must be legible and easily visible to customers. 

Signs must be placed by the cashier’s area and at each location where service orders are written. 

The name and Michigan certificate number of each mechanic who performs a diagnosis and/or repair must be listed on your final invoice. If repair work is performed by a trainee under the supervision of a certified mechanic, the name and number of the certified mechanic must also be listed on the final invoice along with the name and permit number of the trainee.

In any repair transaction, the "customer" is the owner or operator of the vehicle brought for service or repair. 

In a damaged vehicle transaction, the customer is not the insurance company or extended warranty company, unless the customer has given the insurance company a written, signed authorization to act as his or her agent in the transaction.

Authorization 
Approval for repairs may be given only by the owner of the vehicle or the person operating the vehicle when repairs are requested. 

Unless the insurance company presents the repair facility with a signed, written authorization from the owner or operator to contract for repairs, no work may commence at the sole direction of the insurance company or extended warranty company. 

Generally, the repair facility must still give the customer a written estimate. In a few cases, the facility may obtain a signed waiver of estimate, as provided in the law.

Additional repairs and considerations
For additional repairs costing more than 10% or $50 (whichever is less) above the original estimate, specific written or oral authorization must be obtained from the customer, unless the customer specifically gives the insurance company or extended warranty company a signed, written authorization to act as his or her agent in all aspects of the repair.

The following conditions must also be met:

• The customer has the right to the return of replaced parts and the right to a detailed final bill and may authorize the repair facility to dispose of replaced parts. 
• No other rights and remedies of the customer under the law and rules are altered.

A repair facility is required to provide a written estimate in each instance when the price of the diagnosis, service or repair of a motor vehicle will be $50 or more. The price of the estimate must reflect as closely as possible the actual cost of the repair. 

A written estimate must contain the following information:

• A list of all parts necessary for a specific job, including the price of the parts. If any of the parts is "used, rebuilt, reconditioned, new, new OEM, OEM surplus," those parts must be identified as such on the estimate. 
• Labor costs, showing both the hourly price of labor, and the estimated number of hours required to perform the work. 
• Any charge made in connection with the return of replaced parts; charges for shop supplies, such as rags, cleaning fluids, any lubricants; and charges for the disposal of hazardous waste materials. The price quoted on the written estimate must include the actual dollar amount which will be charged for shop supplies (may not be a percentage). 
• The cost of disassembly, inspection, and diagnosis of any portion of a vehicle, such as a transmission, to determine the extent of repairs needed, if any, and the cost for reassembling the portion of the vehicle in the event the customer chooses not to authorize any repairs.

Exceeding a written estimate 
If the repair facility informs the customer that the actual price for a repair will exceed the written estimate (or the stated limit in a waiver) and the customer does not want the work performed, the customer is financially liable for all reasonable costs to return the vehicle to the condition it was in when it was brought to the facility. 

Drop-off vehicles
A repair facility may not have the opportunity to give the customer a written estimate when a vehicle is towed to the facility or left before or after the facility's normal business hours. 

In these instances, the facility may comply with the written estimate or waiver requirement by doing one of the following:

• If the facility has a "night" drop box containing waiver forms, a customer may leave the vehicle at the facility before the facility is open, provided that a waiver form is completed (review Appendix B). The form must be completely filled out, signed and left in the drop box.
• The customer may leave a note describing the problem with the vehicle and authorizing the facility to perform repairs up to a stated dollar amount without any further customer approval. The note must be signed.
• A towing company may obtain a signed waiver from the customer and deliver the waiver to the facility with the vehicle.
• The facility may mail or fax a copy of the written estimate to the customer. The customer may sign and return the estimate by fax or mail before any repairs are performed.
• The customer may come to the facility before any repairs are performed, to receive the written estimate.

“No charge” estimate
A "no charge" estimate is a compliant estimate. It advises the customer that the facility will make no charge unless the customer specifically authorizes more work. 

The estimate may be amended later either by written or oral approval from the customer. It is important to write "No Charge" on the estimate. 

The estimate amount should never be left blank.

Diagnostic estimates
The need for some repairs cannot be determined without first inspecting or disassembling a vehicle or a component. Only the cost to disassemble and inspect can be accurately estimated. 

Estimates for only the cost of disassembly and/or inspection are called diagnostic estimates. Diagnostic estimates may be provided under the law. 

Here are the steps:

• The diagnostic estimate must be given to the customer and must disclose the cost of the inspection or disassembly. 
• Once the exact extent of repairs is known, the customer must be contacted for authorization to begin the repairs. It is not necessary to write another estimate--the cost of the repair can be added to the diagnostic estimate. 
• When a diagnostic estimate is given, it must include the cost of reassembly in the event the customer decides not to have the repairs performed.

In some cases, a customer may waive a repair facility's obligation to provide a written estimate. This is done through use of a written waiver of estimate. 

A repair facility may obtain a written waiver of estimate from the customer under the following conditions:

The customer makes a request for service or parts.

• The customer waives their right to receive a written estimate.
• The customer exercises their right to approve repairs up to an amount of money specified in the waiver.
• The waiver is given voluntarily by the customer with full knowledge of the implications.
• The waiver is not used by a motor vehicle repair facility or anyone in its employ in an attempt to evade the law.
• The dollar limit specified on the waiver cannot be exceeded without the approval of the customer. The $50 or 10% override provision for written estimates does not apply to the dollar limit in the waiver. 
• A repair facility cannot make a waiver a condition of doing business.
• The repair facility must provide one copy of the waiver to the customer. 

Emergency waiver 
When an emergency occurs and a certified mechanic is not available, a customer may voluntarily request repairs using a waiver of liability. A "waiver of liability" releases a facility from liability resulting from the performance of a major repair by someone other than a certified mechanic.

An emergency waiver is not a waiver of the customer's right to a written estimate before repairs are begun. It does not relieve a facility from compliance with other requirements of the law. 

The emergency waiver is designed for isolated situations only and is never a substitute for a facility's employing mechanics certified in the areas of major repair ordinarily offered by the facility.

A repair facility may issue an emergency waiver if at least one or more of these conditions are met:

• The customer is requesting repairs due to a genuine emergency (this means that failure to have repairs done immediately would expose the customer to substantial physical danger or economic harm).
• The facility does not have a mechanic on duty with the proper certification who can either perform, supervise, or inspect and approve the repairs.
• There does not exist within a reasonable distance another facility that is open, which has on duty an appropriately certified mechanic, and which, without creating unreasonable delay or expense, could complete the requested repairs in response to the emergency.
• The facility must start and complete the repairs without unreasonable delay, adequately responding to the emergency.

A copy of the waiver must be provided to the customer. 

Long-term waiver 
A repair facility may make a long term written arrangement either with an individual customer or with a commercial or "fleet" customer. This is called a "long-term" or "blanket" waiver of estimate. 

An estimate or a waiver of estimate is not needed for each vehicle repaired. A long-term waiver may be executed in the form of a contract between the facility and the customer. 

The contract should meet the following conditions:

• Have a statement that, if any repair transaction will exceed a specified amount, the facility must obtain the customer's specific authorization.
• The agreement must be signed by the customer, dated, and include the future date when the agreement expires.
• The facility must keep a copy of the agreement and give a copy to the customer. 

It may be necessary for a repair facility to perform labor or install parts in addition to what was listed in the original written estimate. The following steps must be followed:

• The facility is required to get either written or verbal approval from the customer before doing anything which will exceed the original estimate by more than $10 or 10%, whichever is less. 
• If a customer makes such a request, a facility must obtain the customer's permission to make any charge above the estimated price. If the customer does not approve the additional charges, the facility may not provide and charge for the added parts and labor.

Verbal authorization 
When a facility obtains verbal approval for added parts or labor, the facility should document the authorization in its work order. It is important to be consistent in obtaining authorizations. 

The following information is suggested:

• The name of the person providing the added authorization
• The time of day the authorization was obtained
• The dollar amount authorized
• The total amount of the repair bill discussed and agreed upon
• Other information needed to verify the authorization

Diagnostic analyzers are often used to determine the need for motor vehicle repairs. It is the repair facility's responsibility to ensure that analyzers are functioning properly and diagnose repairs correctly. 

Customers have a right to expect that mechanics and repair facilities are able to use equipment and tools correctly in the course of their work, regardless of sophistication.

Liability
The Motor Vehicle Service and Repair Act obligates mechanics and repair facilities when an incorrect diagnosis results in unnecessary repairs or a failure to solve the needed repairs. A mis-calibrated or malfunctioning analyzer does not relieve the mechanic or repair facility of liability when unnecessary or faulty repairs are performed.

A repair facility may not be equipped to perform a particular repair and, therefore, may contract with another repair shop to perform needed work. A repair facility which performs the sublet repairs should treat the other facility the same way any other customer is treated.

The sublet shop must comply with the basic provisions of the Motor Vehicle Service and Repair Act and provide written estimates, invoices, return of replaced parts, etc., just like the repair facility contracting for repairs.

Mechanic certification 
When the vehicle is sublet to another repair facility for major repairs, the second repair facility must:

• Employ and have all repairs performed by a properly certified mechanic
• If the first repair facility diagnosed the needed repair, the name and certification number of the diagnosing mechanic must appear on the customer's invoice, along with the name and certification number of the mechanic who performed the repairs at the sublet shop.

When a major part, such as an engine or transmission, is sublet to another repair facility for repairs, the following is necessary:

• The repair facility that removed the part must employ a properly certified mechanic to diagnose, remove or re-install the part.
• The names and certification numbers of the mechanics who diagnosed, removed or reinstalled the part must appear on the final invoice given to the customer.

The Motor Vehicle Service and Repair Act provides that a motor vehicle repair facility or mechanic cannot engage or attempt to engage in a method, act or practice which is unfair or deceptive (MCL 257.1307). 

Prohibited practices 
Every repair facility owner or manager should be familiar with the entire "Unfair and Deceptive Practices" portion of the Motor Vehicle Service and Repair Act and the Administrative Rules. These laws require repair facilities to be fair and honest with customers.  

Some of the unfair and deceptive practices identified in the Rules are:

• Make, either written or orally, an untrue or misleading statement of a material fact
• Fail to reveal a material fact, the omission of which tends to mislead or deceive the customer and which fact could not reasonably be known by the customer
• Attempt to avoid or evade the law through a contract or any provision thereof
• Allow a customer to sign a blank document relating to the repair of a motor vehicle
• Fail to give the customer a copy of a document at the time it signed by the customer
• Charge for repairs not performed
• Misrepresent the need for repairs
• Perform an unnecessary repair
• Exaggerate the seriousness of a malfunction
• Perform unauthorized repairs
• Fail to perform repairs in the time promised or in a reasonable time period
• Fail to honor a warranty or to disclose in writing what is warranted, the extent of the warranty, and limitations or conditions of the warrant

A written invoice must include the following information and items:

• The repairs requested by the customer
• Any additional repairs which are determined necessary by the repair facility and are authorized by the customer
• The repair facility's estimate of repair charges for both the repairs originally requested and any additional repairs authorized by the customer
• The actual total charge for all parts and labor involved in the repair, not to exceed the estimate by $50 or 10%, whichever is less, unless authorized by the customer. If the amount is less than the price quoted in the estimate, the customer may not be charged more than the actual cost of the repairs.
• If a routine charge is made to cover the cost of miscellaneous shop supplies, such as rags, cleaning fluids, lubricants, etc., or for the disposal of hazardous waste materials, the charge for these items must be included in the written estimate. The actual cost that will be charged, as opposed to a percentage of the repair costs, must be shown in the final invoice.
• A description of the repairs and services performed, and a detailed identification of all parts replaced, specifying which parts are new, new OEM, OEM surplus, used, rebuilt or reconditioned
• A certification stating the repairs were completed properly or else a detailed explanation of the facility's inability to complete repairs properly. The statement must be signed by the owner of the repair facility or designated representative. This person is not required to be a certified mechanic.
• The name and mechanic certification number of the mechanic who performed the diagnosis and/or the repairs. If repair work is performed by a trainee under the supervision of a certified mechanic, the invoice must include the name and number of the certified mechanic and the name and number of the trainee.

NOTE: A repair facility does not have to guarantee its repairs. If it does, the guarantee must be in writing and must disclose the scope of the warranty, if any, including any limitations that may exist. 

Customers have the right to receive back all parts replaced, except those that must be returned to a supplier or manufacturer for warranty or rebuilding purposes, which the customer is entitled to inspect (MCL 257.1333). 

Some replaced parts do not have to be shown or returned to the customer:

• If a part is replaced at no charge, the facility does not have to show the part to the customer. For example, this would include parts replaced under warranty.
• If a part is considered flammable, for safety reasons the facility is not required to return the part. This includes gas tanks or other flammable items, unless such parts are rendered nonflammable. The reason for not returning the part must be clearly explained to the customer.
• Large or heavy parts that are not easily portable need not be immediately returned. The facility should store these parts at the repair facility for the customer's inspection. The facility may not prevent the customer from removing any large or heavy part at the customer's own expense.

All replaced parts not returned to the customer must be kept by the facility for a minimum of 2 business days after the vehicle has been reclaimed by the customer.

• The customer can cancel this requirement by authorizing the facility to dispose of the parts. For the facility's protection, it is suggested the customer indicate on the written invoice the release of the parts.
• If a dispute arises within the 2 business days involving a replaced part, the facility must place an identifying mark on the part in the presence of the customer and retain the part until the dispute is resolved.

Upon request, a customer is entitled to an explanation of the reason why a part was replaced.

Exchange (core) agreement 
The customer may keep a replaced part which would otherwise be returned to a supplier as part of an exchange agreement under the following conditions:

• The repair facility may require the customer to pay the core charge involved in the exchange agreement.
• The core charge must be refunded to the customer upon return of the part to the facility.

Garage Keeper Lien 
A garage keeper who has a Michigan repair facility registration is entitled to compensation for proper charges due after storing, diagnostics, repair estimates or servicing a vehicle at the request of the registered owner. 

If the vehicle owner does not pay the charges due, the garage keeper can detain the vehicle and file for a garage keeper's lien. When properly filed with the Michigan Department of State, the garage keeper's lien has priority over all other liens.

Application for a Garage Keeper Lien 

Licensed repair facilities can apply for a garage keeper lien, so long as they are: 

• In possession of the vehicle
• A licensed facility at the time of repairs
• Have performed repairs or diagnostics requested by vehicle owner
• Submitted a formal storage agreement signed by the vehicle owner if requesting a lien placement as a result of payment default for storage

1. The garage keeper must be in possession of the vehicle. The garage keeper can’t detain the vehicle for more than 225 days after performing the last labor or furnishing the last supplies for which a lien is claimed against the vehicle. 
   
   A garage keeper will not be able to sell the vehicle under the garage keeper's lien act if the sale is not within the 225-day limit. Therefore, carefully follow the procedures that follow to avoid unnecessary delays in the process.
   
   
2. Apply for Garage Keeper's Lien and a $10 check or money order payable to the State of Michigan for each application to:
   
   Michigan Department of State 
   Internal Services Section 
   7064 Crowner Drive 
   Lansing, MI 48918
   
   Applications must be submitted within 105 days after the lien attaches. 
   
   
3. If the application is complete, a Garage Keeper's Lien (GKL) case number will be assigned, and the Michigan Department of State will mail you a TR-42 Certificate of Foreclosure of Garage Keeper's Lien and Bill of Sale. 
   
   You will be notified if your application is not complete. Corrections must be made, and a complete application submitted within 105 days after the lien attaches. 
   
   
4. Within 30 days after the issue date the garage keeper must send a certified letter, return receipt requested, to all owners, lienholders, and the Michigan Department of State. The TR-42 will have an issue date and list all recorded owners and lienholders.
   The letter must contain the following:
   
   - Notice of claim of lien against the vehicle
   - Vehicle identification number (VIN)
   - Vehicle year, make and body style
   - Copy of the itemized statement of account, including any storage fee
   - Time limit (30 days or more after postmarked date of letter) for the owner to pay the bill
   - Statement that all lienholders are being notified of the garage keeper's lien and have the right to take possession of the vehicle after paying the amount due
    -The date, time, manner, and place of vehicle sale (at least 75 days after the TR-42 issue date)
   
   
5. On the TR-42 Certificate of Foreclosure, fill in the dates the repairs were completed and the date the certified letters were mailed. 
   
   Retain the mail receipts for your records. Retain the TR-42 until the sale is complete.
    
   Sell the vehicle at the time, date, manner, and place specified in the certified letter described in number 4. 
   
   
6. After the sale, complete the remainder of the TR-42 form and give to the vehicle buyer. 
   
   
7. The buyer must take the completed TR-42 to a Secretary of State office and apply for a title. Title fee and tax are paid at that time at the office. It is strongly recommended to schedule an office visit in advance. 
   
   
8. Distribute sale proceeds as follows:
   
   - Lien amount owed to garage keeper
   - Cost of sale to garage keeper
   - Any prior lienholder who gave notice to the garage keeper
   - Other reasonable charges of the garage keeper
   - The owner listed on the TR-42
   
   
9. A garage keeper may have a lien for storage (up to $10 per day unless otherwise agreed to in writing). 
   
   Storage charges shall not exceed 120 days unless otherwise agreed to in writing. Storage charges may be in addition to the maximum lien determined in Section 3(4) of the Garage Keepers Lien Act (enclosed).  
   
   Lienholders are not responsible for any storage charges that accrue until 45 days following the date of the letter from item number 4.
   
   
10. If no one purchases the vehicle at the public sale, the garage keeper may purchase the vehicle.  In this case, the garage keeper lien is terminated. 
    The garage keeper must take the completed TR-42 to a Secretary of State office and apply for a title. It is strongly recommended to schedule an office visit in advance. 
    
    
11. If the owner or lienholder pays for the vehicle charges before the sale, fill in the box at the bottom of the TR-42 and return the form to the Michigan Department of State: 
    
    Michigan Department of State 
    Internal Services Section 
    7064 Crowner Drive 
    Lansing, MI 48918
    
    If the lienholder claims the vehicle and intends to apply for a repossession title, give the completed TR-42 to them.