Customer Terms For Mobile Mechanics In NZ

Mike runs a mobile mechanic business in Hamilton. He gets a call about a car that won't start, drives out, spends an hour diagnosing the issue, orders a starter motor, and then the customer changes their mind because their cousin says it might be the battery.

Now Mike has a callout fee, diagnostic time, a non-refundable part, and a customer who thinks no fix means no bill.

This is exactly where clear customer terms and conditions help. For mobile mechanics, your terms need to do more than say when payment is due. They should deal with real automotive risks like uncertain diagnostics, customer-supplied parts, unsafe work areas, storage, test drives and vehicle damage claims.

Well-written mobile mechanic terms and conditions in NZ can make your jobs smoother, your pricing clearer, and your business easier to run.

Do Mobile Mechanics Need Written Customer Terms?

Yes, you should have written customer terms if you repair, service or diagnose vehicles for customers in New Zealand. Verbal agreements can still be legally binding, but they're much harder to prove when a job changes, a part fails, or an invoice isn't paid.

Your customer contract terms set the ground rules before you start work. They should explain:

• what services you're agreeing to provide
• whether your price is a quote, estimate or hourly rate
• when diagnostic fees and callout fees apply
• how parts are ordered, paid for and warranted
• what happens if extra work is needed
• when the customer must pay
• what you're responsible for if something goes wrong

For consumer customers, your terms also need to work alongside the Consumer Guarantees Act 1993. You can't contract out of guarantees such as providing services with reasonable care and skill. You also need to avoid misleading pricing or service claims under the Fair Trading Act 1986.

If you do work for business customers, including fleet or trade customers, the position can be different. In some business-to-business situations, you may be able to contract out of parts of the Consumer Guarantees Act if the agreement is in writing and it's fair and reasonable. That wording needs to be handled carefully, especially if you use the same terms for both consumers and businesses.

The practical point is simple: if your customer terms are clear before the booking is confirmed, you have a much better chance of avoiding arguments later.

What Should Your Terms Say About Quotes, Diagnostics And Scope?

Your terms should clearly separate a quote, an estimate and a diagnostic fee, because customers often treat them as the same thing. They aren't.

A quote is usually a fixed price for a defined job. If you quote $620 plus GST to replace brake pads and rotors on a specific vehicle, you should be careful about charging more unless the customer approves a variation.

An estimate is your best indication of the likely cost, but it may change once you inspect the vehicle. For example, an estimate to repair an overheating engine may change if you discover a cracked radiator and a failed thermostat.

A diagnostic fee is payment for your time, travel, tools and expertise in identifying the problem. Your terms should say the customer must pay this fee even if they decide not to go ahead with the repair, unless you agree otherwise.

A Practical Example

Say you charge a $95 callout fee and a $140 diagnostic fee. You attend a customer's home in Tauranga, test the vehicle, and identify a likely alternator failure. The customer then decides to sell the car instead of repairing it.

If your booking confirmation says the callout and diagnostic fees are payable once you attend and inspect the vehicle, your invoice is much easier to justify. If your terms only say payment is due after repairs are complete, the customer may argue they don't owe anything because no part was installed.

Your terms should also explain diagnostic uncertainty. Vehicle faults can be layered. Fixing one issue may reveal another. For example, replacing a flat battery may then reveal a charging system fault.

A fair approach is to say you'll use reasonable care and skill when diagnosing faults, but diagnosis isn't a promise that one repair will fix every current or future issue. If further work is needed, you should get customer approval before proceeding.

How Should You Deal With Parts, Customer-Supplied Parts And Delays?

Your terms should say who supplies parts, who owns them before payment, and what happens if a part is wrong, delayed or faulty. Parts are one of the biggest sources of friction in mobile mechanic work.

If you supply the part, your terms should cover:

• whether the customer must pay a deposit before you order it
• whether special order parts are refundable
• whether genuine, OEM, aftermarket or second-hand parts may be used
• what manufacturer or supplier warranties apply
• whether freight, handling or return fees are passed on
• what happens if a supplier sends the wrong part or delivery is delayed

Be careful not to overpromise. If you say a part will arrive tomorrow, that can create pressure if your supplier misses the delivery. It's safer to say estimated timing depends on supplier availability, unless you've confirmed a firm time and you're prepared to stand behind it.

Customer-Supplied Parts

Customer-supplied parts need their own clause. If a customer buys a cheap part online and asks you to fit it, you may not know its quality, condition or compatibility.

Your terms can say that:

• you may refuse to install parts that appear unsafe, unsuitable or incompatible
• the customer is responsible for the quality and suitability of parts they supply
• your warranty only covers your workmanship, not the part itself
• extra labour caused by incorrect or poor-quality parts may be charged
• the customer may still need to pay your time if the part can't be fitted

You still need to take reasonable care when installing a customer-supplied part. You can't use your terms to excuse careless workmanship. But you can draw a clear line between a fault caused by the part and a fault caused by your service.

This kind of clause is especially useful for alternators, sensors, brake components, second-hand engines, imported parts and parts supplied without full vehicle details.

Can You Charge Callout Fees, Deposits And Storage Costs?

Yes, you can charge callout fees, deposits and storage costs if they're clearly disclosed, fair and agreed before they apply. Hidden fees are where problems usually start.

Your booking process and terms of trade should make the key charges obvious. If a customer books by phone, follow up with a text or email confirming the main terms before you attend. That confirmation might include the callout fee, diagnostic fee, hourly rate, parts deposit and cancellation policy.

Your terms can cover charges such as:

• Callout fees: for travel and attendance, even if no repair is completed
• Diagnostic fees: for inspection, testing and fault-finding
• Labour rates: hourly rates, minimum charges and after-hours rates
• Parts deposits: especially for special order or expensive parts
• Cancellation fees: where the customer cancels late or isn't available
• Storage fees: where a vehicle or parts are left with you after notice

Storage clauses need care. Mobile mechanics often don't store vehicles, but you may occasionally have a vehicle towed to your workshop, yard or another authorised location. If you want to charge storage, your terms should say when storage starts, how the cost is calculated, and what notice you'll give the customer.

If you ever intend to rely on a right to retain a vehicle or parts until payment is made, get tailored advice first. Holding onto a customer's vehicle can escalate quickly if it isn't handled lawfully and carefully.

You should also think about GST. If your business is registered for GST, your terms and invoices should make clear whether prices are inclusive or exclusive of GST. A simple GST misunderstanding can turn a small invoice into a frustrating customer issue.

What If A Customer Claims You Damaged Their Vehicle?

You should deal with vehicle damage claims by having a clear process for inspections, photos, approvals and records. Your terms can't simply say you're never liable for damage, especially where consumer law applies.

Before you start work, it's good practice to record the vehicle's condition. This doesn't need to be complicated. Take time-stamped photos of the panels, wheels, interior and existing warning lights where relevant. If there's pre-existing damage, note it in the booking record.

Your customer terms can say that the customer must:

• remove personal items from the vehicle before work starts
• tell you about known faults, modifications or security systems
• provide safe and lawful access to the vehicle
• authorise any test drive needed for diagnosis or quality checking
• ensure the vehicle has enough fuel or charge for testing, if needed

Your terms should also explain what you're responsible for. For example, you may accept responsibility for damage directly caused by your negligence, while excluding responsibility for pre-existing damage, unrelated faults, wear and tear, or damage caused by unsafe customer instructions.

Health and safety matters too. Under the Health and Safety at Work Act 2015, you need to manage work risks so far as is reasonably practicable. Your terms can give you the right to refuse or reschedule work if the site isn't safe, such as a vehicle parked on a steep roadside, soft grass, poor lighting, or an area with unsafe traffic exposure.

If Something Goes Wrong On A Job

If a customer says you damaged their vehicle, deal with it calmly and in order:

1. Stop and make the vehicle safe: don't keep working if there's a safety issue.
2. Take photos and notes: record the time, location, condition and what work had been done.
3. Check your booking records: look at the agreed scope, pre-work photos and any known faults.
4. Notify your insurer if needed: don't admit liability before checking your policy obligations.
5. Get tailored advice if the claim is significant: especially if the customer is demanding compensation or threatening formal action.

Strong records don't just protect you from unfair claims. They also help you respond fairly when something genuinely has gone wrong.

Customer Terms Template: What To Include

A mobile mechanic service agreement in NZ should be tailored to the way you quote, travel, supply parts and take payment. A generic template can miss the automotive details that matter most.

As a starting outline, your customer terms could include these sections:

1. Business Details: your legal business name, NZBN if you have one, contact details and trading name.
2. Booking Process: how customers book, what information they must provide, and when the agreement starts.
3. Services And Scope: what work is included, what is excluded, and how extra work is approved.
4. Quotes And Estimates: the difference between fixed quotes, estimates, hourly rates and variations.
5. Callout And Diagnostic Fees: when these fees apply and whether they're payable if no repair is completed.
6. Parts And Materials: deposits, special orders, customer-supplied parts, part warranties and delays.
7. Customer Obligations: safe access, accurate vehicle details, disclosure of known faults and removal of personal items.
8. Test Drives And Vehicle Movement: when you may drive or move the vehicle for diagnosis, repair or safety checks.
9. Payment Terms: due dates, accepted payment methods, GST, late payment interest and costs where lawful.
10. Cancellations And No-Access Fees: what happens if the customer cancels late or the vehicle isn't available.
11. Storage And Uncollected Vehicles Or Parts: when storage charges apply and what notice you'll give.
12. Consumer Guarantees: how your terms sit alongside the Consumer Guarantees Act 1993 and any business customer carve-outs.
13. Liability And Exclusions: fair limits for pre-existing faults, wear and tear, customer parts and indirect loss.
14. Privacy: how you collect and use customer details, vehicle photos, registration information and payment records.

Before you use this outline, have it tailored to your business. For example, a mobile mechanic who mainly services fleet vehicles will need different wording from someone who mostly does roadside diagnostics for private customers.

Privacy is worth a mention because mobile mechanics often collect more information than they realise. Customer names, addresses, phone numbers, number plates, vehicle photos and payment records can all be personal information under the Privacy Act 2020. You should collect only what you need, keep it secure, and have a way to respond to access or correction requests, generally within 20 working days.

Your terms should also match your actual workflow. If your website says same-day repairs but you often depend on parts availability, change the wording. Under the Fair Trading Act, your advertising, quotes and terms all need to line up.

Key Takeaways

• Written customer terms help you manage quotes, diagnostics, parts, payment and liability before problems arise.
• For consumer customers, you can't contract out of core Consumer Guarantees Act protections like reasonable care and skill.
• Your terms should clearly separate callout fees, diagnostic fees, estimates, fixed quotes and approved variations.
• Customer-supplied parts need specific wording so you're not blamed for a faulty or incompatible part you didn't supply.
• Good records, photos and approval processes are your best defence against unclear vehicle damage claims.
• Your terms should be tailored to your booking process, pricing model and the kinds of vehicles you work on.

If you'd like help with your mobile mechanic customer terms, repair approval process, payment clauses and privacy documents, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.