A Canadian truck repair shop can lose a job even when the diagnosis is clear. The customer needs the repair, the truck is parked, the parts are available, and the service advisor has already explained the issue. Then the invoice is reviewed: parts, labour, diagnostics, taxes, shop supplies, and maybe a related component the customer was not expecting. The customer pauses and asks whether they can just finance the parts, pay labour later, or split the invoice.
That is where the question finance parts separately from labour comes up. For repair shops, the answer depends on how the invoice is structured. If the shop is supplying and installing the parts, the cleanest path is usually to finance the full repair invoice. If the customer is buying major parts directly for self-install, that may be reviewed under Direct Parts instead. These are different situations.
This matters for shops working on Peterbilt, Kenworth, Freightliner, Volvo, Mack, Western Star, and International trucks, including Cummins, Detroit Diesel, CAT, PACCAR, Volvo, MaxxForce, and International engine-related repairs. The right financing path can help reduce walk-aways, increase approval of recommended work, and give the shop a direct payment path once approval and the final signed invoice are complete.
A shop may be able to support a parts-only financing path when the customer is buying major parts directly, but shop-supplied parts and labour are usually reviewed as a full repair invoice.
That distinction matters. If the repair shop is supplying the parts, performing the labour, and issuing the final invoice, then parts and labour normally belong together under commercial repair and breakdown financing. General repair financing starts at $5,000+, with 6–24 month terms and 12 months typical. No down payment is typically required, although one may occasionally be requested after review.
If the customer is buying a major component directly and handling installation separately, direct parts financing may be the better fit. Direct Parts applies to major parts and components such as engines, transmissions, and emissions systems bought directly for self-install. There are no published rates, terms, fees, or thresholds for Direct Parts, so the file should be reviewed directly.
The practical rule is simple: to finance parts separately from labour, the transaction needs to be a true parts-only purchase or a clearly separated parts file. If the repair facility is doing the job and billing the customer for parts and labour together, the invoice is usually reviewed as a repair file.
The full repair invoice should be financed when the repair facility is supplying the parts, completing the labour, and collecting payment for the entire job.
This is the most common repair-shop situation. The truck comes in, the shop diagnoses the issue, the estimate is approved, parts are ordered, labour is completed, and the customer receives one final invoice. That invoice may include diagnostics, labour, parts, fluids, taxes, shop supplies, and related work needed to return the truck to service.
For the shop, keeping the repair invoice together avoids confusion. It also gives the customer a clearer payment path. Instead of asking the customer to pay labour out of pocket while financing only the parts, the full qualifying repair invoice can be reviewed as one commercial repair file.
The repair facility is paid directly once approval and the final signed invoice are complete. There is no cost or recourse to the shop to offer this payment option. Offering it at the estimate stage can reduce walk-aways and help customers approve recommended work before the truck sits longer.
For repair financing, the interest rate is 1.5% per month on the declining balance. The $500 admin fee and the first month’s payment are due at signing. The loan is open, meaning it can be paid in full or in part anytime with no penalty while current. There are no markup fees beyond the admin charge plus HST. Standard late, NSF, and legal fees apply if a payment is missed.
Direct Parts makes more sense when the customer is buying a major part directly and the installation is not being billed through the shop’s full repair invoice.
For example, a fleet may have its own technician and want to buy a transmission directly. An owner-operator may have a trusted mechanic and need to purchase an emissions system component from a parts dealer. A customer may need an engine or major component but plan to handle installation outside the shop’s invoice. In those cases, the file may be a Direct Parts review rather than a repair financing file.
This is different from a shop trying to split a repair invoice after the fact. If the shop supplies and installs the part, the full invoice is still the cleaner repair path. If the customer buys the part separately and brings it to a mechanic or installs it through a separate process, then Direct Parts may be reviewed.
A shop should not quote Direct Parts terms at the counter because there are no published numbers for that category. The right approach is to explain that major parts such as engines, transmissions, and emissions systems can be reviewed directly when purchased for self-install or controlled installation.
This is where the phrase finance parts separately from labour needs precision. The issue is not just separating line items. The issue is whether the transaction is truly a parts purchase or a shop repair invoice.
For a full category overview, repair shops can use the commercial repair financing hub.
Repair shops should present financing at the estimate stage, before the customer declines the repair or asks to remove necessary work.
The best time to discuss payment options is when the customer receives the estimate. A customer may not say they cannot afford the repair. They may say they need to “think about it,” ask for only the minimum work, or request that the truck stay parked while they find funds. Offering financing early can keep the conversation focused on fixing the truck properly.
A dealer portal or dashboard can track application and deal status in real time. That helps the shop know whether the customer is still gathering documents, conditionally approved, or moving toward final invoice completion. Conditional approval is typically available within one business day when the application and starting documents are complete.
For conditional approval, the customer generally needs the application, ownership or registration, insurance, driver’s licence, and repair estimate. Final documents may include business registration, proof of income, lease documents if the truck is leased, asset photos, void cheque, and signed invoice.
Financing instead of card payment can also help the shop avoid absorbing card-processing fees, without needing to quote unverified savings numbers. The shop gets a clearer payment path, and the customer gets a structured payment option tied to the repair.
For tire-heavy repair orders, use tire and accessory financing, which applies to $2,500–$10,000 invoices with 6–12 month terms and a $250 admin fee built into the payment schedule. Above $10,000, general repair terms apply.
Engine rebuilds, extended warranties, and fleet repair needs should be matched to their own financing paths rather than forced into a parts-versus-labour split.
If the invoice becomes a full engine rebuild, overhaul, or replacement, engine rebuild and replacement financing may apply. Engine rebuild files generally start at $25,000+, with 12–36 month terms. A 15–20% down payment is normally expected for engine rebuild and overhaul files.
If eligible OEM extended warranty coverage is being sold, extended warranty financing starts at $5,000+. The term is set at half the remaining warranty coverage, up to 24 months, with equal payments calculated in advance. The admin fee is built into the warranty payment.
For fleet-wide needs, the fleet repair program is custom. It can support revolving repair and upgrade needs and can remove the need for fleets to carry operators’ receivables internally. Individual owner-operators still apply under the correct repair category based on the invoice.
So, can a shop finance parts separately from labour? Sometimes, but only when the file is truly a parts purchase or Direct Parts situation. For most shop-supplied repairs, the full invoice is the cleaner and more practical review path.
Question: Can a truck repair shop finance parts separately from labour?
Answer: Sometimes, but only when the transaction is truly a parts-only purchase or Direct Parts file. If the shop supplies the parts, performs the labour, and issues one repair invoice, the full invoice is usually reviewed as repair financing. The invoice structure decides the correct path.
Question: Can a shop finance the full repair invoice instead?
Answer: Yes. General repair financing applies to qualifying commercial repair invoices starting at $5,000+, with 6–24 month terms and 12 months typical. The repair facility is paid directly once approval and the final signed invoice are complete.
Question: What is Direct Parts financing?
Answer: Direct Parts applies to major parts and components such as engines, transmissions, and emissions systems bought directly for self-install. It is separate from a shop-installed repair invoice. There are no published rates, terms, fees, or thresholds, so each Direct Parts file should be reviewed directly.
Question: Is there a cost to the repair shop to offer financing?
Answer: No. There is no cost or recourse to the shop to offer this payment option. The shop can present it at the estimate stage while the customer completes the application and documentation process.
Question: Can financing help reduce repair walk-aways?
Answer: Yes. Offering financing when the estimate is presented can reduce walk-aways and help customers approve recommended work. It gives the customer another payment option before they delay, decline, or cut the repair scope too far.
Question: Can parts and labour be split if the customer only wants to finance one side?
Answer: It depends on the transaction. If the customer is buying the part separately, Direct Parts may be reviewed. If the shop is billing the full job, splitting the invoice may not be the right structure; the full repair invoice is usually the cleaner review path.
A truck repair shop can help customers review payment options, but the invoice structure matters. To finance parts separately from labour, the file usually needs to be a true parts-only or Direct Parts purchase. When the shop supplies and installs the parts, the full commercial repair invoice is typically the better path.
For repair shops working on Peterbilt, Kenworth, Freightliner, Volvo, Mack, Western Star, International, Cummins, Detroit Diesel, CAT, PACCAR, Volvo, or MaxxForce repairs, the right financing conversation can reduce walk-aways, protect cash flow, and help customers approve needed work.
To offer our repair financing at your shop, contact Mehmi Financial Group through the commercial repair financing contact page.
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