This is found during Chapter 2. After you help your sister and are on your way to Joe's place. You will find a car on the other side of the road after you exit the alley way, just before you turn right on the corner. You will find a couple arguing next to a broken down car with the hood up. Once the fight is over he will walk away and once you go up to the car. It will give you the option to "Repair Engine" with the X.
Author: SideDish120 Video by RoosterTeeth