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Mechanic's lien

A repair shop's legal claim on a vehicle for unpaid repair work, which can lead to a lien sale.

A mechanic’s lien is a repair shop’s claim against a vehicle for unpaid parts and labor. Because the shop keeps the car, it can often hold it until it is paid and, if the bill stays unpaid, sell it through a state lien sale process.

Owners sometimes abandon cars at shops after a costly diagnosis. If that happens, the car can be sold without your signature. If you’d rather junk the car than repair it, settle with the shop first.

In California, a person who repaired, towed or stored a vehicle and was not paid has a lien against it. To conduct a lien sale, the lienholder must have possession and must apply for a lien sale or file in court within 30 days after the lien arises, or the lien is no longer valid.1

References

  1. California DMV, Vehicle Industry Registration Procedures Manual 18.065, “Liens (CCC §§3068 through 3074)”, https://www.dmv.ca.gov/portal/handbook/vehicle-industry-registration-procedures-manual-2/lien-sales-abandoned-abated-vehicles/liens/ ↩

Related terms

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