A mechanic lien is the legal right a service provider has to hold onto your vehicle until you pay for any outstanding debts for car repairs, towing, storage, or another completed auto service. And if you cannot fulfill the financial obligations, state law may allow the service provider (now lienholder) to sell your vehicle at a public auction.

Whether it be a result of miscommunication or malpractice, it’s not uncommon to be surprised by a bill at the auto mechanic that exceeds the estimated quote you were given prior to the services being completed.

No matter the reason why, if you can’t afford to pay for the

car repair

or other service, it’s important you know exactly what to do to avoid a mechanic’s lien and retain possession of the vehicle.

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What is a mechanic’s lien?

A mechanic’s lien is a legal action that auto repair shops, storage facilities, towing companies, and other service providers can use to collect unpaid debts for completed work toward your vehicle. To recoup the costs of their work, the service provider has the power to do one of two things once they become the lienholder:

Hold onto your vehicle until you pay the outstanding bill.

Sell your vehicle at a public auction after a set amount of days have passed and you still haven’t paid the debt (also can apply to abandoned vehicles).

If your vehicle has an active mechanic’s lien, you will be unable to do the following:

Sell the vehicle

Remove the vehicle from the lienholder’s possession

Apply for a bonded title

Acquire a car loan for that vehicle

As you can see, the lien process has closed all the financial loopholes that delinquent customers have tried to use. So let’s get into your legitimate options for becoming the owner of the vehicle again—before it's too late.

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How does a mechanic’s lien work?

A service provider can file for a mechanic’s lien with the Department of Motor Vehicles (DMV) if they have not been compensated for completed work. However, lien laws vary by state, and this can influence how the lien is processed and enforced. Here are the things that both the registered owner and lienholder should be aware of:

The amount of time the service provider must wait to put the lien on your vehicle

If a certified letter is required to notify the registered owner that a lien is being filed

How long the service provider (now lienholder) will have to wait to sell your vehicle at public auction after the lien is activated

You’ll want to check with your local DMV to see what your deadlines are. Once the lienholder has sold the vehicle, the new owner will have legal claim to the car title once the bill of sale is signed—nothing you can do at that point.

What to do if you have a mechanic’s lien on your vehicle title

It’s one thing if you’re just unable to pay for mechanic work, storage fees, or another completed service. But it’s a whole other thing if you feel you’ve been grossly overcharged for the service or believe the work is incomplete.

In this case, you’ll want to hire a professional car inspector to determine if you have a legitimate case. If confirmed, you may want to explore your options with a local attorney. Considering the service provider could profit from acquiring/selling your vehicle, mechanic liens can be misused for scams, so it's important to get an extra set of eyes on the situation if you think there is malpractice at play.

But if your repair bill or storage charges are all fair, you may be subject to a mechanic’s lien if the service provider wants to legally pursue you for any unpaid debts. The only way to get a lien release is to settle all your financial obligations. This also may include additional fees above the owed repair expenses that accrued while the vehicle sits on the lienholder’s private property.

You may be able to work out a long-term payment plan with the lienholder, but only if they are feeling generous. It is their full legal right to acquire or sell the vehicle once the deadlines have been met for the mechanic’s lien (as indicated by state law).

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Does a mechanic’s lien impact your credit?

A mechanic's lien will not impact your credit score directly, but the service provider who filed the lien may be able to report nonpayments to the credit bureaus—which will negatively affect your credit score.

How can you remove a mechanic’s lien?

The easiest way to remove a mechanic’s lien against your vehicle is to pay the outstanding debts. Of course, you can dispute the mechanic’s lien in the courtroom if you believe the outstanding debt is unfair, but we highly recommend getting a professional car inspection to see if you even have a case before seeking legal advice.

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