What Happens if a Mechanic Puts a Lien on Your Financed Car?

What Is a Mechanic’s Lien?

A mechanic’s lien is a legal right that allows a mechanic or other service provider to keep your car if you don’t pay for the work they performed. In some cases, the mechanic may also be able to sell the car to recover the unpaid amount.

💡This type of lien acts as a security interest, meaning the mechanic has a legal claim to the vehicle until the debt is paid. 💡

A lien, in general, is a legal claim against property that helps ensure a debt is paid. Many people are familiar with purchase-money liens, which occur when you finance a car and the lender places a lien on the title until you pay off the loan. This gives the lender the right to repossess the car if you stop making payments. When the loan is paid in full, the lender notifies the state title office. The state removes the lien and sends you the "clean" certificate of title.

A mechanic’s lien (sometimes called a garageman’s lien) works differently. Instead of being tied to a loan, it arises when a mechanic repairs, tows, or stores a vehicle and isn’t paid. In most states, the lien takes effect as soon as work begins, allowing the mechanic to keep possession of the car until they receive payment. 

Mechanic’s lien laws vary by state, but they typically apply to repair shops, body shops, tow yards, storage facilities, and other businesses that provide services for vehicles.

How Long Do You Have Before a Mechanic’s Lien Is Placed on Your Car?

In most states, a mechanic's lien takes effect as soon as work begins on your car. This means the mechanic has the right to keep your car until you pay the bill, even if they don’t record anything on the title. Since they have physical possession of the car, there’s little risk that someone else will buy it without knowing the mechanic must be paid first.

However, if the mechanic wants to sell the car or take further legal action to collect payment, most states require them to first record the lien on the vehicle’s title. (We’ll cover what happens when a service provider sells a car later in this article.)

A mechanic may also need to record a lien if they return the car to you before you’ve paid in full. This can happen if:

• You set up a payment plan but stop making or default on payments.

• You pay with a bad check.

• You pay by check or credit card but later issue a stop payment.

• You take the car back without the mechanic’s permission.

(Some of these actions may be considered criminal offenses, depending on your state’s laws.)

How Long Before a Mechanic’s Lien Shows Up on the Title?

Once the mechanic no longer has possession of the car, they must take steps to notify others of their lien. This typically involves filing paperwork with the state department of motor vehicles (DMV) or department of transportation to have the lien recorded on the title.

The timeline for recording a lien varies by state. In most states, mechanics must wait a certain number of days after requesting payment before officially recording the lien, typically ranging from 5 to 30 days. Some states also require additional waiting periods before the vehicle can be sold.

What Can You Do About a Mechanic’s Lien on Your Vehicle?

Your options depend on whether you agree with the repair costs and quality of work.

If You Accept the Work and the Price Is Fair

If the repairs are complete and the bill seems fair, your only option is to pay. Most states allow you to inspect the work before paying, so check that everything was done properly. If you can’t afford the full amount, you may be able to set up a payment plan. Keep in mind that the mechanic’s lien stays in place until the repair bill is paid in full. 

If You Dispute the Work or the Bill

You may be able to challenge the lien if:

• The work is incomplete or poor quality

• The mechanic did extra work you didn’t authorize

• The bill is higher than the agreed amount

• Someone else, like an insurance company, is responsible for paying

• You didn’t authorize the service at all (and the person who did wasn't legally authorized to order work done on the car)

Try resolving the issue directly with the mechanic. They may offer a discount if the work is unsatisfactory, or you may need to contact your insurance company if they were supposed to cover the cost.

If that doesn’t work, you may need to file a replevin action—a lawsuit to get your car back. This typically requires submitting a complaint with evidence, such as:

• Before-and-after photos showing poor or incomplete work.

• A copy of the repair estimate vs. the final bill.

• Proof that you didn’t authorize the work.

There’s usually a filing fee, and you may need to appear in court. While some people represent themselves, consulting an attorney can be helpful, especially if the dispute involves an insurance company.

Can a Mechanic Legally Repossess or Sell Your Car?

Probably, but it depends on your state's laws.

If you still have the car, some states allow the mechanic to repossess it under certain conditions. In Tennessee, for example, a mechanic can only take back the car if the signed work order or contract clearly states that the vehicle is subject to repossession for nonpayment.

If the mechanic still has possession of the car, many states allow them to sell it to recover the unpaid debt. State laws determine whether this must be a public auction or a private sale, as well as the timeline, notice requirements, and how the proceeds are distributed.

Lien laws vary widely, so check with your state’s DMV to understand the specific rules in your area.

Will You Be Notified Before Your Car Is Sold?

Maybe. State law determines whether and how the mechanic must notify you before selling the vehicle.

Most states require at least some notice to the registered owner. Some states require certified mail with proof of delivery, while others allow mechanics to publish a notice in a local newspaper, which you may never see.

In many states, the mechanic must also notify any lienholders (such as your auto lender). Some states give lienholders the option to "buy" the car by paying off the mechanic’s lien, making them the new owner of the vehicle and adding the amount to your existing debt.

Some states require the mechanic to get a court order before selling the car, which may give you the chance to contest the sale. Other states allow you to redeem or buy back the car before the sale date.

How a Mechanic Files a Lien on Your Car

In many states, a mechanic automatically has a lien on your car as soon as they begin work. As long as they keep possession of the vehicle, they usually don’t have to record the lien on the title or notify anyone else.

However, if the mechanic wants to sell the car or no longer has possession, they typically need to record the lien on the title with the state. This process, known as "perfecting" the lien, ensures their legal right to the car is officially documented. The requirements vary by state—some allow online filing, while others require paperwork to be mailed or submitted in person.

What Paperwork Does a Mechanic Need to File a Lien?

Most states require the mechanic to submit specific documents to record a lien. The exact requirements vary, but mechanics often need to provide:

• Proof that the work was authorized, such as a signed repair contract, estimate, or towing/storage agreement

• Proof that the work was completed, like invoices, work orders, storage fees, or a final bill

• Proof of the unpaid balance, showing the amount due

• Proof that the owner was notified, including when and how the mechanic informed them of the debt

• A statement confirming that proper notice was sent to all necessary parties

Some states also require the mechanic to have the appropriate business licenses to enforce or file a lien.

When Does a Mechanic’s Lien Take Priority Over a Lender’s Lien?

If your car has multiple liens then lien priority will determine who gets paid first if the car is sold.

In most states, possessory liens (where the lienholder has the car) take priority. Since mechanics usually have possession when they place a lien, they often get paid before other lienholders, including lenders. However, if a mechanic returns the car before getting paid, their lien may lose priority.

After possessory liens are paid, non-possessory liens (like a lender’s lien) are usually paid based on the first-to-file rule. This means the first recorded lien gets paid first.

👉 For example, if you finance a car, your lender will place a lien on the car title until the loan is paid off. Later, you take the car to a mechanic for repairs but can’t afford to pay the bill. If the mechanic keeps and sells the car, they typically get paid first, and any remaining money from the sale goes to the lender. 

However, if the mechanic releases the car to you and later repossesses and sells it, the lender is usually paid first, with any leftover funds going to the mechanic.

If the sale doesn’t cover all liens, the unpaid lienholders may be able to sue you for the remaining balance.

Let’s Summarize…

A mechanic's lien gives a mechanic or other service provider the right to keep your car if you don't pay them for the work they perform on your car. They can keep your car until you pay them, or sell your car to pay off the debt. If you dispute the mechanic's charges, you'll likely have to file a replevin lawsuit against them to get your car back. 

A mechanic's lien can attach to your car even if you're still paying for it. If the service provider sells your car, the mechanic's lien will usually be paid first. Then any additional money will go to the lender. Mechanic's liens are governed by state laws, so research your state’s rules to understand how this process works where you live.