A lien sale provides a legal deadline for your customer to pay for repairs, towing, and storage. If the customer fails to pay by the specified deadline, you can use the lien documents to auction the vehicle as payment for the services provided.
You can initiate a lien sale for work or services after presenting a statement of charges to the vehicle’s registered owner or 15 days after completing the work, whichever comes first. For towing or storage liens, you can start the process anytime after the vehicle is in your possession.
An authorized Department of Motor Vehicles employee, a law enforcement officer, or a licensed vehicle verifier must inspect and verify the vehicle before it can be registered.
Yes, anyone with an interest in the vehicle can contest the sale. To proceed, you must obtain a Release of Interest from that party, a court judgment, or a DMV “Authorization to Continue After Unsuccessful Service” document.
In most cases, the Legal Owner is responsible for up to $1250.00 in storage fees or up to $1500.00 in repair costs, whichever is higher, in addition to lien and filing fees. Tow companies are exempt from this limitation.
The vehicle must be available for inspection at least one hour before the sale. A Lien Sale is a public auction where anyone can attend and bid on the vehicle. Sealed bids are not permitted.