Case Ledger
Frequently asked questions
The rules that govern a California vehicle lien sale, answered plainly. Have a question that isn't here? Get in touch.
When can I begin a lien sale?
If you're claiming repairs, you may start the lien after presenting a bill to the owner, or 15 days after the work is completed, whichever comes first. For towing and storage, you may start the lien any time after the vehicle is in your possession, but should do so before 15 days pass.
How much storage can I charge?
For vehicles valued under $4,000, a storage lien may run up to 60 days if a completed notice of pending lien sale is filed within 15 days after the lien arises. For vehicles valued over $4,000, the maximum is 120 days if the lien application is filed with the DMV within 15 days, or if the DMV issues a letter of continuance after a previous opposition.
Can I claim the repairs I've made to the vehicle?
Yes, but only if you're a repair shop with a valid Bureau of Automotive Repair (BAR) number. The lien is deemed to arise when a written statement of charges is presented to the registered owner, or 15 days after the work is completed, whichever comes first. You then have 30 days to apply for authorization to conduct the lien sale.
Can I lien a vehicle that's registered in another state?
Yes, as long as the vehicle is physically in your possession in California.
Can I lien a vehicle that's currently in another state?
No. You must follow the lien sale procedures of the state where the vehicle is located.
Can someone oppose my lien?
Yes. Anyone with an interest in the vehicle may stop the sale by filing a declaration of opposition within 10 days of the date the notice was mailed. The DMV then has 16 days to notify you of the opposition.
What happens if someone opposes my lien?
You can't proceed with the sale unless you file a court action within 30 days and win a judgment in your favor, obtain a signed release of interest from the person who opposed it, or show you couldn't serve the declarant and receive DMV authorization to continue.
What if the registration is expired?
If the registration expired while the vehicle was in your possession, the buyer has 20 days from the lien sale date to pay registration fees without penalty. If the vehicle arrived with an already-expired registration, the buyer must pay the fees and penalties. Filing a lien never waives registration fees or penalties.
I bought a vehicle, lost the title, and can't find the seller. Can I do a lien?
No. You can't lien a vehicle you hold a monetary interest in. You'll need to request a duplicate title from the DMV instead.
What if I accept money toward my customer's bill?
Accepting any payment from the customer automatically voids the lien.
What if there's a legal owner on the vehicle?
The legal owner must be notified within 15 days for storage charges to keep accruing. If notice goes out later, they're only responsible for the first 15 days, then storage resumes 3 days after the notice is sent. If repairs exceed $750, you need the legal owner's written permission to continue, or they won't be responsible for more than $750 in repairs or $400-$500 in storage.
Who determines the value of the vehicle?
The public agency that ordered the vehicle removed sets the estimated value. If they don't provide one within three days, the garage keeper may set the value. With no public agency involved, you determine the value yourself, including any repairs.
What if I sell the vehicle for more than what's owed?
The excess must be mailed to the DMV's Lien Sale Unit along with a copy of the Certification of Lien Sale (Reg 168A).