Mechanic Lien
Repair Shop
A process that forces the owner or lienholder to pay for services rendered, or lose ownership rights.
The vehicle then goes to the highest bidder at public sale. However, frequently nobody shows up to bid which allows the shop to become the new owner.
Indiana state law under most circumstances does not allow storage to exceed $2,000. This process usually takes about 5 weeks, but can take longer if titled out of state.
Mechanic Lien
Impound Lot
Similar to a traditional or regular mechanics lien, but for vehicles that have been impounded by a towing company. The vehicle then goes to the highest bidder at public sale. However, frequently nobody shows up to bid which allows the shop to become the new owner.
Indiana state law does not allow storage to exceed $2000. This process usually takes about 5 weeks, but can take longer if titled out of state.
Certificate of Authority
Junking Lien for Vehicles
Junking Liens are for vehicles with a declared value of $1000 or less (End of Life Vehicles).
This process involves a title/national database search and letters notifying the owner/lienholder that the vehicle may be disposed of if not claimed within 30 days.
3 Day Notice
Required for Vehicle Storage
3 Day Notices are important to ensure that you can legally collect all of your storage.
According to IC 9-22-1-19, you must conduct proper searches and notifications in order to charge more than 3 business days worth or storage.
We’ll conduct NMVTIS and Title searches to send out letters to owners/lienholders. If the vehicle isn’t picked up within 30 days or owners have no intention of picking up, let us know and we can convert it to a mechanic lien or CoA/Junk.
Frequently Asked Questions
When do I pay for services?
Our fees apply as soon as the lien is submitted to us for processing. An invoice will be sent to you via mail at the same time the owners and lienholder are being sent their letters. We ask for payment at least 10 days before the sale/disposal date in order to ensure the paperwork can reach you in time.
How long does it take for a lien to be processed?
Most liens take only about 5 weeks to complete. However, some vehicles that are titled in other states may take much longer based on the time to receive title information from states outside of Indiana.
Can I cancel a lien request and get a refund?
The very nature of a mechanic’s lien is to force an owner or lienholder to either pay and pick up the vehicle or to surrender the title. With this in mind, if we have started the lien process, charges do still apply. We often apply an administrative fee in addition to the charges owed to you before sending letters to owners and lienholders. Make sure to collect these fees as they will allow the vehicle owner/lienholders to reimburse you for our services. If you have any questions about our pricing structure, please call our office at 888-924-8887.
What is the maximum I can charge for storage?
Storage fees max out at $2,000, unless the unit is over 30 feet long, then it will cap at $2,500.
What is a typical rate for storage fees?
The typical daily storage charges are $30-$60, but this can vary based on how a vehicle is being stored and the size of it. Keep in mind the 3 day rule might cause you to not get some previous storage before starting the notification/lien process.
What if the vehicle has a bank or State lien on it?
The lienholders are notified at the same time as the owners of the vehicle. Once they show proof of their interest in the vehicle, they can pay the charges the same as the owner. If the vehicle is not picked up prior to the advertised sale or disposal date, then the liens will NOT transfer onto the new title through the mechanic’s lien.