How to Buy a Car That a Mechanic Has a Lien on?

Buying a car subject to a mechanic's lien is similar to buying any other car.

Many state codes provide for a mechanic's lien for unpaid repairs done on the nonpaying owner's motor vehicle. These liens are almost always possessory, because seldom will a mechanic release the vehicle before getting paid. While state codes vary as to procedures for the mechanic to sell the car to enforce his lien, an individual who wishes to purchase the car before the lien sale will follow a similar process everywhere.

Things You'll Need

• Computer with Internet access
• Cash or cashier's check
• Writing implements
• Paper

Instructions

1. Inspect the motor vehicle as you would any car on a dealer lot. The car will probably be located on the mechanic's property, so make sure he knows you are coming and why you are there. Ask about the repairs that were performed, which ones are still needed, and how much the bill is for repairs and storage fees.

2. Negotiate a price with the owner. Although the vehicle is subject to the mechanic's lien and may not be in the owner's physical possession, she still legally owns the vehicle and can sell it. Remember that the vehicle is subject to a mechanic's lien, so part of the purchase price will be paid to the mechanic.

3. Do a title search through a company like Carfax.com to verify whether the vehicle has ever been in a serious accident. A vehicle that has been heavily damaged and then repaired will be worth considerably less than the same vehicle that was never damaged. You will have to provide the vehicle identification number, which you can find on a small metal placard visible on the lower right-hand corner of the dashboard when viewed from outside the car.

4. Inspect the owner's title and driver's license to verify that the person you're buying the car from is actually the person who owns it. Make sure she's paid it off; if she still owes money for the car, you don't want to get stuck with the payments.

5. Write out a sale agreement with the owner, setting forth the terms of your transaction in plain English. Note your assumption of responsibility for the mechanic's lien. Make it clear that no further monies will be due to or from the owner. Have the owner sign over title and sign the sale agreement in the presence of a notary public.

6. Pay the mechanic and obtain a receipt. Before driving the vehicle away, add it to your insurance company and check with your state's division of motor vehicles to make sure you comply with all registration and licensing provisions.

Tips & Warnings

• Sometimes you can get the car cheaper if you buy it at the lien sale; however, you may lose the vehicle to a higher bidder.

References

• "Mechanic's Liens In Connecticut"; State of Connecticut Judicial Branch; Retrieved August 20, 2010.
• "Laws of Vehicle Repair: A Dealer's Guide"; Wisconsin Automobile and Truck Dealer's Association; Retrieved August 10, 2010.
• "New Jersey Mechanic's Lien Law"; Fleetguardian.com; Retrieved August 20, 2010.
• "Mechanic Lien Laws"; Automotive Service Association; Retrieved August 20, 2010.
• "The Legal Brief: When A Mechanic's Lien Becomes Extortion"; Franklin Drake; Retrieved August 20, 2010.