CATA counsel has received questions regarding mechanics' liens. The statute provides that the dealer must retain possession of the car in order for the lien to be in place. It does not provide for placing an actual lien on the title to the car or fifing a lien with the Recorder of Deeds Office. If the customer does not pick up the car and pay the bill within 90 days after the work has been completed, then the dealer can sell the car at a public or private sale after providing 30 days’ notice to the customer.

Problems arise when the customer who requested the service picks up the car but refuses to pay the bill. Under the statute, once the dealer voluntarily delivers the car to the customer, he loses the lien. The dealer's only recourse then Is to file a lawsuit to recover his expenses.

If the dealer is forced to deliver the car (for example, by law enforcement personnel) an argument may be made that the dealer did not "voluntarily" give up possession of the car and the lien remains in place. In this instance, the dealer would still have to file a lawsuit to enforce the lien.

Mechanics’ Lien Law & Foreclosure Process