The Expert Podcast

Filing for an abandoned vehicle title is a very specific process in order to get reimbursement for a vehicle that may have been left at your shop, towed in, or stored. Now, I use the phrase "abandoned vehicle" when I started this, but be very careful with that. If you have a vehicle that has been brought to a repair shop, brought in for storage, or towed in, you don’t want to use the word "abandoned." I use that word initially because most people think of it as an abandoned vehicle. In fact, we get hundreds of calls every day from shop owners that say, "I want to get a title for an abandoned vehicle."

You need to get rid of that terminology. If you call a vehicle abandoned, you probably will never get a title. But that’s okay because that’s not what it is. It is a mechanic’s lien, a towing lien, or a storage lien. If you call it abandoned, you probably have to give the car away. You can get more information about the difference between abandoned vehicles and mechanic’s liens on our website below.

If you do have a vehicle that was brought to you for repairs, towing, or storage, there’s a process to get a title, but it’s not an abandoned vehicle. Abandonment is different, and we’re going to talk about the mechanic’s lien process. Here’s an example from the state of Florida. This is the Florida Statutes talking about personal property liens generally, section 713.13, and it outlines the steps involved. Most states have about the same steps, and you have to follow them to the letter; otherwise, they will reject the application.

We do hundreds of these every week, and what we find is that it works very well as long as you follow their program. If you deviate from any of the steps, they will kick it back. Why do they do that? Well, the DMV or the titling authority in every state knows that many times this process of a mechanic’s lien is used improperly by people, companies, and body shops trying to get titles for vehicles they shouldn’t be getting. Many of these vehicles weren’t legitimately brought into their shop for service, but rather belong to a buddy who bought a car on Craigslist or someone they found on Facebook. Because of this, the DMV scrutinizes these cases to make sure everything is done correctly.

It is very important to complete all this paperwork correctly. Let’s look at a few examples and specific instructions. You can get more details on our website. We also offer a service if you want us to handle the process and paperwork for you.

If you look at section 713, the first step is making a good faith effort to establish the prior state registration. Before you do anything else, you have to make this effort. What does that mean? It includes checking the database for the owner or lienholder, checking the National Motor Vehicle Title Information System, verifying the tag, and checking with law enforcement. The National Motor Vehicle Title Information System is a federal system.

The second step involves charging fees for storage. The fees must either be reasonable, published, or agreed upon. You cannot simply make up a storage fee and say, "I’m charging you $100 a day." It has to be a reasonable fee. If you attempt to charge an unreasonable amount, they might reject your entire package.

Another very important part of the process is sending notices. A person claiming a lien for towing, recovery, or storage must give notice by certified mail to the registered owner, the insurance company, and all persons claiming a lien, as disclosed by the records in the Highway Safety and Motor Vehicles department. This means you have to send these notices to the addresses listed in the title record. You cannot use an address you found in the glove compartment or one that the customer gave you. You must obtain the records from the government.

In some states, it is required to submit a notice of lien to the Department of Motor Vehicles before doing anything else. If you do this first, the DMV will freeze the title so the owner or lienholder cannot change it. This prevents any funny business with the title. The DMV will then provide you with an official printout of the title record, ensuring you have the correct name and address of the owner.

Even if you know the owner has moved, you must send the notice to the address listed in the title record. If it gets returned, at least you sent it to the correct address. If you send it to a different address, your entire claim could be rejected when you apply for a title two months later.

The notice must include several key details:

The VIN number of the vehicle.
The name, address, and phone number of your facility (repair shop, towing company, or body shop).
The officially registered name of your business.
Many people make the mistake of using an unofficial name. If your business is legally registered as "Automotive Restoration Development LLC" but you operate under "Bill’s Body Shop," you must use the official company name. If you use an abbreviation or a different name, the state could reject your claim, or the lienholder could dispute it later.

The name and address must also be printed on the outside of the envelope sent to the owner. This is because some body shops try to send blank envelopes, hoping the recipient will assume it’s junk mail and throw it away. The notice must also state that your business has possession of the vehicle, list an authorized contact person, and provide an itemized statement of the charges accrued. This means you cannot simply write, "You owe us $4,200." You must break it down into categories like storage, repairs, towing, and parts.

Additionally, the notice must state that if the vehicle is not claimed, it may be sold 35 days after the notice for an older model or 57 days for a newer model. This means you must wait at least a month for older cars and two months for newer ones. If you do not wait the required time, you will lose your title.

You also need to provide the physical location of the vehicle. If you have moved it, we recommend bringing it back to its original location before proceeding. Timing is crucial— you cannot send the notice less than 30 days before the sale for older vehicles or less than 52 days for newer ones. You cannot auction off the vehicle the next day; you must give the owner time to redeem their vehicle. If you fail to follow these timelines, the DMV will reject your application.

It is also critical to follow the process correctly because, in legal disputes, the court may award damages, attorney fees, and costs to the prevailing party. This means that if you make a mistake and the lienholder, insurance company, or owner suffers damages—such as losing their car or lien due to your error—they can sue you and win compensation.

There are many other details involved. For example, notices must be sent at least 20 days before the sale, and 5% of the proceeds must be allocated to the clerk. This is an eight or nine-page statute with many requirements. You must ensure you follow them correctly to avoid losing your vehicle.

This is just one example from Florida, but most states have very similar procedures. Why? Because these procedures originate from federal law. Whether you are in Florida, Pennsylvania, or Arizona, the steps are largely the same.

The most important takeaways are:

If you are a towing company, repair shop, or body shop, do not call the vehicle abandoned. Abandoned means it appeared out of nowhere with no known owner. What you have is a mechanic’s lien or a towing lien.
Do not start communicating with lienholders or owners until you fully understand the notices you are required to send. Many lienholders know how to manipulate the system, and if you provide incorrect information, they can invalidate your entire lien and take the car. If you tell them, "You owe us $4,000," they might show up with law enforcement and claim they were not given proper notice.
The state used to be more lenient with this process, but that has changed. You may remember a "title guy" who used to handle mechanic’s liens for a few hundred bucks. Many of them have disappeared because states are now strictly enforcing the rules. You cannot cut corners. If you do not follow the correct steps, you will not get your title and will lose out on the money owed to you.

For more information, click the link below. We also offer title consulting if you want to speak directly with a title agent about your case without purchasing title services. If you found this video helpful, check out other videos on our channel for related topics.