How Mechanic Liens Work: Trustworthy or Risky?
Download MP3Episode Description:
- Introduction:
- Discussing why mechanic's liens are no longer a viable option for getting a car title.
- In the past, it was a legitimate way for automotive shops to get paid for repairs, but this has changed over the years.
- Interview with a Mechanic:
- A mechanic shares his challenging experience with a car brought in for repairs that was never picked up.
- The mechanic explains how trying to get a title through a mechanic's lien was a long and frustrating process.
- History of Mechanic's Liens:
- Automotive shops used to rely on mechanic's liens for titles, especially for cars left unclaimed.
- In 2015-2016, many shops abused the process to help individuals get titles for cars they hadn’t worked on, leading to the tightening of regulations.
- The Tightened Process:
- States have cracked down on mechanic’s liens. Many now require a detailed audit process before accepting a lien.
- Shops must prove they performed authorized work, notify the owner, and auction the car publicly.
- The process is time-consuming, requiring certified letters and public ads for auction.
- Why Mechanic's Liens Aren't Worth It:
- Even for legitimate shops, the process is complicated and costly.
- A court-ordered title is a faster, cheaper alternative with fewer hoops to jump through.
- State Regulations:
- States have started implementing stricter audits to prevent fraud, including checking the shop’s financial records.
- Mechanic's liens are often rejected due to lack of proper documentation or fraudulent practices.
- Case Example:
- A mechanic shares an example where a repair shop tried to use a mechanic's lien for a car they worked on, but the process was rejected twice after being audited.
- Cartitles.com Insights:
- According to cartitles.com, the process for obtaining a mechanic's lien is complex and should only be used when absolutely necessary.
- States often require the car to be auctioned, and any proceeds beyond the repair costs must be turned over to the state.
- Alternatives to Mechanic's Liens:
- If you’re not a licensed mechanic or trying to get a title for a car that wasn’t worked on, a mechanic’s lien won’t work.
- Other methods are faster, cheaper, and more reliable.
- Conclusion:
- If you are considering a mechanic's lien, think twice. There are better options available that won’t take months to complete.
- Call to Action:
- Book a one-on-one live consultation with experts at actualhuman.com for more personalized advice on car titles, liens, and more.
Thank you for tuning in to this episode of Actual Human Advisory!