Can Auto Repair Shop Sell Your Car If You Refuse To Pay Bill In New York State?

Having car trouble is never fun especially when the repairs end up costing more than you expected. Most of us have been there – the mechanic gives you a quote to fix an issue with your car you agree to the work, but then the final bill ends up being much higher. Whether it’s due to unforeseen complications or shops tacking on extra fees, auto repair bills can quickly snowball out of control.

So what happens if you disagree with the charges and refuse to pay the full amount? Can the auto shop legally take possession of your car and sell it in order to recoup their costs?

Unfortunately, in some cases, the answer is yes Many states, including New York, have laws that allow auto repair shops to place a “mechanic’s lien” on your car if you fail to pay your bill. This gives them the right to keep possession of your car until you settle up And if you still refuse to pay after a certain period of time, the shop can sell your car at auction to recover what they say you owe.

This may sound shocking, but mechanic’s liens are completely legal if done properly. However that doesn’t mean shops have free reign to exploit customers. There are rules and procedures in place to protect car owners too.

To help you understand how New York’s mechanic’s lien law works and what you can do if this happens to you, here are some examples:

What Is a Mechanic’s Lien Exactly?

A mechanic’s lien is a powerful legal tool that gives auto repair shops leverage to get paid for car repairs they have completed.

Here’s a quick rundown of how it works in New York:

• The shop provides an estimate for repairs and you authorize them to complete the work. This establishes a contract between you and the shop.

• After finishing the repairs, the shop gives you the final bill. If you refuse to pay or disagree with the charges, they have the right to keep possession of your car.

• The shop has to tell you in writing that they are keeping your car and give you 90 days to settle the matter.

• After 90 days, if you still haven’t paid, the shop can get a certificate of possessory lien from the NY Department of Motor Vehicles. This makes the lien official.

• Once they have the certificate, the shop can sell your car at public auction after giving proper notice. They can use the sale proceeds to cover your unpaid bill.

• If any money is left over after paying the bill, the shop has to return that balance to you.

So in essence, the mechanic’s lien gives repair shops tremendous leverage to get the payment they believe they are owed. Many states have similar laws to New York’s.

When Can Shops Place a Mechanic’s Lien on Your Car?

Under New York law, auto repair shops have the right to lien your car if:

• You authorized them to complete repairs on your car.
• They completed the authorized repairs.
• You have not paid the final bill in full.

Shops cannot just randomly place liens on customer cars. There must be an underlying business transaction where you brought them your car and agreed to have work done.

If the shop completed repairs that exceeded the initial estimate without your approval, the validity of the lien could be disputed. But in most cases, as long as you okayed the original repairs, the shop is acting within its rights.

What Should You Do if a Shop Places a Mechanic’s Lien on Your Car?

Getting hit with a mechanic’s lien on your vehicle can be shocking, frustrating, and financially devastating. Your options are limited once the lien is in place. Here are some tips on how to handle it:

1. Try to negotiate a settlement with the shop. Your best bet is to see if you can negotiate an agreement with the shop before they start the formal lien process. Offer to pay a portion of the disputed amount or set up a reasonable payment plan. If both parties can compromise, you may be able to get your car back quickly without a lien ever being filed.

2. Pay the bill under protest. If the shop won’t negotiate, paying the bill in full even though you disagree is the only way to immediately get your car back lien-free. But make sure you clearly state in writing that you are paying “under protest.” This preserves your right to potentially sue the shop later to recover the funds if you prove the charges were fraudulent.

3. File a complaint with the NY Attorney General. If you believe the shop is intentionally overcharging or violating your rights, file a formal complaint. This can trigger an investigation which may help provide leverage in getting the situation resolved.

4. Consult an attorney. A consumer protection lawyer can advise you of your rights and legal options based on the specifics of your case. They can also represent you in negotiating with the shop or taking legal action if necessary.

5. Let the lien process play out. If you refuse to pay and call the shop’s bluff, you risk having your car sold at auction. But in some cases, disputing a clearly bogus lien can result in it being thrown out by the courts before a sale occurs. This is risky though and could wind up costing you the car.

Are Mechanic’s Liens Ever Illegitimate?

While mechanic’s liens are legal, shops can sometimes abuse the law and use liens improperly to bully customers into paying outrageous bills. Some common unethical practices include:

• Price gouging: Drastically inflating the bill after beginning repairs to extort more money from the customer.

• Billing for unnecessary work: Charging for repairs that were never discussed with the customer and were not needed.

• Duplicate billing: Billing for the same parts/labor multiple times.

• False liens: Placing a lien with no underlying transaction or agreement with the customer.

• Lien threats to silence critics: Threatening liens to stop customers from leaving bad reviews or reporting issues.

Reputable shops only use liens as an absolute last resort when customers refuse to pay reasonable bills. Shady shops may lean on liens more aggressively as a money-making tactic.

Can You Get Your Car Back if it is Sold at Auction?

If the situation ends with your car being sold at auction, is there any way to get it back?

Unfortunately, the options are very limited at that point:

• You would have to reimburse the buyer for the purchase price they paid at auction. Few buyers will agree to this.

• You could offer to buy back the car from the shop at auction price plus associated costs if it has not yet been sold to a third party.

• Your only other recourse would be to sue the shop for illegally selling your car without a valid lien. But the legal battle will likely be lengthy, costly, and uphill.

That’s why it’s critical to take action and seek legal help before the auction occurs if possible. Once the car is sold, it becomes exponentially harder to get back.

Top Tips for Avoiding Mechanic’s Lien Issues

The best solution is avoiding mechanic’s lien disputes altogether. Here are some smart tips to reduce the chances of problems:

• Get quotes in writing – Insist on a detailed written estimate before authorizing any work. Never approve repairs based on a verbal quote alone.

• Review your invoice carefully – Don’t just glance at the final invoice. Go through each line item and understand exactly what you’re paying for.

• Ask about parts discounts – Many shops get substantial discounts on wholesale parts but still charge retail prices. Make sure you’re not overpaying.

• Say no to unnecessary upsells – Some shops try hard to sell you additional services you don’t really need. Stick with only repairs you authorized.

• Use your AAA membership – AAA direct repair shops must provide written estimates and allow you to pre-approve any changes before billing.

• Ask around for referrals – Choose a reputable shop with a track record of fair billing and high customer satisfaction. Read online reviews.

• Pay with a credit card – This gives you additional protection in disputing fraudulent charges. Never pay cash unless you receive an itemized receipt.

Following these tips will significantly reduce the chances of billing disputes that can lead to threats of mechanic’s liens on your vehicle. But if you do find yourself in the unfortunate situation of a shop placing a lien, act quickly and explore all options to protect both your car and wallet.