Motor Vehicle Repair Liens for Unpaid Charges

Lien for Unpaid Charges

Owners and operators of garages and repair and service stations by law have a lien upon motor vehicles for labor, materials, supplies and storage for the amount of the charges, when the amount of the charges is agreed to by the repair facility and the vehicle owner. The motor vehicle repair lien does not affect any other lien on the vehicle.

Sale of Vehicle

When possession of the vehicle has continued for 20 days after the charges accrue and remain unpaid, the repair facility may notify the owner (if in the county where the vehicle is located) to pay the charges. If the owner fails to pay the charges within 10 days after notice is given, the repair facility may sell the vehicle at public auction and apply the proceeds to payment of the charges. The balance of the proceeds must be paid to the owner (or other person entitled to the money). If the vehicle owner does not reside in the county where the vehicle is located, the repair facility is not required to give the 10 days’ notice to pay before proceeding to sell.

Five days’ notice of sale must be given to the owner if he can be found. If the owner cannot be found, the notice of sale must be published twice in a newspaper published in the county.

If the person entitled to the balance is unknown or has left the county, the balance will be paid to the Arizona Depart­ment of Revenue. If the balance is not claimed by the person entitled to the money within two years, the unclaimed money will be deposited in the permanent state school fund.