Why Are Mechanics Liens Disappearing?

The Challenge for Automotive Businesses
So, if you’re an automotive business like a body shop, a towing company, or a repair yard, you may have found that doing mechanics leans has become a lot more difficult.

Disappearing Service Providers
Many of you have had a service, usually a mom-and-pop type company that works from home or some little agency that did your mechanics leans for you.

Frustrations of Repair Shops
We get 15-20 calls a day from repair shops or automotive shops that say, “Look, I had a place that was doing all my mechanics leans… and I can’t get a hold of them.”

The Importance of Mechanics Liens
Mechanics leans are a very specific process that only a licensed Automotive facility can do. It’s a way for them to get paid back for repairs that were not paid for by the car owner.

The Mechanics of Mechanics Liens
Let’s say somebody brings their car in for a transmission job… they don’t show up, they don’t pay the bill. Well, how do you get paid if you’re the shop?

Crackdown on Fraud
Starting about 15 years ago, the DMV departments in all the states found out it was often used for fraud.

Evolving Regulations
Most states now have statutes on the books that say the actual licensee has to send the certified letters, they have to post the ad in the newspaper, they have to hold the auction.

Third-Party Challenges
Even in states where it’s not illegal, it’s now so much more difficult that the third parties can’t afford to do it for the fees that most shops are wanting to pay.

Streamlining the Process
What do you do if you are a licensed repair shop? Look into streamlining the process.

A Solution for Licensed Repair Shops
We have a title service but it only does the paperwork. We can’t send out the certified letters, we can’t hold the auction for you, we can’t put ads in the newspapers.

Reasons for Disappearance
If you’ve been wondering why your title mechanics lean company has disappeared off the face of the Earth, that’s why.

Alternatives to Mechanics Liens
If you’re not a licensed repair shop, mechanic lean is probably not the way to get a title. You could do a court order title for a lot quicker, cheaper, and easier process.

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