← Back to Blog

Car Stuck at the Repair Shop? Pay the Lien Before You Sell

Published

The short answer

If your car is at a repair shop with an unpaid bill, you usually can't sell it until you pay. Texas law lets a shop that repaired a vehicle keep it until the repair bill is paid (Tex. Prop. Code §70.001). If the bill stays unpaid, the shop can follow a notice process and, after the waiting period, sell the car at a public sale to cover the charges (§70.006). So settle the bill, or agree on a payoff plan, before you line up offers.

Why the shop can hold your car

You might think the car is yours, so you can take it. But Texas gives repair shops a "worker's lien." Under §70.001, a worker who repairs a vehicle may keep it until either:

The lien ends when the shop gets good payment or gives the car back. One catch: if you pay with a check that bounces or a card payment you stop, the law says the lien keeps going and the shop can take the car back, as long as you signed a separate notice saying the car could be repossessed (§70.001(b) and (c)).

A shop that is only storing the car, not repairing it, can also have a lien for the storage and towing charges under §70.003(c).

What happens if the bill isn't paid

The shop can't just keep the car forever or sell it the next day. Section 70.006 sets out steps:

  1. Written notice. The shop must send written notice to you and to any lender listed on the title. The notice goes by certified mail and includes the amount owed and a request for payment.
  2. County filing. Most shops (franchised dealers are an exception) must also file a copy with the county tax assessor-collector. For a car under 16,000 pounds, that filing is due no later than the 30th day after the charges accrue.
  3. Your window to pay. You, or your lender, can get the car back by paying all charges before the 31st day after that county filing.
  4. Public sale. If the charges aren't paid by then, the shop may sell the car at a public sale. It applies the money to the bill and must pay any extra to the person entitled to it.

If you still owe on a car loan, your lender gets that notice too. The law also says a shop that leaves out required details in its notice to a lender can lose priority to the lender's lien (§70.006(b-2)).

How to sell a car that's at the shop

  1. Get the final bill in writing. Ask for the total, including any storage charges, and compare it with the work order you signed.
  2. Decide whether to finish or stop the repair. If the repair doesn't make sense for a car you're selling, ask the shop what you owe for work done so far.
  3. Pay and take the car back. Once the shop is paid, the lien is released and the car can go to a dealer appraisal.
  4. Gather the title paperwork. If you have a loan, see our guide to selling a financed car with a lien release. Our dealer appraisal prep checklist covers what to bring.
  5. Be upfront about the repair. Tell dealers what was fixed, or what still needs fixing. Offers are confirmed after a physical appraisal, so the car's real condition is what counts.

If your bill is in dispute, talk to the shop first. This article is general information, not legal advice. For a dispute you can't settle, a Texas attorney can tell you how the law applies to your case.

How competing offers fit in

Paying a repair bill on a car you plan to sell can feel like throwing good money after bad. Comparing several offers helps you see what the car is really worth before you decide how much repair makes sense. How competing offers work explains how local dealerships bid on the same car, and selling a car with a loan payoff covers what happens if you still owe.

Frequently asked questions

Can a dealer pick the car up from the shop and pay the bill?

Only if you and the dealer agree to it and the shop is paid. The shop's lien stays until it's paid or it gives up possession, so the bill has to be settled before the car leaves.

Does a repair lien show up on my Texas title?

The worker's lien comes from the shop keeping the car, not from a title record. Your title still shows any lender. A shop that wants to sell the car must notify the lenders listed on the title.

Bottom line

A Texas repair shop can keep your car until the bill is paid, and after notice and a 31-day window it can sell the car at a public sale. Settle the bill first, then get the car appraised.

Want to know what your car is worth before you decide? Get competing offers. It's free to sellers, first responses typically come the same day (not guaranteed), and offers are confirmed after a physical appraisal.