The short answer is yes, but the lien works differently with a financed car. When a motor vehicle is financed, the lender will also have a lien on the car. This shows they have a security interest in the car, meaning if the borrower defaults, the auto loan lender is in line to get paid. But this doesn’t stop a service provider from placing a mechanic’s lien on the car. Mechanics and service providers need to have a way of getting paid too, so mechanic’s liens are allowed, even on financed vehicles, including motorcycles
A mechanic’s lien is usually superior to a lender’s lien on a vehicle title. Even if the work the mechanic performs happens years after the borrower took out the auto loan, the mechanic’s lien still typically retains priority. This means that the service provider that gets the mechanic’s lien is first in the to get paid if there is a repossession and liquidation sale of the car.
Service providers like auto mechanics and towing companies are allowed to assume that the vehicle owner has the authority to contract for repairs on their vehicle. It makes sense that the owner should be able to get a tow, get maintenance work done, or have other services rendered rather than the lender commissioning that type of work. The lender isn’t aware of the daily repair or maintenance needs of the vehicle, they just want to see the borrower’s monthly payments come in on time, in full each month. When repairs or services are performed but not paid for, state law allows service providers to place a mechanic’s lien on a vehicle.
At Florida Lien Services, LLC we handle the whole process. Email your shop work order or tow ticket to info@FloridaLienServices.com and we will start the process that leads to a title under the shop’s name or the money owed for services rendered, within 60 days.