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Process Guide

The Lien Sale
Workflow & Forms.

A technical walkthrough of the forms, timelines, and legal requirements for processing vehicle liens in California.

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For licensed Automotive Towing, Storage, and Repair facilities in California, dealing with abandoned vehicles and unpaid bills is a costly reality.

While taking every non-paying customer to court is a legal option, it is rarely the practical one. The California DMV Lien Sale process exists specifically to prevent court congestion and provide licensed businesses with a streamlined, non-judicial remedy to recover debts.

// WHY

Legally recoup labor, towing, and storage fees without the administrative burden and expense of a lawsuit.

// WHEN

Statutory timelines are strict. Act the moment a vehicle is abandoned or a bill goes delinquent to protect your right to collect.

// HOW

Auction the vehicle, satisfy the lien, and clear your lot efficiently. No courtroom required.

This guide walks approved facilities through the compliant way to secure payment without stepping inside a courtroom.

The "Short Lien" Process (Under $4k)

A detailed guide for vehicles valued at $4,000 or less, governed by California Civil Code §3072.

1

Identify Owners & Interested Parties

Within 15 days from when the lien is established, you must request the vehicle's history. Submit a completed Registration Information Request for Lien Sale (INF 1126) form to the DMV. The DMV will return a record detailing the registered and legal owners, plus any other known interested parties.

"VLT Stop" Alert: If the DMV record shows a "Vehicle License and Title (VLT) stop," you must pause the process. Send a copy of the printout to the DMV Lien Sales Unit with your details. They will investigate and inform you by letter if you can proceed.

Failing to properly identify the vehicle can nullify the entire lien sale, forcing you to start over, even after the vehicle has been sold.

2

Notify All Parties (REG 668)

You must schedule an auction date. Then, at least 31 days (but no more than 41) before the sale, you must send a Notice of Pending Lien Sale (REG 668).

  • Send to all owners and interested parties by Certified Mail (return receipt requested) or U.S. Postal Service Certificate of Mailing. You must include a return envelope pre-addressed to the DMV Lien Sale Unit.
  • Send a copy to the DMV by Certified Mail only(return receipt requested).
  • If the DMV has no record of the vehicle, you only need to send the REG 668 to known interested parties and to the DMV Lien Sales Unit.
3

Publicly Post the Notice

For at least 10 consecutive days leading up to and including the day of the sale, the REG 668 must be displayed in a prominent location at your business office. If the auction is held elsewhere, post it there as well.

Privacy Measure: When posting the notice, fold it to conceal the personal addresses of the owners and interested parties.
4

Handling Opposition

If any party submits a "declaration of opposition" from the REG 668 to the DMV, the process is halted. To continue, you must obtain a resolution and submit it to the Lien Sales Unit.

  • Option 1: A signed Release of Interest from the opposer.
  • Option 2: A court judgment in your favor.
  • Option 3: A completed REG 659 (Application to Continue Lien Sale After Unsuccessful Service).

Once resolved, the DMV will send a letter authorizing you to proceed.

5

The Auction

On the scheduled date, the vehicle must be accessible for public inspection for at least one hour before the auction begins. The sale must be a live, public auction; sealed bids are not permitted.

6

After the Sale

Your responsibilities depend on the outcome of the auction.

If the vehicle sells to a buyer:

  • Give the buyer the REG 168A (Certification of Lien Sale), DMV history, and postal receipts.
  • Send any excess funds to the DMV Lien Sales Unit within 5 days.
  • Remove and destroy the license plates.
  • File a REG 138 (Notice of Transfer and Release of Liability) within 5 days.

If you acquire the vehicle (no qualifying bids):

  • Complete the REG 168A showing you as both buyer and seller.
  • Remove/destroy the license plates and file the REG 138.
Go to Official DMV Source

Mechanics Liens: The Special Case

Civil Code §3068 - Repair Shops & Service Providers

The "Value + Repairs" Rule

A Mechanics Lien can be processed as either a Short Lien (Under $4k) or a Long Lien (Over $4k). The determination depends on the combined total of the vehicle's market value AND the cost of repairs/services performed.

Example Scenario

  • Vehicle Market Value: $800
  • Repair Bill: $3,500
  • Total Lien Value: $4,300

Result: Must file using the Long Lien (Over $4k) process.

The BAR License Requirement

A mechanics lien can only be used to claim repair costs if the facility holds a valid Bureau of Automotive Repair (BAR) license.

Without a BAR License?

You are restricted to filing a Storage Lien only. You cannot include repair amounts in the lien sale. To recover repair costs, you would need to file a separate civil suit and obtain a court judgment awarding those amounts.

Storage Facility Liens

Civil Code §3071 - Self-Storage & Contracted Lots

The "Long Lien" Mandate

Unlike repair shops or tow yards, Storage Facilities (including those operating open lots or yards under a contracted storage agreement) are legally required to use the Long Lien Process (Over $4k) for all vehicles, regardless of their actual market value.

Why?

This ensures stricter notification requirements (DMV authorization) are met for vehicles stored under contractual agreements.

The Towing Alternative

Facilities wishing to avoid the administrative burden of the lien sale process may opt to have the vehicle removed by a towing company.

  • The Trade-off: The Tow Company files the lien. The Storage Facility receives zero proceeds from the eventual sale.
  • Warning: Before towing a vehicle in lieu of a lien sale, consult your local government or an attorney regarding private property impounds.