Full question:
We are a used car dealer in California that financed one of our own customers on a car. He is now in Florida and has a $5000 unpaid repair bill at a Lexus dealership. Are we obligated to pay the whole bill when we go to reposess the car, or is their a law that dictates they can only charge the lien holder so much or must give us notification prior to such a large repair being performed?
- Category: Judgment Liens
- Date:
- State: California
Answer:
Generally, whether you must pay the entire repair bill when repossessing the car depends on the contract between you (the financing company) and the customer. Mechanics can assume that the vehicle operator has the authority to authorize repairs. When a person does not pay for repairs, the mechanic can place a lien on the vehicle.
In Florida, to enforce a lien through the sale of a vehicle, the mechanic must notify all interested parties within 15 business days from when storage charges begin. This notice must include details about the vehicle and the lien amount. The owner can redeem the vehicle by paying the amount specified in the lien notice. They can also recover possession of the vehicle without going to court by posting a bond (Fla. Stat. § 713.585).
It's advisable to consult a local attorney to review the specifics of your case, including whether the notice requirements were met and if your security interest is valid against the mechanic's lien.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.