It’s an unfortunate reality in the auto care industry: A customer brings their car in for repairs, and when the job is done, they disappear. No calls, no emails, no payments. Abandoned vehicles take up valuable space in a facility and can create financial and legal headaches for shop owners. While state laws vary, here are five practical ways to avoid – or at least manage – the problem of abandoned vehicles in your repair shop.
1. Set Clear Payment Expectations Upfront
Sergey Beihul, owner of EProGarage in St. Peters, Mo., has learned through experience that requiring deposits from new customers can help prevent abandonment. “If the repair is over $500, we ask for a deposit,” he says. “The amount depends on the shop and the owner’s preference, but it helps ensure commitment.”
Summer Guerrero, co-owner of Affinity Automotive Services in Wichita, Kan., follows a similar approach. “If something doesn’t seem right with a customer, it probably isn’t,” she says. To avoid complications, she recommends having customers prepay for repairs whenever possible, especially for first-time visitors.
2. Maintain Thorough Documentation
A well-documented intake process can protect your shop in the event of an abandoned vehicle. Guerrero emphasizes taking detailed notes at every step. “We log everything – time, date stamps, and all communication attempts,” she says. Keeping track of correspondence ensures you have the necessary records to proceed with legal options if a car is left behind.
3. Establish a Communication and Fee Structure
Frequent communication keeps customers engaged and aware of their vehicle’s status. At Affinity Automotive Services, Guerrero and her team reach out to customers by the third day of non-payment. “We tell them about storage fees, which vary by state,” she explains. “The fees can wake them up, because they add up quickly.”
Shop owners should check their state’s regulations regarding storage fees and notify customers early on about any accumulating charges. Many shops set a structured timeline, such as contacting customers weekly and flagging unpaid jobs in their system at 30 days (yellow alert) and 60 days (red alert).
4. Understand Your Legal Options: Mechanic’s Liens vs. Lien Sales
When a vehicle remains unclaimed, shops often turn to a mechanic’s lien or a lien sale to recoup their losses.
- Mechanic’s Lien: According to LegalClarity.com, Mechanic’s liens are a legal tool that allows service providers to secure payment for labor and materials. The shop can place a lien on the vehicle until the repair bill is paid, but this does not guarantee immediate payment.
- Lien Sale: This process transfers vehicle ownership to the shop, allowing them to sell it to recover costs. Guerrero warns that while this is an option, the process is time-consuming and requires compliance with state laws.
“Dealing with the Department of Revenue, the DMV, and the Highway Patrol takes time,” she says. “It’s not always worth it unless the vehicle has resale value.”
Beihul has had cars abandoned for months and has taken losses on them. “You can tow the car to a salvage yard and just be out the tow fee,” he says. “Or you can go through the legal steps to claim and resell it.”
5. Turn Abandoned Vehicles Into an Opportunity
For some shops, abandoned cars present a creative opportunity. Guerrero has used lien-sale vehicles as loaner cars for her shop. Other shops fix and resell them if they can obtain the title legally. However, these options require careful planning to avoid tax implications and additional expenses.
Additionally, regularly auditing invoices and ensuring service advisors close out jobs promptly can help prevent vehicles from slipping through the cracks. “Accountability is key,” Guerrero says. “If a service advisor doesn’t follow up, it affects their commission and pay plan.”
The Bottom Line
While abandoned vehicles are a frustrating reality for many shop owners, having a structured approach to payment policies, documentation, communication, and legal recourse can make all the difference. The goal is always for the customer to pick up their vehicle, but when they don’t, being prepared can minimize losses and even turn a problem into an opportunity.
Each state has different regulations, so shop owners should check with their local DMV or Department of Revenue to ensure compliance. By implementing these strategies, shops can protect their business, reduce financial losses, and maintain efficiency in their operations.
