General Information
A person who repairs, tows, stores, or provides materials for a vehicle and is not paid has a lien on the vehicle. The lienholder must have possession of the vehicle and may satisfy the lien through a court judgment or a lien sale.
Note Salvage pools and charitable organizations cannot use lien sales to obtain title.
The lien becomes effective when the owner receives a written bill, or, for impounded vehicles, when the vehicle is towed. If repairs exceed $1,500 or storage exceeds $1,025, the legal owner must be notified beforehand.
Before starting a lien sale, the lienholder must determine the vehicle’s value. For vehicles valued over $4,000, follow procedures in “Conduct a Lien Sale for a Vehicle Valued Over $4,000“.
Determine the current market value of the vehicle
If the vehicle value is $4,000 or less, follow the steps below. These lien sale procedures cannot be used for a:
- Vehicle valued over $4,000
- Lien incurred at a self-service storage facility
- Vessel and/or a vessel and trailer combination
- Mobile home as defined in the California Vehicle Code (CVC) §396 as a trailer coach more than 102 inches wide or more than 40 feet long.
Steps To Get Started
- Within 15 days, submit a Registration Information Request for Lien Sale (INF 1126) (PDF) to DMV to get the vehicle history record with all owners and interested parties.
- If there is a “stop” on the record, send the printout and lien sale info to the Lien Sales Unit for approval.
- Incorrect vehicle identification can invalidate the lien sale.
- Mail the Notice of Pending Lien Sale for Vehicle Valued $4,000 or Less (REG 668) (PDF) 31-41 days before the sale to:
- Include a return envelop addressed to DMV.
- If DMV has no record, send Notice of Pending Lien Sale for Vehicle Valued $4,000 or Less (REG 668) (PDF) only to known parties and one copy to DMV at the following address:
Department of Motor Vehicles
Lien Sales Unit
PO Box 932317
Sacramento, CA 94232-3170
- Post the Notice of Pending Lien Sale for Vehicle Valued $4,000 or Less (REG 668) (PDF) at least 10 days before and through the sale date at your business or the sale location.
- Fold it so registered owner, legal owner, and interested party addresses are hidden.
- DMV will deny or cancel approval if it receives a Declaration of Opposition (part of the Notice of Pending Lien Sale for Vehicle Valued $4,000 or Less (REG 668) (PDF) form).
- To continue, send the DMV Lien Sales Unit one of the following:
- An original signed copy of a release of interest from the opposer. This can be a letter or Statement of Facts (REG 256).
- Court judgement with a copy of the plaintiff’s claim and a Statement of Facts (REG 256) stating, “A court judgement has been received in the lienholder’s favor. It has been at least 35 days and no money has been received.”
- Application to Continue Lien Sale After Unsuccessful Service REG 659 (PDF) with required court documents.
- After receiving documents, DMV will mail authorization to proceed.
- On the sale date, the vehicle must be available for inspection at least one hour prior to sale.
- The auction must be public and anyone may appear and bid. Sealed bids are not allowed.
- Give the buyer:
- Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) (PDF)
- DMV vehicle history printout
- Post receipts or the U.S. Postal Service Certificate of Mailing and Posting
- If excess money is received from the sale of the vehicle, make a copy of the Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) (PDF) and mail the form with the excess money to the DMV Lien Sales Unit within 5 days.
- Remove and destroy license plates on the vehicle.
- File a Notice of Transfer and Release of Liability (REG 138) (PDF)within 5 days to the DMV.
- Complete a Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) (PDF) showing yourself as both buyer and seller.
- Remove and destroy plates.
- File Notice of Transfer and Release of Liability (REG 138) (PDF) within 5 days.
- If you sell the vehicle later, you are required to give the new buyer a bill of sale with the lien sale documents.
- Application for Title or Registration (REG 343) (PDF) completed and signed by the new owner.
- Certification of Lien Sale for Vehicle Valued $4,000 or Less (REG 168A) (PDF) completed by the lienholder with the DMV printout and postal receipts attached.
- Printout of DMV record.
- Vehicle/Vessel Transfer and Reassignment Form-Odometer Disclosure Statement (REG 262), if applicable.
- Smog Certification, if applicable
- Applicable registration and/or transfer fees and use tax.
- Application for Title or Registration (REG 343) (PDF), if there is no record of California registration.
- If the vehicle registration expired while in your possession and you are a dealer, lessor-retailer, keeper of a garage, or operator of a towing service, the buyer has 20 days from the lien sale purchase date to pay registration fees without penalty, or pay a transfer fee and a planned non-operation fee. Otherwise, a planned non-operation must be filed prior to the vehicle expiration date or penalty fees are due.
If the vehicle came into your possession with an expired registration, the buyer must pay the registration fees and penalties.
Most vehicles require a smog inspection at the time of transfer. If applicable, provide a smog certification to the buyer.
- The lien sale process is governed by California Civil Code §3072. Disputes between a lienholder and an interested party (including the registered owner or legal owner on the vehicle history records) are a civil matter that can only be decided in court and do not involve DMV.
- The department can assist a lienholder by providing:
- The names and addresses of the registered owner, legal owner, and interested parties from our vehicle history records. (Information retrieved from our records is based on the vehicle identification provided by the lienholder.)
- Mailing of written approval to hold or conduct a lien sale based on the filing of specific documents or denial to a lien sale based on the filing of a Declaration of Opposition.
- For registration fees, see the brochure Registration Related Fees (FFVR 34). Because fees are subject to change, visit the Registration Fees page for the most current information.