Family members car is being worked on...Doesn't have the money to pay for it?

Question

Hi,
One of my family members recently hit a deer. They still owed money on the car. They sent it through to be worked on and got the bill. They have to pay it all up front. They do not have any where near the money to pay for it and they cannot get a loan because their credit is horrible. My question is, since they still owe money on it from the bank, what will happen when the person who fixes their car doesn't get paid?

They did not have insurance at the time.

Answer 1

heres how it will work.
body shop finishes job. contacts customer. cust says "i have no $". body shop lets the vehicle sit on lot, secured so cust cant come get. body shop every day adds more $ to the bill in storage fees. certified letter sent demanding payment. mechanics lein started. company that holds the note on the vehicle pays body shop, resells vehicle, original owner responsible for any charges, diff in owed vs sale price, etc.
bottom line....no $$$, no workie!
people PLEASE dont have work done you cant pay for...all that does is screw the repair guys....and i am one of them!!!

Answer 2

They should run it through their insurance; since they have a note on the car it has comprehensive coverage (or should).

What will happen is that the garage will place a mechanic's lien on the vehicle. They will retain possession of the vehicle until the bill is paid in full. After a certain amount of time (usually 30 days) the shop takes legal possession of the vehicle (they get title) and then they can do whatever they want. The law is completely on the shop's side and that's that.

The loan on the car is still ticking away. One has nothing to do with the other except for your family member being in the middle between them. He's going to wind up paying for a car he can't use and may well lose. If the shop exercises their mechanic's lien and takes possession, the family member will owe the lending institution, immediately, for the full amount of the unpaid balance of the loan.

Like I said, get insurance involved. That's why you pay them every month.

Answer 3

The repair company isn't going to release the vehicle until they get paid. If they aren't responsible enough to pay there bills they probably haven't been making the payments and it will eventually be repossessed by the bank. The mechanic will put a lien on it and the bank will auction the car and pay the mechanic. Your relative will be responsible the difference between what the car was auctioned for and what was owed. Therefore they will still owe on the car and have no vehicle.

Moral of the story...pay your bills.

Answer 4

Most lenders require you to have full coverage on a vehicle, including collision until the vehicle is paid off. So why isn't the insurance company paying for the repair, less the amount of deductible of course.

But to answer, if the person who fixes their car doesn't get paid, they don't get their vehicle back, he has a lien on it now for the amount of repairs. Most states have a mechanism in place that will allow him to notify the first lien holder, the bank, and unless they pay for the repairs and take possession of the vehicle he can sell it to cover the repairs. If that happens your family member will still owe the bank the balance on the loan, but not have a car to drive while making car payments.

If it happens to sell for more than the cost of repairs, the bank will have first claim on any excess from the sale.

Answer 5

Are you saying they owed money on a car, and didn't have comprehensive insurance coverage? First mistake, and a violation of the terms of any car loan I have ever seen. They sent the car for repairs knowing they couldn't pay for it? Second mistake. If they don't pay for the repairs, the shop puts a lien on the car, they don't get it back. The car may be sold at auction, if there is not enough to pay the bank and the shop, a lawsuit or maybe even two will be brought for the difference.

Answer 6

They will put a mechanic's lien on it. The car will not be able to be transferred to another owner until the lien is paid off. If the bank repos the car, they will probably be sued by the body shop for the amount owed plus interest, court costs, repo fees and lawyer fees. Best thing is to start making payments to the body shop, who may or may not release the car until it's paid in full.
If there is still a loan on the car, they are required in most states to carry full coverage insurance on the car. The insurance should cover most if not all of the cost to the body shop.

Answer 7

If they owe money on the car, they are required to keep comprehensive insurance on the car. Then the insurance company will pay for the repair. If they failed to keep up the insurance, then they are responsible for the bill.

If they don't pay the repairman the money, he will get a workman's lien against the car, and it can be sold at auction. Any money that the workman gets above his bill and expenses for auctioning it off should be returned to your family member. Your family member will still be responsible for the amount owed on the car and the bank can sue them for the amount owed, and could even garnishee their wages, if they were working.

Answer 8

What everyone else said.
I just wanted to add that the car would have to sit on the mechanics lot for a predetermined amount of time, like 30 days, before the mechanic can put a lien on it. Check the laws in your state.

Answer 9

in the event that they nonetheless owed money on the motor vehicle, then they have finished coverage. Banks require this for the reason that they own the motor vehicle till it is paid off. subsequently, the coverage agency will pay.

Answer 10

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