“Auto repair shop auctions” usually means one of two things: cars a repair shop sells off because the owner never paid or picked them up, or auctions where repair shops buy cars to fix and resell. This guide covers both, starting with how Minnesota’s lien-sale process works, so you know what you’re buying and what title you’ll get.
When a repair shop can sell a customer’s car
In Minnesota, a shop that repairs or stores a vehicle has a lien on it for the unpaid bill, under Minnesota Statutes sections 514.18 to 514.22. If the bill goes unpaid, the law lays out how the shop can sell the vehicle:
- Waiting period: the lienholder can sell if the debt isn’t paid within 90 days after it becomes due.
- Notice to secured creditors: if there’s a lender on the title, the shop must notify them by certified mail at least 45 days before the sale.
- Notice of sale: the time, place, amount owed and a description of the vehicle must be served on the owner and published in a local newspaper before the sale.
- Public auction: the sale is held at public auction, often run by the county sheriff.
Licensed dealers holding a lien follow a slightly different notice process. Either way, the rules exist to protect the owner, so a sale that skips steps can lead to title problems for the buyer.
How to find lien-sale and abandoned vehicles
- Newspaper public notices. Lien sales must be published, so check the legal notices in the county where the car is held.
- County sheriff sales. Many lien auctions are conducted by the sheriff.
- City impound auctions. Abandoned and towed cars are sold separately by impound lots. Minneapolis holds a public impound auction on the first Thursday of each month.
What to know before you buy a lien-sale car
- Ask what title paperwork you’ll receive. You’ll need the lien-sale documents to apply for a title, so make sure the seller can show the required notices were given.
- Expect as-is, often with no keys. These cars were left behind for a reason. Inspection is usually limited.
- Check the VIN. Run a vehicle history report and confirm there’s no open lender lien that wasn’t properly notified.
- Plan to haul it. You’ll usually need to tow it away the same day or shortly after.
For repair shops: sourcing cars to fix and resell
Many shops buy auction cars to repair and sell, using their own labor to add value. A few things to keep in mind:
- The 5-car rule. In Minnesota, selling more than five vehicles in 12 months requires a dealer license. See flipping cars in Minnesota.
- Buy repairs you can price. Shops have an edge on cars with known, fixable problems. See buying a broken car at auction.
- Know the title brand. Salvage vehicles need a DVS inspection before registration. See salvage titles in Minnesota.
Remarket Space is an online auction open to the public and to licensed dealers, with cars in every condition from runs-and-drives to does-not-start. Every listing includes a written inspection, photos, a test-drive video and a free vehicle history report, and every vehicle is delivered, so there’s no towing from a lot. Licensed dealers can also pay by ACH. Browse today’s cars →
Frequently asked questions
Can a repair shop sell my car if I don’t pay?
Under Minnesota’s lien law, a shop can sell a vehicle at public auction if the bill isn’t paid within 90 days after it’s due, after giving the required notices.
Where are repair shop lien sales advertised?
In the legal notices of a local newspaper in the county where the vehicle is held. Many are conducted by the county sheriff.
Do I get a title when I buy a lien-sale car?
You get the sale paperwork needed to apply for a title. Confirm what documents you’ll receive before you bid.
Can anyone bid at a lien sale?
Yes. Lien sales are held at public auction.
