Dealing with unwanted vehicles can be a cumbersome process. In California, if you’re a business or individual in possession of a vehicle—especially one that’s been moved to your premises by a public agency and is valued at $500 or less—understanding the lien sale process is crucial. This guide provides a comprehensive overview of how to legally dispose of such vehicles through a lien sale, ensuring you comply with California regulations.
Understanding Lien Sales for Low-Value Vehicles in California
A lien sale is a legal process that allows you to recover costs associated with storing or towing a vehicle by selling it. Specifically, this process applies to vehicles valued at $500 or less that have been placed in your possession by or on behalf of a public agency for reasons other than abandonment. This typically includes situations where law enforcement has directed a vehicle to a storage facility. It’s important to note that vehicles disposed of under these specific conditions can only be sold to licensed dismantlers or scrap iron processors, and generally cannot be restored and reregistered for public use unless they meet specific criteria as horseless carriages or historical vehicles.
Step-by-Step Guide to Disposing of a Vehicle via Lien Sale
Navigating the legal requirements can seem daunting, but breaking it down into steps simplifies the process. Here’s a step-by-step guide to properly dispose of a vehicle through a lien sale in California:
Step 1: Obtain Owner Information
To initiate the lien sale, you first need to identify the vehicle’s registered and legal owners, as well as any other parties with a vested interest. To obtain this information from the Department of Motor Vehicles (DMV), you must submit a completed Registration Information Request For Lien Sale (INF 1126) form along with the required fee. It’s critical to submit this request to the DMV within 15 working days from the date you took possession of the vehicle. Failure to do so may limit your ability to charge for storage beyond that initial 15-day period. Alternatively, a California Law Enforcement Telecommunications Service (CLETS) printout, obtained by the impounding law enforcement agency, can sometimes be accepted in place of the DMV printout.
Step 2: Notify Interested Parties
Once you have received the vehicle record from the DMV, your next step is to notify all interested parties about your intent to dispose of the vehicle. This involves sending the following documents via certified mail with return receipt requested, or by U.S. Postal Service Certificate of Mailing:
- A completed Notice of Intent to Dispose of a Vehicle Valued at $500 or Less (REG 684) form.
- A self-addressed return envelope, pre-addressed to your business as the lienholder.
These documents must be sent to the registered and legal owner(s), and any other individuals or entities listed as having an interest in the vehicle.
Step 3: Handling Declarations of Opposition
After mailing the REG 684 form, you must wait at least 15 days before disposing of the vehicle. However, if you receive a Declaration of Opposition—a completed, signed, and postmarked objection to the disposal within 10 days of the date you mailed the REG 684—you are legally prohibited from disposing of the vehicle. In this case, you have a few options:
- Obtain a release of interest from the person who filed the opposition.
- File a court action within 20 days of mailing the REG 684 and secure a judgment in your favor.
- Demonstrate evidence that you were unable to serve the opposing party as per California Vehicle Code §22851.8(e).
Step 4: Disposal to Licensed Dismantler or Scrap Processor
If no Declaration of Opposition is received, or if you have successfully addressed an opposition, you can proceed with disposing of the vehicle. You must transfer the vehicle to a licensed dismantler or scrap iron processor. When doing so, you need to provide them with specific documents:
- Copies of the REG 684 form sent to all interested parties, along with postal receipts.
- The impound report from the public agency that initiated the vehicle removal.
- A completed and signed Statements of Facts for Vehicle Valued at $500 or Less Removed by a Public Agency for Reasons Other Than Abandonment (REG 686) form.
- If the public agency did not value the vehicle within three days of removal, a Statement of Facts (REG 256) form, completed by you (garage keeper or agent) declaring the vehicle’s value.
- Depending on whether you received a Declaration of Opposition:
- If no opposition was received, a REG 256 form stating this fact.
- If an opposition was received, provide a copy of the court judgment in your favor or the DMV’s authorization to continue the sale.
Step 5: Redeeming the Vehicle
It’s possible for the vehicle owner to claim their vehicle before it’s disposed of. If this happens, you are entitled to recover your costs for towing, storage, and processing the required notices, up to a maximum of $70.
Step 6: Vehicles with No DMV Record
In some instances, a vehicle may not have a DMV record or known interested parties. In such cases, you still need to complete the REG 684 and REG 686 forms. On the REG 684, indicate “No Interested Party” on the right side. On the REG 686, mark the box that states “No vehicle record on the DMV database, no interested party.” When disposing of such vehicles, provide the licensed dismantler or scrap iron processor with the REG 684, REG 686, the DMV or CLETS printout (if available), and the impound report.
Required Documents Checklist for Vehicle Lien Sale
To ensure a smooth and legally compliant vehicle lien sale process, make sure you have the following documents in order:
- Registration Information Request For Lien Sale (INF 1126) form
- Notice of Intent to Dispose of a Vehicle Valued at $500 or Less (REG 684) form
- Statements of Facts for Vehicle Valued at $500 or Less Removed by a Public Agency for Reasons Other Than Abandonment (REG 686) form
- Statement of Facts (REG 256) form (if applicable, for vehicle valuation or declaration of no opposition)
- DMV printout or CLETS printout
- Impound report from the public agency
- Postal receipts for certified mailings of REG 684
- Court judgment or DMV authorization (if applicable, due to Declaration of Opposition)
Finalizing the Disposal
By following these steps and ensuring all required documentation is accurate and submitted correctly, you can confidently and legally dispose of vehicles valued at $500 or less through the California lien sale process. For any further questions or clarification, the DMV Lien Sale Unit can be contacted at (916) 657-7617 during business hours (8 a.m. to 5 p.m.). This resource is available to help guide you through each step and ensure compliance with all regulations.
