How to Prepare and File a Mechanics Lien in Illinois as an Auto Broker
How to Prepare and File a Mechanics Lien in Illinois as an Auto Broker
If you’re an auto broker in Illinois who helps clients secure vehicles—whether for purchase, financing, or fleet leasing—and you haven’t been paid for your services, a mechanics lien may help you secure payment. While traditionally associated with construction, mechanics liens in Illinois can also apply to those who furnish labor, services, or materials related to automobiles and vehicle transactions.
In this blog post, we’ll walk you through how an auto broker can prepare and file a mechanics lien in Illinois and protect their rights when payment issues arise.
What Is a Mechanics Lien for an Auto Broker?
A mechanics lien is a legal tool that allows service providers—including auto brokers, dealerships, or mechanics—to place a claim on a vehicle or related property when they haven’t been paid. In the auto industry, this can apply to:
Unpaid broker fees for sourcing or negotiating a vehicle
Storage fees for vehicles held during a dispute
Repairs, modifications, or services not compensated
Commercial fleet acquisitions where the client defaults on the broker agreement
Filing a lien may give you legal leverage to recover payment—or, in some cases, even retain the vehicle until you're paid.
Step 1: Ensure You're Eligible to File
To file a mechanics lien in Illinois as an auto broker, you must meet at least one of these criteria:
Provided services that directly improved or facilitated the sale or delivery of a vehicle
Incurred labor or expenses in securing, preparing, or delivering a vehicle to a client or dealership
Have a valid written agreement outlining fees owed
If you’re simply owed a referral fee without a formal agreement, the lien may not hold.
Step 2: Prepare a Lien Claim
In Illinois, an auto-related lien falls under Article 8 of the Illinois Vehicle Code, which allows for possessory liens and certain non-possessory claims. The lien notice should include:
Your name and business information
The name and address of the client (debtor)
Description of the vehicle (VIN, make, model, year)
Description of the services provided
Amount due
Dates of service and when payment was due
A copy of any written agreement or invoice
Step 3: Serve a Notice of Lien
Before you can enforce your lien, you must send a Notice of Lien to the vehicle owner and any other parties with a legal interest in the car (like a lender or co-owner). This must be:
Sent via certified mail with return receipt requested
Served within a reasonable time after payment is past due
Step 4: File the Lien and/or Retain the Vehicle (If Applicable)
If you are in possession of the vehicle, you may have the right to retain it under a possessory lien until the debt is paid. If you're not in possession, you may need to file your lien with the Illinois Secretary of State or take legal action in small claims or circuit court.
Step 5: Enforce the Lien (If Necessary)
If your lien doesn’t result in voluntary payment, you may need to:
Petition the court to enforce the lien and recover your fees
Seek a court order to sell the vehicle to satisfy the debt (in rare cases)
File in small claims court if the amount is within the jurisdictional limit
Be sure to act within the statutory timelines, or your lien rights may expire.
Protecting Your Auto Brokerage Business
As an auto broker, cash flow and contract enforcement are critical to staying profitable. A mechanics lien isn't your first option—but when communication breaks down and invoices go unpaid, it can be an effective legal remedy.
Need Help Filing a Lien?
If you’re an auto broker in Illinois and need help preparing or filing a mechanics lien, we’re here to help. From drafting notices to identifying the right legal path, we offer support every step of the way. Don’t let unpaid fees hurt your business—reach out to us today for professional assistance.