Abandoned Motor Vehicles vs. Mechanic’s Liens: What NH Dealers Need to Know

It is important to understand that New Hampshire law provides two very different legal processes for dealing with such vehicles: the abandoned motor vehicle process and the mechanic’s lien process. While they are sometimes confused, they apply in very different circumstances and carry different legal requirements.

This article outlines the key differences, the applicable New Hampshire law, and what dealers should do to remain compliant.

What Is an Abandoned Motor Vehicle?

Under New Hampshire law, an abandoned motor vehicle is generally one that has been:

• Towed at the direction of a law enforcement officer, or
• Towed at the request of a property owner by a licensed towing and storage facility, and is not retrieved by the owner.

The abandoned motor vehicle process is governed primarily by RSA Chapter 262 and is designed to address removal, storage, notice, and eventual disposal of vehicles that are left unattended, not to collect payment for repairs or services.

What Dealers Need to Know

A critical point for dealers is this:

A motor vehicle dealer cannot simply declare a vehicle abandoned and dispose of it.

If a dealer has a vehicle on their property that they do not own, are not owed money for, and did not take in for repair or storage, the dealer must involve a tow company and law enforcement.

If the dealer:

• Did not tow the vehicle as a licensed tow and storage facility, and
• Is not owed money for work performed or storage,

then the proper course of action is to:

1. Request that the vehicle be towed by a licensed towing company, and
2. Notify the local police department as soon as reasonably possible that the vehicle has been removed.

Once the vehicle is lawfully towed under police authority or proper private-property procedures, the abandoned motor vehicle process applies to the tow and storage facility, not the dealer.

What Is a Mechanic’s Lien?

A mechanic’s lien is governed by RSA Chapter 450 and applies when a business is owed money for:

• Repair work
• Labor
• Parts
• Storage or parking

performed on a vehicle while it is in the business’s lawful possession.

This process is fundamentally a collection tool, not an abandonment remedy.

When a Mechanic’s Lien Applies

A dealer or repair facility may pursue a mechanic’s lien only if:

• Work or storage was actually provided, and
• The vehicle owner failed to pay the charges due.

If payment remains outstanding for the statutory period, the lienholder may, after meeting all notice and procedural requirements, proceed with a lien sale to recover the unpaid charges.

Important Limitations for Dealers

A mechanic’s lien cannot be used:

• Simply because a vehicle is unwanted
• To clear space on the lot
• When no money is owed

If a dealer has not performed work and is not owed storage or repair fees, a mechanic’s lien does not apply.

Need Help Determining Which Process Applies?

Every situation is fact-specific and taking the correct approach from the outset is critical. If you are unsure whether a vehicle on your property should be handled as an abandoned motor vehicle or through a mechanic’s lien, NHADA is available to assist.

By contacting NHADA, dealers can receive guidance on which scenario applies, unpaid work versus an unwanted or unclaimed vehicle, and help understanding the appropriate next steps and required notifications under New Hampshire law before any action is taken.