Unpaid repair bills and uncollected cars: workshop rights

An SA workshop can usually hold a car under a lien until the repair bill is paid, but cannot sell it without a court order. Storage, limits and first steps.

Usually you can keep the car until the repair bill is paid, but you cannot sell it to recover the debt without going to court first. South African law gives a repairer a right of retention, or lien, over a vehicle it lawfully holds and has worked on. That right depends on keeping possession, it does not include a right of sale, and a recent High Court judgment has limited how far it can be passed on to anyone else. A reasonable storage charge is generally accepted, but not one that runs forever.

Unpaid and abandoned cars tie up space, cash and staff time. The best fix starts before the car arrives.

This is a plain-language summary of published legal commentary, not legal advice. Speak to an attorney before acting on a specific vehicle.

Your right to hold the car

A lien lets a creditor keep someone's property until the debt connected to it is paid. Attorneys Neumann van Rooyen summarise the requirements for this kind of retention right as:

  • a debt must exist
  • there must be a valid legal agreement
  • the debt must be owed by the debtor
  • the debt must relate to the specific property being held
  • the creditor must keep physical control of the property

The last point is the one that catches workshops out. Once the car leaves your premises, the lien generally goes with it. Releasing a car "just this once" on a promise to pay usually turns a secured debt into an unsecured one.

Holding is not selling

A lien is security, not ownership. The same commentary is clear that to recover the money the creditor "must first take legal action", and only during execution of the judgment can the property be sold. Selling or scrapping a customer's car yourself, however long it has been standing, exposes the workshop to a claim.

The Consumer Protection Act points the same way. Section 65 says a supplier holding a consumer's property must not treat it as its own, must care for it with the diligence expected of someone managing another person's property, and is liable for any loss caused by failing to do so. While the car is on your premises, it is your responsibility.

Storage charges

Storage is where many disputes escalate. A few principles from published commentary:

  • A reasonable storage fee can be charged, but it cannot run up indefinitely. After a 2025 High Court ruling, SAMBRA, the body representing motor body repairers, summarised the position for members as "storage may be charged reasonably, but not indefinitely" and warned that "storage fees can no longer accrue indefinitely" (FA News, 2025).
  • Your estimate should already say how long the customer has to collect and what happens if they do not. The Law Society's guide to the Consumer Protection Act says the regulations require an estimate to state "the period within which the consumer must collect the goods and the consequence if he or she does not do so" (LSSA).

If your estimate gave a collection deadline and a daily storage rate, your position is much stronger than if storage appears for the first time on a final invoice.

The Salvage Genie judgment

In Nedbank Ltd v Salvage Genie & Others (case 2023-074260), according to SAMBRA's summary, the High Court held that enrichment liens relied on by repairers may not be sold, transferred or ceded to third parties. Only the repairer that lawfully took possession and incurred the costs holds the right (FA News, 2025). For workshops, the practical effect is that handing an uncollected car and its lien to a salvage or recovery company is no longer a safe way out. You collect the debt yourself, or through your attorney.

What to do, step by step

Stage Action
At booking Agree the diagnostic fee, if any, and record approval
At estimate State the total, validity, collection deadline and daily storage after it
Job complete Notify the customer the same day, with the invoice and a payment link
Day 3 to 7 Polite reminders, by WhatsApp or SMS and email
Collection deadline passes Written notice that storage now applies, with the daily rate
No response Letter of demand from you or your attorney
Still no response Legal action. Sale only through execution of a judgment

Throughout, keep the car secure and insured, and record every contact attempt.

Prevention beats retention

Most unpaid repair bills are not fraud. They are customers who were surprised by the total, could not pay all at once, or simply went quiet. Three habits reduce them:

  1. No surprises. Follow the Consumer Protection Act's estimate rules and get recorded approval for any extra work. Our guide to quotes and estimates for workshops covers the detail.
  2. Easy payment. Send the invoice with a payment link the moment the job is done.
  3. Consistent follow-up. A reminder schedule that runs whether or not the workshop is busy. Remi's PaidUp invoice chasing (R299 a month) does this for you, with friendly reminders and a payment link, so the conversation does not turn hostile.

Customers also ring back about collection times, payment and storage, often after hours. An AI receptionist for mechanics can answer those calls, book a collection time and take a clear message for you, so a customer ready to pay is not lost to a phone ringing in an empty workshop.

The short version

  • You can usually hold a car under a lien until the repair bill is paid, but only while you keep possession.
  • A lien does not let you sell the car. Recover the debt through legal action first.
  • Take reasonable care of the car while you hold it. Section 65 of the CPA makes you liable for loss.
  • Charge reasonable storage, ideally set out in the estimate with a collection deadline, and do not let it run indefinitely.
  • After the Salvage Genie judgment, do not rely on selling or ceding your lien to a third party.
  • Clear estimates, instant invoices and steady follow-up prevent most of these disputes.

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Chase the invoice, not the customer

Remi's PaidUp invoice chasing (R299 a month) follows up unpaid repair invoices with polite, persistent reminders and a payment link, and Remi answers your workshop line 24/7 so the customer's call-back is never missed.

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Common questions

Can a mechanic keep my customer's car until the bill is paid?

Generally yes. South African law recognises a right of retention, or lien, where a repairer lawfully has the vehicle, did work on it and has not been paid. The lien depends on keeping possession, so releasing the car usually ends it.

Can we sell a car that has not been paid for or collected?

Not on your own say-so. A lien lets you hold the vehicle, not sell it. The creditor first has to take legal action and obtain judgment, and the property can then be sold in execution of that judgment.

Can we charge storage on an uncollected car?

A reasonable storage charge is generally recognised, especially where the estimate stated a collection deadline and the consequence of missing it. Storage cannot run up indefinitely, so set a fair daily rate and act on the debt rather than letting charges pile up.

Can we sell or transfer our lien to a debt or salvage company?

According to SAMBRA's reading of the 2025 High Court judgment in Nedbank v Salvage Genie, an enrichment lien cannot be ceded or sold to a third party. The right stays with the repairer who did the work and holds the car.

Who looks after the car while we hold it?

You do. Section 65 of the Consumer Protection Act says a supplier holding a consumer's property must not treat it as its own, must take reasonable care of it and is liable for loss caused by failing to do so.

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