A mechanic’s lien is a security interest in real or personal property that is acquired by someone who adds material or labor to improve the property. A mechanic’s lien usually remains in effect until the lien holder (the auto repair shop) is paid for the material or labor added to the property. For a movable piece of property like a car, the property owner’s failure to pay the auto repair shop for material or labor may allow the auto repair shop to keep possession of the car until the owner pays for the material and labor. In the auto repair context, a mechanic’s lien is sometimes called a garageman’s lien.

In New Jersey, a mechanic's lien, often referred to as a garageman's lien when it pertains to auto repairs, is a legal claim against a vehicle for unpaid repairs or services provided by an auto repair shop or mechanic. Under New Jersey law, specifically N.J.S.A. 2A:44-20 et seq., the repair shop or mechanic must follow specific procedures to perfect the lien, which includes providing notice to the vehicle owner and possibly filing the lien with the appropriate state agency. Once the lien is perfected, the repair shop may retain possession of the vehicle until payment is made. If the vehicle owner fails to pay, the repair shop may be allowed to sell the vehicle at a public or private sale after complying with notice and procedural requirements. The proceeds from the sale are used to pay the debt owed to the repair shop, with any surplus funds typically returned to the vehicle owner.