Mechanic Holding Car Unless We Sign Waiver

Location: Texas.

We took our 2015 Volkswagen Tiguan to a mechanic because the low pressure oil light came on. The shop is located in Montgomery County, Texas. They told us it was “an issue with the engine” but never gave a written diagnosis or estimate. We were never asked to sign any authorization forms.

After about three days the shop said they had to remove the engine to diagnose the issue and quoted $895 for that diagnostic. We verbally authorized only the $895 diagnostic based on that representation.

After removing the engine, they told us the car needed a new whole new engine and that it would cost around $8k. We declined repairs. Only then did they say it would cost another $895 to reassemble the vehicle. This was never disclosed beforehand, and we did not authorize reassembly, verbally or in writing.

The shop also moved the vehicle from Montgomery County to Harris County without notifying us or getting our consent. We found out that they had moved the car when we went to check on the progress since communication was impossible and we were not able to contact them for a while.

After we spoke with what I believe is a manager we agreed to pick up the car with the engine out but when we went to pick up the car, it was still on a lift. The shop said they would only release it if we paid in cash or Venmo and signed a document saying we would not hold them responsible for missing parts. This was on November 24. We have not heard anything since, and they still have the car.

At no point were we given:

• A written diagnostic • A written estimate • Written authorization for engine removal • Written authorization for reassembly • Written authorization to move the vehicle 

We are willing to pay the $895 “diagnostic” charges we agreed to.

Our questions:

• Can a Texas repair shop legally hold a vehicle under these circumstances? • Can they require cash-only or Venmo-only payment when we know they accept all other normal payment methods? • Can they require us to sign a waiver to get the car back? • Do they have a valid mechanic’s lien without written authorization or an estimate? • What legal pathways are available in Texas to recover the vehicle or resolve this (demand letter, regulator complaint, small claims, police involvement, etc.)? 

We are lost on what to do, any advice would be greatly appreciated. Thank you!