Can a Tow Company Sell Your Car

Yes, a tow company can sell your car—but only under specific legal conditions. If your vehicle is towed and you don’t claim it within a set time, the tow company may sell it to recover storage and towing fees. Knowing your rights and local laws can help you avoid losing your car unfairly.

Key Takeaways

• Legal grounds matter: Tow companies can only sell your car after following state-specific legal procedures, including notice requirements and waiting periods.
• Unclaimed vehicles are at risk: If you don’t retrieve your car within the required time (often 30–90 days), the tow company may auction or sell it.
• Fees add up fast: Daily storage and administrative fees can quickly exceed your car’s value, making it harder to reclaim.
• You have rights: You’re entitled to receive written notice before your car is sold, and in some cases, you can challenge the sale.
• Private property tows are different: Cars towed from private lots (like apartment complexes) often have shorter claim windows than those towed by law enforcement.
• Check local laws: Regulations vary widely by state and municipality, so always verify the rules where your car was towed.
• Act quickly: The sooner you contact the tow company and pay fees, the better your chances of getting your car back.

Can a Tow Company Sell Your Car? Understanding Your Rights and the Law

Picture this: You park your car in a lot near your apartment, run inside for just ten minutes, and when you come back—your car is gone. Panic sets in. You call around and find out it’s been towed. Now, what? Can the tow company just sell your car? It’s a scary thought, but unfortunately, under certain circumstances, the answer is yes.

Tow companies aren’t out to steal your vehicle. Most are legitimate businesses that follow strict rules. But when a car is towed—whether for parking illegally, being abandoned, or involved in a crime—the tow company incurs costs. They charge fees for towing, storage, and administration. If the owner doesn’t claim the vehicle and pay those fees within a legally defined period, the tow company may have the right to sell the car to recover their money.

This process isn’t instant or automatic. It involves legal steps, including sending notices and waiting for a response. But if you’re not aware of your rights or don’t act quickly, you could lose your car—even if it’s still in good condition. Understanding how this works can save you time, money, and heartache.

How Tow Companies Get the Right to Sell Your Car

Tow companies don’t have free rein to sell any car they tow. They must follow a legal process that varies by state, but generally includes several key steps. The most common reason a tow company can sell your car is if it’s considered “unclaimed” after a certain period.

When a vehicle is towed, the tow company is required to notify the registered owner—usually by mail—within a few days. This notice includes details like where the car is stored, how much you owe in fees, and how long you have to claim it. If you don’t respond or pay within that window, the company may file for a lien or seek court approval to sell the vehicle.

For example, in California, a tow company must wait at least 15 days after sending a notice before they can sell an unclaimed vehicle. In Texas, the waiting period is 30 days. Some states require a public auction, while others allow private sales. The goal is to give owners a fair chance to reclaim their property while protecting the tow company’s right to be paid.

It’s important to note that not all tows are equal. A car towed by police after an accident has different rules than one towed from a private parking lot for violating a “no parking” sign. Private property tows often have shorter claim periods and fewer protections for owners.

The Role of Abandoned Vehicle Laws

Many states have specific laws about “abandoned vehicles.” If your car is left in a public or private space for too long without movement or valid registration, it may be declared abandoned. Once that happens, the tow company can begin the process of selling it.

For instance, in Florida, a vehicle left unattended for more than 48 hours on public property can be considered abandoned. In New York, the threshold is 72 hours. These laws are meant to clear streets and lots of junk cars, but they can also affect vehicles that are temporarily out of service or parked incorrectly.

If your car is labeled abandoned, the tow company must still follow notice procedures. But the clock starts ticking faster, and the chances of reclaiming your car drop significantly if you don’t act quickly.

Storage Fees and the Financial Pressure to Sell

One of the biggest reasons tow companies sell unclaimed cars is financial. Storage fees can range from $25 to $75 per day, depending on the location and facility. After just a few weeks, these costs can add up to hundreds—or even thousands—of dollars.

Imagine your car is towed on a Monday. By Friday, you’ve racked up $200 in fees. If you don’t pay within 30 days, that’s another $900. If your car is only worth $2,000, the tow company has a strong incentive to sell it rather than keep storing it.

This is why acting fast is crucial. Even if you can’t pay the full amount right away, calling the tow company and setting up a payment plan can sometimes stop the sale process. Some companies are willing to work with owners, especially if the car has value.

Your Rights as a Vehicle Owner

Just because a tow company can sell your car doesn’t mean they can do it without following the rules. As a vehicle owner, you have legal rights that protect you from unfair or illegal sales.

First and foremost, you have the right to receive written notice. This notice must include the name and address of the tow company, the location of your vehicle, the fees owed, and the deadline to claim it. If you don’t get this notice, the sale may be invalid.

You also have the right to inspect your vehicle while it’s in storage. If you believe the fees are unreasonable or the tow was unjustified, you can dispute them. In some cases, you may be able to file a complaint with your state’s consumer protection agency or take legal action.

Disputing an Unjust Tow

Not all tows are legal. If your car was towed from private property without proper signage, or if the tow company didn’t follow proper procedures, you may have grounds to challenge the tow and the sale.

For example, in many states, private property owners must post clear signs that say “Towing Enforced” or “Unauthorized Vehicles Will Be Towed” with contact information. If these signs aren’t visible or legible, the tow may be illegal.

If you believe your car was wrongfully towed, gather evidence: photos of the parking area, witness statements, and any communication with the property manager. Then, contact the tow company and your local consumer affairs office. In some cases, you may be able to get your car back for free or recover damages.

Reclaiming Your Car Before It’s Sold

If your car hasn’t been sold yet, you can usually reclaim it by paying the towing and storage fees. This is called “redeeming” your vehicle. The process is straightforward: contact the tow company, confirm the fees, and arrange payment.

Some tow companies accept credit cards, while others require cash or money orders. Be prepared to show proof of ownership, such as your driver’s license and vehicle registration.

If you can’t afford the fees, ask about payment plans or fee reductions. Some companies offer discounts for early payment or hardship cases. It never hurts to ask.

What Happens If Your Car Is Sold?

If the tow company sells your car, the process varies by state. In most cases, the sale must be conducted through a public auction. The proceeds are used to cover the towing, storage, and administrative fees. If there’s money left over, it should be returned to you.

For example, if your car sells for $3,000 and you owe $1,200 in fees, you should receive a check for $1,800. However, many people don’t realize this and assume the tow company keeps everything. That’s not true—legally, any surplus belongs to the owner.

If the sale doesn’t cover the fees, you may still owe the difference. This is rare, but it can happen with older or low-value vehicles. In such cases, the tow company may send you a bill for the remaining balance.

Can You Get Your Car Back After a Sale?

Once your car is sold, it’s nearly impossible to get it back. The new owner has legal title, and the tow company no longer has control over the vehicle. However, if the sale was conducted improperly—such as without proper notice or in violation of state law—you may have legal recourse.

In rare cases, courts have overturned sales and ordered the return of vehicles or compensation. But these situations are complex and require legal assistance. Prevention is always better than trying to fix a sale after the fact.

How to Protect Yourself from Losing Your Car

The best way to avoid having your car sold is to prevent it from being towed in the first place. Here are some practical tips:

– Always park in designated areas and check for signage.
– Avoid parking in private lots unless you have permission.
– If you’re going to be away, ask a friend to move your car periodically to avoid “abandoned” status.
– Keep your registration and insurance up to date.

If your car is towed, act immediately. Call the tow company, get the details, and pay the fees as soon as possible. Even if you’re out of town, you can often arrange payment by phone or online.

What to Do If Your Car Is Towed

Follow these steps if your car is towed:

1. **Find out where it is.** Call local police, check online databases, or contact nearby tow companies.
2. **Get the details.** Ask for the company name, address, fees, and deadline to claim.
3. **Verify the fees.** Make sure they’re reasonable and match local regulations.
4. **Pay promptly.** The sooner you pay, the lower your storage fees will be.
5. **Get a receipt.** Keep proof of payment in case of disputes.

State-by-State Variations: Know Your Local Laws

Towing and sale laws vary widely across the U.S. Here are a few examples:

– **California:** Tow companies must send a notice within 24 hours and wait 15 days before selling.
– **Texas:** A 30-day waiting period applies after notice is sent.
– **New York:** Vehicles can be sold after 10 days if unclaimed, but only through public auction.
– **Florida:** Abandoned vehicles can be towed after 48 hours, with a 30-day claim period.

Always check your state’s Department of Motor Vehicles (DMV) or consumer protection website for the most accurate information.

Conclusion: Stay Informed, Stay Protected

Yes, a tow company can sell your car—but only if they follow the law. By understanding your rights, acting quickly, and knowing the rules in your area, you can protect yourself from losing your vehicle unfairly. Don’t wait until it’s too late. If your car is towed, treat it like an emergency. The faster you respond, the better your chances of getting it back without losing money or your wheels.

Frequently Asked Questions

Can a tow company sell your car without notice?

No, a tow company cannot legally sell your car without sending you written notice. Most states require them to mail a notice to the registered owner within a few days of towing, detailing fees and the deadline to claim the vehicle.

How long do I have to claim my towed car?

The time frame varies by state, but it’s typically between 10 and 90 days. For example, California allows 15 days, while Texas gives 30 days. Check your local laws to know your specific deadline.

What happens to the money if my car is sold?

The sale proceeds first cover towing, storage, and administrative fees. Any remaining money belongs to you and should be returned. If the sale doesn’t cover the fees, you may still owe the difference.

Can I stop the sale if I pay the fees late?

It depends on whether the sale has already been scheduled or completed. If the car hasn’t been sold yet, paying the fees—even late—may stop the process. But once sold, recovery is very difficult.

Do private property tows have different rules?

Yes, cars towed from private property often have shorter claim periods and fewer legal protections. Always check signage and local ordinances to understand your rights.

What if I can’t afford the towing fees?

Contact the tow company immediately. Some offer payment plans or fee reductions. You may also qualify for assistance through local charities or legal aid organizations.