When Can a Tow Company Sell Your Car

Understanding when a tow company can sell your car is crucial to protecting your rights and avoiding unexpected losses. This guide breaks down the legal process, state-specific rules, and what you can do if your vehicle is towed and held for sale.

Key Takeaways

• State laws govern when a tow company can sell your car: Each state has specific regulations about how long a vehicle can be stored before it can be sold, typically ranging from 30 to 90 days.
• Proper notice is required before a sale: Tow companies must send written notice to the registered owner and lienholder, giving them a chance to reclaim the vehicle and pay fees.
• Unpaid towing and storage fees lead to sale eligibility: If you don’t pay towing, storage, and administrative fees within the legal timeframe, the tow company may sell your car to recover costs.
• Abandoned vehicles are treated differently: Cars left on private property or public roads for extended periods may be declared abandoned, speeding up the sale process.
• You may still owe money after the sale: If the sale doesn’t cover all fees, you could be responsible for the remaining balance, depending on state law.
• Redemption rights vary by location: Some states allow you to reclaim your car even after it’s been sold, as long as you pay all outstanding charges.
• Document everything and act quickly: Keep records of towing notices, fees, and communications to protect yourself and potentially dispute unfair charges.

[FEATURED_IMAGE_PLACEHOLDER]

Introduction

Imagine this: you park your car in a lot, run a quick errand, and return to find it’s gone. Panic sets in. You call around and learn it’s been towed. Now, you’re not just worried about getting your car back—you’re wondering, Can they actually sell it? The short answer is yes, under certain conditions. But the long answer involves a mix of state laws, timelines, and your rights as a vehicle owner.

Knowing when a tow company can sell your car isn’t just about avoiding surprise auctions—it’s about protecting your financial interests and understanding the legal process. Whether your car was towed from private property, a public street, or a parking garage, the rules that govern its sale are designed to balance the tow company’s right to recover costs with your right to reclaim your property. This guide will walk you through everything you need to know, from how long you have to pay fees to what happens if your car is sold at auction.

Understanding the Legal Framework for Towing and Vehicle Sales

The rules around towing and vehicle sales are not universal. Instead, they’re governed by a patchwork of state and local laws. While federal guidelines exist for certain aspects of vehicle safety and consumer protection, the authority to regulate towing practices—including when a car can be sold—rests primarily with individual states.

State Laws Dictate the Process

Each state sets its own rules about how long a tow company can hold a vehicle before initiating a sale. In most cases, this period ranges from 30 to 90 days. For example, in California, a tow company must hold a vehicle for at least 30 days after sending a notice of intent to sell. In Texas, the holding period is 45 days. These timelines are designed to give vehicle owners a fair chance to retrieve their cars and pay any outstanding fees.

Some states also differentiate between vehicles towed from public roads and those removed from private property. For instance, if your car is parked illegally on private land—like a shopping center parking lot—the property owner may authorize a tow, and the sale process could begin sooner than if the car was towed by a city agency for a traffic violation.

Notice Requirements Are Critical

One of the most important legal safeguards is the requirement that tow companies send formal notice before selling a vehicle. This notice must typically be sent via certified mail to the registered owner and any known lienholders (like a bank or credit union). The notice should include details such as the vehicle’s make, model, VIN, location, the reason for towing, and the total amount owed in fees.

If the tow company fails to send proper notice, the sale may be considered invalid, and you could have grounds to challenge it in court. However, if you’ve moved or changed your address without updating your vehicle registration, the company may argue they made a good-faith effort to contact you—so keeping your DMV records current is essential.

Storage Fees and Administrative Costs

Tow companies don’t just charge for the initial tow. They also add daily storage fees, which can range from $20 to $100 or more per day, depending on the location and facility. Administrative fees for processing paperwork and sending notices may also apply. These costs can add up quickly, and if they remain unpaid, they become the primary reason a tow company seeks to sell your car.

It’s important to understand that these fees are legally enforceable in most cases. Even if you believe the tow was unjustified, you’re still responsible for paying the charges if you want to reclaim your vehicle. However, you may be able to dispute the fees later through small claims court or a consumer protection agency.

When Can a Tow Company Legally Sell Your Car?

The moment a tow company can sell your car depends on several factors, but the core trigger is usually non-payment of fees after a legally mandated waiting period. Let’s break down the typical timeline and conditions under which a sale can occur.

After the Holding Period Expires

Once your car is towed, the clock starts ticking. The tow company must store it for a minimum number of days—set by state law—before they can begin the sale process. During this time, you have the right to reclaim your vehicle by paying all towing, storage, and administrative fees.

For example, in Florida, the holding period is 30 days for vehicles towed from public property. If you don’t pay within that window, the tow company can apply for a certificate of title and then sell the vehicle at public auction. In New York, the period is 45 days, and the process involves notifying the DMV and publishing a notice in a local newspaper.

If the Vehicle Is Declared Abandoned

In some cases, a car may be classified as “abandoned,” which can shorten the timeline for sale. Abandonment is typically determined by how long the vehicle has been left in one place—often 72 hours or more on public property, or longer on private land. Signs of abandonment might include flat tires, missing license plates, or visible damage.

Once a vehicle is declared abandoned, the tow company may be allowed to sell it sooner than the standard holding period. For instance, in Arizona, abandoned vehicles on public property can be towed and sold after just 10 days if they meet certain criteria. This is designed to clear public spaces and reduce liability for municipalities.

When the Owner Cannot Be Located

If the tow company cannot locate the registered owner—even after making reasonable efforts—they may be permitted to sell the vehicle earlier than usual. This often happens when the car is unregistered, has out-of-state plates, or the owner has moved without updating their address.

In such cases, the company may publish a notice in a local newspaper or post it online, giving the public a chance to claim the vehicle. If no one responds within a set time (usually 10–30 days), the sale can proceed. This process helps ensure that unclaimed vehicles don’t remain in storage indefinitely, costing the tow company money.

Sale Through Public Auction

Most tow companies sell vehicles through public auctions, often held weekly or monthly. These auctions are usually advertised in local newspapers or online. The proceeds from the sale are used to cover towing, storage, and administrative fees. If the sale brings in more money than the fees owed, the surplus should be returned to the vehicle’s owner.

However, if the sale doesn’t cover all the costs—which is common with older or damaged vehicles—the tow company may seek to collect the remaining balance from you. This is known as a “deficiency balance,” and whether you’re legally responsible depends on your state’s laws. In some states, like California, tow companies cannot pursue you for unpaid balances after a sale. In others, like Ohio, they can.

Your Rights as a Vehicle Owner

Even if your car has been towed and is at risk of being sold, you have legal rights that protect you from unfair practices. Understanding these rights can help you act quickly and potentially avoid losing your vehicle—or at least minimize your financial loss.

Right to Receive Notice

As mentioned earlier, you have the right to receive written notice before your car is sold. This notice must be sent to your last known address and include key details about the vehicle, fees, and your options for reclaiming it. If the tow company fails to send this notice, or sends it to the wrong address due to outdated records, you may have grounds to challenge the sale.

Tip: Always keep your vehicle registration and driver’s license address up to date. This simple step can prevent misunderstandings and ensure you receive important communications.

Right to Redeem Your Vehicle

In most states, you have the right to “redeem” your vehicle—meaning you can reclaim it by paying all outstanding fees—even after it’s been scheduled for sale. This right typically lasts until the moment the vehicle is sold at auction. However, once the sale is complete, your redemption rights usually end.

Some states go further. In Illinois, for example, you may be able to reclaim your car even after it’s been sold, as long as you pay the full amount owed plus any additional costs incurred by the tow company. This is rare, but it’s worth checking your local laws.

Right to Dispute Unfair Fees

If you believe the towing or storage fees are unreasonable or unlawful, you have the right to dispute them. Start by requesting an itemized bill from the tow company. Review it carefully for errors or inflated charges. Common red flags include excessive daily storage fees, charges for services not rendered, or fees that exceed local rate caps.

If you find discrepancies, contact the tow company in writing to request a correction. If they refuse, you can file a complaint with your state’s attorney general, consumer protection agency, or department of motor vehicles. In some cases, you may need to take the matter to small claims court.

Right to Receive Surplus Funds

If your car is sold at auction for more than the amount owed in fees, you’re entitled to the surplus. For example, if you owe $1,200 in towing and storage, but the car sells for $2,000, you should receive a check for $800. Tow companies are legally required to return these funds, though some may make it difficult by not providing clear instructions on how to claim the money.

Tip: If your car is sold and you believe you’re owed a refund, contact the tow company immediately. Keep records of all communications and follow up in writing. If they don’t respond, escalate the issue to a regulatory agency.

What to Do If Your Car Is Towed

Finding out your car has been towed can be stressful, but acting quickly and strategically can help you get it back—or at least protect your interests. Here’s a step-by-step guide on what to do.

Step 1: Confirm the Tow

First, verify that your car was actually towed and not stolen. Call local towing companies, check with your city’s transportation department, or use online tools like TowDriver or local police non-emergency lines. Many cities have databases where you can search for your vehicle by license plate or VIN.

If your car was towed from private property, contact the property owner or manager. They should be able to tell you which company towed it and why.

Step 2: Gather Information

Once you locate your vehicle, get all the details: the name and address of the tow company, the storage location, the reason for the tow, and the total fees owed. Ask for an itemized breakdown of charges, including towing, daily storage, and any administrative fees.

Also, request a copy of the towing authorization (if applicable) and any notices they’ve sent you. This documentation will be crucial if you need to dispute fees or challenge the sale later.

Step 3: Pay the Fees and Retrieve Your Car

If you can afford it, pay the fees and get your car back as soon as possible. The longer you wait, the more storage fees will accumulate. Some tow companies offer payment plans or discounts for early payment, so it’s worth asking.

When you go to pick up your car, bring valid ID, proof of ownership (like your registration), and payment. Inspect the vehicle for any new damage before leaving the lot. If you notice issues, document them with photos and report them immediately.

Step 4: Dispute Unfair Charges

If you believe the fees are unjustified, don’t just pay and walk away. Instead, pay under protest (note this on your receipt) and then file a formal dispute. Send a letter to the tow company explaining why you believe the charges are unfair, and include any supporting evidence.

If the company doesn’t resolve the issue, escalate it to a consumer protection agency or consider small claims court. In many cases, tow companies will settle to avoid legal hassle.

Step 5: Monitor for Sale Notices

If you can’t afford to pay the fees right away, monitor your mail and online sources for sale notices. Some states require tow companies to publish auction details in local newspapers or on government websites. If you see a notice, act immediately—your window to reclaim the vehicle may be closing.

Preventing Unwanted Towing and Sales

The best way to avoid the stress and expense of a tow-and-sale scenario is to prevent towing in the first place. While you can’t control every situation, there are practical steps you can take to reduce the risk.

Know Where You Park

Always read parking signs carefully. Look for restrictions on time limits, permit requirements, or towing enforcement. When in doubt, ask the property owner or manager. Avoid parking in fire lanes, disabled spots, or areas marked “Towing Enforced.”

If you’re parking on private property—like a mall or apartment complex—make sure you have permission. Some properties tow without warning, even if you’ve parked there before.

Keep Your Registration Current

Outdated registration can lead to confusion and delays if your car is towed. It may also make it harder for tow companies to contact you. Update your address with the DMV whenever you move, and renew your registration on time.

Use Technology to Your Advantage

Apps like ParkWhiz, SpotHero, or even Google Maps can help you find legal parking spots and avoid trouble. Some cities also offer text alerts for street sweeping or parking restrictions.

Consider installing a GPS tracker in your car. While it won’t prevent towing, it can help you locate your vehicle quickly if it’s moved.

Understand Your Lease or HOA Rules

If you live in an apartment or condo, review your lease or HOA guidelines about parking. Some communities have strict rules about guest parking, vehicle types, or overnight parking. Violating these rules could result in a tow—even if you didn’t see a sign.

Conclusion

So, when can a tow company sell your car? The answer depends on where you live, how long your car has been stored, and whether you’ve paid the required fees. In most cases, tow companies must wait 30 to 90 days, send proper notice, and follow state-specific procedures before selling a vehicle. However, if your car is declared abandoned or you can’t be located, the process may move faster.

The key to protecting yourself is knowledge and action. Understand your rights, keep your records updated, and respond quickly if your car is towed. By staying informed and proactive, you can avoid the financial and emotional toll of losing your vehicle—and ensure that if a sale does happen, it’s done fairly and legally.

FAQs

Can a tow company sell my car without notifying me?

No, in most states, tow companies are legally required to send written notice to the registered owner and lienholder before selling a vehicle. Failure to provide proper notice can invalidate the sale.

How long do I have to pay fees before my car can be sold?

The holding period varies by state, typically ranging from 30 to 90 days. Check your local laws to know exactly how much time you have to reclaim your vehicle.

What happens if my car sells for less than the fees owed?

If the sale doesn’t cover all towing and storage costs, you may be responsible for the remaining balance—depending on your state’s laws. Some states prohibit deficiency claims, while others allow tow companies to pursue you.

Can I get my car back after it’s been sold?

In most cases, no. Once a vehicle is sold at auction, your redemption rights usually end. However, a few states allow post-sale redemption if you pay all fees and costs.

Do I have to pay storage fees if I believe the tow was illegal?

Yes, you generally still owe the fees if you want to reclaim your car. However, you can dispute the charges later through a complaint or small claims court.

What should I do if I receive a notice that my car will be sold?

Act immediately. Contact the tow company to confirm the details, review the fees, and either pay to reclaim your vehicle or file a dispute if the charges seem unfair.

This is a comprehensive guide about when can a tow company sell your car.

Key Takeaways

• Understanding when can a tow company sell your car: Provides essential knowledge

Frequently Asked Questions

What is when can a tow company sell your car?

when can a tow company sell your car is an important topic with many practical applications.