Can a Towing Company Sell My Car

Yes, a towing company can sell your car—but only under specific legal conditions. Understanding your rights and the towing laws in your state is crucial to prevent unexpected vehicle loss and financial harm.

Key Takeaways

• Legal authority matters: Towing companies can only sell your car if they follow state and local laws, typically after unpaid storage fees and proper notice.
• Notice requirements vary: Most states require towing companies to notify you before selling your vehicle, giving you a chance to reclaim it.
• Unpaid fees lead to liens: If you don’t pay towing and storage fees, the company may place a lien on your car and eventually sell it to recover costs.
• Private property tows are common: Cars towed from private property (like apartment complexes) are especially vulnerable to quick sales if fees aren’t paid promptly.
• Check your state laws: Towing regulations differ widely—some states allow sales after 30 days, others require court approval.
• Act quickly to recover your car: The sooner you respond to a tow, the better your chances of avoiding a sale and minimizing fees.
• Document everything: Keep records of towing notices, receipts, and communications to protect yourself legally.

Can a Towing Company Sell My Car? Understanding Your Rights

Imagine this: You park your car in a lot behind your apartment building, 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. You rush to the towing company, only to be told you owe $800 in towing and storage fees. You don’t have the money right now, so you ask if you can pay later. A week goes by, and you get a letter saying your car is being sold at auction. What just happened?

This scenario isn’t just a nightmare—it’s a real possibility in many parts of the U.S. And yes, a towing company can sell your car, but only under certain legal conditions. The key is understanding when they have the right to do so and what your rights are as a vehicle owner.

Towing companies aren’t rogue operators—they’re businesses that follow rules. But those rules vary by state, city, and even the type of property your car was towed from. Whether your vehicle was towed from a public street, a private parking lot, or a residential area, the process for selling it is governed by laws designed to balance the rights of property owners, towing companies, and vehicle owners.

In this guide, we’ll walk you through everything you need to know about whether a towing company can sell your car, how the process works, and what you can do to protect yourself. From understanding liens and notice requirements to knowing your state’s specific laws, we’ll cover it all in plain, easy-to-understand language.

How Towing Companies Get the Right to Sell Your Vehicle

Towing companies don’t just decide one day to sell your car. There’s a legal process that must be followed. At the heart of this process is something called a “mechanic’s lien” or “storage lien.” This is a legal claim a towing company can place on your vehicle if you fail to pay for towing and storage services.

Here’s how it works: When your car is towed, the towing company incurs costs—towing fees, daily storage fees, administrative fees, and sometimes even gate fees. If you don’t pay these fees within a certain time frame, the company can place a lien on your vehicle. A lien gives them a legal right to keep the car until the debt is paid. If the debt remains unpaid, they can eventually sell the car to recover their costs.

But here’s the catch: The towing company can’t just sell your car the next day. They must follow specific steps, including notifying you, giving you a chance to pay, and in some cases, getting court approval.

Types of Towing That Can Lead to a Sale

Not all tows are created equal. The reason your car was towed plays a big role in whether it can be sold. Here are the most common scenarios:

• Private Property Tows: If your car is parked illegally on private property—like an apartment complex, shopping center, or office building—the property owner or manager can authorize a tow. These are often the fastest path to a sale because the property owner wants the vehicle removed quickly.
• Municipal or Public Street Tows: If your car is parked illegally on a public street (e.g., expired tags, blocking a fire hydrant, or abandoned), the city or police may tow it. These tows usually go to a city impound lot, and the process for selling the vehicle is often more regulated.
• Accident or Breakdown Tows: If your car is towed after an accident or mechanical failure, the towing company may store it until you arrange for repairs or pickup. If you don’t respond, they may eventually sell it.
• Repossession-Assisted Tows: In rare cases, towing companies work with lenders to repossess vehicles. However, this is different from a standard tow and usually involves a court order.

In all these cases, the towing company must follow state laws regarding notice, storage periods, and sale procedures.

The Role of Storage Fees

One of the biggest reasons cars get sold is accumulating storage fees. Most towing companies charge a daily rate—anywhere from $25 to $75 per day—for keeping your vehicle in their lot. These fees can add up fast.

For example, if your car is towed on a Monday and you don’t retrieve it until the following Monday, you could owe $350 in storage alone, plus the initial towing fee of $150. That’s $500 in just one week.

If you can’t pay, the towing company may decide it’s not worth holding onto the car anymore. After all, they’re paying for lot space, security, and insurance. So, they may initiate the process to sell the vehicle to recoup their losses.

This is why acting quickly is so important. The longer you wait, the higher the fees—and the greater the chance your car will be sold.

State Laws and Notice Requirements

One of the most confusing aspects of towing is that laws vary widely from state to state. What’s legal in California might not be in Texas or Florida. That’s why it’s essential to know the rules in your area.

In general, most states require towing companies to:

• Notify the vehicle owner within a certain number of days (usually 3 to 10 days)
• Provide a detailed invoice of fees
• Give the owner a chance to pay and reclaim the vehicle
• Hold the vehicle for a minimum period (often 30 days) before selling
• Publish a notice of sale in a local newspaper or online

Let’s look at a few examples to illustrate how different states handle this.

California: Strict Notice and Sale Rules

In California, towing companies must notify the vehicle owner within 24 hours of towing. They must also send a written notice by certified mail within 10 days. The notice must include:

• The reason for the tow
• The location of the vehicle
• The total fees owed
• The deadline to reclaim the vehicle (usually 30 days)
• Information about the sale process

If the owner doesn’t respond, the towing company can sell the car at public auction after 30 days. However, they must publish a notice of the sale in a local newspaper at least 10 days before the auction.

Texas: Faster Sale Process

Texas has a shorter timeline. Towing companies must notify the owner within 24 hours and send a written notice within 5 days. If the vehicle isn’t claimed within 30 days, the company can sell it—but only after getting approval from the local constable or sheriff. The sale must be advertised in a newspaper.

Florida: Abandoned Vehicle Laws

In Florida, if a vehicle is left on private property for more than 48 hours without permission, it can be considered abandoned. The property owner can have it towed. The towing company must notify the owner within 3 days and hold the vehicle for at least 30 days before selling. However, if the vehicle is worth less than $500, it can be sold sooner.

New York: City-Specific Rules

In New York City, the rules are even stricter. The NYPD must be notified of all private property tows, and the vehicle is usually taken to a city impound lot. The owner has 45 days to reclaim the vehicle before it can be sold. The city handles the sale, not the towing company.

These examples show how important it is to check your local laws. A quick search for “towing laws in [your state]” or a call to your local DMV can give you the details you need.

What Happens If Your Car Is Sold?

If a towing company sells your car, the process usually follows a set pattern. Here’s what typically happens:

Step 1: Notice of Intent to Sell

After the holding period expires, the towing company will send you a final notice stating their intent to sell the vehicle. This notice must include:

• The date of the sale
• The location of the auction
• The amount you still owe
• Your right to reclaim the vehicle before the sale

This is your last chance to pay the fees and get your car back.

Step 2: Public Auction

Most towing companies sell vehicles at public auctions. These are often held weekly or monthly and are open to the public. Bidders can inspect the vehicles beforehand, and the highest bidder wins.

The sale price depends on the car’s condition, age, and market demand. A well-maintained sedan might sell for $3,000, while a damaged or older vehicle might go for just a few hundred dollars.

Step 3: Use of Sale Proceeds

After the sale, the towing company uses the money to cover:

• Towing fees
• Storage fees
• Administrative costs
• Auction fees

If the sale price covers all these costs, any leftover money belongs to you—the vehicle owner. The towing company is legally required to return the surplus to you.

For example, if your car sells for $4,000 and you owe $1,200 in fees, you’re entitled to $2,800. The towing company must send you a check or money order within a certain time frame (usually 30 to 60 days).

Step 4: What If the Sale Doesn’t Cover the Fees?

If the sale price isn’t enough to cover the towing and storage fees, you may still owe the difference. This is called a “deficiency balance.”

For instance, if your car sells for $1,000 but you owe $1,500, you could be billed for the remaining $500. In some states, the towing company can take legal action to collect this debt, including suing you or placing a judgment on your credit report.

However, not all states allow deficiency claims. In California, for example, towing companies cannot sue for unpaid fees after a sale—they must accept the auction price as full payment.

Step 5: Title Transfer and Ownership

Once the car is sold, the title is transferred to the new owner. You no longer have any legal claim to the vehicle. The towing company provides the buyer with a “lien sale title” or “abandoned vehicle title,” which allows them to register the car in their name.

This process is final. Once the sale is complete, you cannot get your car back—even if you later come up with the money.

How to Prevent Your Car from Being Sold

The best way to avoid having your car sold is to act quickly and know your rights. Here are practical steps you can take:

1. Respond Immediately to a Tow

As soon as you realize your car has been towed, contact the towing company. Ask for:

• The exact location of the vehicle
• A detailed breakdown of fees
• The deadline to reclaim the car
• Payment options (cash, card, payment plans)

Don’t wait. Every day you delay increases the storage fees and the risk of sale.

2. Verify the Legality of the Tow

Not all tows are legal. If your car was towed from private property, check whether proper signage was posted. Most states require clear, visible signs that state:

• “Unauthorized vehicles will be towed at owner’s expense”
• The name and phone number of the towing company
• The cost of towing and storage

If the signs were missing, too small, or not visible, the tow may be illegal. In that case, you may be able to dispute the fees or even get your car returned for free.

3. Negotiate the Fees

Towing companies often charge high fees, but they may be willing to negotiate—especially if you can pay a portion upfront. Explain your situation and ask if they offer:

• Payment plans
• Fee reductions for prompt payment
• Waivers for first-time offenses

Some companies will reduce storage fees if you pick up the car within 24 hours.

4. Get a Copy of the Towing Receipt

When you pay to retrieve your car, make sure you get a detailed receipt that includes:

• Date and time of tow
• Reason for tow
• Itemized fees
• Signature of the towing company representative

This receipt is your proof of payment and can protect you if there are disputes later.

5. Know Your State’s Laws

As we’ve discussed, laws vary by state. Take 10 minutes to look up your state’s towing regulations. Find out:

• How soon you must be notified
• How long the vehicle must be held
• Whether the sale requires court approval
• Your right to surplus funds

This knowledge can empower you to challenge unfair practices.

6. Consider Legal Help

If you believe your car was towed illegally or sold without proper notice, consult a consumer rights attorney. Many offer free consultations and work on a contingency basis (meaning they only get paid if you win).

You may be entitled to:

• Return of your vehicle
• Refund of towing fees
• Compensation for damages

Real-Life Examples and Lessons Learned

Let’s look at a few real-world scenarios to illustrate how this process plays out.

Example 1: The Apartment Complex Tow

Maria parked her car in her apartment complex lot but forgot to display her parking permit. The next morning, her car was gone. She called the property manager and was told it had been towed. She rushed to the towing company and was charged $400. She didn’t have the money, so she asked for a week to pay. The company said no. Two weeks later, she got a letter saying her car had been sold at auction for $2,500. She owed $600 in fees, so she received a check for $1,900.

Lesson: Always check parking rules and respond immediately to a tow.

Example 2: The Illegal Tow

James parked his car in a grocery store lot while he ran inside. The store had a sign, but it was partially blocked by a bush. His car was towed. He disputed the tow, citing the obstructed sign. The towing company refused to budge. James filed a complaint with the state attorney general’s office. After an investigation, the tow was ruled illegal, and the company had to return his car and refund the fees.

Lesson: Improper signage can make a tow illegal.

Example 3: The Deficiency Balance

Linda’s car was towed after she left it parked on a public street with expired registration. She didn’t realize it had been towed until she got a bill for $1,200. By then, the car had been sold for $800. She was billed for the remaining $400. She couldn’t pay, so the towing company sued her. A court ordered her to pay the balance plus legal fees.

Lesson: Ignoring a tow can lead to serious financial consequences.

Conclusion: Stay Informed, Stay Protected

Yes, a towing company can sell your car—but only if they follow the law. The key is understanding your rights and acting quickly when your vehicle is towed. From private property tows to public impounds, the rules are designed to protect both vehicle owners and towing companies.

By knowing your state’s laws, responding promptly to a tow, and keeping records, you can avoid the heartbreak of losing your car to an auction. And if something goes wrong, don’t hesitate to seek help from consumer protection agencies or legal professionals.

Your car is more than just a vehicle—it’s your freedom, your livelihood, and your investment. Don’t let a towing mistake cost you everything. Stay informed, stay proactive, and drive with confidence.

Frequently Asked Questions

Can a towing company sell my car without notifying me?

No, in most states, towing companies are required by law to notify you before selling your vehicle. This usually involves sending a written notice by mail and sometimes publishing a public notice. Failure to notify you could make the sale illegal.

How long does a towing company have to hold my car before selling it?

The holding period varies by state, but it’s typically between 30 and 45 days. Some states allow sales sooner for low-value vehicles. Check your local laws to know the exact timeframe.

What happens to the money if my car is sold for more than I owe?

Any surplus from the sale belongs to you. The towing company must return the excess funds within a set period, usually 30 to 60 days. They are not allowed to keep the extra money.

Can I stop the sale of my car after receiving a notice?

Yes, as long as the sale hasn’t happened yet. You can stop the sale by paying all towing and storage fees in full. Contact the towing company immediately to arrange payment.

Do I still owe money if my car is sold for less than the fees?

It depends on your state. Some states allow towing companies to pursue you for the difference (deficiency balance), while others do not. In states like California, the sale amount is considered full payment.

What should I do if I believe my car was towed illegally?

Document everything—photos of the area, signs, and communications. Contact your local consumer protection agency or a lawyer. You may be able to get your car returned and fees refunded.