Can Tow Company Sell Your Car

Yes, a tow company can sell your car—but only under specific legal conditions. Understanding state laws, lien rights, and proper notification procedures is crucial to protecting your vehicle and financial interests.

Key Takeaways

• Legal authority varies by state: Tow companies can only sell your car if state laws permit it after lawful towing and proper notice.
• Unpaid towing fees create a lien: If you don’t pay towing and storage fees, the company may place a lien on your vehicle, which can lead to sale.
• Notice requirements are strict: Most states require tow companies to notify you in writing before selling your car, giving you a chance to reclaim it.
• Abandoned vehicles are treated differently: If your car is legally declared abandoned, the tow company may sell it faster with fewer hurdles.
• You have redemption rights: In many cases, you can reclaim your vehicle by paying all fees before the sale, even after it’s been towed.
• Improper sales can lead to lawsuits: If a tow company sells your car without following legal steps, you may be entitled to compensation.
• Document everything: Keep records of towing notices, receipts, and communications to protect yourself in disputes.

Can a Tow Company Sell Your Car? Understanding Your Rights

Imagine this: You park your car in a private lot, run a quick errand, and return to find it’s gone. Panic sets in. You call around and learn it was towed. Now, you’re not just worried about getting your car back—you’re wondering, “Can a tow company sell my car?” It’s a valid and common concern, especially when you’re facing unexpected fees and limited information.

The short answer is yes—under certain conditions, a tow company can legally sell your car. But it’s not as simple as them deciding to auction it off the next day. There are laws, procedures, and timelines that must be followed. These rules vary by state, but they generally revolve around unpaid towing and storage fees, proper notification, and the legal concept of a “mechanic’s lien” or “storage lien.” Understanding these rules can help you protect your vehicle and your wallet.

In this guide, we’ll walk you through everything you need to know about whether a tow company can sell your car, how the process works, and what you can do to prevent it or respond if it happens. Whether your car was towed from a private lot, a public street, or an apartment complex, knowing your rights is the first step toward resolving the situation fairly.

How Tow Companies Gain the Right to Sell Your Vehicle

Tow companies don’t have unlimited power to sell any car they tow. Their authority comes from state laws that allow them to place a lien on your vehicle if you fail to pay towing and storage fees. This is known as a “storage lien” or “possessory lien.” Think of it like a mechanic who fixes your car and holds it until you pay the bill—except in this case, the “service” is towing and storing your vehicle.

When your car is towed, the tow company incurs costs: the towing fee, daily storage charges, and sometimes administrative fees. If you don’t pay these fees within a certain timeframe, the company can take legal steps to recover their money. One of those steps is selling your car at auction. But again, this isn’t automatic. The company must follow strict legal procedures, which typically include:

– Providing written notice to the vehicle owner and any lienholders (like a bank if you have a car loan).
– Waiting a legally required period (often 30 to 90 days, depending on the state).
– Publishing a notice in a local newspaper (in some states).
– Filing paperwork with the Department of Motor Vehicles (DMV) or similar agency.

Only after these steps can the tow company proceed with the sale. If they skip any of these, the sale could be illegal, and you may have grounds for legal action.

Example: A Real-World Scenario

Let’s say you parked in a private apartment complex lot without a permit. The property manager had your car towed to a nearby impound lot. The towing company charges $150 to tow and $50 per day for storage. You don’t realize your car was towed for five days. By the time you find out, you owe $400. You can’t afford to pay right away, so you delay.

After 30 days of non-payment, the tow company sends you a certified letter stating that your vehicle will be sold if the fees aren’t paid within 10 days. You still don’t respond. The company then publishes a notice in the local paper and waits another 10 days. Only then do they auction the car.

In this case, the tow company followed the law. But if they had sold the car after just 10 days without notice, that would be illegal—and you could sue for damages.

State Laws and Legal Variations

One of the most important things to understand is that towing and vehicle sale laws vary significantly from state to state. What’s legal in California might not be in Texas or New York. Some states have very consumer-friendly laws that give vehicle owners plenty of time and multiple chances to reclaim their cars. Others are more lenient toward tow companies.

For example, in California, tow companies must provide written notice within 24 hours of towing. They must also allow at least 30 days for the owner to claim the vehicle and pay fees before selling it. In contrast, some states allow sales after just 10 to 15 days if the car is declared abandoned.

Abandoned vs. Illegally Parked Vehicles

The rules also differ depending on why your car was towed. If your vehicle was parked illegally—say, in a fire lane or without a permit—the tow company may have the right to sell it after following proper notice procedures. But if your car is considered “abandoned” (left on public or private property for an extended period with no signs of use), the process can be faster.

In many states, abandoned vehicles can be sold after just 7 to 30 days, sometimes without the same level of notice. This is because abandoned vehicles are seen as a public nuisance and a safety hazard. Tow companies and municipalities often have the authority to remove and sell them quickly to free up space and recover costs.

Private Property vs. Public Streets

Another key factor is where your car was towed from. If it was on private property—like a shopping center, apartment complex, or office park—the property owner usually has the right to have it towed if it’s parked without permission. In these cases, the tow company acts on behalf of the property owner and can sell the vehicle if fees aren’t paid.

However, if your car was towed from a public street, the rules may be different. Some cities require a police report or a specific violation (like expired registration or blocking traffic) before towing is allowed. In these cases, the city or municipality may handle the impound and sale process, not a private tow company.

Always check your state and local laws. You can usually find this information on your state’s DMV website or by contacting a local consumer protection agency.

The Legal Process: From Tow to Sale

So, what exactly happens between the moment your car is towed and the moment it’s sold? Let’s break it down step by step.

Step 1: Towing and Impound

Your car is towed and taken to an impound lot. The tow company will typically notify the DMV and attempt to contact you using the vehicle’s registration information. They’ll also start charging storage fees, which can add up quickly—sometimes $30 to $100 per day.

Step 2: Notice of Intent to Sell

If you don’t claim your car and pay the fees within a certain time (usually 10 to 30 days), the tow company must send you a formal notice. This is usually a certified letter that includes:

– The reason your car was towed
– The total amount owed (towing + storage + fees)
– A deadline to pay and reclaim the vehicle
– Information about the upcoming sale (date, time, location)

This notice must be sent to the address on file with the DMV. If you’ve moved and didn’t update your registration, the notice might go to the wrong address—which is why it’s so important to keep your DMV info current.

Step 3: Waiting Period and Publication

After sending the notice, the tow company must wait a legally required period—often 10 to 30 days—before selling the car. In some states, they must also publish a notice in a local newspaper, especially if the vehicle is worth more than a certain amount (like $1,000).

This gives you one last chance to pay and get your car back. It also protects the tow company from legal liability if you later claim you didn’t know about the sale.

Step 4: Auction or Sale

If you still don’t pay, the tow company can sell your car at a public auction or through a licensed dealer. The proceeds from the sale are used to cover the towing and storage fees. If there’s money left over, it must be returned to you. If the sale doesn’t cover the full amount, you may still owe the difference—depending on state law.

Step 5: Title Transfer

After the sale, the new owner receives a bill of sale and can apply for a new title. In some states, the tow company must notify the DMV that the vehicle has been sold, which clears your liability for future fees or violations.

What You Can Do If Your Car Is Towed

If your car has been towed, don’t panic—but don’t wait, either. Time is critical. Here’s what you should do immediately:

1. Find Out Where Your Car Is

Call local tow companies, the police non-emergency line, or check online impound databases. Many cities have websites where you can search for your vehicle by license plate or VIN.

2. Gather Documentation

Bring your driver’s license, vehicle registration, and proof of insurance when you go to retrieve your car. Some lots may also require a release form from the property owner (if it was private property towing).

3. Pay the Fees

Be prepared to pay towing and storage fees. These can be expensive, especially if your car has been impounded for several days. Ask for an itemized bill and keep all receipts.

4. Dispute Unfair Charges

If you believe the towing was illegal or the fees are unreasonable, you can dispute them. For example, if your car was towed from a public street without a valid reason, or if the storage fees are excessive, you may be able to file a complaint with your state’s consumer protection agency or take legal action.

5. Act Quickly to Avoid Sale

The longer you wait, the more it will cost—and the closer your car gets to being sold. If you can’t afford to pay right away, contact the tow company and ask about payment plans or extensions. Some companies may work with you, especially if you’re making a good-faith effort to resolve the issue.

Can You Sue a Tow Company for Selling Your Car?

Yes—if the tow company didn’t follow the law. If they sold your car without proper notice, before the required waiting period, or without following state procedures, you may have grounds for a lawsuit.

Common legal claims include:

– Wrongful sale
– Conversion (unauthorized taking of property)
– Breach of contract
– Violation of consumer protection laws

If you win, you could be entitled to damages, including the value of your car, towing fees you already paid, and even emotional distress in some cases.

Example: Successful Lawsuit

In one case, a woman in Florida had her car towed from her apartment complex. The tow company sold it after just 10 days without sending a certified letter or publishing a notice. She sued and won $8,000—the value of her car—because the company violated state law.

This shows how important it is for tow companies to follow the rules. And it shows that you have rights, even after your car is towed.

How to Protect Yourself from Unauthorized Sales

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

Know Parking Rules

Always check parking signs and permits. If you’re parking in a private lot, make sure you have permission. If you’re visiting someone, ask about guest parking.

Keep Your DMV Info Updated

If you move, update your address with the DMV right away. This ensures you’ll receive any towing notices.

Use Technology

Some apps and services can alert you if your car is towed. You can also use GPS trackers to monitor your vehicle’s location.

Document Everything

If your car is towed, take photos of the scene, get contact information from witnesses, and keep all receipts and notices. This documentation can be crucial if you need to dispute charges or file a claim.

Know Your Rights

Research your state’s towing laws. Many states have consumer guides available online. Knowing your rights can help you act quickly and confidently.

Conclusion: Stay Informed, Stay Protected

So, can a tow company sell your car? Yes—but only if they follow the law. Towing companies have the right to recover their fees, but they must do so through legal channels. That means providing proper notice, waiting the required time, and following state procedures.

As a vehicle owner, your best defense is knowledge. Understand why your car might be towed, what fees you’re responsible for, and what steps the tow company must take before selling your vehicle. If your car is towed, act quickly to reclaim it and keep detailed records.

Remember, you have rights. If a tow company sells your car without following the rules, you may be entitled to compensation. Don’t be afraid to speak up, ask questions, or seek legal advice if needed.

By staying informed and proactive, you can protect your vehicle, your finances, and your peace of mind.

Frequently Asked Questions

Can a tow company sell your car without notice?

No, in most states, tow companies must send you a written notice before selling your car. This notice must include the amount owed and a deadline to pay. Skipping this step can make the sale illegal.

How long does a tow company have to wait before selling your car?

The waiting period varies by state, but it’s typically between 10 and 90 days. Some states require additional steps, like publishing a notice in a newspaper, before the sale can proceed.

What happens if the sale of my car doesn’t cover the towing fees?

In some states, you may still owe the difference. In others, the tow company absorbs the loss. Check your state’s laws to understand your liability.

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

Generally, no. Once the car is sold and the title is transferred, you lose ownership. However, if the sale was illegal, you may be able to sue for damages or even recover the vehicle.

What if my car was towed from private property?

Property owners can authorize towing for unauthorized vehicles. The tow company can sell the car if fees aren’t paid, but they must still follow state laws regarding notice and timing.

Can I dispute towing and storage fees?

Yes, if you believe the fees are unfair or the towing was illegal. You can file a complaint with your state’s consumer protection agency or take legal action to recover damages.