“Keep The Car” May Not Mean “Forget The Bill.”
Your car is sitting in an impound yard, the tow and storage charges are climbing, and you've finally reached the point where you don't even want the vehicle anymore. Maybe it's wrecked. Maybe it barely runs. Maybe it's worth $1,500 and the impound bill is already approaching $1,000. So you make what seems like a perfectly reasonable financial decision: Forget it. They can keep the car.
Unfortunately, an impound yard isn't a used-car trade-in counter, and simply deciding that you no longer want your vehicle does not necessarily erase towing, storage or other legally authorized charges. Depending on where the vehicle is located and why it was impounded, you could potentially lose the vehicle and still have a financial problem afterward.
Walking Away Doesn't Automatically Cancel What You Owe
This is where people can get burned. In some jurisdictions, the registered owner is responsible for towing and storage charges associated with an impounded vehicle. If the vehicle isn't reclaimed, state or local procedures may eventually allow the facility or appropriate authority to treat it as abandoned and begin a lien-sale, title or auction process.
That doesn't mean the rules are identical everywhere. They absolutely aren't. Some states limit particular storage charges, impose notice requirements or establish specific procedures that towing companies must follow before disposing of an abandoned vehicle. Whether an owner remains personally responsible for an unpaid balance after the vehicle is sold can also depend on state law and the circumstances.
The important point is this: You cannot safely assume that surrendering the vehicle automatically satisfies the bill.
WHAT IF THE IMPOUND YARD SELLS THE CAR?
Another dangerous assumption is that if the impound yard eventually sells the car, the sale automatically wipes out what you owe. It may not. If an abandoned vehicle goes through a lawful lien-sale or auction process, what happens to the proceeds—and whether any unpaid charges remain afterward, depends on the laws and procedures where the vehicle was impounded.
Consider the financial problem:
| Situation | Example |
|---|---|
| Vehicle's Current Value | $1,500 |
| Tow & Accumulated Storage | $1,100 |
| Additional Authorized Costs | $300 |
| Total Charges | $1,400 |
| Possible Auction Proceeds | $700 |
| Potential Uncovered Amount | $700 |
Example only. Actual fees, vehicle-sale procedures and owner liability vary significantly by jurisdiction.
And there's another problem: auction value isn't necessarily retail value. A damaged, non-running, high-mileage or otherwise undesirable vehicle may sell for considerably less than its owner imagines it's worth.
So “they have a $1,500 car” doesn't necessarily mean somebody is going to hand the yard $1,500 for it.
IF THE CAR IS FINANCED, WALKING AWAY CAN GET EVEN UGLIER
If there's still a loan on the vehicle, the situation becomes more complicated because the lender has a financial interest in the car. Leaving the vehicle at the impound yard doesn't cancel your auto loan. Depending on the circumstances, the lienholder may become involved, recover the vehicle or pursue its rights under the finance agreement and applicable law. If repossession ultimately occurs, you could potentially lose the vehicle and still owe money if the amount credited to your account doesn't satisfy the debt and recoverable expenses.
Now you've potentially got an impound problem and a loan problem. That's why “I'll just leave it there” deserves considerably more thought than people sometimes give it.
WHY WOULD YOU JUST LEAVE THE CAR?
Before you tell the impound yard to keep the vehicle, ask yourself a better question: Why would you simply walk away from a car you still own without first finding out whether OUTPOUND could buy it directly from impound?
Even if the vehicle is damaged, doesn't run, has been sitting in storage or isn't worth paying a huge bill to retrieve, it may still have value. Abandoning it means giving up control of an asset without first exploring whether that value could help you get out of the situation.
That's where our team comes in. Depending on the vehicle, ownership documentation, liens, payoff amount and the impound facility's requirements, OUTPOUND.com may be able to purchase the vehicle while it's still sitting in the yard.
So before you decide, “They can keep it,” find out whether somebody may actually buy it. Walking away should not be your first option when selling directly from impound may be one.