Did you know that if your car is towed and you don’t pick it up in California, the company can sell it to recover costs? This is called a lien sale. After covering the expenses, the California DMV keeps the money that may have left. However, many people don’t know they have the right to this money or how to claim it. So, let’s see how this works.
Lien sale
When a car is towed and the owner doesn’t pay to have it back, the towing company, storage lot, or repair shop can sell the vehicle to recover the investment. Let’s have a look at how this process works:
- The towing company recovers the costs of towing, storage, and selling the car.
- If the car sells for more than the owed amount, the excess money goes to the California DMV.
- The owner has three years to claim the money. After that, it becomes state property.
For example, in 2023 a Lamborghini Murcielago Roadster spent 5 months in a storage lot in Torrance without being claimed. So, the lien sale covered $11,332 of towing and storing costs, but $99,668 that left went to the DMV. Now, the owner has until 2027 to claim this money.
Examples of excess money
Not every car is as luxury as a Lamborghini, but many lien sales generate earnings the owner could claim such as:
- A 2013 Kia generated $165 for the DMV.
- A 2014 Chrysler 300 generated $1,368.
- A 2015 Lexus coupe generated $24,676 in excess.
- A 2016 Ford F-150 generated $14,232.
- A 2019 Honda HR-V generated $5,475.
As you can see, many car owners don’t claim the money, mostly because they don’t know they can do that or they don’t receive any DMV notification. Between 2016 and 2024, the DMV obtained more than $8 million thanks to lien sales of almost 5,300 vehicles. Crazy, right?
Low income drivers in California
For some low-income Californians, towing and storage fees are a serious problem:
- Police can tow a car for expired registration.
- Outstanding fines can prevent owners from paying to recover the car.
- This can result in losing the only vehicle they own, and sometimes even their home, if they rely on the car to get to work or shelter.
Shayla Myers, an attorney at the Legal Aid Foundation of Los Angeles, explained that many people don’t know how to claim that money: “If there are excess funds but people don’t know how to get them, it’s basically as if they disappeared,” she said.
Joan McAllister
This woman owed $1,113 in parking fines in San Francisco in 2022, her car was towed and the storing fees were more than $8,300 in total. Her brother, appointed as her legal guardian, couldn’t avoid the car being sold.
The sale generated $5,475 in excess and her brother did not know this money existed until a news outlet informed him. Even though the money can still be claimed, it may be lost if the three-year deadline passes, especially since Joan passed away in December 2023.
How to claim the excess money
If your car was towed and sold, and generated excess money; you can claim that money by following these steps:
- Check the California DMV database to see if your vehicle is listed.
- Complete a refund request form on the DMV website.
- Call the DMV Lien Sale Unit at (916) 657-7617 for assistance.
The money collected through lien sales goes to the state’s motor vehicle account, which supports the California Highway Patrol and other departments.
Remember that it is important to claim your money within three years of the sale.
Towing and storage fees
They can be very high, especially in big cities. So, let’s talk about numbers:
- Basic towing: $195
- City release fee: $115
- Parking tax: 10%
- Daily storage: $60–$78
Basically, one month of storage (plus towing fees and taxes) can easily exceed $2,500, which is why many vehicles end up being sold and generate excess funds for the DMV. So, don’t be a fool and check the DMV database and submit a refund request promptly to avoid losing money!