Can A Tow Company Sell Your Car

Can a Tow Company Sell Your Car

Many vehicle owners may be surprised to learn that tow companies not only tow cars to locations, but they can also, in some cases, sell them. That is, a tow company will buy a wrecked, damaged or abandoned vehicle and then sell it for a profit. This process can make having a tow truck substantially more useful, as a vehicle owner may be able to sell their car in a timely manner.
In general, any tow company can legally buy a car in any location they are licensed to operate in. Generally, it will be relatively easy to find out if a tow company is authorized to buy a car by inquiring with the relevant business licensing bureau or local government. In most cases, a tow company won’t be in the business of buying and reselling cars unless they are licensed to do so.
To buy a car, a tow company will first need to inspect the car to ensure that it is roadworthy. They may also want to inspect it for any potential repair costs, to determine how much they will be able to make on the sale. A tow company should always be sure to provide a written estimate prior to the sale and may even offer cash on the spot. As with any sale of a vehicle, it is important to make sure that the sale is legal and properly documented.
The amount that the tow company pays for the car will depend largely on the condition of the car, generally. Tow companies may not be able to pay as much as a private seller, but they will often pay a significant amount to acquire a vehicle. Some tow companies may even be willing to purchase a vehicle at market value and will then charge a fee for the towing and storage services.
If a vehicle owner is having difficulty selling their vehicle, it may be possible for them to approach a tow company and have the car towed for them. Tow companies will generally be willing to tow a car if it is safe to do so, and the owner can easily make arrangements for the tow. Once the car has been towed, the owner can then decide whether or not they would like to have the car sold to the tow company.
In some cases, a private individual may be able to purchase the car from the tow company, but this will depend on the terms of the agreement and the tow company’s policy. Generally, tow companies are in the business of towing cars and not selling them, so it is wise to research the policies of any tow company prior to making arrangements.

What Kind of Cars Do Tow Companies Look For?

When it comes to towing cars and potential sales, tow companies typically look for certain types of vehicles. These vehicles are typically either damaged, wrecked, or abandoned, meaning the owner has failed to appear after the car has been towed by the company.
In most cases, tow companies will be more likely to purchase such vehicles, as they are typically cheaper to repair than cars in good condition. However, tow companies may also be willing to purchase other types of vehicles, such as luxury cars, classic cars, and even cars that have been sitting for a long time.
Regardless of the type of vehicle, tow companies have a unique set of criteria for each car they evaluate for resale. This includes evaluating the car for quality and condition, the make and model, the value of any repairs needed, and the cost of towing and storage.

Liability and Insurance

When a tow company purchases a vehicle, they become liable for damages to the vehicle that may occur during the towing process. Therefore, it is important for the tow company to have comprehensive liability and insurance coverage. This coverage should protect the tow company from any legal or financial damage resulting from the sale and transportation of the vehicle.
Some states require tow companies to carry an insurance policy for each vehicle they tow. In these cases, the tow company must provide proof of insurance prior to towing or selling the vehicle. This requirement is in place to protect the tow company and the vehicle owner — as it limits the company’s liability and provides additional protection to both parties in the event a dispute arises.

What Are the Benefits of Selling to a Tow Company?

There are several benefits to selling a car to a tow company. For starters, it often takes far less time to sell a car to a tow company than it does to sell a car to a private seller, as the car doesn’t need to be advertised and inspected by multiple potential buyers.
The tow company may also be able to provide a cash payment for the car, making it less complicated and faster than other more traditional car sale methods, such as using an online marketplace. Additionally, many tow companies will provide free towing services in exchange for the sale of the vehicle.
Another benefit of selling a car to a tow company is that the car can be disposed of quickly and efficiently. Since most tow companies are licensed to operate in multiple locations, the car can be transported to the tow company’s lot quickly and easily.
Finally, since tow companies are familiar with the process of towing and selling cars, they can often obtain a better price for the car than what a private seller might be able to get. Since the tow company doesn’t need to rely on advertising or taking the car to a showroom, they may be able to offer much better deals than private sellers.

Market Values and Repairs

It is important to note that market values may be much lower than the price that a private seller would get for the same car. This is because tow companies generally purchase cars at a discount and must then fix any damages before they can resell them. This can add significant costs to the sale.
Tow companies are often willing to pay more for cars that are in better condition, as they will be easier to repair. Repairs can add up quickly so it is important for the tow company to carefully assess the condition of the car and make sure that any necessary repairs are completed before the car is put up for sale.
The tow company may offer to buy a car that has significant damage, but the owner should make sure to double check the value of the offer before accepting. It is also important to note that tow companies may be willing to pay slightly more for cars that have been taken care of properly, such as those that have been regularly serviced or had regular tune-ups.

Legal Considerations

Before selling or towing their car, owners should make sure that they are not violating any laws. All laws related to the towing and sale of vehicles should be carefully reviewed before making a sale, as tow companies can be liable for any legal issues that may arise due to their transactions.
It is also important to only use reputable tow companies, as they will ensure that the vehicle is properly towed and that the sale is legal. The tow company should provide a written estimate prior to the sale of the car, as well as any necessary paperwork that is needed to transfer ownership.

Fees and Expenses

Tow companies generally charge a fee for towing and storage services, in addition to the cost of the car itself. The fees and costs can vary from company to company, so it is important to check the rates and charges prior to agreeing to any services.
In addition to the fees charged for services, tow companies may also charge for other expenses related to the sale of the car. This can include taxes, registration fees, and other costs that are required by law. Owners should make sure to ask the tow company what these expenses will be prior to the sale, in order to avoid any surprises down the road.

Preparing For Sale

Before selling their car to a tow company, the owner should make sure to properly prepare the car. This involves ensuring that the car is in good condition, that all necessary repairs have been completed, and that any paperwork related to the car is in order.
The owner should also make sure to remove any personal items that may be in the car, as tow companies will typically not be responsible for items left in the car during the towing process. Making sure that the car is clean and in proper working condition will help to ensure a smoother transaction.


Many tow companies will be open to negotiations of some sort, especially if the car is in good condition. It is important for the owner to be mindful of the tow company’s fees, as well as the market value of the car, when negotiating.
The owner should also be aware that some tow companies may be willing to tow the car for free if they can agree to a fair price for the car itself. This can be beneficial for the owner, as they can avoid the cost of hiring a separate towing service.


Selling a car to a tow company can be a great way to get rid of an old vehicle quickly and easily. Tow companies generally have the capability to purchase cars, as long as they are in good condition and have all necessary paperwork in order.
Owners should make sure to be aware of all legal requirements and the tow company’s fees prior to selling or towing the car. They should also prepare the car for sale, such as ensuring that all repairs have been made and all paperwork is in order.
Finally, tow companies may be open to negotiations on the price of the car and may even offer to tow the car for free. This can be beneficial, as it will save the owner the cost of hiring a separate towing service.

Marjorie Turcios is a seasoned leader and management expert with over 25 years of experience. She has held various leadership positions in private industry, government, and education. She is an advocate for creating win-win solutions and has worked to create successful, lasting change in corporations and organizations. Marjorie is an award-winning author of several books on leadership, mentoring and coaching, and effective communication skills. Her passion is to help others discover their potential and reach new heights in their professional life through her writings. Marjorie resides in Dallas, Texas where she enjoys spending time with her family, traveling to different places around the world, and speaking at conferences about her areas of expertise.

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