Tow company auctions are a great place to find used cars and trucks at a deep discount. You’ll find everything from your average commuter car to the occasional high-end luxury vehicle. I’ve been buying cars at these auctions for years, and I’m happy to share some of my hard-earned knowledge.
The main reason most people go to tow auctions is the chance to buy used cars for far less than they’re worth. I’ve seen some incredible deals over the years, but it’s important to understand how these auctions work and how to bid smart before you raise your hand.
I’ve always thought that tow company auctions are a bit like Forrest Gump’s box of chocolates – you never know what you’re gonna get! I still get excited when I see a rare car roll out, even after all these years.
These types of car auctions are recommended for those experienced with auto auctions in the past. If you are a first-time auction bidder, I suggest buying a car at a public wholesale used car auction instead. Tow auctions are better suited for those with auto mechanical experience and the resources to make necessary repairs.
How to Buy Impounded Cars for Sale at a Tow Company Auction
Tow company auctions work a bit differently than traditional car auctions. They are often held online these days, but there are still plenty that do live in-person bidding. Auctions at tow companies move at a faster pace and expect bidders to show up already having some familiarity with the process.
I know this can be intimidating for some new bidders. Buying impounded cars for sale online or in a live auction both require that you learn as much as you can before bidding.
Keep in mind that some of these impounded cars will have salvage titles. A decent amount of these are available on sites like Copart (check out my Copart Fees Calculator here).
My Tow Lot Auction Suggestions & Tips: Buying Cars from Tow Yards
Looking Over the Auction Vehicles: First things first, you’ve got to find an auction! I usually start by checking the websites of local police departments and tow companies. They almost always post a schedule of upcoming auctions. Once you’ve found one, head down to the lot a day or two before the auction if you can. If not, get there early on auction day.
I learned the hard way about getting there early. One time, I showed up just as an auction was starting. They were already halfway through the cars, and I missed out on a perfect little pickup truck. It went for a song, too! I was kicking myself for the rest of the day.
Most auctions allow buyers to inspect the cars. Remember, these are impounded vehicles, so thorough inspection is crucial. I find this to be the most important step.
Bidding: Vehicles at tow company auctions are bid on using their assigned lot number. Be sure you know the lot number of the vehicle(s) you want to bid on.
Vehicles are sold to the highest bidder, and each sale is final once the highest bid is accepted. If there is a dispute about the highest bid between two or more bidders, the bidding process will begin again.
Payment and Paperwork: If you have the winning bid, you must pay with cash in full, including sales tax, as soon as the sale is final. In many cases, you may need to tow the auctioned vehicles from the yard as vehicle keys are not available.
After payment, you’ll receive the paperwork to transfer the vehicle’s title. Make sure to complete this to make the auction car yours.
Transport: You must remove the vehicle from the tow yard by a specified time on the day of the auction or you will be charged a storage fee. If you do not take the vehicle within a certain period after the auction date, it will be considered abandoned and will be removed.
Once you remove a vehicle from the tow yard, you cannot park it on the street or drive it unless the owner has proper registration and license plates.
Extra Tips: Listen, you can’t buy back a car you ditch at the impound lot. Makes sense, right? Also, be ready to pay cash on the spot for anything you win. Don’t raise your hand unless you’ve got the money ready to go.
One more thing – nobody’s making any promises about these cars. You’re buying them as-is. I’ve seen some real beaters at these auctions, so be prepared for anything.
Where to Find Tow Company Auctions Near You
PoliceAuctionsUSA.com
Police Auctions USA is a database of police car auctions, tow company auctions, and also bank repo auctions in the United States. Almost all are open to the public for bidding. Some municipalities and tow companies list their repossessed cars for sale online with prices and photos.
As always, it is important to read all the posted auction rules first to avoid any surprises. Refunds are very rare at police auctions and tow company auctions.
While there is some overlap depending on the auctioneer, you may wish to also learn about bank repo auctions. These auctions feature title pawn and finance company repossessed cars for sale.
Last updated on February 8th, 2025 at 03:47 am
