How do tow companies get so many vehicles?

*** I did not know where else to put this if it's in the wrong section please move it thank you***

The question is exactly as the title says. How do these tow companies acquire so many vehicles?

What I do know about that business is that when there's an accident the tow company that's first on the scene if they can have the right equipment to handle the scene, then that's their job.

When the vehicles get hauled back to the impound yard however that works with fees accruing and yada yada yada, it's my understanding that's how they acquire a lot of vehicles. People can't pay it and they abandon their vehicles or whatever. Maybe someone can fill in the blanks there.

But beyond vehicles that are accident vehicles, I see tow companies with a whole bunch of vehicles they have for sale that are not accident vehicles.

Where do these come from? What I'm specifically talking about is I see a lot of the tow truck guys have even older trucks they sell like older F350s and things like that, that were not accident vehicles.

Do people just get to know that they are a tow company and next thing you know people are calling them up saying hey come take my car or truck I don't want it please tow it away for free? Or that they paid a small fee or whatever... competitive fee let's say.

I know of one guy near me that he has a deal apparently with all the local garages that when they have inoperable vehicles that he instantly buys them from them. I think he has a tow business also but I think his main business is selling off those cars and parts.

How else do these guys acquire these vehicles?

Do they somehow have access to bank vehicles or maybe salvage vehicles or ???

Or do they just watch auctions that anybody else can and they tow them in?

It seems like they have a never-ending Unlimited Supply of vehicles, just like a dealer, that they can continuously sell in perpetuity.

I'd like to know more about that.

@brian991219

I'm sure you can shed some light on this Brian thank you.

 

I can’t say for your exact location but I have a pretty good friend who is in the towing business and they always have a pile of vehicles. I am pretty sure this will depend on the state and maybe county and municipality but my understanding is in certain situations they actually get to keep some vehicles if they are towed by the police. I also know sometimes the owner/ insurance will sign a vehicle over if the towing is more than the vehicle is worth but most of those are pretty well destroyed and only good for parts. I also know they are pretty active in buying cheap auction vehicles to fix and sell as a way to keep there guys busy when there not on a tow call… at least in rural America there’s not enough calls to keep people busy all day, in the city it’s probably different.

 

Repossessions. They make the majority of their money off repos and the bank paying the storage fees.

 

Mostly unclaimed or abandoned vehicles. In general 40% of all impounded vehicles go unclaimed by the owner or insurance company. These then become the property of the tow company provided they process the lien paperwork peoperly they then can scrap, auction or otherwise dispose of it.

Pennsylvania specifically, we have two types of towers, general towers and salvors. General towers can respond to police requests for accidents, breakdowns and arrest impounds. Salvors respond to abandoned vehicles on public or private property. They have different processes for disposal of unclaimed vehicles with salvirs being restricted to scrap or parts.

If the vehicle was just an impound or unclaimed from repair work (but not an abandoned vehicle from othet property or the roadside) then the tower can file a warehouseman lien and get a clear title vacated of all liens and sell the vehicle outright. Otherwise they can declare it abandoned and obtain a dalvage certificate for scrap or parts.

 

PPIs and arrest tows are probably the most common way we get vehicles dumped on us that aren't damaged/wrecked.

 

Get arrested and they tow your vehicle. If they can't afford bail they definitely can't afford the tow bill.

Those are the best ones to buy at auction because you know they were at least able to drive when they got impounded. And they usually come with keys.

 

So if I wanted to go into the tow business, I would have to register with the state as one of those two types of towing companies. Ok.

Are those requests from law enforcement or official authorities? That's not if someone calls you to remove a vehicle from their property, correct?

Does the salvor have a salvage license? Can he buy at Salvage auctions?

And just as a side note, do you know if auto dealers can buy salvage vehicles and sell parts in addition to selling whole vehicles?

 

Someone gets pulled over for a DUI, they go to jail, vehicle goes to impound. The person that can't bail themselves out sit in jail and the impound fees keep growing. Vehicle is intact, owner just can't afford to bail the vehicle out. I knew a guy that lost an almost mint 1969 Ford F-250 Camper Special that way back around 2000/2001

 

They can be. I got a 94 thunderbird that way as a teen. But keep in mind the type of people who tend to get thrown in the slammer also tend to be the type of people to not care for and abuse vehicles. So...always check them well.

 

Bail isn't always given. Or needed.

Not only duis. But no registration or insurance can get you towed also.