Quick answer: In California, a tow company or storage yard that tows and stores a vehicle under the authority of a public agency, a private property owner, or the vehicle’s owner has a lien on the vehicle for the towing and storage charges it is legally entitled to. If the charges are not paid, the yard can eventually sell the car through a lien sale. Under California Civil Code 3068.1, the process depends on whether the vehicle is valued at $4,000 or less, or more than $4,000. For lower-value vehicles, lien sale proceedings must start within 15 days of the date the lien arises. The good news: you can stop the sale by acting quickly, and the law sets limits that protect owners.
This guide from the TowCars team explains how lien sales of towed cars work in California, the timelines in the law, and what you can do if you get a notice about one. It is general information, not legal advice.
What a towing lien is
Civil Code 3068.1(a)(1) says every person has a lien “dependent upon possession” for compensation they are legally entitled to for towing, storage, or labor associated with recovery or load salvage of a registered vehicle, if the tow was authorized by:
- a public agency, such as LAPD, the CHP or a city parking department,
- a private property owner under Vehicle Code 22658, or
- a lessee, operator, or registered owner of the vehicle.
“Dependent upon possession” means the yard’s right is tied to holding the car. The lien arises on the date of possession, which the law says begins when the vehicle is removed and in transit, or when recovery or load salvage operations have begun.
How storage charges are counted
The same section sets out how storage days are counted:
- If the vehicle is released 24 hours or less after it is placed in storage, no more than one day of storage can be charged.
- If release is more than 24 hours later, storage can be charged on a full calendar day basis for each day or part of a day.
- If you request release within the first 24 hours, pay the appropriate fees, and show papers proving you are entitled to the car (or that you are the owner’s insurance representative), and the yard fails to release it or is not open during normal business hours, then only one day’s charge may be required until after the first business day. A “business day” is a day the yard is open to the public for at least eight hours.
The practical lesson is that speed saves money. Our storage fees guide and after-hours and gate fee guide explain other common charges.
What counts as proof you can take the car
Civil Code 3068.1(a)(2) gives examples of documents that can entitle a person to possession, including a certificate of ownership (title), vehicle registration, ownership information the yard got from the DMV, a facially valid registration found in the vehicle, or a notarized letter from the legal or registered owner authorizing release to a particular person who also shows government-issued photo ID. A letter or fax from the owner’s insurance company can show that someone is the insurance representative. Our impound lot guide includes a checklist of what to bring.
The two lien sale paths: $4,000 or less vs. more than $4,000
| Vehicle value | Lien sale process | Storage limits in Civil Code 3068.1 |
|---|---|---|
| $4,000 or less | Civil Code 3072 | Lien sale proceedings must start within 15 days of the lien arising. No storage accrues beyond that 15-day period unless proceedings have started. Storage lien can run up to 60 days if a notice of pending lien sale form is filed within 15 days, or up to 120 days in certain cases. |
| More than $4,000 (value set under Vehicle Code 22670) | Civil Code 3071 | Storage lien can run up to 120 days if an application for authorization to conduct a lien sale has been filed. |
For the lower-value path, the law allows the storage lien to extend up to 120 days in four situations:
- a Declaration of Opposition form is filed with the DMV,
- the vehicle has out-of-state registration,
- the VIN was altered or removed, or
- a person with an interest in the vehicle becomes known to the yard after it already sent the required notices.
What a Declaration of Opposition is
When a lien sale is started, owners and other interested parties are normally sent notice. A Declaration of Opposition is a DMV form an owner can use to formally object to the lien sale. Filing one generally means the yard cannot simply sell the car without going through a further process, such as obtaining a court judgment. The DMV provides the forms and instructions on its official website at dmv.ca.gov. Opposing a sale does not erase the underlying charges, and storage may keep accruing within the limits above, so get advice before deciding.
When a lien is extinguished
Civil Code 3068.1(d) lists two situations where the lien is extinguished and no lien sale may be conducted:
- Refused inspection. The legal owner or lessor (for example, a lender or leasing company) sends a written demand to inspect the vehicle by personal service or certified mail with return receipt, and the yard fails to allow inspection within at least 24 hours and no more than 72 hours of receiving the demand, during normal business hours.
- Overcharging storage. The amount claimed for storage exceeds the posted rates.
That second point is worth remembering. If the storage charge on your bill is higher than the rate posted at the yard, take a photo of the posted rate sign and the bill. Our tow bill checker can help you review the charges.
Abandoned vehicles and lien costs
If a vehicle is determined to be abandoned and removed under Vehicle Code 22669, Vehicle Code 22523(e) says the costs for its removal and disposition cannot exceed towing plus seven days of storage, unless the owner returned a Declaration of Opposition in time. And 22523(f) says that if an abandoned car is not redeemed, the last registered owner is guilty of an infraction and is liable for any deficiency after the car is sold, unless they had filed a report of sale or transfer, a theft report, or certain DMV notices. In other words, walking away from a towed car does not necessarily walk you away from the bill.
How to stop a lien sale
- Find the car and the yard. Use our impound lot finder or Los Angeles towing guide.
- Read every notice you receive. Note the dates. Lien timelines are short.
- Pay and redeem the car if you want it back. Bring proof of ownership, ID and payment. See our guide to payment rules.
- If the tow was by a public agency and you think it was wrong, request a post-storage hearing within 10 days of the storage notice under Vehicle Code 22852. Our post-storage hearing guide explains the process.
- If you dispute the charges, consider filing a Declaration of Opposition with the DMV within the time allowed in the notice, and keep copies of everything.
- Retrieve personal items early. See getting your belongings from a towed car.
If you do not want the car back
Sometimes the storage bill exceeds what an old car is worth. Even then, deal with it formally. Talk to the yard about signing the car over, and if you sell it, report the sale to the DMV. Our guides to repair or junk and selling a junk car may help.
Key takeaways
- California tow yards have a possessory lien for lawful towing and storage charges and can eventually sell an unclaimed car.
- For vehicles worth $4,000 or less, lien sale proceedings must begin within 15 days, and storage is generally capped at 60 days, or 120 days in specific cases.
- Releasing a car within 24 hours limits storage to one day.
- Charging more than posted storage rates extinguishes the lien.
- Abandoning a towed car can leave the registered owner liable for the shortfall.
Prepared by the TowCars team from the official California Civil Code and Vehicle Code text on leginfo.legislature.ca.gov. This is general information, not legal advice.
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