Dealing with Storage Fees After a Towed Vehicle is Sold

As a Google SEO expert, it's important to address the common issue faced by many vehicle owners who find themselves in a situation where a tow yard claims they owe storage fees after their vehicle was sold at an auction. This scenario is quite common and can be tricky to navigate. Let's break down the steps you can take to resolve the issue.

Understanding the Situation

Based on your post, it doesn't sound like you dispute the bill but rather, you simply don't like the amount being asked. This means you do owe the storage fees, but there's still room for negotiation. If the tow yard sold your vehicle for an amount that covers the storage costs, that sale is considered a lien release, meaning the debt is satisfied.

Verify the Lien Sale

First, you should request proof of the lien sale from the Department of Motor Vehicles (DMV). Make sure to get a copy of the proof and send it to the tow yard. This document should confirm that the lien is satisfied due to the storage costs. It's crucial to retain this information as it can be used to validate your claim.

Respond to the Demand

The tow yard likely sent you a letter or notice of their demand. Simply ignoring this demand is not a good strategy. The yard has a 10% chance of writing it off, an 80% chance of sending it to a collection agency, and a 10% chance of filing a lawsuit against you. It's best to take proactive steps and try to negotiate a reduced amount.

Negotiate a Payment Plan

You can negotiate a settlement that might be more acceptable for both parties. A common rate for long-term storage is around $10 per day for 30 days, totaling $300. Be prepared to communicate this to the tow yard. If they insist on the full amount, consider offering a payment plan that can be more manageable for you.

Consult an Attorney

Given the complexity of this issue, it's a good idea to consult with a lawyer. They can help you understand your rights and recover any money that is leftover from the sale after storage fees are deducted. If your car was sold for $6,000 and storage fees were $3,000, you would be entitled to $3,000 from the sale.

Calculate and Offset the Fees

Another approach is to argue that the sale proceeds should offset the storage fees. Calculate the total storage fee and subtract the amount received from the auction. If the sale price didn't cover the full storage fee, you still owe the balance. Communicate this to the tow yard and work towards a mutually agreeable solution.

Communicate Effectively

Taking a kind and reasonable approach is paramount when dealing with tow yards. Although you do owe the fees, being nice and cooperative can lead to a more favorable outcome. Research your rights and the tow yard's obligations to ensure you're making an informed decision. If necessary, set up a payment plan with the tow yard to help manage the debt effectively.

Managing a situation like this is challenging, but with proper communication, negotiation, and if needed, legal assistance, you can find a resolution that works for both you and the tow yard. Remember, your actions now can impact your credit, so it's important to keep your word and be consistent in your dealings.