What to Do If You Sold an Unregistered Car and It Gets Impounded

As a car seller, it is crucial to ensure that the vehicle is properly registered and the necessary paperwork is transferred to the new owner. However, what should you do if you have sold a car and the buyer does not register it, and subsequently, the car gets impounded? This situation can be stressful, but understanding your rights and responsibilities can help you manage the issue effectively. Here's what you need to know.

Understanding Your Rights and Responsibilities

When you sell a car, it is your responsibility to notify the DMV (Department of Motor Vehicles) or other relevant authorities that the vehicle is no longer under your ownership. This step is essential, as any legal repercussions, such as penalties for moving violations or towing, will then fall on the new owner. If the buyer does not register the vehicle, you might still face unnecessary charges, especially if the car is impounded.

Steps to Take if the Car Gets Impounded

1. Document Everything: Keep all the documents related to the sale, including the bill of sale and any communication with the buyer. These documents can be vital in proving your assertion that you no longer own the car.

2. Notify the New Owner: Contact the new owner and inform them of the situation. Urge them to take immediate action by registering the car or addressing the issues that led to its impoundment. If they fail to respond, document your efforts and proceed to the next step.

3. Notify the DMV: Go to your local DMV and report that you no longer own the vehicle. If possible, fill out a “Statement of Facts” form detailing the situation. While the DMV might not resolve the issue immediately, it provides a paper trail and shows your commitment to keeping the sale compliant.

What if You Receive Bills as the Previous Owner?

If you receive bills for the impoundment as the previous owner, you should:

Confirm Ownership Status: Check your registration and see if it has been canceled. If the registration has not been canceled, it might still be linked to your name. Communicate with the Impound Organization: Send them a letter or make a call to inform them of the situation. Offer the bill of sale and any other documentation as proof that you no longer own the vehicle. Consider Alternative Solutions: If the new owner does not respond or refuse to take action, the impound company might be willing to sell the car to cover the impound fees. This option is more time-consuming but might resolve the issue faster.

Real-Life Examples

Example 1: If you sold your car and the buyer did not register it, and the car got impounded, you should not ignore the situation. Contact the new owner and provide copies of your bill of sale. Explain that the impound charges should fall on them as the registered owner. If they refuse to address the issue, you can take further steps to claim your innocence.

Example 2: When the new owner does not register the car after selling it to you, it is your responsibility to notify the DMV. Keep notes and evidence of your communication with the buyer. This proactive approach can prevent future issues and demonstrate your responsibility.

Conclusion

Selling a car is a significant transaction, and ensuring it is properly registered and the necessary paperwork is transferred is crucial. If the vehicle later gets impounded, follow the steps outlined above to minimize your involvement in the situation. By keeping a clear record and actively communicating with the relevant parties, you can navigate this challenging scenario more effectively.

Remember, documentation is key in these situations. Always retain bills of sale, communication records, and any other evidence that can support your claim of no longer owning the vehicle. If you ever encounter similar issues, you will be better prepared to handle them.