Can a Car Get Repossessed for Unpaid Parking Tickets?

When it comes to unpaid parking tickets, the immediate concern is typically not about repossession by your bank. Instead, your vehicle will be impounded almost immediately by the authorities. However, it's worth understanding the implications and potential scenarios where repossession could be involved.

Impoundment: The Immediate Consequence of Unpaid Tickets

When you fail to pay your parking tickets, the authorities have the right to impound your vehicle. This means that your car can be picked up by law enforcement, towed away, and placed in a public impound yard, with no notice and little time for you to act. This is a much more immediate and direct consequence than any action your bank might take.

Impoundment can be dangerous for your vehicle, as it faces other potential damages, e.g., rust, vandalism, or simply being left in a location that is unfriendly to the car's condition. The fees for impounding your vehicle can also escalate quickly, often exceeding $100 per day. While these fees are charged by the towing company, they are in fact owed to the local government, which can then pass them back to the lienholder.

Can Your Bank Reposess Your Car After Impoundment?

While your car is impounded, your bank cannot immediately repossess it due to the outstanding impound fees. These fees are an additional cost that must be settled before your bank can take further action. Whether or not your bank can repossess your car once it is out of impound can be complicated, and often depends on the specific terms of your loan agreement and state laws.

Typically, to repossess your car, your bank needs to go through legal proceedings and might have to pay the impound fees. Once the impound fees are paid, the authority can release the vehicle to your bank, or in some cases, the bank has the right to proceed with repossession.

Staying Out of Impoundment: The Best Course of Action

The most effective way to avoid both impoundment and repossession is to address your unpaid parking tickets promptly. If you come to the realization that you are in default on your parking ticket payment, the best immediate action is to settle the outstanding charges. Here’s a step-by-step guide:

Pay the outstanding tickets.

Visit the impound yard with your receipt.

Provide proof of ownership, such as up-to-date registration and identification that confirms you are the registered owner of the vehicle.

Ensure you have proof of insurance.

With these documents, you can address the impound fees and reclaim your car. It's crucial to remember that paying the impound fees and settling the tickets directly addresses the issue and prevents further complications, such as repossession by your bank.

Conclusion

While unpaid parking tickets can lead to an impoundment, they do not typically result in car repossession by your bank. It's important to address the issue promptly by paying the outstanding tickets and impound fees. If not managed, the impoundment process can lead to additional costs and legal complications. Always stay proactive in dealing with these issues to avoid further difficulties.