Yes, dealerships do tow cars, and they do it in three very different situations: bringing a customer’s vehicle in for service, removing unauthorized vehicles from their own lot, and repossessing cars tied to defaulted loans. Each situation follows its own legal rules and puts the towing bill on a different person. Knowing which kind of tow you’re dealing with is the first step to figuring out your rights.
Tows for Service and Repairs
When your car needs work at a dealership, the tow is almost always voluntary. You either call for a tow after a breakdown, or the dealership arranges pickup as part of a warranty or concierge program. Either way, the dealership needs your consent before moving the vehicle, and you should have written authorization that spells out what will be done, the charges involved, and any conditions.
Many manufacturers bundle towing into their warranty or roadside assistance coverage.1Chevrolet. Chevy Roadside Assistance If your breakdown falls within the warranty window, the dealership typically coordinates a flatbed through its roadside provider at no charge to you. Some luxury and premium brands also offer pick-up and delivery for routine maintenance, sometimes included in the purchase price or a monthly subscription, so no separate towing charge shows up on your invoice.
For out-of-warranty tows you request, expect the dealership to bill you directly or have you arrange the tow through your own insurance or roadside plan. A short-distance tow added to a repair invoice typically runs somewhere between $50 and $150.
Trespass Tows From Dealership Property
Dealerships are private property, and the owner has the right to remove vehicles that don’t belong there. Cars left after hours, vehicles parked by people visiting nearby businesses, or anything on the lot without permission can be towed at the driver’s expense. This is often called a trespass tow or private property tow, and it happens without any notice to the vehicle owner at the moment of removal.
Signage Requirements
Most states require warning signs before a private lot can tow. The common pattern includes signs at each entrance, clearly worded prohibitions on unauthorized parking, and the name and phone number of the towing company authorized to remove vehicles. Some states also require signs to be readable from a set distance and to be more numerous in larger lots. If the dealership skips these requirements, you may have grounds to challenge the tow or recover your costs. State towing statutes vary significantly, so check yours.
Drop Fees
If you get back to your car while it’s being hooked up but before the tow truck has left, you can often keep it on the spot. Many states allow the operator to charge a drop fee for unhooking, which is typically less than the full tow charge, and some states cap the amount by vehicle weight. Several states require the operator to release the car with no charge at all if hookup isn’t complete when you arrive. Catching a tow in progress can save you hundreds of dollars.
Getting the Car Back
Once your car reaches the impound yard, you deal with the towing company, not the dealership. Bring proof of ownership and be ready to pay the tow fee plus any daily storage charges that have accumulated. Storage fees run for every calendar day the vehicle sits in the lot, and some impound yards charge for partial days too. A car left over a weekend can add $100 to $150 in storage alone. Call the towing company listed on the dealership’s signage, or the local police non-emergency line, as soon as you realize your car has been moved.
Repossession of Dealer-Financed Cars
“Buy here, pay here” dealerships act as both seller and lender, which means they hold the lien on your car and can repossess it if you stop making payments. This is the most adversarial form of dealership towing, and it comes with a specific set of legal rules on both sides.
How Self-Help Repossession Works
Under the Uniform Commercial Code, a secured creditor can take back collateral after a default without going to court first, as long as it does so without breaching the peace.2Legal Information Institute (LII) / Cornell Law School. UCC 9-609 – Secured Party’s Right to Take Possession After Default Dealerships typically hire third-party recovery agents who lift and tow vehicles quickly, often at night.
The “no breach of the peace” rule is where most repossession disputes land. The recovery agent cannot use force, cannot threaten you, cannot pretend to be law enforcement, and cannot continue taking the car if you’re present and tell them to stop. If you walk outside and verbally object, the agent is required to leave and try again another time. Ignoring that objection turns a lawful repossession into a wrongful one, potentially exposing the creditor to liability for conversion or trespass.
There’s a common misconception that the dealership must warn you first. The UCC itself does not require a pre-repossession notice of default or a right-to-cure period. Some states impose those requirements by statute, and your loan contract might include a grace period, but don’t count on it. If payments are missed and your state doesn’t mandate advance notice, the repo truck can show up unannounced.
Protections for Active-Duty Military
The Servicemembers Civil Relief Act carves out a major exception. If you signed the purchase or lease contract before going on active duty and made at least one payment before entering service, no creditor can repossess your vehicle without first getting a court order. A creditor who knowingly violates this protection faces criminal penalties, including up to a year in jail, and the court can order a refund of prior payments as a condition of any repossession it does authorize.3Office of the Law Revision Counsel. 50 USC 3952 – Protection Under Installment Contracts for Purchase or Lease These protections only apply to contracts signed before active duty, not to vehicles purchased during service.4Consumer Financial Protection Bureau. Auto Repossession and Protections Under the SCRA Raise SCRA protections with the lender as soon as repossession is on the table; most back off once they realize a court proceeding is required.
What Happens After a Repossession
Losing the car doesn’t end the story. Several rights kick in after repossession, and acting quickly on any of them can either get the vehicle back or limit what you end up owing.
Redemption
You can reclaim a repossessed car by paying the full remaining loan balance, plus the creditor’s reasonable expenses for towing, storage, and attorney fees. This is redemption, and the window stays open until the creditor sells the vehicle, enters a contract to sell it, or accepts it in satisfaction of the debt.5Legal Information Institute (LII) / Cornell Law School. UCC 9-623 – Right to Redeem Collateral Redemption means paying the entire remaining balance, not just the missed payments. Some states separately allow reinstatement, which lets you catch up on past-due amounts and resume the loan, but that right comes from state law rather than the UCC.6Federal Trade Commission. Vehicle Repossession
Notice Before the Sale
Before disposing of your vehicle, the creditor must send you written notification describing the planned sale.7Legal Information Institute (LII) / Cornell Law School. UCC 9-611 – Notification Before Disposition of Collateral For consumer transactions, that notice must state the amount owed, explain that you’ll owe any remaining shortfall or receive any surplus, inform you of your right to redeem by paying the full balance, and give a phone number to call for an exact payoff figure. A creditor who skips the notice or botches its content can lose the right to collect a deficiency from you.
Deficiency Balances
Repossessed vehicles typically sell at auction for well below retail. After the sale, the creditor applies the proceeds first to repossession and sale expenses, then to the loan balance.8Legal Information Institute (LII) / Cornell Law School. UCC 9-615 – Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus Anything left over is the deficiency, and in most states the creditor can sue you to collect it, send it to collections, or report it to the credit bureaus.6Federal Trade Commission. Vehicle Repossession If the sale generates more than you owe, the creditor must pay you the surplus.
Your Personal Belongings
A repossession covers the vehicle, not your gym bag, tools, or child’s car seat. The creditor cannot keep or sell personal property found inside the car, at least not without giving you a reasonable opportunity to retrieve it.6Federal Trade Commission. Vehicle Repossession State laws generally require the repossession company to inventory your belongings, notify you of where they are, and hold them for a set period. The CFPB has treated upfront fees to release personal property as unfair.9Consumer Financial Protection Bureau. Bulletin 2022-04: Mitigating Harm from Repossession of Automobiles If a recovery agent tells you to pay before you can get your things, push back and check your state’s rules.
Who Pays for the Tow
Financial responsibility follows the reason for the tow.
- Warranty or concierge service: the dealership or manufacturer absorbs the cost. Out-of-warranty tows you request typically show up on the repair invoice, usually $50 to $150 for a short distance.
- Trespass tow: you pay the towing company directly. A tow generally runs $100 to $300 depending on area, vehicle weight, and time of day, plus daily storage. Some states cap these charges; others don’t.
- Repossession: the costs of towing, storing, and selling the vehicle get added to your loan balance. You don’t pay them upfront, but they increase any deficiency you owe after the sale.8Legal Information Institute (LII) / Cornell Law School. UCC 9-615 – Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus