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An impounded vehicle auction specializes in selling illegally acquired, abandoned and broken down cars. Once a car is taken to a garage by a tow truck either owned by councils or private towing companies and the requisite time has passed, these cars are auctioned to recover the cost of towing and storage.
The actions are usually held on the grounds of the tow lot. There are also internet-based auctions becoming popular. Before the cars are auctioned the local government determines who the owner is before the car's title is processed for auction. Given the expense of the process, many lots will charge a fee for the papers.
States have different rules when it comes to auctioning impounded cars. In some states, bidders must register as salvage dealers or restoration companies in order to participate. Some areas like Northwood,' impounded vehicles may only be offered to the general public with what they call a salvage title, while other areas have no restrictions on who may purchase a vehicle.
Impounded vehicles are offered as-is, where-is with no warranty. Auctioneers most likely have no knowledge of the cars' mechanical conditions except what they can see like rust, so no warranties are issued.