Investigation Reveals Towing Companies Underprice Impounded Cars
An investigation by NextMinuteNews found that many Connecticut towing companies deliberately undervalue vehicles to sell them faster at auction. While legal, this practice costs car owners thousands and raises ethical concerns.
How Connecticut Towing Companies Undervalue Vehicles
State law allows towing companies to sell unclaimed cars after 30–45 days, but first, they must appraise the vehicle. Insiders report that some companies use biased appraisers who slash values by 50–70% below market price.
For example:
– A 2022 Honda Civic worth $7,000 may be appraised at just $2,500.
– A 2018 Toyota Camry valued at $12,000 could be listed at $4,500.
By pricing cars low, towing companies sell them faster and return minimal profits to owners after subtracting fees.
Why Low Appraisals Hurt Car Owners
Connecticut law requires towing companies to refund owners any auction profits beyond fees. But undervaluation means many get nothing.
Real Case:
– Mark R. (Hartford) lost his 2018 Camry to a minor parking violation.
– Appraised at $4,500 (true value: $12,000), auction fees left him with just $300.
– “I was still paying off that car,” he said. “The towing company made thousands.”
Is Undervaluing Cars Legal in Connecticut?
State law demands “reasonable” appraisals, but enforcement is weak. Towing companies can hire their own appraisers, creating conflicts of interest.
Consumer attorney Jennifer L. explains:
“No oversight exists. Low-income car owners suffer the most.”
Proposed Reforms to Protect Car Owners
State Rep. David Michel (D-Stamford) introduced a bill requiring:
✅ Independent third-party appraisals
✅ Stricter auction documentation
“Predatory practices must end,” Michel said.
How to Protect Your Vehicle in Connecticut
If your car is towed:
1. Retrieve it immediately – Storage fees add up fast.
2. Request appraisal details – Demand documentation.
3. Get a second opinion – Hire an independent appraiser.
4. Report unfair appraisals – Contact the CT Dept. of Consumer Protection.
Undervaluation Happens Beyond Connecticut
Similar practices occur in New York, New Jersey, and other states. Advocates urge nationwide reform to prevent exploitation.
Stay updated with NextMinuteNews for developments.
