Abandoned vehicle operations by private entities initiated by law enforcement
A private entity is a tow company, parking place, motor vehicle storage facility, or auto service shop according to Iowa’s abandoned vehicle law.
A police authority for abandoned vehicle operations refers to the state patrol, any law enforcement agency of a county or city, or any special security officer employed by the state board of regents. It does not include any other agencies, like DCI or DNR.
A police authority may hire your company as a private entity to handle the abandoned vehicle process from start to finish. This means your company will not only tow and store the vehicle, but also notify the customer according to state law.
Notification
If your company is hired by a police authority, the police authority must provide you with the name and address of the registered owners, lienholders, and any claimants with an interest in the vehicle on page one of Form 411163 Certificate of Disposal of an Abandoned Vehicle When Initiated by a Police Authority.
You must send a notification by certified mail to all owners/claimants within 20 days of towing the vehicle. The notice is considered effective on the date it is mailed. The notification must include the following:
- The year, make, model, and VIN of the vehicle.
- Location where the vehicle is being held.
- A statement of the owner/claimants’ right to reclaim the vehicle within 10 days after the effective date of the notice, and after all towing, preservation, storage, and notice costs have been paid.
- A statement that the failure of the owner/claimants to exercise their right to reclaim the vehicle within the time provided shall be deemed a waiver by the owner/claimants of all right, title, claim, and interest in the vehicle, and is deemed consent to the sale of the vehicle at a public auction or disposal of the vehicle to a demolisher and to disposal of personal property by sale or destruction.
- A statement that anyone claiming possession of the vehicle, who disputes the planned disposal of the vehicle or assessment of fees and charges provided by this section, may ask for a hearing before the police authority to challenge those matters.
Reclaiming the Abandoned Vehicle
When a person arrives to reclaim the vehicle, the person is required to present, as applicable, a valid driver’s license and proof of financial liability coverage (insurance, bond, etc.) which may be in the vehicle.
Abandoned Vehicle Disposal Options
If an abandoned vehicle has not been reclaimed within 10 days of notice, your company may sell the vehicle at public auction or transfer the vehicle directly to a demolisher.
By signing on page two of Form 411163, you are certifying that your portion of the requirements of the abandoned vehicle process has been completed according to law. You are required to maintain records for three years for all vehicles sold or transferred to a demolisher through the abandoned vehicle process.
OPTION 1: Sell the vehicle at a public auction
This is recommended to recoup your expenses from conducting the abandoned vehicle process.
- Determine if the vehicle will be sold for use on the highways or sold only for junk.
- Advertise a public auction at least seven days in advance of the sale within the county where the auction will take place or where the vehicle is physically located. At a minimum, you must publish an ad in a newspaper in general circulation in the area. The newspaper must have a list of subscribers and devote at least 25 percent of total column space to information other than advertising.
- You are required to keep a bidder registry that has the bidder’s full name, address, and phone number, the date and location of the auction, and the auctioned vehicle’s make, model, and VIN.
- The initial bid does not have to be at fair market value and may be set at an amount that equals the actual cost of storage and towing. This provision is intended to help recover expenses.
- Provide the buyer with page two of Form 411163 with Section B - Abandoned Vehicle Sales Receipt complete. Page one does not go to the buyer, but you will need to keep a copy of the form for your records.
- Provide an odometer disclosure statement when required (model year 2011 and newer). The odometer statement will reflect the odometer reading at the time of sale and will be marked indicating “odometer discrepancy,” certifying the odometer mileage reading is not the actual mileage.
- You do not need to provide a damage disclosure statement for vehicles sold through the abandoned vehicle process.
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It is recommended that you inform purchasers of abandoned vehicles of the fees they will pay to title and register the vehicle. For vehicles sold on the police entity bill of sale (Form 411163), the buyer’s registration fee will be collected for the balance of the registration year based on the month of sale as shown on the sales receipt.
If you are unable to recoup your expenses during a public auction, you should make a second attempt. If you still cannot make a satisfactory sale after two public auctions, you must sell or dispose of the vehicle to a demolisher for junk.
OPTION 2: Transfer the vehicle directly to a demolisher
You may dispose of the vehicle to a licensed demolisher for junk without public auction.
- Provide the demolisher with page two of Form 411163 with Section C - Authority to Transfer and/or Demolish a Vehicle completed with the first block checked. Page one does not go to the buyer/demolisher, but you will need to keep a copy of the form for your records.
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The demolisher will only be able to obtain a junking certificate by giving page two of DOT Form 411163 to the county treasurer and applying for a junking certificate within 30 days of the form date.
Reimbursement
If you are hired by a police authority to process an abandoned vehicle, you may request reimbursement of expenses that are more than the proceeds of the sale of the vehicle. To request reimbursement, submit Form 411090 Abandoned Vehicle Report to the Iowa DOT at central.vehicle@iowadot.us. Instructions are included on the form.
Form 411163 is only made available to a police authority and may be obtained by calling the Central Programs Bureau at 515-237-3156 or e-mail central.vehicle@iowadot.us.