Finding out your car was towed to an impound lot can be financially devastating. Not only are you without your car, but you must be able to pay the towing and storage fees to get your car back.

In addition, any outstanding parking tickets or other fees that caused the police to impound your car must be satisfied before they release your impounded vehicle.

It can feel overwhelming if you don’t have the money upfront to satisfy your unpaid fines plus the impounded car cost. You may need to borrow money to satisfy the remaining balance on your fees plus the costs the towing company charges.

While you can’t get car title loans on already impounded cars, you may qualify for a car title loan if you have another qualifying vehicle to use as collateral.

Good to know:

You may be eligible for a title loan on an impounded car, but it’s rare. It’s risky for lenders because they cannot determine the car’s condition. While it may be an option in rare cases, using the collateral from another car is usually the better choice.

At Montana Capital, we’re here to help you in financial emergencies like the sudden impound of one of your vehicles.

My Car Got Towed, and I Have No Money. What Can I Do?

The longer your car sits in the impound lot, the more money it will cost to get it back. The key is to act quickly and exhaust all options to regain your car.

Types of Car Impound Loans

Qualified borrowers have options for different loans when borrowing to pay the fees to release a car impounded unexpectedly. Exhausting all options while moving quickly is essential to avoid excessive impound fees.

Some common options for getting a loan to get a car out of impound include:

  • Personal loans – If you have a strong credit score, you may qualify for a personal loan with low interest rates. If you have a poor credit score, you’ll likely get an interest rate higher than title loans charge.
  • Payday loans – This short-term loan option is for loan amounts you can repay by your next payday. A payday loan typically has very high fees and interest rates that compound if you can’t repay the balance by your due date. However, payday loan amounts may be much less than what’s needed to get a car out of impound.
  • Credit card – If you have enough available credit, you may be able to charge the cost of getting your car out of impound. The interest rates on credit cards may be lower than other loans, such as payday or title loans; however, most impound yards won’t accept a credit card. You may have to get a cash advance if you want to use a credit card.

Help Getting Car Out of Impound: Are Title Loans an Option?

If you have a bad credit history, getting financial assistance to get your car back can be challenging, but a title loan may be an option. You don’t necessarily need good credit to get a title loan. However, you need a lien-free car that isn’t impounded. 

So you can use this option on a second car you own, using its value to have the necessary funds to pay the impound fees.

What Do I Need To Qualify for a Loan To Get My Car Out of Impound?

To qualify for a title loan to get your car out of impound, you’ll need the following:

  • Proof of income – The list of acceptable proof of income includes paystubs, W-2s, tax returns, award letters, bank statements, pension or unemployment statements.
  • Proof of title – You must prove you have a clean title with your name on it as the owner.
  • Identification – You must provide a government-issued ID, such as a driver’s license, to prove your identity.
  • Vehicle pictures – If you apply for a title loan online, you must provide clear pictures of the car’s interior, exterior, and VIN.

Title loan lenders have different requirements, but overall, they want to ensure you have the monthly income to afford the loan payments and that the car used as collateral has enough value.

If you don’t repair the loan, the lender can repossess the car if your state’s laws allow repossession.

How Much Money Can You Get With Title Loans?

Most online title loan lenders allow you to borrow as much as 25% to 50% of the car’s value.

For example, if your car is worth $10,000, the most you can borrow in most cases is $5,000. This doesn’t mean you must borrow the maximum amount. Instead, you should only borrow as much as you need to get your car from the impound yard.

How Fast Can You Get Funds?

Title loans can be funded quickly. You can apply online in a matter of minutes, and if you provide all necessary documentation you can have approval within a few hours. Depending on the time of day you get final approval, you may secure funds as fast as the same business day, or the next day to help you get your car out of impound fast.

What Is the Loan Process To Get Title Loans for My Impounded Car?

The application process for title loans is straightforward. If you think, ‘I can’t afford to get my car out of impound,’ consider applying for a title loan to get quick emergency cash to stop paying the impound fees.

  1. Complete a loan application online – The application takes only a few minutes to complete. It asks questions about your identification, income, employment, and questions about your vehicle.
  2. Receive pre-approval – After submitting your application, the title loan agent will review the application. If approved, you’ll receive your offer with terms and interest rates.
  3. Conveniently upload your documents online – If you accept the offer provided, you must provide the necessary documentation, including your income, identification, and information about your vehicle, including vehicle pictures.
  4. Send in your title – Your title loan lender will provide instructions on sending in your title to get your title loan funded.
  5. Receive your funds – After all documentation is received and you have final approval, the title agent will fund your loan, sending the funds either direct deposit or check.

Some lenders fund loans as soon as the next business day or even the same day if you submit all documents by 2PM on a business day. This helps you limit your impound fees and get your car back. The faster you can get funds, the better because every day your car is impounded, the more it will cost to get it back, plus not having use of your car can be very inconvenient. 

What Happens if My Car Is Impounded With a Title Loan?

If you have a title loan and got behind on the payments, the lender may be able to repossess the car, depending on your title loan state’s laws.

If you don’t communicate with the lender, they could sell your car at auction. However, you may have a window of opportunity to pay the remaining balance of what’s owed, plus the impound fees.

The key is to talk to your lender before they impound the car. However, if they already took possession of it, you may be able to save the car if you act fast.

How To Get My Car Out of Impound

Each state has different laws regarding how to get your car out of impound. Some states have stricter laws than others. For example, Illinois, Maryland and Missouri greatly protect their drivers, whereas Indiana, New Hampshire and South Dakota make it much tougher on drivers.

Here are the steps to get your impounded car back:

  1. Prove you are the vehicle’s owner and have proper insurance to drive the car
  2. Provide proper documentation including your driver’s license, proof of insurance and proof of ownership, such as the title
  3. Have the exact dollar amount required to get your car out of impound
  4. Contact the facility holding the car to ensure you meet all deadlines before they sell the car and you can no longer retrieve it

What Are The Fees?

Every impound lot has different fees, as it depends on the reason they had your car towed. Everyone pays a towing fee, but there may also be vehicle release, storage, and boot fees.

For example, there’s a difference between an impounded car for missing your car payment and one for parking in a no-parking zone.

Depending on the reason and where your car was impounded, you may face some or all of the following costs:

  • Towing fees: $100 – $200 depending on the distance towed
  • Daily storage fees: $30 – $40 per day
  • Impound release fee: $90 – $250, varies by location
  • Flat bed or dolly fee: $50 – $150, necessary if the car was disabled

Again, each state has different laws. For example, in Hawaii, the maximum amount tow companies can charge is $65 to $75 for a dolly tow plus $7.50 per mile. They may also only charge $25 per day for storage for the first seven days, then $20 after that. 

Tip: Always call before getting your car out of impound so you know the total amount required.


If you need car impound loans, it’s important to know that in most cases you cannot get loan approval on a currently impounded car. However, you may be able to secure equity from another car you own and use the money to release your car from impound.

A car title loan offers a high-interest but fast-paying way to get the money you need to get your car from the impound lot. You won’t find low-interest rates on the loans, but you don’t necessarily need a great financial history or strong credit history to get title loans.

Contact us today if one of your cars has been impounded and you need short-term financing to help with the costs. If approved, you may receive your cash in as little as 24 hours on business days, and in some cases, the same day. Time is an important factor when your car is impounded, so acting as quickly as possible is crucial.

Written by Samantha Hawrylack

Written by

Samantha Hawrylack

Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.