Selling

Impounded Vehicles

Selling Impounded Vehicles: The City sells vehicles that have been impounded by either the Police
Department or Streets and Sanitation once they have been declared unclaimed.


Background
Every year, the City tows approximately 100,000 vehicles including illegally parked vehicles,
abandoned vehicles, and vehicles used for illegal activity to its auto pounds. The owners of vehicles
towed for parking violations must pay a towing fee, pound storage fees, and any applicable parking
tickets. The owners of vehicles impounded for illegal activity must pay those same fees, as well as any
applicable fines.

Upon arrival at the designated pound, each vehicle is inspected, the tow report is reviewed to verify the
correct vehicle is being impounded, inventory of the vehicle is performed, and the vehicle information is
recorded with the Chicago Police Hot Desk to check for a stolen vehicle report and to enter the vehicle
as a towed vehicle. The City has ten days after impounding to determine ownership and send notice to
the vehicle owner. Generally, ownership information is retrieved from the Illinois Secretary of State.

A vehicle becomes unclaimed (and thus eligible for sale or disposal) after a certain period of time in the
pound, which varies based on the type of tow ranging from 18 days following notice to the owner for
abandoned tows to 45 days after the Administrative Hearing final order is issued for tows associated
with alleged illegal activity. Owners of vehicles towed because of alleged illegal activity may make a
request for a full hearing with the Department of Administrative Hearings, and these vehicles are held in
the pound pending the scheduling and completion of those hearings, as no action can be taken until the
hearing process is completed. Each month, the City takes stock of which vehicles have become
unclaimed, and takes action to sell or dispose of such vehicles.

Pursuant to State law, impounded motor vehicles that remain unclaimed may only be sold to a person
licensed as an automotive parts recycler, rebuilder, or scrap processer. Unclaimed vehicles are sold by
the City via one of two methods sale to the Citys towing contractor or online auction:
Vehicles that are declared unclaimed while stored at one of the five auto pound lots managed
by the Citys towing contractor are turned over to the contractor for sale. Under the terms of
the contract with the towing vendor, the City receives a share of the revenues from those sales,
which vary based on current scrap metal prices.
Vehicles that are declared unclaimed while stored at one of the three City-managed auto pound
lots are sold via online auction through the Department of Procurement Services online auction
program. Revenue from these sales also varies based on current scrap metal prices.
In the event that an unclaimed vehicle has value substantially in excess of the scrap value of the
vehicle, it is sold separately via public auction, in accordance with the requirements of MCC 992-100(c).

Revenue Impact
The chart below shows statistics for both the sale of unclaimed vehicles to the towing contractor and
the auction of impounded vehicles through the online auction program.


2013
2014
2015 (Thru July)
Sale to Towing Contractor



Number of Cars Sold
20,012
19,290
10,526
Total Revenue
$4,082,012
$4,022,730
$1,609,500
Online Auction



Number of Cars Sold
144
150
86
Total Revenue
$124,456
$151,525
$226,225

The majority of sales are to the towing contractor, as opposed to via online auction by the City. The City
manages the airport and central business district tow lots, while the Citys contractor manages two auto
pounds where all abandoned vehicles are towed, which are typically not claimed.

Legal Authority
Section 9-92-100 of the Municipal Code sets forth the procedures for disposal of unclaimed vehicles,
which are governed in part by the Illinois Vehicle Code.