When a car is abandoned or illegally parked, business owners or police officers may have the vehicle towed. Individuals may also choose to have a junk car removed via an impound business. In some cases, financiers may order a vehicle to be repossessed. Impound companies impound--seize and hold--a vehicle and either store it on the company property or return the car to the dealer. Impound equipment is expensive and you will likely require financing to start a company, so start with a business plan.

Things You Will Need
  • Location

  • Security fence

  • Video surveillance

  • Locks

  • Repossession license

  • Qualified drivers

  • Flatbed truck

  • Tow truck

  • Wrecker

Establish a service radius and determine what services you want to offer--consider offering repossession services, towing and lock-out assistance, roadside assistance, junk car removal and abandoned vehicle removal.

Secure a location for your business and install a fence and lock to prevent auto theft. Purchase and install a video surveillance system.

Apply for a collection agency license or repossession license with your state’s repossession agency or bureau of consumer credit, if necessary. Learn your state’s rules and your rights for repossessing a vehicle.

Purchase a flatbed truck, tow trucks, wreckers and attachments. Implement a GPS navigational system on each vehicle.

Hire drivers with clean records who hold CDLs (Commercial Driver's Licenses), vehicle removal specialists to consult with clients wanting to have their junk vehicles removed, and qualified and licensed employees to conduct repossessions.

Implement a system for cataloging your vehicles.

Establish relationships with local police, used car dealers, car financiers, car loan companies and car rental agencies.


Contact mechanics or owners of scrap yards near your location to inquire about selling parts from unclaimed vehicles.