A vehicle auction at Bruffy's Tow in Marina Del Rey on Feb. 18, 2025. Photo by J.W. Hendricks for CalMatters
Last week Gov. Gavin Newsom vetoed a bill that would’ve stopped the Department of Motor Vehicles’ practice of keeping excess proceeds from the sales of towed cars.
The DMV’s handling of the money came under scrutiny following a CalMatters investigation that showed the agency had kept millions of dollars in proceeds without notifying the cars’ owners.
People who can’t afford the fines and fees after their cars get towed sometimes leave their vehicles at the storage yards, which can sell cars to recoup the costs through what’s known as a lien sale. The DMV can keep the money.
State law does not require the agency to tell people that they could claim their money, and after three years, owners lose their right to the money.
The bill by state Sen. Kelly Seyarto, a Republican from Murrieta, would have forced the DMV to turn those funds over to the state Controller’s Office to be treated like unclaimed property. It was passed by the Legislature.
“I support the author’s goal of helping vehicle owners recover excess proceeds that rightfully belong to…
