How do I review a towing company’s impound yard records and condition?
Ask for the full vehicle log, from intake to release, and walk the yard with it in your hand. Match what is written to what is parked there, check how unclaimed vehicles are handled, and look at fencing, surface and drainage. Gaps in the log or old unclaimed cars are warning signs.
Begin in the office. Ask for the intake log, release records, storage charges collected and any records of vehicles that were never claimed. Pick a handful of entries and find the vehicles on the lot. Then walk the rows and note vehicles that are not in the log at all. A yard that cannot match its paper to its cars is hard to value and hard to defend.
Next, look at the ground. Check the fencing, gates, lighting and cameras, since damage and theft claims start here. Look at the surface for oil staining, leaking fluids and any signs that run-off reaches a drain. Ask your lawyer and an environmental adviser what should be checked before you take on a site that has held leaking vehicles for years.
Finally, ask about the vehicles nobody wants. How long do they stay? Who handles their disposal? Are there disputes with owners or insurers over charges or damage? Ask for claims history and for any complaint files. The way an owner treats the oldest, least profitable vehicles often shows how well the whole yard is run. Ask for a look at any notices sent to owners as well. How promptly and clearly they were written shows whether the yard follows a routine or improvises each time.
Key takeaways
- Match a sample of log entries to vehicles on the lot, and the reverse.
- Inspect fencing, lighting, drainage and signs of leaks.
- Ask about unclaimed vehicles, disputes and claims history.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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