Pros & Cons of Buying a Used Car From a Towing Company

Buying a used car from a towing company may mean getting a lower price, but buyers should take care to avoid a number of possible pitfalls when shopping for a vehicle bargain.

Availability

Towing companies often have a diverse selection of available vehicles, and some companies participate in multicompany auction services that allow buyers to browse large inventories. According to one such service known as Tow Lot, buyers can browse available vehicles to find a suitable match. Tow Lot points out that buyers should purchase vehicles quickly, though, as other buyers or even the vehicle's owner may lay claim to the car at any time.

Quality

Used cars available at towing companies range from fully functional, nearly new vehicles to cars intended for use only as spare parts. Buyers should exercise caution to ensure the vehicle has no major mechanical problems before committing to a purchase.

Test Drives

Although buyers typically take used cars for a lengthy test drive before committing to a purchase, towing companies do not always allow this luxury. In the Frequently Asked Questions section of its website, Cops Towing of Banks, Oregon, notes that drivers cannot legally test drive towed vehicles on the streets. The company does allow buyers to verify that the vehicle's major systems function, though.

Price

Towing companies often sell vehicles at considerably lower prices than used car dealers. Although Cops Towing offers a selection of vehicles for under $1,000 as of October 2010, some vehicle prices reached nearly $40,000.