How To Claim an Abandoned Vehicle in Delaware

The process of obtaining title to an abandoned vehicle in Delaware is governed by the state's statutory framework and administered by the Delaware Division of Motor Vehicles and the Department of Safety and Homeland Security. Compliance with notification procedures, statutory waiting periods, lien sale requirements, and title transfer documentation is mandatory to establish legitimate ownership of an abandoned vehicle.

What Qualifies as an Abandoned Vehicle in Delaware

Delaware defines an abandoned vehicle according to specific operational criteria established in Title 21, Chapter 44 of the Delaware Code. A motor vehicle qualifies as abandoned if it meets one or more of the following conditions:

• The vehicle is inoperable, dismantled, wrecked, displays expired registration plates at least 30 days past expiration, displays no registration plates, or has had major components removed and remains on private property with apparent abandonment.
• The vehicle is inoperable, dismantled, wrecked, displays expired registration plates at least 30 days past expiration, displays no registration plates, or has major components removed and has been placed on a state highway, public highway, express highway, or municipal street for a period exceeding 12 hours without being removed.

Certain vehicles are excluded from abandoned vehicle treatment, including utility company vehicles left in a manner that does not impede normal traffic flow and vehicles that are properly secured, locked, and parked with owner notification to law enforcement, provided the owner requests a holding period not to exceed 30 days. Vehicles left at garages or service stations for repair are not considered abandoned, though garage owners may hold a maximum of 5 such vehicles within a 6-month period, provided they comply with junkyard regulations.

Process To Claim an Abandoned Vehicle in Delaware

Understanding the Abandoned Vehicle Process

Delaware's abandoned vehicle system grants a possessory lien to the Department of Safety and Homeland Security or a law enforcement agency that removes an abandoned vehicle. This lien permits the sale of the vehicle to recover removal, towing, and storage costs, in addition to satisfying any recorded liens against the vehicle. The sale process follows the procedures established in Title 25, Chapter 39 of the Delaware Code, which governs lien sales by garage owners, service facilities, and other lienholders. Sale proceeds are distributed according to statutory priority: first to cover the cost of sale, then to cover removal and storage expenses, then to satisfy outstanding liens in order of priority, with any remaining balance held by the State Treasurer for the original owner or deposited in the General Fund if no claim is filed within one year.

Report the Unclaimed Vehicle and Contact Law Enforcement

Upon discovering an abandoned vehicle, the possessor must report it to local law enforcement. If the vehicle is located on a public highway or in a municipality with an active police force, the report is directed to that municipal police force. For vehicles discovered outside municipalities or on state highways where local police have no jurisdiction, the report is made to the Delaware State Police or the Department of Safety and Homeland Security. Law enforcement will determine whether the vehicle meets the criteria for an abandoned vehicle and authorize its removal. The vehicle may not be lawfully removed without police authorization and a police tow form designating the specific vehicle for removal by the licensed wrecker company.

Determine Vehicle Ownership and Lienholder Information

Within 5 calendar days of the vehicle's removal to a storage location, law enforcement or the wrecker company must ascertain the identity of the registered owner and any lienholders by accessing Division of Motor Vehicles records. The possessor may contact the Delaware Division of Motor Vehicles directly to obtain this information using the prescribed inquiry procedure. If the vehicle is 8 years of age or older on the date of towing, the wrecker owner must submit Division of Motor Vehicles Form MV580 to request ownership information within 5 calendar days of towing.

Send Notification to Owner and Lienholders

Within 5 days of vehicle removal, written notice must be mailed by certified mail, return receipt requested, to the registered owner, all recorded lienholders, and the titled owner identified in the Division of Motor Vehicles records. The notice must state that the vehicle has been removed pursuant to law, specify the location of storage, indicate that the vehicle may be sold to satisfy removal and storage costs, and inform the recipient that costs must be paid in full within 30 days from the removal date to prevent sale. If the owner or lienholder cannot be located through reasonable efforts, notice requirements are satisfied. The possessor must maintain all certified mail receipts and return receipts as evidence of proper notification.

Allow the Statutory Waiting Period

Following removal, the possessor must allow at least 30 calendar days to pass from the date of removal. This period permits the original owner and any lienholders to claim the vehicle and pay accumulated removal and storage charges, thereby avoiding sale proceedings. If the owner or lienholder pays all charges during this period, the abandoned vehicle claim process terminates, and the vehicle is not sold.

Apply for Authorization to Conduct a Lien Sale or Transfer to Recycler

For vehicles that remain unclaimed after the 30-day waiting period and for vehicles 8 years of age or older with specific characteristics, the possessor proceeds according to the vehicle's age and other circumstances.

Vehicles of any age remaining unclaimed after 30 days: The wrecker owner or possessor may apply to the Justice of the Peace Court in the county where the wrecker's business is located for an authorization to conduct a lien sale. The application must be executed under penalty of perjury and must include a complete description of the vehicle, the names and addresses of the owner and any known lienholders, the amount of the lien and facts supporting the claim, the proposed sale date and time and location, and a statement that no valid defense to the lien claim is known. Upon receipt, the Justice of the Peace shall notify all recorded owners and lienholders by certified mail of the application and shall advise them of their right to contest the claim in court. If no declaration of contest is returned within 20 days of mailing, the Justice of the Peace shall issue an authorization to conduct a lien sale. If a contest is filed, a hearing is promptly scheduled before the Justice of the Peace.

Vehicles 8 years of age or older: As an alternative procedure, wrecker owners may transfer vehicles 8 years of age or older directly to a licensed automotive recycler after holding the vehicle for 30 calendar days, without conducting a formal lien sale, provided certain conditions are met. The owner and all secured parties must be notified by registered or certified mail within 10 days of receipt of ownership information from the Division of Motor Vehicles. If the owner or any secured party contests the disposal within 5 days of receipt, the matter is resolved through Justice of the Peace Court. If there is no contest, the wrecker owner may proceed to transfer the vehicle to a licensed automotive recycler. The transfer is accomplished on forms furnished by the Department of Safety and Homeland Security without a formal certificate of title.

Publish Notice of Lien Sale

If proceeding with a formal lien sale under Title 25, Chapter 39, the possessor must give at least 15 days' notice of the sale by posting handbills in 5 or more public places and by advertising in a newspaper published and circulated in the county where the sale will be held. The notice must include the vehicle description, the amount of the lien, the proposed sale date, time, and location, and instructions for interested parties. If an owner or lienholder files a declaration contesting the sale, publication may be delayed pending the outcome of the court hearing.

Conduct the Lien Sale

At the date, time, and location specified in the published notice and the lien sale authorization, the possessor conducts the sale and offers the vehicle to the highest bidder among the public. The sale must be conducted as an open, fair public sale with an opportunity for competitive bidding. The vehicle is conveyed to the purchaser by bill of sale. If the possessor is the highest bidder, the possessor may acquire ownership by paying the winning bid amount.

Complete the Disposition of Proceeds and File with Court

Following the sale, the possessor must complete and file a disposition of proceeds form with the Justice of the Peace Court within 10 days. The form documents how sale proceeds were applied: first to the cost of sale, then to removal and storage charges, and finally to the satisfaction of recorded liens in order of priority. Any remaining balance must be deposited with the court within 10 days and subsequently remitted to the State Treasurer. The possessor must obtain proof of filing the disposition form, sealed with the court's seal, as this proof is required by the Division of Motor Vehicles before issuing title to the purchaser.

Complete Title Documents and File With the Division of Motor Vehicles

The purchaser must apply for a new Delaware certificate of title at the Division of Motor Vehicles within a reasonable period following purchase. The application must include the original bill of sale from the lien sale, proof of payment, the disposition of proceeds form sealed by the court, evidence of the motor vehicle inspection conducted by the State Police Auto Theft Unit, and any other documents required by the Division. The seller must also complete a Seller's Report of Sale and forward it to the Division within 30 days, providing the buyer's name, address, and the date and hour of sale. If the vehicle is titled out of state, the purchaser must apply to the state's motor vehicle agency for title transfer, then apply to Delaware for registration and title if the vehicle will be operated in Delaware.

Maintain Records

All records related to the abandoned vehicle removal, storage, sale, and title transfer must be maintained for a minimum of 3 years from the date of removal and are subject to verification by the Division of Motor Vehicles. Records must include certified mail receipts and return receipts confirming notice to owner and lienholders, the police tow authorization form, Division of Motor Vehicles ownership records, the lien sale authorization or recycler transfer documentation, publication proof, the bill of sale, court documentation including the disposition of proceeds form, State Police Auto Theft Unit inspection reports, and proof of payment.

Delaware Storage Fees And Financial Considerations

Storage and Towing Charges

Towing and storage charges are the financial responsibility of the original vehicle owner. The possessor may recover these costs from sale proceeds under the statutory priority scheme. No storage fees may be assessed until 24 hours have elapsed following the vehicle's placement in storage. For vehicles removed pursuant to law enforcement direction or abandoned vehicle statutes, storage fees are governed by the towing and storage fee structure applicable to police-directed removals, distinct from fees charged for nonconsensual private towing.

Wrecker owners and storage facilities must maintain records of all removal, towing, storage, and disposal costs and provide an itemized accounting upon request by the vehicle owner or lienholder. The amounts charged must be reasonable and reflect the actual costs of service. Charges excessive by more than 25% above the wrecker company's own usual charges, or more than 50% above the average charges in the county for comparable service, are presumptively excessive and subject to dispute.

Cost Application and Sale Proceeds Distribution

Sale proceeds are applied in the following order: first, to satisfy the cost of conducting the sale; second, to reimburse the costs of removal, towing, preservation, and storage; third, to satisfy any recorded lien or security interest against the vehicle in order of lien priority; and any surplus is held for the vehicle's owner or remitted to the State Treasurer. The possessor must file documentation of proceeds distribution with the court as discussed above. The purchaser receives a bill of sale and, upon satisfaction of all requirements, applies for title reflecting full ownership.

Dispute Resolution

If an owner or lienholder disputes the amount of charges assessed, the dispute is resolved through the Justice of the Peace Court during proceedings related to the lien sale authorization or directly with the wrecker company. For vehicles removed at police direction under Chapter 69 of Title 21, a hearing may be requested with the Division of Motor Vehicles to determine the vehicle's disposition if the owner or lienholder objects to the removal or storage charges. The wrecker company must cease accruing storage charges during any dispute review period and must provide documentation supporting all charges assessed.

Contact Information

Delaware Division of Motor Vehicles
303 Transportation Circle, Dover, DE 19901
Phone: (302) 744-2500
Official Website: Delaware Division of Motor Vehicles