Custodians are encouraged to set up an Electronic Funds Transfer (EFT) account with the Michigan Department of State.  It allows you to use this Web site to report the disposition of abandoned vehicles in your custody and is the most convenient way of remitting fees.

When the owner redeems an abandoned vehicle, state law requires the vehicle custodian to collect a $40 abandoned vehicle fee from the owner.  This is in addition to the towing and storage fees, which are paid by the owner if the vehicle is reclaimed.

When an abandoned vehicle is sold at public auction, the custodian is only required to collect the $40 abandoned vehicle fee when the purchase price of the vehicle is sufficient to cover all fees (i.e., towing and storage, police agency or custodian expenses and the $40 abandoned vehicle fee). 

The law requires you to forward $25 of the $40 abandoned vehicle fee to the Michigan Department of State.  The $25 fee will be automatically withdrawn from your EFT account after you report that the vehicle was either redeemed or sold.  The towing agency receives the remaining $15.

You are not responsible for collecting the $40 fee if the abandoned vehicle:

• Does not sell at auction and is released into your custody
• Sells at public auction for a price less than  the towing and storage fees, expenses incurred by the police agency or custodian and the $40 abandoned vehicle fee. 
• Is classified as scrap and released by the law enforcement agency to you, a used-vehicle parts dealer or vehicle scrap metal processor

To apply for an EFT account with the Michigan Department of State, complete the application by clicking here.  You will be notified by mail when it is approved.