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Vehicle immobilization is a key part of the act of impounding.. Vehicle impoundment is the legal process of placing a vehicle into an impoundment lot or tow yard, [1] which is a holding place for cars until they are placed back in the control of the owner, recycled for their metal, stripped of their parts at a wrecking yard or auctioned off for the benefit of the impounding agency.
The towing and salvage industry can often be heavily regulated, particularly the part of industry involved in this sort of work following road accidents. The regulation can involve limitations on the numbers of vehicles able to operate in particular areas, particularly major cities, typically through licensing and post accident allocation schemes.
Tow trucks that are not endorsed for accident towing may use general number plates of any combination pursuant to each state's own registering system. An example of a statute regulating the operation of tow trucks and towing companies in Victoria is the Victorian Accident Towing Services Act. [15]
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