Yes, a pound may refuse to release an impounded car to a motor trader if the required paperwork or proof of authority isn’t in order. Although motor traders often collect vehicles on behalf of customers, police compounds have strict release conditions. They must confirm both legal ownership and valid insurance before any vehicle leaves their site. If the documents don’t meet those requirements, release can be lawfully declined.

Why pounds can say no

Impound staff are bound by the Road Traffic Act 1988 and the local police force’s vehicle recovery policy. They’re not allowed to release a car unless they’re satisfied that the person collecting it has a legitimate claim to it and that the vehicle will be driven away legally. That means the trader must show proper authorisation and insurance, not just trade plates or a company name.

If anything looks incomplete — missing signatures, unclear ownership, expired insurance, or a letter that doesn’t match the registration number — the pound may refuse release until it’s corrected. These rules apply to protect both the vehicle owner and the pound from potential liability.

Documents a trader must bring

To collect an impounded vehicle, a motor trader normally needs to provide:

• A letter of authority from the registered keeper, signed and dated, confirming permission to collect the specific vehicle.
• Proof of the trader’s identity, such as a driving licence or passport.
• Valid motor trade insurance that specifically covers the collection of impounded vehicles — not all trade policies do.
• Proof of business, such as a garage invoice, trade premises utility bill, or company registration.
• Any required V5C logbook or new keeper slip, or written consent from the finance company if applicable.

Without all of these, the pound is entitled to withhold release. A trader’s verbal assurance or business card is not enough; the paperwork must demonstrate both consent and legal cover.

Insurance is the most common issue

Many pounds turn traders away because their motor trade insurance doesn’t explicitly include impounded-vehicle collection. Some standard trade policies only cover test drives or movements for repair, not impound releases. Unless the policy wording clearly includes “collection from police or council impounds,” the pound may decline the release. In such cases, the trader may need to arrange a short-term impound-specific insurance policy before returning.

Authority and identification checks

Police pounds also verify the identity of the authorised trader. The person collecting must match the name on the authority letter, and the business details should align with those on the insurance documents. If there’s any mismatch — for instance, if the insurance is in a company name but the collector is self-employed — staff may suspend the release until verification is complete.

When release may be approved

If the trader’s paperwork is complete and clearly valid, release is normally allowed once fees are paid. The trader will then sign a release form acknowledging responsibility for the vehicle from that point onward. Some pounds permit collection by recovery truck rather than driven release, provided the truck itself is properly insured and identified.

Final note

The pound can refuse to release an impounded car to a motor trader if the documentation, insurance, or authority isn’t fully compliant. Traders must ensure they bring written consent from the keeper, proof of identity, and insurance that specifically covers impounded vehicles. A small administrative gap can delay release — or result in extra storage fees — so it’s worth checking everything before arriving at the pound.

Check here for more useful information about impounded cars!

Please note: impound rules, collection windows and fee structures are set locally and can change at any time. Details on this site offer a broad outline only and are not guaranteed to match the requirements of any individual pound or authority.