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When a car is impounded it means the government holds onto it for you. You can get it back, but you have to pay fees that can be very expensive. It is much better for you if it's never impounded at all. In small number of DUI cases, you could actually lose ownership of your car and it becomes government property.
A vehicle release of liability form is used to notify your local Department of Motor Vehicles (DMV) or Regional Transport Office (RTO) that you have sold the vehicle and ensures that you are absolved of any liability that may arise after the sale.
When you borrow money to purchase a car, the lender files a lien on the vehicle with the state to insure that if the loan defaults, the lender can take the car. When the debt is fully repaid, a release of the lien is provided by the lender.
The vehicle release fee applicable for most vehicle releases is $150 payable at the Police Department. Refer to the Fee Schedule for applicable stored/impounded vehicle information. Payment may be made by cash or credit card.