How Do I Know if Equipment is Abandoned?
The problem with using the concept of“ abandonment” is that there is no black and white rule to say when equipment has been abandoned and, if there is a dispute, there must be proof that the customer intended to abandon the equipment. As a result, treating a customer’ s equipment as abandoned will often be viewed as a calculated risk. The best way to help manage risks in these situations is to build a record to support the position that the customer abandoned the equipment. To do this, I recommend the following:
• Keep a file on the customer to document how the equipment came to your dealership and the circumstances that caused the equipment to be abandoned( e. g., a repair quote that may be relatively close to the value of the equipment).
• Make efforts to contact the customer by phone, text or email. Keep notes relating to the dates of calls and copies of texts / emails. The more time that has gone by with no response, the easier it will be to establish the equipment as abandoned.
• If efforts to contact the customer are unsuccessful, send the customer a letter covering the following:( a) detail
In general, if the owner of the equipment has abandoned the equipment, the legal consequence is the application of a sort of“ finder’ s keeper’ s” rule that allows the person possessing the equipment to claim ownership.
the circumstances of how you came into possession of the equipment,( b) inform the customer that they need to claim the equipment within a certain period of time( I recommend at least 30 days) or it will be considered abandoned and( c) explain that after that date you will have the right to dispose of it without any compensation to the customer.
• Send the customer letter by certified and regular mail so that you have some comfort it was delivered even if the customer refuses to sign for a certified letter.
Before using the concept of“ abandonment” to dispose of equipment left at the dealership by a customer, it is important to confirm that your state has adopted the general rules of abandonment mentioned above and
does not have a specific law that must be followed. Please note that since some states have specific laws relating to titled vehicles, it is more likely that UTVs and similar vehicles might be subject to these laws if titled in your state. It is also important to remember that a customer’ s creditor could try to claim an interest in the equipment as well.
Even though declaring equipment to be abandoned comes with some uncertainty and will not be appropriate in all circumstances, I recommend that all dealers consider adopting this concept into their standard procedures to address common situations in an efficient way, especially when dealing with relatively low value equipment. EDM
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WINTER 2025 • EQUIPMENT DEALER MAGAZINE 31