Definition - What does Vehicle Impoundment mean?
A vehicle impoundment is the physical act of seizing a vehicle. This could be done by the police or by a lending agency for nonpayment of related loans (better known as repossession). A police officer can impound a vehicle if they believe that the vehicle does not comply with road safety standards and regulations or if the vehicle is not insured, contains illegal substances, and other various reasons based on a search. Vehicles can also be impounded if they are found to be running on agricultural diesel, which is sometimes used and sold to drivers illictly at a lower price then regular diesel.
The most common way in which a vehicle impoundment occurs is when the police seize a vehicle. The other common vehicle impoundment method is performed by vehicle reposession workers that are employed by banks and car dealerships to seize a vehicle for non-payment of financing by the owner.
Justipedia explains Vehicle Impoundment
There are many different reasons why a vehicle might be impounded. The most common reasons for the police to impound a vehicle for drinking and driving offenses and driving without insurance. Also, if a vehicle is found to be operating in a place where they are not allowed then they face impoundment. For example, if the police catch a driver driving their vehicle the wrong way down a one way street they are libel to perform an impoundment.