Towing Issues: Considering paying fees vs abandoning car, insurance paperwork, tow yard


Question
Good morning. This is a rather long story, so please bear with me. I live in California. I bought a car last year from a private party, no bill of sale, paid cash. The guy I bought it from had gotten it as payment from his friend who owned a dealership, and the dealership had bought it at an auction. No paperwork was done for the dealership/friend transaction, just as no paperwork was done between the guy and myself.  We did have a letter typed and signed by the both of us, but it wasn't notarized or anything official. I have since then lost the letter, this was back in March of 09. I had some hard times, and didn't go to the dmv to register/transfer the title into my name. The tags were March 2009. The car was towed from behind another business next to my work, and it's $50 a day plus $195 at the tow yard. According to the dmv it will be $400 to get everything taken care of and put into my name, since I don't have the required documents. I won't be able to get to the dmv til Monday, the car was towed Wednesday of this week. Basically, it will be $300+$195 for towing fees, $100 police station fee, $400+ for dmv, and then whatever else I need for smogging, etc.
At this point, I am considering leaving the car there, it just isn't worth all the money. The only association my name has with the car is the insurance paperwork I had in the glovebox. From reading other questions/answers on this website, I understand the towing company will try and charge the registered owner of the car for storage, less the money they got from selling the car at auction. If my name was never on the title or listed as registered owner, what happens then?  

Answer
Since the vehicle was never legally transfered (title jumping which is illegal by the way) the vehicle isn't officially yours and the tow company or collection agency couldn't come after you. There is no documented or official transfer of ownership to you by DMV. Since it's been title jumped, according to DMV, it's nobody's car. Should you decide to retrieve the vehicle the vehicle will have to be titled correctly starting with the transfer from the dealer to your friend. Then again to you which all titling and sales taxes fees must be paid. Then you must pay all the towing and storage fees. Only you can decide if it's worth it. You are correct that the tow company will try to go after the last registered owner but in this case they will not have much luck. Should you decide to do nothing the vehicle will be auctioned by the tow company to recoup some of their expense. Also you will not be able to retrieve any items from the vehicle since you are not the registered owner. Good luck