How Much Are Repossession Fees

On January 28, 2024
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Author - Steve Momot

If your vehicle is repossessed due to missed payments, you’ll not only lose your car, but also owe potentially thousands of dollars in fees, but how much are repossession fees?

Repossession fees typically start around $300 but can escalate depending on location, lender policies, and more.

Related Articles To Read:

Car Repossession Laws By State

Common Repossession Fees Across States

While specifics vary, you’ll generally owe some combination of:

Towing/Transportation Fees: To take the car to a storage lot, often $50-$250

Storage Fees: For keeping the vehicle in a repo lot – $20-$50 daily
Late Fees: Per your loan contract terms, usually a percentage
Auction Fees: If sold at auction, 10-15% of sale price

Legal Fees: What lender pays for court costs/paperwork

Fees add up quickly the longer a car sits prior to auction. Expect at least $500-1,000 in the first week alone in most states.

State-by-State Repossession Fees

Repossession fees and laws differ by state. Here’s an overview of some major states repo fees or costs associated with having your car repoed:

Florida Repossession Fees:

Repossession fees are usually $300-$500
Towing and Transport Fees $50-$250
Daily storage fees of $20-50 per day

Costs escalate quickly if vehicle sits in a storage lot

Related Article: Florida Repossession Laws

Texas Repossession Fees:

For Repossession itself $300-$400

Towing and Transport Fees $50-$250
Storage of Repoed Vehicle $20-$50 (Daily)
Auction Fees usually 10%-15%

California Repossession Fees:

Repo alone is $300-$500
Towing and Transport is $100-$300
Storage fees are $25-$60 per day

Potential Auction Fees are 10%-15%
$15 fee to local law enforcement for processing repossession paperwork
Storage fees are allowed but not regulated

Ohio Repossession Fees:

Repossession fees limited to $25 unless loan terms specify more
Storage fees up to $17 per day for vehicles under 10,000 lbs
Late payment fees per contract terms

Georgia Repossession Fees:

No set maximum for repossession fees, but usually $300-$500
Towing/transportation fee: $75-$200 to tow to storage lot
Storage fees $20-50 per day

Late payment fees per contract terms

Illinois:

Repossession fees not regulated, but around $300-$500
Towing and transportation fee: $100-$300

Storage fees capped at $100 per day by state law, usually $20-$50

Important: Remember that if the lender has to go to court the repo fees will get even higher than referenced above!

What Happens After Repossession?

Once repossessed, you have options to avoid liquidation:

Reinstate the Loan: Pay all late payments, fees, and interest owed in a lump sum to continue payments.

Redeem Vehicle: Pay entire loan balance plus all repossession fees to keep car.

If you can’t reinstate or redeem, the car goes to auction. But you still owe any remaining balance plus fees – aka a deficiency judgment.

Avoiding Repossession & Fees

Act quickly if facing repossession to minimize fees:

Get current on payments
Refinance with lower payments

Voluntarily surrender vehicle
Consider bankruptcy to eliminate deficiency balance

Understanding the fees at stake is key to making informed decisions. Laws also favor prompt action. Don’t wait to reach out to your lender and explore options.

Key Takeaways

Repossession fees vary by state but often total $500+ quickly
You must pay all fees to reinstate a loan or redeem a vehicle
Auction proceeds rarely satisfy debt – deficiency judgments are common

Act fast once behind on payments to avoid escalating fees

Connecting with consumer credit counseling services can also provide guidance on managing auto loans in financial hardship.

Sources For This Article

https://www.carsdirect.com/auto-loans/managing-your-auto-loan/the-cost-of-vehicle-repossession

https://www.dca.ca.gov/publications/legal_guides/re1.shtml

Steve Momot - Author

Steve, a seasoned expert in the automotive industry, formerly held a car dealer license in Florida. With extensive experience spanning across car trading and mechanical work, he founded Autohitch. His mission? To guide both buyers and sellers through the intricate maze of car purchasing, ensuring a seamless and informed experience. Outside of the automotive world, Steve has a passion for fishing and capturing the beauty of nature through photography.