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How Much Are Repossession Fees

How Much Are Repossession Fees

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.


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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 Fee Overview

Repossession laws differ by state, impacting allowable fees. Here’s an overview for some major states:

Florida:

  • Repossession fees typically $300-500
  • Daily storage fees of $20-50 per day
  • Costs escalate quickly if vehicle sits in storage lot

California:

  • $15 fee to local law enforcement for processing repossession paperwork
  • Storage fees allowed but not regulated

Ohio:

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

Georgia:

  • No set maximum for repossession fees
  • Storage fees not regulated but commonly $20-50 per day

Illinois:

  • Repossession fees not regulated, but typically a few hundred dollars
  • Storage fees capped at $100 per day by state law

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

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Steve Momot - Author

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.

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