When a vehicle is repossessed, the owner is often faced with a range of fees and charges that can quickly add up. Understanding these costs is crucial for those facing potential repossession or trying to reclaim their vehicle. Let’s dive into the typical repo fees and daily storage costs you may encounter.
Repossession Fees
The repossession process itself incurs several fees that the lender or repo company will charge the borrower. These can include:
Towing fee: This covers the cost of the tow truck and driver to retrieve the vehicle. Typical towing fees range from $200 to $500.
Administrative fee: Lenders may charge an additional administrative or “repo fee” to cover the paperwork and processing involved. These fees can range from $75 to $500.
Court fees: If the repossession requires legal action, the borrower may be responsible for court costs and attorney fees. These can add hundreds or even thousands of dollars to the total.
Daily Storage Fees
Once the vehicle is repossessed, it is typically held in a storage lot until it can be sold at auction. The borrower is responsible for the daily storage fees charged by the lot. These fees can vary significantly:
Daily Storage Fees
$20 per day for the first 5 days
$35 per day thereafter
The longer the vehicle remains in storage, the higher the total storage fees will be. These fees can quickly add up to hundreds or even thousands of dollars, on top of the repossession costs.
It’s important to note that the specific fees and charges can vary depending on the lender, location, and state laws. Borrowers facing repossession should contact their lender or the repo company directly to get a clear understanding of the total costs involved in reclaiming their vehicle.