This Is How Much Are Repossession Fees?

Repossession fees are incurred fees which a debtor pays after falling behind on a payment plan and this will lead to the repossession of the borrowed item which could be a car, or sometimes a boat. Upon repossession of a car, an owner will have to auction the car to get back the money lost, but the car which will have depreciated in value will not cover up the money lost by the lender, the rest of the cost must be covered by a debtor, this amount is called the Deficiency.

The debtor will not only pay the lender but also a contracted Repossession Agency which deals in the finding of vehicles to be repossessed and the amount charged varies with the kind of vehicles as it increases upon the worth of the vehicle and some repossession cases involve yachts. I describe in this blog how much are repossession fees and how to do they work.

How Much Are Repossession Fees

Repossession fees usually vary substantially from state to state, as in 2016 the client (debtor)who just had a car repossessed by its owner will have to pay for the processing of the car as well as the daily storage fee. If the debtor borrowed a vehicle that poses health risks, the price attached for its daily storage will increase drastically from a couple of hundred dollars to close to a thousand dollars.

As of 2006 in California, repossession fees usually ranged from $300-$400 this doesn’t usually include the Deficiency or insurance placed on the car. Now asides paying the Repossession Agency and also the lender the debtor also must pay another separate entity that is the police or sheriff in the district. According to California Vehicle Code 28 which states that for a vehicle to be claimed after repression,
the debtor must pay the sheriff fifteen dollars ($15).

how much are repossession fees

Fees Paid During Repossession

Fees paid during repossession may include contractual late fees as a punishment for paying law, insurance on the borrowed item and many other default payments which must be made to return the loan to its current state and to bring the loan to the current state the debtor must pay all default payments incurred as delinquency charges and also the debtor must get insurance and repay the lender for all expenses incurred during the repossession process, this includes whatever amount paid to the repossession agency and all these payments must be made within 15 days of repossession.

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Some people actually earn a lot of money monthly by being repossession agents (Repo Agent), but repossession itself is not a straightforward process as different states carry out different repossession practices and if a Repo Agent is working between states he must abide by the laws that govern all the states he is to navigate. Once a repo agent tracks the vehicle he must ensure the debtor has a right to possession or alien of the vehicle then crosscheck the vehicle identification number (VIN) then with the aid of his agency a towing company takes the vehicle to a secure location (this is what causes the daily storage fee), after which the repo agent contacts the local police and informs them of the repossession. Auto loans for repossessions.

Successful Repossession

But in order to carry out a successful repossession, the law states that it must be done without constituting a breach of peace, which is very synonymous with not disturbing the peace. A court can render a repossession invalid on this basis even if the cause of the breach of peace is the debtor as in a case where the debtor locked herself in the car during the repossession and the court declared that the repossession was invalid and the debtor was awarded one million two hundred thousand dollars in payment for damages($1,200,000) (the case of MBank El Paso, the petitioner vs Yvonne Sanchez the respondent in 1992).

Although nowadays the court can allow repossession even if there’s a breach of peace but the creditors must allow the debtor’s chances to renew their lease on the vehicle as the main cause of repossession is the inability to meet up with coverages on a loan. That is the debtor allowed to reinstate the vehicle so it will bring all the loans to the current date as though repossession did not occur. And certain courts can also allow redemption of the vehicle and this involves the debtor paying for the entire vehicle and receiving it without any forms of attachment to contracts which the owner placed on the vehicle.

Consumers Mistake

Consumers are mistaken if they assume they are automatically entitled to a grace period after purchasing a vehicle but this is not the case as many lenders are known not to give grace periods, so, a lender has the right to repossess the vehicle if the deadline is not met and this is reversible. For instance, a consumer who says he can’t meet up with the deadline set by the lender has caused him to enter an oral contract if he agrees and if the lender repossesses the vehicle before the due date he is guilty of conversion.

Which is civil theft and this is punishable under the court of justice as well as fines are also required of the lender ($1000 in fine or up to 3 years in prison) but that being said except the debtor actually obtained a written contract from the lender allowing late payment it will be very hard to prove that the lender agreed to this late payment.

In the united states of America

Repo in the united states of America, there is a downtrend in repossession which started in 2010 as only 9400 vehicles were repossessed and this is only minuscule in comparison to the 48000 vehicles that were repossessed in 2009. In Germany on the other hand cases of repossession are treated differently whereby only a court officer can seek to repossess reported vehicles and anyone who repossesses a vehicle without first seeking the aid of a court officer is charged guilty with. This has attached to jail time of up to five years.

The creditor is not on any occasion allowed to damage the personal effects of the debtor within the vehicle and if he does the debtor who seeks compensation from the attorney may end up winning and smiling to the bank with huge sums of money. Effects that must not be damaged on any occasion are important documents such as travel papers, bank cards, and identification cards.

Lenders Responsibility Guidelines

The creditor must always follow the Lenders Responsibility guidelines which in New Zealand’s Commerce Commission is seen as;

You the lender and any repossession agency contacted must:

Exercise diligence and patience of a responsible lender.

Comply with the rules which lenders are under which include not exercising power over the debtor, meeting all the legal obligations required of a lender and treating all the effects of the debtor with great care ensuring they are properly stored.

The lender commits an offense by repossessing according to New Zealand’s Commerce Commission

The vehicle is not in any form of danger.

The debtor is not past the due date.

Not issuing the correct repossession notice which carries the date planned for repossession.

Cannot produce the necessary documents upon entry into a residential area for the purpose of repossession.

In New Zealand any breach to these Lenders Responsibility Guidelines incurs a fine which could range
from $200,000- $600,000.

Repossession can be prevented by trying to speak to the creditor. “Contact your creditor as soon as you realize you will be late with a payment. Many creditors work with consumers they believe will be able to pay soon, even if slightly late. You may be able to negotiate a delay in your payment or a revised schedule of payments. If you can reach an agreement to change your original contract, get it in writing to avoid questions later. I hope that you getting an idea about how much are repossession fees.

Voluntary Repossession

However, your creditor or lessor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. If you agree to a “voluntary repossession,” which involves the debtor handing the car over to the owner, you may reduce your creditor’s expenses, which you would be responsible for paying. But even if you return the car voluntarily, you still are responsible for paying any deficiency on your contract, and your creditor still may enter the late payments or repossession on your credit report”

In many cases, it is best to first consult the nonprofit credit counseling organizations which advice in cases of bankruptcy. Upon agreement of reinstatement of the loan by the lender the debtor is to locate his car which is in
most cases in with the Repossession Agency, then gather all possible documents which will be required to claim car such as drivers license as well as the original contract carrying the first date and the new contract which allowed the reinstatement of the loan, this document must hold the signatures of both lender and debtor. Repossession fees many a time are not to be paid with credit cards as repossession agencies will accept only cashier checks or money orders. This is my complete guide for how much are repossession fees.


The whole process involved in repossession is not only physically stressful but is seen in many cases to affect the psychology of the debtor, as well as the numerous expenses incurred it is best to not go into debt when the terms and conditions involved are not going to be met within the period stated in the contract, this implies that cases of repossession must be handled quickly aggressively and knowledgeable.

Thus expenses should only be made when we are capable of paying for it and in cases of emergency when the expense for the vehicle must be made it is necessary to inform creditors ahead of time and again obtain written agreements which will bind them legally. I hope that you understand how much are repossession fees and what they are doing now. Are you confuse if my car gets repossessed can I get it back?. Yes, you have several options check it out.

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