How Much Does It Cost To Repo A Car

How Much Does It Cost to Repo a Car?

When a borrower defaults on their auto loan, the lender may resort to repossession, a legal process of reclaiming the vehicle. The cost of repossession can vary depending on several factors, including the state in which the repossession occurs, the type of vehicle being repossessed, and the company hired to perform the repossession. In this article, we will delve into the various costs associated with repossession and provide a comprehensive overview of the financial implications for both lenders and borrowers.

Repossession Fees

The most significant cost associated with repossession is the repossession fee itself. This fee is typically charged by the repossession company and covers the expenses incurred during the repossession process. The repossession fee can vary widely, ranging from a few hundred dollars to over a thousand dollars. In some cases, the lender may also charge an additional fee for storage and towing.

Legal Fees

In some cases, the lender may need to obtain a court order to repossess the vehicle. This can result in additional legal fees, which can vary depending on the jurisdiction and the complexity of the case. The lender may also need to pay for attorney fees if they choose to pursue legal action against the borrower for breach of contract.

Storage and Towing Fees

Once the vehicle has been repossessed, it will need to be stored and towed to a secure location. The lender will be responsible for paying these fees, which can vary depending on the length of time the vehicle is stored and the distance it needs to be towed.

Other Costs

In addition to the fees mentioned above, there may be other costs associated with repossession, such as:

  • Skip tracing fees: If the borrower cannot be located, the lender may need to hire a skip tracer to find them.
  • Administrative fees: The lender may charge an administrative fee to cover the costs of processing the repossession.
  • Late fees: If the borrower has fallen behind on their loan payments, they may also be charged late fees.

Factors Affecting Repo Cost

The cost of repossession can be influenced by several factors, including:

  • State laws: Repo laws vary from state to state, which can affect the fees and procedures involved in repossession.
  • Type of vehicle: The type of vehicle being repossessed can also affect the cost. For example, repossessing a luxury vehicle may be more expensive than repossessing a compact car.
  • Repossession company: The fees charged by repossession companies can vary. It is important to compare quotes from different companies before selecting one.


The cost of repossession can be a significant financial burden for both lenders and borrowers. Lenders should carefully consider the costs involved before initiating repossession proceedings. Borrowers should make every effort to avoid defaulting on their loan payments to prevent repossession and the associated costs.


  • How can I avoid repossession?
    • Make your loan payments on time.
    • Contact your lender if you are having difficulty making payments.
    • Consider refinancing your loan or selling the vehicle.
  • What happens if my car is repossessed?
    • The lender will sell the vehicle to recover the balance owed on the loan.
    • You may be responsible for any deficiency balance (the difference between the sale price and the amount owed on the loan).
    • Your credit score will be negatively impacted.
  • Can I get my car back after it has been repossessed?
    • Yes, you may be able to get your car back by paying the balance owed on the loan, plus any repossession fees and storage costs.

Closing Statements with Disclaimers

The information provided in this article is for general informational purposes only and should not be construed as legal advice. The laws governing repossession vary from state to state, and it is important to consult with an attorney to understand your rights and responsibilities.