Storage fees: The lender may charge a daily or monthly fee for storing the repossessed vehicle.
Auction/sale fees: If the vehicle is sold at auction, there may be fees associated with the auction process, such as an auction fee, buyer's premium, and advertising costs.
Legal fees: If the lender takes legal action to recover the debt, such as filing a lawsuit, there may be associated legal fees.
Towing and transportation fees: The lender may charge a fee for towing the vehicle from the place of repossession to the storage location or auction.
Late fees: If the borrower was behind on their car payments, there may be additional late fees incurred up until the date of repossession.
Deficiency balance: If the proceeds from the sale of the vehicle do not cover the outstanding loan balance, the borrower may be responsible for the remaining amount, also known as the deficiency balance.
Some states have laws that limit the amount of fees and charges that a lender can charge in connection with a repossession. Borrowers should review their loan agreements and state laws carefully to understand the potential costs associated with a repossession.
