Tough economic times have resulted in an increase in the number of vehicle repossessions, and has even spawned quite a few TV reality shows. Repossession can occur when you are late making payments on your car or truck. If a creditor must hire someone to repossess your vehicle, your credit rating will suffer. If your car is repossessed, you will have to pay for repossession, storage and redemption fees.
Call your lender after your vehicle has been repossessed to negotiate the balance. Otherwise, all of the repossession fees will be added to your account and you will have to pay the remaining deficiency balance -- which is the amount of money left over and still owed. Some lenders will even seek legal action to retrieve the money owed to them; however, most would rather avoid the tedious process.
Remain calm and courteous at all times when negotiating a fee waiver for the vehicle repossession. While it’s easy to get upset and angry with the creditor, doing so will cause more harm than good. While there is no set price for a repo fee, they can be pretty expensive, ranging from $300 to $1,500. Even after a repo has occurred, your lender is usually willing to work with you in an effort to obtain the money it is owed.
Consider having a local consumer law attorney examine the notice of repossession after you receive it in the mail. An attorney can inform you of your rights and options during the repossession process and work on your behalf to achieve a waiver of any fees associated with the repossession.
- Make sure your vehicle wasn’t mistakenly repossessed by checking with your lender. If your car or truck was towed away by accident, lenders are more willing to waive the fee right away.
- Filing for bankruptcy can stop the repossession process of your vehicle; however, it can also badly damage your credit and prevent you from receiving future loans.
- If you voluntarily give up your vehicle, car dealerships will sometimes waive fees associated with a repossession.
- Thinkstock/Comstock/Getty Images
- What Happens When You Contribute More Than the Maximum Allowed in Your 401(k)?
- The Difference Between a Checking Account and a Money Market Account
- Can a Husband & Wife Elect Different Periods for Paying Taxes on a Roth Conversion?
- Money Market Account Vs. CDs
- Regulated Money Market Vs. Cash Account
- How Do I Know What a House Is Really Worth Before Making an Offer?
- How do I Invest in Money Market Accounts?
- What Can You Do When a Business Takes Money Out of Your Account Without Authorization?
- Tips for Debit Card Users
- How Interest Works on a Money Market Account