Car repossession is a stressful experience, and understanding the associated costs is crucial if you’re facing this situation in California. Beyond the repossession fees themselves, vehicle storage fees can add a significant financial burden. If your car has been repossessed, it’s essential to know how much you can expect to pay for storage and what your rights are regarding these charges in California.
When a lender repossesses your vehicle due to missed payments, they will often contract with a repossession agency to handle the recovery and temporary storage of the car. These agencies incur costs for storing the vehicle until it’s either sold at auction or you take steps to reclaim it. These storage costs are then passed on to you, the borrower, in addition to repossession fees and any outstanding loan balance.
So, how much exactly are these storage fees for repo cars in California? While repossession fees for recovering the vehicle in California typically range from $400 to $700, depending on factors like vehicle type (all-wheel drive may be higher), storage fees are a separate, ongoing expense. In California, repossession agencies are permitted to charge a daily storage fee, which generally falls in the range of $25 to $50 per day.
Alt text: A repossessed car sits in a storage lot, highlighting the potential daily storage fees in California.
However, there’s a critical condition that must be met for these storage fees to be legally charged to you. The repossession agency must mail you a written notice disclosing the daily storage fee. This notice is not just a formality; it’s a legal requirement in California. If the repo company fails to send you this written notice, they may not be legally entitled to charge you for storage. This is where many people get unfairly charged. It’s a common practice for some repossession companies to skip this notification, hoping borrowers are unaware of this protection.
It’s also important to differentiate between storage fees charged by the repossession agency and any potential storage fees billed directly by your bank or finance company. Typically, banks and finance companies do not directly store repossessed vehicles. Their role is to manage the loan and the repossession process. Therefore, if your bank attempts to charge you directly for storage fees, this should raise a red flag. It’s likely that these fees are being improperly attributed to you. Storage is almost always handled and charged by the repossession agency that physically holds the vehicle.
If you are facing storage fees after a car repossession in California, here’s what you should do:
- Check for Written Notice: First and foremost, determine if you received a written notice from the repossession agency disclosing the daily storage fee. If you did not receive such a notice, you may have grounds to dispute these charges.
- Review Loan Documents: While less common for storage fees specifically, review your original loan agreement for any clauses related to repossession and associated fees. This can provide additional context, although the written notice from the repo agency is the key document for storage fee legality.
- Contact the Repossession Agency: Reach out to the repossession agency to inquire about the storage fees and request proof of the written notice they were legally required to send.
- Seek Legal Advice: If you believe you’ve been wrongly charged storage fees, especially if you didn’t receive the required written notice, it’s wise to consult with a California repossession attorney. They can assess your situation, advise you on your rights, and help you dispute unfair charges.
Understanding storage fees is just one piece of the repossession puzzle. Beyond storage, you might also encounter other fees such as:
- Repossession Fees: As mentioned, these are the direct costs for recovering your vehicle.
- Reinstatement Fees: If you choose to reinstate your loan and get your car back, you will likely need to pay repossession fees, storage fees, and the past-due amount, plus potentially reinstatement fees themselves.
- Deficiency Balance: After your car is sold at auction, if the sale price doesn’t cover the outstanding loan balance, you may be responsible for paying the deficiency balance, along with all accrued fees.
Navigating car repossession in California can be complex, especially when dealing with various fees and legal requirements. Knowing your rights regarding storage fees and other charges is essential to protect yourself from unlawful practices. If you are unsure about the storage fees you are being charged or believe you have been treated unfairly, seeking professional legal guidance can make a significant difference in resolving your situation and understanding the true costs associated with repo cars in California.
