Are you assessed repo fees if you paid the car loan balance before the vehicle was repossessed?

I have a car loan, but I lost my job and couldn't pay for two months. But an inheritance from my grandpa was finally settled in court, so I had the money to pay the balance of the loan. Since there was a repo order out on my car but they never repossessed it, do I still have to pay the repo fees?

“Repo companies can usually only charge their fee if they come into possession of the vehicle.
Since they never actually took the car, they didn’t provide a service to the lender. And now that you’ve paid in full, there’s no reason to repossess the car.
As a result, you will not have to pay the repo fee.
However, you still have one expense left: car insurance. Depending on your current financial situation, you should definitely weigh whether to maintain full coverage or switch to liability only.
To streamline the process and get affordable quotes quickly, check out the free Jerry app.”
Eric Schad
Answered on May 05, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free