Can you make over $100,000 a year in the car repossession business?

Can you make over $100,000 a year in the car repossession business?

A common question in the repo industry is, “How much money do repo men make?”

If someone told you that you could make over $100,000 a year in a bad economy without a college degree, you would think they were crazy. But some auto repo owners aren’t just doing well—they’re making six figures a year. When the economy goes bad, they do better!

How much do Repo Men make?

If you start your own car repossessing business, you can expect to earn $250 (or more) per car referred. If you take away two cars a night, five days a week, that’s $130,000 a year. It certainly takes hard work and determination, but it is possible.

Asset recovery agents make the most money when creditors hire them to track down hard-to-find debtors – what’s called “track skipping.” If a debtor voluntarily gives up their car (or if it’s easy to track down), the agent can only make $100 for the recovery.

Repo men who work for someone else usually earn 40% of the repo fee – or $70 to $100 per vehicle repossessed (on average).

What are the advantages and disadvantages of owning your own repo business?

While it’s true that repo business owners make the most money, they have to pay for gas and overhead before they get paid. And as the motto in the repo industry goes, “no refund, no pay.”

Fortunately, you don’t need to invest in expensive equipment to start a repo business. In fact, you usually don’t need a hitch!

This is because many lenders store key codes for every vehicle they own. Sometimes they even keep a spare set of keys! All you have to do is make a key, find the car and drive it.

You can invest in a minimal amount of equipment to get started and reinvest your profits as your business grows.

What are the pros and cons of becoming someone else’s Repo Man?

Although there are advantages to owning your own business, many repo agents find it easier to start working with an established repo company. That’s because in some states there are many hoops to jump through to become a licensed home restoration business, including:

  1. Bonding and insurance
  2. Competing with the required amount of training (not all states require this)
  3. Familiarity with recovery, investigation and collection laws
  4. Investing in the right equipment, computers and software for your business

In fact, many repo business owners started out working for someone else!

While the repo business isn’t for everyone, if you have a tough skin, a hard work ethic and an entrepreneurial spirit, it can be lucrative whether you work for someone else or for yourself. The key is to get adequate training before you hit the field so you can avoid common (and expensive) mistakes!

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