How much money do you think repo men make? I think if more people knew the truth they would be surprised. If someone told you that you could make as much as $450 per vehicle you repossessed, wouldn’t that surprise you?
Lets say you only make $350 per repossession, even if you are only able to repossess 3 to 4 cars a week, this is a big jump in income. The most surprising part for me is that this type of money can be earned without a degree. The repossession industry is a closely guarded secret, and repossession agencies don’t want information out there for the public. I think if more people knew the truth these other repossession companies might have some quality competition, and they don’t want that.
Here are 4 things to think about for anyone trying to pursue a career as a repo man.
1. How much do repo men really make?
Well, repo agents can expect to earn $250-$400 (or more) per car repo’d. If you repossess two cars in one day, five days a week, that’s a very comfortable income to raise a family. I’m sure you would agree that’s more than a good living these days.
Don’t get me wrong, hard work and determination are a must in the repossession industry…. but success is very possible for a certain kind of person out there. This person should be creative, calm, and good at thinking on their feet.
Repossession agents generally earn the best commissions, when lenders employ them to track down hard to find debtors.
Even on the jobs where the debtor gives the vehicle over without incident, many repossession agents would still be poised to make $100 or $150 on the repossession.
For a hard working person, the repossession industry can supply a good living, even if you need to start out with a limited budget. Many people starting out in the industry can gain experience working for another repossession company. Working for another company, you can still expect to earn 40% of the profit on the repossession…. you still could expect to earn or $ 70 to $ 100 per vehicle recovered (on average).
2. What are some advantages and disadvantages of becoming a repo man for another company?
Don’t let the thought of working for someone else discourage you!!! Working for someone else may just be temporary until your able to branch out on your own. Many successful repossession agents started their career by taking advantage of any opportunity to get their foot in the door.
For people in this position, maybe skip tracing, or training as a locksmith, might be a step in the right direction. Many agents have started in these fields then moved to repossessions after a little experience is gained.
There are definite advantages to owning your own business, like higher profits, but established repo companies are much easier to work with when you are starting. This is because in some states, there are hoops to jump through to become a licensed repossession agent. These hoops and red tape would not be a problem if you start with another company.
3. What are the advantages and disadvantages of owning your own repo business?
There are 4 essential things to think about if you want to own your own repossession business.
- Familiarize yourself with recovery, investigation, and collection laws in your state
- Invest in proper tow truck and equipment, computers, and software
- Get bonding, licensing, (if required), and insurance guidelines researched in your state
- Invest in a collateral recovery course or certification. (Certification is not required in all states.)
It’s true that repo business OWNERS make more money, than people that work for repossession companies, but they must pay for gas, and other general business start-up expenses before being paid. Make sure and weigh your options and see what pro’s and con’s surface before rushing into implementing a repo business plan. Just remember, it’s always better with any business to do too much planning rather than not enough
4. Can you become a repo man without a tow truck?
How is this possible you might ask? A repossession agent gets around needing a tow truck because many lenders have all of the key codes to the cars they sell on file. When you can just get the specifications for the key from the lender, and go a drive the vehicle away, things become simple. In this case, most of your time would be spent using your detective skill to find the vehicle, not hitching and towing the vehicle.
Starting small like this will get the ball rolling. As your profits grow, the company grows. Once you’ve started, then you can afford to buy a small amount of equipment and start to invest on your own.
The guts and great work ethic needed to be a repossession agent means that this career is not going to be for everyone, but if you have a thick skin, your a hard worker, and you’ve always wanted to work for yourself, this could be the right career for you. If you can convey a calm demeanor and a no-nonsense attitude, and always maintain a high level of professionalism. This career could be it!!!
Don’t let many of these shows like “Operation Repo” fool you. It’s important for a repossession agent to diffuse a difficult situation rather than making it worse. A repossession agent avoids conflict because conflict many times conflict costs MONEY (i.e. lawsuits, vehicle damage).
The key is to educate yourself about the repossession industry. The more information you can learn from your own research, and especially from educational repossession courses, the better equipped you will be to avoid many of the costly beginner mistakes. Avoiding as many of these mistakes as possible is very important for a new repossession agent starting out. Mistakes cost money too, and could stop a new repossession business dead in its tracks.
There is a lot of information available on the repossession industry, if you do a little searching online. For those that are interested, there is plenty to learn about becoming a repo man. I know the right person can take advantage of all the repo work there is right now. A hard working person could turn this time of hardship into an opportunity. I hope this helps someone out there find that opportunity.
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