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A repossession (repo) agent — also called a repo man or woman — reclaims anything people take out loans for. The item serves as the collateral for the loan against it. When a borrower doesn’t make the necessary credit payments, the lender can hire a repo man or woman to do the dirty work and repossess the item, often a vehicle. The repossession industry offers ample opportunities for individuals looking to earn a lucrative income and have an exciting job.
Lift and Tow has devised a guide on getting paid, expected fees, and how much a repo man can make. If you’re looking to become an independent agent, we can help you invest in the best equipment for your repossession company.
The average income of a repo agent in the United States is around $33,564. When working under a repossession firm, the company may offer bonuses as well as commissions. However, a repo owner’s salary can reach several hundred thousand dollars yearly if you set high car repossession rates and have a steady influx of clients. How much a repo man makes per car depends on the amount you charge for each vehicle, which can range between $150 and $400. Some repo agencies pay their employees based on an hourly wage, whereas others pay a set amount for each job the agent completes.
Working as a repo man or woman, you can receive incredible money for little effort. Your duties include driving to a specified location, finding the correct automobile and towing it. Many states don’t require agents to have a court order. Instead, as long as the lender gives adequate notice and time to the driver, you can conduct your work.
Repo agents work with a variety of lenders, including:
The average repo man charges banks about $200 per deal and pre-owned car suppliers about $100. The amount you charge to your clients is determined by qualities like:
Can a repo man or woman make a lot of money? In many cases, the answer is yes. However, how much money you make a week depends on many factors, such as:
How many clients you are willing to take on affects your income. Each client has a multitude of customers. For example, every bank and car lender you partner with makes deals with thousands of drivers — multiplying your number of cases.
As your skills increase with each repossession, you can charge more for the time it takes to locate vehicles and report each situation.
The type of reclaiming you do will determine your paycheck. The trickier the situation, the more money you’ll likely get.
Repo types include voluntary or involuntary repossession. Involuntary involves more risks because you’re going after people who owe several skipped payments. In most situations, they will be unwilling to lose their car and might be angry or even openly hostile. Remaining composed is key to conducting a peaceful repo. Many states require peaceful exchanges for a legal repossession to occur.
Voluntary repossessions are more cordial and easier to conduct because the debtor will admit to not making payments. When you arrive to reclaim their vehicle, the process often happens with little to no problems.
How much repossession agents make depends on whether you’re an employee or the owner. Employees are paid per car, but car repossession rates are set by the owner. While owners will likely make more, they’ll also be responsible for business expenses.
Another factor is the state you work in. Every state has different repossession laws that determine how a repo must occur to be legal. State-sanctioned licensing, insurance and training requirements can also affect income.
Operating as an independent contractor, you must pay the full taxes and other expenses, such as gas and transportation to each location. Life, health, and car insurance also contribute to extra charges. Make sure to set aside money to make tax payments each quarter and consider additional expenditures that are deducted from your check for each reclamation.
You also need to take specific fees into account. Understanding the operating expenses of a towing business can help you better manage your finances and plan for unexpected costs. For example, lenders may ask you to locate a missing vehicle and pay for any associated costs for the investigation. In most cases, you must document the car’s condition and take photos.
Does your state charge a licensing fee? Each state has different regulations when it comes to repossessions. Some require a repo license, and each state has write-ups on notices of intent, liquidation documents and redemption requirements. Check out your state’s laws, regulations and repo requirements to ensure you are conducting legal jobs.
Repossession fees can range between hundreds and thousands of dollars. Those fees build up the longer a vehicle is impounded, so it’s important to act quickly to avoid large fees.
Most people start as repo agents with a repossessing company, where they receive weekly payments and about four to five cars each week. It’s also important to understand the requirements for being a tow truck driver to ensure compliance and safety in your operations. Working as an employee, payment per vehicle is not accessible. Start with a repossession firm to learn the ins and outs of the operation, but after gaining experience, you can go into business on your own.
As an independent repossession agent, you receive a payment per car, charging several hundred for each, depending on your clients and car repossession rates. Steady work is often in high demand. You can find jobs by contacting auto lenders and other agencies in the business. Once you form a relationship with them, you’ll likely obtain a repeat customer who will need you for future assignments.
A repo man or woman can make a lot of money, but the job isn’t for everyone. You must be calm in tense situations and have a flexible schedule to work at night. Many repossessing jobs work best when people are asleep to avoid confrontation.
Lift and Tow can help elevate you in the repo industry with our towing solutions. With 20 years of experience in the industry, our team of professionals will help you find the most reliable and durable tow. When you need efficient loading in the repo business, our towing products reduce manual labor and easily convert your truck. Our hidden wheel lifts attach to the underbody of your pickup, so you don’t have to invest in an expensive tow truck.
Get in touch to see how we can provide the best equipment to support your upcoming repo business venture.
