When a loan borrower is unable to repay their loans on a vehicle or property, repossession agents reclaim the property voluntarily or involuntarily. The agents use various methods of collecting these items — and when it comes to cars, tow trucks are usually the go-to option. Generally, depending on your skills, becoming a repossession agent is a job with many benefits. Here’s a closer look at a typical day for repo agents so you can decide if it’s the right career for you.

Typical Day in the Life of a Repossession Agent

A typical day for repossession agents entails going to reclaim people’s possessions. Usually, repossession agents work for companies that specialize in certain types of property. For example, tow truck companies would only reclaim vehicles. However, repo agents can also be independent contractors.

Not all repo agents repossess cars. Some other commonly repossessed items include:

• Trucks
• Motorcycles
• RVs
• ATVs
• Boats
• Private planes
• Rented items and technology

In any case, repo agents should expect to be dealing with people who are aggravated and hostile on a daily basis. Some states do allow for peaceful repossession where the borrower gets a second chance to make up the payments, but the majority of U.S. states don’t offer this option. It’s important to be prepared for any situation when working as a repo agent.

How do repo agents find the cars they reclaim? In the best situation, repo agents will be able to go to the last address on record and locate the car they need to reclaim. That said, agents may have to do a bit more digging to find the property. Utilizing online databases can help. In other cases, repossession agents will have to contact known friends or family or knock on doors.

It’s no surprise that people aren’t going to want to willingly give up their cars. Therefore, part of the job of repossession agents is to investigate the person of interest and figure out the best way to remove the vehicle from their property. This part may involve towing the vehicle while they’re away from their property.

Once the repo agent has the car in their possession, they’ll take it to a specific location, where they’ll report the recovered property to the proper authorities and complete any paperwork associated with the job.

Duties of a Vehicle Repossession Agent

The daily tasks of a car repo agent will depend on the company and the general unpredictability of the job. However, there are a few general tasks you can expect to be responsible for regardless of the company that hires you. These common job duties include:

• Recovering assets for clients
• Investigating and tracking down the known locations of cars out for repossession
• Towing repossessed vehicles back to the company
• Communicating with customers for collections purposes through outbound calls, email, text and chat platforms
• Pursuing accounts for full balance collection
• Negotiating and collecting past-due amounts
• Working with auto shops, dealerships and other agents to manage the status of repossession

The average repossession agent salary also is dependent on the company that hires you. Many repossession companies will include a paid training within the first few weeks of employment. After the initial training process, they’ll move employees to commission-based payment.

Other companies may choose to pay their repossession agents a salary. The industry average for repossession agent jobs is around $47,000. That said, the salary range you can expect to see on the job market is anywhere from $25,000 to $70,000 annually. In addition to a salary, it’s fairly common for companies to give out bonuses to employees for exceptional work.

On the other hand, the average payment for commission-based compensation is anywhere between $150 and $400 for each vehicle repossessed. The average repossession rate for repossession agents is about four cars a week, so the more experienced agents become, the more money they can make for themselves.

Typical Pay and Hours for a Repossession Agent

As far as hours go, one of the main benefits of being a repossession agent is that most get to set their own hours. For salary jobs, most job listings offer full-time and part-time positions, with schedule options including day shift, night shift, overnight, weekdays and weekends. Other options include working shifts anywhere between eight-12 hours or even working remotely without a direct supervisor.

Additionally, jobs and payments can be dependent on whether the agent is assigned a voluntary or involuntary repossession. If the task is involuntary, your employer will likely increase your commission for that job because of the risk associated with the car owner. If you’re paid a salary, you may receive a bonus for each involuntary call that you complete.

Dealing With Difficult People and Clients

It’s important to highlight the risks of being a repo agent. Whether you’re repossessing vehicles or boats, you’ll encounter difficult individuals at least a few times over the course of your career. Even though these individuals have defaulted on their payments, they’re having their property taken away from them. It’s no surprise that such a situation can make them direct their anger at the repo agent.

Unfortunately, some individuals may become aggressive when an agent tries to repossess their vehicle. Therefore, repo agents should always be ready to assess the scenario beforehand and have ways to defend themselves if the individual becomes violent. Knowing the risks of the job ensures repossession agents are ready to face all types of situations as they go about their days.

Advantages and Disadvantages of the Job

Like any job, being a repo agent has its ups and downs. Here are a few upsides and downsides of working in this field.

Advantages

Overall, the advantages of becoming a repossession agent are that the agent has control over their salary, hours and independence. Additionally, repossession agencies don’t generally require their employees to have a formal education, so becoming a repossession agent is a well-paying job you can do without needing to go to college. For the most part, repo work is generally low-effort, as agents don’t have to engage in any intense labor.

If you have these abilities, you’re on your way to becoming a great repo agent:

• Great communication skills
• Strong detective and research skills
• Calm personality type
• Quick problem-solving skills
• Adaptability
• Knowledge of cars

Disadvantages

The most obvious downside includes potentially aggressive individuals, who could pose a threat to the agent’s safety. Even if the individual isn’t aggressive, it can be challenging to work with people as you take away their property. It may also be stressful to locate individuals’ cars and other belongings in a timely manner.

For some applicants, certain requirements may be a hurdle. While you don’t need a formal education, you do need to meet some requirements to become a repo agent. Because of insurance guidelines, most repo agents must be at least 23 years old. Plus, you usually must have a clean driving record and pass a background check.

Other preferences for car repossession jobs are that the applicant has at least one year of experience with driving a tow truck, is familiar with new technology and has a GED. Some states also require agents to get an individual repossession license and bond insurance.

Contact Lift and Tow Today

If you’re interested in learning more about tow trucks, Lift and Tow specializes in simplifying the towing process with our line of innovative towing products. At Lift and Tow, we offer top-of-the-line, long-lasting and durable products. Our team of experts provides the industry’s highest service level and is knowledgeable about all towing accessories and parts needed to keep your tow truck running smoothly.

To learn more about our towing products, contact us online today or call 717-727-0332.

Do tow truck drivers need a CDL? In most cases, the answer is yes. Commercial driver’s license requirements vary depending on the size and weight of your vehicle and trailer. Most tow truck operators will need a specialized tow truck driver’s license to operate a commercial vehicle.

CDL Levels of Certification

There are three certification levels for the four main types of tow trucks and drivers. Each level requires tow truck operators to log work hours and take a written exam. Level 2 and level 3 often require oral interviews in addition to written exams. If you’re looking to make a career of driving a tow truck, it is wise to achieve all three certifications.

• Level 1 certification: A level 1 certification allows you to operate a hidden wheel lift. To receive a level 1 certification, you will need at least 90 days of towing experience and meet all local, state and federal requirements.
• Level 2 certification: For a level 2 certification, you will need at least one full year of experience as a tow truck operator. Additionally, you will need to meet all government requirements to reach this level of certification and currently possess level 1 certification.
• Level 3 certification: For a level 3 certification, you will need at least two years of experience as a tow truck operator and currently possess a level 2 certification. You will also need to meet additional requirements and may need to provide a letter of recommendation.

What License Is Required to Drive a Tow Truck?

The license required to drive a tow truck depends on several factors, including if your vehicle is a commercial or non-commercial vehicle. The Federal Motor Carrier Safety Administration classifies a commercial vehicle as any vehicle used to transfer passengers or items that meet specific criteria. Therefore, if your tow truck falls under any of the categories below, you will need a CDL.

• Gross combined weight rating: The gross combination weight and GCWR exceed 26,001 pounds, while the vehicle alone accounts for over 10,000 pounds of the weight.
• Cargo weight: The vehicle’s weight exceeds 26,001 pounds but will not pull any cargo that is over 10,001 pounds.
• Passenger capacity: A vehicle designed to hold over 15 passengers and the driver, or if the vehicle transfers hazardous materials.

Class A License

Class A licenses are typically for vehicles that fall into the commercial motor vehicle category. Vehicles that may require a Class A license include light-duty tow trucks. If you have a Class A CDL and plan to tow several vehicles at once, you will need the T endorsement, allowing you to pull multiple trailers or vehicles with your light-duty tow truck. The T endorsement typically requires an additional written test but will enable you to carry two or three times more freight.

Class B License

A Class B license is necessary for vehicles used for heavy-duty jobs, including dump trucks or other specialty vehicles. For tow trucks, a Class B license is typically only required to operate four-car carriers, including service vehicles and most Class 7 or Class 8 tow trucks. With the correct endorsements, you can also use a Class B CDL to drive Class C vehicles.

Class C License

A Class C license is typically only for non-commercial vehicles, but there are commercial versions and non-commercial variations of this license. For example, you may operate a tow truck with a non-commercial Class C license if the tow truck weighs under 10,000 pounds and you do not need to tow something that will cause your weight score to exceed 26,000 pounds. If you need to transport any hazardous substance requiring a placard, you will need a commercial Class C license.

Do You Need Tow Truck Driver’s Endorsements?

In addition to a CDL, endorsements can affect the vehicle type you can operate or the amount of freight your tow truck can carry. When applying for a CDL, a driver may need to apply for specific endorsements depending on the type of work they plan to do. CDL endorsements are an essential aspect to understand when determining the requirements to become a tow truck driver.

• H endorsement: The H endorsement, also known as the HAZMAT endorsement, allows you to operate a vehicle containing hazardous materials. To obtain an H endorsement, you will need to pass an exam proving you have the knowledge to safely handle hazardous materials.
• N endorsement: An N endorsement, also known as the tank endorsement, allows you to haul a tank or a tanker of liquid or gaseous materials. Drivers with an N endorsement must adjust to the act of driving with a tank full of material that moves and distributes its weight differently.
• P endorsement: The P endorsement, commonly known as the passenger endorsement, is a requirement for drivers looking to operate a vehicle transporting more than 16 people. A P endorsement requires an additional knowledge test and skills test.
• S endorsement: The S endorsement, also known as the school bus endorsement, is necessary when you plan to drive a school bus with children. In addition to a written test, the S endorsement also often requires a background check and other forms of testing and evaluation.
• T endorsement: A T endorsement allows you to operate a truck with double or even triple trailers. Towing more than one trailer at a time will enable you to transport additional freight in one trip.
• X endorsement: The X endorsement allows you to haul large loads of hazardous materials in the liquid or gas state. In most cases, you’ll need an H endorsement as a prerequisite to receiving an X endorsement.

Possible CDL Restrictions

CDL endorsements enable you to carry specific freight or operate additional vehicle types. On the other hand, CDL restrictions may limit the type of vehicle or machinery you can use. To avoid potential CDL restrictions, you should take any road test in the same vehicle you are looking to get a CDL to operate.

• E restriction: The E restriction prohibits you from using a vehicle with a manual transmission.
• L restriction: An L restriction prohibits you from operating a vehicle with a full air brake system.
• M restriction: An M restriction means you can operate a Class B or Class C passenger vehicle or school bus. With an M restriction, you can’t drive a Class A vehicle or school bus.
• N restriction: On the other hand, an N restriction prohibits you from operating a Class B vehicle or school bus. With an N restriction, you can only operate a Class C passenger vehicle or school bus.
• O restriction: The O restriction limits drivers from driving a Class A vehicle with a fifth-wheel connection.
• V restriction: A V restriction signifies if the holder of the license has reported a medical variance. Common conditions that may require a V restriction include diabetes, hearing issues, vision complications or seizures.
• Z restriction: Like the L restriction, the Z restriction prohibits you from operating a vehicle with full air brakes. If you performed the road test in a vehicle outfitted with air brakes over hydraulic brakes, you might get the Z restriction issued to you.

View Lift and Tow Products and Contact Us to Learn More

Lift and Tow is the original innovator and proprietor of the hidden wheel lift. We specialize in simplifying the towing process with our line of innovative towing products. At Lift and Tow, we offer top-of-the-line, long-lasting and durable products. Our team of experts provides the industry’s highest service level and is knowledgeable about all towing accessories and parts needed to keep your tow truck running smoothly.

To learn more about our towing products, contact us online today or call 717-727-0332.

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Find out more about the main kinds of tow trucks and the value of hidden wheel lift models below.
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Are Tow Trucks Emergency Vehicles?

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