How Much Can a Repo Man Make?
A repossession man or woman is responsible for reclaiming anything people take out loans for. When a borrower doesn’t make the necessary payments on credit, the lender can hire a repo man to do the dirty work and repossess the item — which is often a vehicle.
Lift and Tow has devised a guide on the process of 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 through the process of investing in the best equipment.
How Much Do Repossession Agents Make?
Working as a repo man is a job where you can receive incredible money for little effort. Your job duties include driving to a specified location, finding the correct automobile and towing it. The average repossession takes 15 to 20 minutes, not including transportation. 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.
Starting as a repo agent, most people begin with a repossessing company where you receive weekly payments and about four to five cars each week. 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 repossessor, you receive a payment per car, charging several hundred for each depending on your clients and extra fees. 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.
Can a repo man make a lot of money? In many cases, the answer is yes. However, how much money you make a week depends on the number of clients you are willing to take on. 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.
While your clients are often banks and lenders, you can also work with used car dealers. The average repo man charges banks about $200 per deal, and pre-owned car suppliers about $100. Vehicle rental agencies are another potential patron when people don’t return rented cars. Rental companies are one of the more expensive recoveries because obtaining a leased vehicle requires you to implement skip traces and other techniques to find the automobile.
As your skills increase with each repossession, you can begin to charge more for the time it takes in locating vehicles and reporting each situation. A repo man 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.
Costs and Fees to Expect
If you’re operating as an independent contractor, you need to pay the full amount of taxes as well as other expenses such as gas and transportation to each location. Life, health and car insurance also act as key proponents in extra charges. Make sure to set aside money to make tax payments each quarter and consider additional expenditures that get taken out of your check for each reclamation.
You also need to take specific fees into account. For example, lenders may ask you to locate a missing vehicle and pay for any associated costs for the investigation. In most cases, you will need to document the condition of the car 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. Make sure to check out your state’s laws, regulations and repo requirements to ensure you conduct legal jobs.
How Much Money Can a Repo Man Make?
What is the salary of a repo man? When working under a repossession firm, the answer to this question is about $32,500. The company may offer bonuses as well as commission. However, a repo owner salary can reach several hundred thousand dollars each year if you set high rates and have a steady influx of clients. How much money a repo man makes depends on the amount you charge for each vehicle, which can range between $150 and $400.
Your paycheck also relates to whether you’re making a 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 whether you’re an employee or the owner. Other factors include the type of reclaiming you do and which state you work in. The trickier the situation, the more money you’ll likely get.
Become an Independent Auto Repossessor With the Right Equipment
Lift and Tow can help elevate you into the repo business with our towing solutions. With 20 years of experience in the industry, our team of professionals will support you in finding the most reliable and durable tow. When you need efficient loading in the repo business, our towing products reduce manual labor and convert your truck with ease.
Our hidden wheel lifts attach to the underbody of your pickup, so you don’t have to invest in an expensive tow truck. Contact us online to see how we can support your upcoming repo business venture with the best equipment.