A majority of Americans take out loans to pay for their new vehicles — as of 2024, the total auto loan debt in the U.S. was approximately $1.6 trillion. Instead of borrowing to buy a car, about 20 percent of drivers decide to lease their vehicle, effectively borrowing the car from a dealer for a set amount of time.
Those who finance or lease a vehicle are expected to pay the lender or dealer according to the loan or lease terms. If a driver stops making payments, the lender can repossess the car. Unfortunately, the latest data from the Federal Reserve Board shows that nonpayment on auto loans is up — and that about 4.59 percent of car loans are delinquent by 90 days or more.
Someone has to have the job of repossessing delinquent vehicles. Depending on your disposition and skill set, that someone could be you. In this guide, we’ll discuss how to become a repo man, including what it takes to become a repo agent and how to get a repo license.
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The Type of People Who Are Repo Agents
A career as an auto repossession agent appeals to some people more than others. Along with getting the right licenses and training, it helps to have a few innate skills when trying to get a job as a repo man. The skills you’ll often see in repo agents include:
- Creativity: Repossession agents often need to think outside the box when tracking down vehicles and people behind on payments. In some cases, a driver might try to hide, and a repo agent might need to locate contacts of the driver to track them down.
- Strength and stamina: Repossessing vehicles can be physically challenging, especially if the driver is bigger than the agent and gets physical when approached. Having physical strength and endurance is a must.
- Negotiation/Communication skills: People who fall behind on car payments often face challenging times. A repo agent needs people skills and the ability to negotiate without backing down. It’s also helpful to have people skills if you’ll be self-employed and will need to seek out clients regularly.
- Problem-solving: As a repo agent, you will likely encounter various interesting challenges and problems. Creative thinking will help you considerably, as will the ability to step back and solve problems as they come your way.
- Nerves of steel: It’s also important to have nerves of steel when working as a repossession agent. People will have all sorts of stories and will try to convince you to let them keep their cars. Some might become verbally abusive or physically violent toward you.
- Organization: As a repo agent, you need to be organized to know where you’re going each day and what you need to do when you get there.
- Business know-how: It’s also helpful to have some basic business knowledge as an auto repossession agent, especially if you plan on working for yourself.
- Networking skills: Many repossession agents are independent contractors who work for themselves and find their clients. You can’t be shy about approaching potential clients, such as banks and lenders, and making a connection.
How Do I Become a Repo Man?
You’ll want to complete training, know your state’s requirements, earn your certification and join a recovery association. While you don’t need to earn a diploma or degree to become a repossession agent, you do need to pick up some licenses, and you may need to complete some training programs. It’s also a good idea to earn a certification as a repo agent, since completing a certification program can help you better understand the laws surrounding repossessing a vehicle — it’s the closest thing to repo agent school.
Complete Training
Repo agents often use skip tracing methods to track down drivers who might have gone missing or “skipped” town when they fall behind on their car payments. Skip tracing requires you to dig deep and learn information about the driver so that you are more likely to discover their whereabouts and, most importantly, the location of the car.
Along with learning skip tracing, you might need to take driving classes to earn a commercial driver’s license (CDL). If you plan on driving a tow truck, you’ll need a CDL to do so. Check out our article on whether you need a CDL to drive a tow truck for more information. CDL training and licensing requirements vary by state
Know Your State’s Requirements
Some states require repossession agents to have a license, and the type of license may also vary by state. For example, some states expect you to have a collection agency license, while others expect you to register as a private investigator.
States that have special regulations surrounding repo work or that require a license for working as a repo agent include:
- California: To work as a repo agent in California, companies will require a repossession agency license from the California Bureau of Security and Investigative Services (BSIS). A qualified manager must pass the licensing exam. Additionally, anyone working for a repo company must do a criminal history background check through the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI).
- Colorado: In Colorado, you must file a surety bond with the Colorado Attorney General to do repo work.
- Florida: In Florida, you must have a Recovery Agency License to legally operate. The license is issued by the Florida Department of Agriculture and Consumer Services. Part of obtaining this license includes completing a background check.
- Hawaii: Repo agents in Hawaii must be licensed as a collection agency with Commerce and Consumer Affairs. There are several other requirements and guidelines governing legal repossessions in Hawaii, which the Regulated Industries Complaints Office — an enforcement agency within Hawaii’s Department of Commerce and Consumer Affairs (DCCA) — partly oversees.
- District of Columbia: Any repo company in D.C. must be licensed as a collection agency with Commerce and Consumer Affairs.
- Illinois: Anyone wishing to work as a repo agent in Illinois must comply with the Collateral Recovery Act and obtain a license from the Illinois Commerce Commission. There are various licenses for repossession agencies, recovery managers, employees and interns.
- Louisiana: You must be licensed by the State of Louisiana’s Office of Financial Institutions. You must also possess a common carrier certificate if using a tow truck while operating. The certificate is issued by the Louisiana Public Service Commission.
- Maine: In Maine, you must be a licensed debt collector to work as a repo agent. You can register through the Maine Bureau of Consumer Credit Protection.
- Maryland: Repossession agents working in Maryland need a Collection Agency License through the Office of the Commissioner of Financial Regulation.
- Michigan: To work in Michigan, you need to get a Collection Agency License and a bond through the Department of Licensing and Regulatory Affairs.
- New Mexico: Statute 61-18A-5 requires all repossession companies in the state to have a license with the Financial Institutions Division.
- Nevada: You do need a license to operate as a repossession agent in Nevada. To obtain a license, you must be at least 21 years of age, be a United States citizen or legally able to work in the States, undergo a background check, and have a clean record.
- Oregon: You need to register with the Department of Consumer and Business Services to work as a repo agent in Oregon.
- Pennsylvania: To become a repo agent, you must obtain a license through Pennsylvania’s Department of Banking and Securities. Other stringent requirements include a $5,000 bond, an initial licensing fee of $350 and insurance.
- Texas: Though a repo license is not required in Texas, you do need a TDLR towing license to operate in the state.
- Virginia: A license is not required to operate as a repo agent in Virginia, but you will need tow truck registration with the state.
The American Recovery Association (ARA) has compiled a list of licensing requirements and repossession rules for all 50 states and Washington, DC. You can always look up your state to find out whether repossession is permitted there and what you need to do to become a licensed repossession agent. Though some states do not require a formal license, it is vital to understand any applicable legal aspects or state repo laws that you may need to comply with in your business.
In addition to understanding your state’s requirements and completing your training, it’s crucial to familiarize yourself with safety regulations for towing operations. For instance, you can learn about the OSHA requirements for tow truck drivers to ensure compliance and safety on the job.
Earn Your Certification
Certification programs are available for people interested in becoming repo agents. While certification isn’t required to do the job, but it can give you a leg up when applying for positions with companies or finding clients. One option is to become a Certified Collateral Recovery Specialist through the ARA. The training component of the certification program includes lessons in defensive driving, planning a workday as a repo agent, a review of various consumer protection laws and non-violent conflict resolution training.
Join a Recovery Association
Several member organizations exist for recovery professionals, such as the ARA. Joining a membership association can help you connect with others in the recovery industry, access training programs and find a job with a lender.
Understand Your State’s Repossession Laws
Some states have different repo laws, so it’s important to understand your state’s rules to avoid unnecessary trouble.
How to Get a Job as a Repo Man
There are two ways to find work as a repo agent. You can start your own repo company, or you can find work with an existing repo business. It’s common for beginning agents to work as apprentices with more experienced repossession agents and then start their businesses once they’ve learned the ropes. Apprenticing with a more established agent also allows you to build up a reputation in the industry.
Networking is essential to getting a job as a repossession agent and is a must-do if you want to get repo accounts. You want to meet others in the industry and lenders who will have work for you to do. Cold calling is one way to make connections and find work. You can also join a member’s association and attend its annual convention to meet and greet others in the recovery industry.
Lift and Tow Has Resources to Help You Start Your Towing Career
When you’re starting as a repo agent, you need skills, connections and the right gear. Lift and Tow’s hidden towing systems are perfect for repossession professionals. The towing systems attach to a standard pickup truck, allowing you to drive around incognito when looking for a delinquent vehicle. Our hidden towing lifts are ideal for repo agents who don’t yet own a tow truck or who don’t want to use a tow truck for practical reasons.
Contact us today to learn more about our towing systems.
