Business

Can i make over $100,000 a year in the auto repossession business 2023?

If someone told you that you could make over $100,000 a year in a bad economy without a college degree, you would think they were crazy. But some auto repo business owners aren’t just doing well—they’re making six figures a year. When the economy goes bad, they do better!

How much do repo men earn?

If you start your own car repossession business, you can expect to earn $250 (or more) per car booked. If you repossess two cars a night, five days a week, that’s $130,000 a year. It certainly takes work and determination, but it is possible.

Repossession agents make more money when lenders hire them to track down hard-to-find debtors – what’s called “skip tracking.” If a debtor voluntarily gives up their car (or if it’s easy to find), an agent can make as little as $100 for recovery.

Repos guys who work for someone else usually earn 40% of the repo fee – or $70 to $100 per vehicle repossessed (on average.)

What are the pros and cons of owning your own repo business?

While it’s true that repo business owners make more money, they have to pay for gas and overhead before they get paid. And, as the motto in the repo industry goes, “no recovery, no payment.”

Fortunately, you don’t need to invest in expensive equipment to start a repo business. In fact, you usually don’t need a tow truck!

That’s because many lenders keep master codes on file for every vehicle they own. Sometimes they even carry a spare set of keys! All you have to do is make a key, find the car and drive it away.

You can invest in a minimal amount of equipment to get started and reinvest your profits as your business grows.

What are the pros and cons of being a repo man for someone else?

Although there are advantages to owning your own business, many repo agents find it easier to get started with an established repossession company. That’s because in some states, there are many paths to becoming a licensed repossession business, including:

  1. Connecting and securing
  2. Competing a required amount of training (not all states require this)
  3. Familiarity with repossession, investigation and collection laws
  4. Investing in equipment, computers and software suitable for your business

In fact, many repo business owners started working for someone else!

While the rap business isn’t for everyone, if you have a tough skin, a hard work ethic, and an entrepreneurial spirit, it can be lucrative whether you work for someone else or yourself. The key is to get adequate training before you hit the field so you can avoid common (and costly) mistakes!

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