We all know that when the economy is in a recession, many car owners will greatly fall behind on their monthly auto payments. When someone misses too many payments, the creditors hire out repo agencies to get the cars back.
While most of the financing organizations do business with consumers who start with their loan once, they’re going to be more strict when car owners go 90 days late (or more) on their car loan contracts.
Car repossessions are on the rise and this becomes a great business opportunity for you. Why? Banks, car loan companies and used car lots cannot find enough car repo agents to handle the growing demand. And in many cases, you don’t even need to have a college education and training to become a car repo agent.
If you don’t have any job right now, sick and tired of the daily grind or just looking for a career shift then here are 3 awesome reasons to consider starting a car repo business.
Many Folks are Falling 90+ Days Behind on Their Car Payments
Loan defaults are on the rise and they’re expected to keep rising throughout 2010. There are reports by the largest vehicle auctioneer that there’s going to be a double-digit increase in car repossessions over the coming years with millions in total.
It’s because there are banks that issued mortgages to folks living beyond their means and sub par auto loans to people who can’t really afford the car payments. An individual getting laid off from his job that is living from paycheck to paycheck is all it takes to get a car repossessed.
This is unfortunate news but this is definitely a good news for companies in the repo industry because their business will keep on growing!
Car Repo Business Owners Can Earn Six-Figure Salaries
Car repo agents basically make 40% of the repo fee for each car they recover. Repo fees vary greatly in different states but typically you can get between $250 to $500.
How much a financing company or car dealership pays to recover their car back depends on the car’s condition, how much work in collecting data (skip-tracing) the repo company has to do to find it and how easy (or hard) it is to recover the car.
Most of the repo agents don’t have salaries but if you pull in two $500 repossessions per night then you could earn $104,000 every year. Repo business owners can even make more money, although many got their feet wet working for someone else.
There’s Not Enough Repo Companies to Handle the Huge Demand
As of now the auto repo business are bombarded with repo jobs. This is definitely a good news if you’re looking to get started in the car repo business. It doesn’t matter if you start your own business or temporarily work for someone else.
While California, Florida and Louisiana require repo agents to be licensed, you only need a good insurance and bonding in other states. As you can see, it’s totally possible to earn a six-figure income per year as a repo agent even if you don’t have any college degree!