A commonly asked question from those who are considering a car repo business is, “How much money do car repo agents make?”
If someone told you that you could earn a six-figure income per year in a slumping economy without any college degree, you’d definitely think they were out of their minds. The truth is that car repo business owners are making a killing. As the economy gets worse their business only gets better and better.
How Much Do Car Repo Agents Make?
If you start your own car repo business, you can expect to get around $250 or more for every car that you repossess. If you recover 2 vehicles in a night, 5 days a week then that’s going to be $130,000 per year. Of course, you will have to exert some effort but the point is that it’s totally possible and feasible.
Car repo agents make the most money when lenders hire them to find those stubborn debtors (also called skip-tracing). If a debtor willingly gives up the car (easy to find), a repo agent many only earn around $100 for the recovery.
Repo agents who work for someone else usually earn 40% of the repossession fee. This can equate to $70 – $100 for every recovered car on average.
Pros and Cons of Owning Your Car Repo Business
It’s a fact that repo business owners make the most money but they have to pay for other overhead expenses before they get paid.
The good news is that you don’t need to shell out any huge amount of money for expensive equipment to get started in the car repo business. The truth is that you don’t usually need a tow truck!
The reason for this is because many lenders keep key codes in their files for every car they own. In some instances, they even have the spare set of keys! Now all you have to do is have a key made, search for the car and drive it away!
As you can see, you can start small then re-invest your profits back to grow your business.
Pros and Cons of a Repo Agent Working for Someone Else
Obviously there are many great reasons of owning your own car repo business but many repo agents find it easier to work under an established repo company. The main reason for this is that in some states, you can have a very difficult time in getting your licenses. An interesting fact is that most of the repo business owners got started working for someone else.
Obviously the car repo business isn’t for everyone. However, if you have the determination and the persistence to work then this can be a very lucrative business whether you decide to start on your own or work for another repo company. The important thing is that you get the proper training on how to get started with the car repo business.