A common question in the repo industry is, “How much money do repo men make?”
If someone tells you that you can earn more than 100 100,000 a year in a bad economy without a college degree, you think they are crazy. But some auto repo business owners are not only doing better – they’re making six figures a year. When the economy goes bad, they do better!
How much do repo men work?
If you start your own auto-repositioning business, you can expect to earn every new car ($ 250) (or more). If you reserve two cars five days a week, one night, that’s 130,000,000 a year. It certainly takes hard work and determination, but it is possible.
Refinancing agents pay the most money when lenders hire them to track down hard-to-find lenders. This is called “escape tracing”. If a debtor voluntarily abandons his car (or if they are easy to track down), an agent can make only $ 100 for recovery.
Repo men who work for someone else usually receive a 40% repo fee – or an average of سے 70 to $ 100 for a recovered car.
Who are the proprietors of your own repo business?
While it is true that repo business owners make the most money, they have to pay gas and overhead costs before they can pay. And, as the repo industry goes, “no recovery, no pay.”
Fortunately, you don’t have to invest in expensive tools to start a repo business. In fact, you don’t usually need a tow truck!
This is because many lenders have key codes on file for each of their vehicles. Sometimes they even have a spare set of keys! All you have to do is make a key, find a car and drive it.
To get started, you can invest in minimal equipment, and recoup your profits as your business grows.
What are the pros and cons of becoming a repoman for someone else?
While there are benefits to owning your own business, many repo agents find it easier to start working with an established company. This is because in some states, there are a number of ways to become a licensed re-ownership business, including:
- Bonded and insured
- Competing in the required amount of training (not all states require it)
- Familiarize yourself with the rules of re-evaluation, investigation and collection
- Invest in the right equipment, computers and software for your business
In fact, many repo business owners have started working for someone else!
Although the repo business is not for everyone, if you have hard work, hard work ethic and entrepreneurial spirit, it can be profitable whether you work for someone else or for yourself. The key is getting proper training before going on the field, so you can avoid common (and expensive) mistakes!