How to Start a Repo Business

Business Overview:

If you enjoy the thrill of the chase and are looking to start an exciting new business, you should learn how to start a repo business. Anyone can be a repo man (or woman); all you need is the right temperament and some patience. When a consumer defaults on a car loan, for example, the lending institution has the right to repossess that car and sell it in order to cut their losses. Similar to bail bondsmen hiring bounty hunters to track down bail jumpers, creditors hire repo businesses to track down and bring back their property. Any number of items can be repossessed but the most common are automobiles. Depending on your area, you may choose to specialize in repossession of boats, jet skis or other watercraft. It’s important when starting a repo business that you become familiar with your local repo laws. For example, typically repo businesses are not allowed to confront the borrower, create a disturbance or break into a garage in order to gain access to their vehicle. When you research how to become a repo man or woman, you will find that this is one of the most exciting business ideas available to an entrepreneur with a flexible schedule. Learning the best ways to track down items to repossess will take some time and experience, which means you will get better and your business will be more successful as time goes on. The start-up costs for this business include needing a tow truck and some marketing materials before starting to advertise your business. Determine what your rates will be per repo and per hour. Usually a repo business will charge between $200-300 USD per repossession plus an hourly fee of $25-50 USD. Contact local car dealers, banks and other lending institutions and let them know your business is available to track down defaulted items. Once you track down a few items for a customer, you are likely to get plenty of repeat business. You may soon find the need to hire additional repossession professionals to work for you.

A Day in the Life of a Weight Loss Business Owner:

Your hours as a repo business owner will be irregular since most repossessions take place at night or when borrowers are at work. You will take calls throughout the day from current and new customers asking for your business to track down items they need repossessed. When you are not searching for repo items, you will spend your day marketing your business to financial institutions.

About Your Customers:

Your customers will be lenders such as auto dealers, banks, credit unions who need items repossessed due to loan default.

What You Need to Start:

• Business license and insurance
• Tow truck
• Familiarity with local repo laws
• Computer with financial software

The Good:

• The start-up costs are low if you already possess a tow truck or if you choose to repossess items such as TVs in which case you don’t need a tow truck.
• You can work as much or as little as you like.
• Franchises are available to get you started.
• You are likely to see repeat business from your clients.
• The repo business is exciting.

The Bad:

• The hours are irregular.
• You must be careful when confronted by a borrower.

Resources:

• Repo Association – National Finance Adjusters
• American Recovery Association
• Wikipedia on Repossession

About The Author

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