A common question in the repo industry is, “How much money do repo men make?”

If someone told you that you can make over $100,000 a year in a bad economy without a college degree, you’d think they were crazy. But some auto repo business owners are not only doing well, they are making six figures a year. When the economy is doing poorly, they are doing better!

How Much Do Repo Men Earn?

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

Recovery agents make more money when lenders hire them to track down hard-to-find debtors, called “search by default.” If a debtor voluntarily surrenders their car (or if it is easy to locate), an agent can only earn $100 for recovery.

Repo men who work for someone else typically earn 40% of the repo fee, or $70 to $100 per repossessed vehicle (on average).

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

While it is 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 crane!

That’s because many lenders keep key codes on file for each vehicle they own. Sometimes they even keep a spare set of keys! All you have to do is get a key, find the car and take it with you.

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

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

While there are advantages to owning your own business, many repos find it easier to get started with an established repossession company. This is because, in some states, there are many hurdles to go through to become a licensed recovery business, including:

  1. Get bondage and insurance
  2. Compete a required amount of training (not all states require this)
  3. Familiarize yourself with repossession, investigation, and collection laws
  4. Invest in the right equipment, computers and software for your business

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

While the repo 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 the proper training before you head out into the field, so you can avoid common (and costly) mistakes!