How to Start an Auto Repossession Business

If you’re sick and tired of your job, now may be the best time to start an auto repossession business.  That’s because when foreclosures, loan defaults and bankruptcies are up, the repo business thrives.  When people can’t make their car payments, banks and dealerships pay good money to repossess their cars.

If you’ve thought about starting an auto repossession business, here’s what you should know, first…

Repo Business Fact #1 -  You Might Not Need Formal Training

While it’d be foolish to start a repo business without investing in training materials, most states don’t require you log training hours before you get your repo license.

In most states, auto repossession companies are regulated by the same agency that oversees private investigators and/or debt collectors.  The best way to find out your state’s repossession laws is to contact your state’s Secretary of State division or invest in a comprehensive repossession course.

Repo Business Fact #2 – You Might Not Need A Tow-Truck

That’s because most finance companies keep copies of the key codes to every car and truck they issue loans for.  All you have to do is find a locksmith to cut a key from the codes.  Although, that’s usually not necessary because a lot of banks keep spare keys on hand, already!

What that means to you is, you can team up with another person to follow you repo sites, and one of you can drive off in the car you’re repossessing.  While it’s not always that simple, it’s easier than investing in a tow-truck when you’re just starting out.

Repo Business Fact #3 – You Can Do It Part-Time

Because many auto repossession agents work at night, you can keep your day job (if you want,) and repossess cars at night.  Then, once you establish a good reputation in the business and you get more clients, you can gradually devote more hours to your new business.

Many new entrepreneurs get overwhelmed when they first think about starting a new business.  But, that’s not necessary, because if you keep your costs low and you build your business gradually, you can reinvest your profits as your repo business grows.  There’s no need to do everything at once – that’s a recipe for exhaustion.