Explore the Repo Industry With Lex

[Lex DeVille]

I've made enough progress to say it's worth starting a thread. I'm gonna start by sharing some general info, then I'll share what makes it worth documenting as progress. If anyone is in repo and sees any info that's incorrect, feel free to correct me as this thread might benefit others who are curious about repo.

What is Vehicle Repossession (Repo)
Vehicle Repossession is part of the towing industry. When an individual finances a vehicle and fails to make payments, the financial institution can repossess the vehicle. To do this, they hire a repo company to locate and collect (repo) the vehicle. The vehicle could be a motorcycle, car, truck, boat, plane, etc. but my focus is on smaller personal vehicles.

CENTS

• Control: The owner of the repo company has a lot of control over when/where/what/how they repo as long as they operate within the law.
• Entry: There are high barriers to entry as a business due to the expenses of a wrecker, the need for training/experience, client acquisition, vehicle storage, and legal compliance
• Need: Pretty much any business that lends money for high-dollar items deals with payment failures and needs repo services.
• Time: A repo can range from around $200 to upwards of $800 depending on the details surrounding the repo. A solo repo agent can collect 2 - 5 vehicles per day on average, sometimes more.
• Scale: Growth is a matter of buying more trucks, hiring more drivers/spotters, and expanding to new locations and more clients.

Entry Challenges

• Getting Training: The best way to get training is to work for a repo company. They will pay you while training you and you'll get experience too. You'll need a reasonably clean driving record, clean background, and to be over the age of 25 (I think) so they can insure you.
  
  
• CDL License: My understanding is that a CDL is only required if repoing large vehicles like semi trucks. Some repo companies will train you to get a CDL. If you pay for the training out of pocket, you'll spend $1,500 to $6,000.
  
  
• Purchasing a Wrecker: New wreckers are expensive. Many are upwards of $100k. Used wreckers are hard to come by, but I've seen old ones as low as $12,000. More frequently they're around $25k to $65k depending on the year, make, model, and accessories. I joined a wrecker resale Facebook group. Will probably have to travel to purchase one. It is possible to use a pickup truck for repo with a wheel lift attachment. The attachment is around $15k to $25k (plus the cost of the truck).
  
  
• Storage Lot: A storage lot may not be required from the start if you partner with or rent space from another repo, storage, or other business that has storage space. However, for control purposes, you will eventually want your own lot.
  
  
• Client Acquisition: Getting initial clients seems like it is mostly a matter of calling/meeting with business owners. I've seen a lot of people say to avoid dealing with companies like AAA because they have specific requirements and don't pay very well. Marketing and basic website and SEO skills should be valuable in this industry. Many companies have terrible websites, yet that is how clients sometimes find them.

General Challenges

• Dirty Business: Repo is a *get your hands dirty* business where you attempt to take property from someone who likely doesn't want you to take it from them. This can lead to conflict with the consumer which can result in property damage, assault, and even death. By law, repossessions must not cause a breach of peace, which means the repo agent needs to keep a cool head and avoid confrontation. Once a breach of peace occurs by either party, the repo becomes illegal and must be terminated, (but can be continued at a later time).
  
  
• Odd Hours: Repo agents can work anytime throughout the day or night, and this is sometimes dictated by the nature of the repo at hand. If you work for a company, then it will depend on the company. Some companies do regular 8-hour day/night/graveyard shifts while others do on-call or other schedules. Repo agents also work in all weather conditions.
  
  
• Expenses & Upkeep: There are expenses for things like insurance that can get pretty high, and there are also expenses for fuel, maintenance, and other unexpected issues that can add up quickly. Dealing with insurance or maintenance and repairs can also carry a time cost. For instance, if a debtor drives their vehicle off your truck and damages your truck, you might have to file an insurance claim, deal with the police, deal with the courts, and deal with an automotive shop for truck repairs. Meanwhile, you're not making money on repos unless you have a second truck.

Some General Takeaways

• A repo agent cannot use the threat of violence when repoing a vehicle.
• A repo agent with a concealed carry can carry a weapon, but the presence of a weapon may render the repo illegal
• You need patience and a thick skin in this industry
• You need common sense and to think outside of the box to find vehicles (because consumers hide them)
• You cannot break into garages or other locked gates, fences, etc. to repo.
• You can (depending on your location's laws) repo a vehicle from an open garage possibly
• With experience, a repo agent can grab a vehicle without leaving their truck and be gone in under two minutes (don't know if that's a good practice though)
• There are different kinds of tow trucks. The one I've seen most repo drivers use is an integrated tow truck (see image above).
• Some companies use camera cars to locate cars that they can repo

Resources:

• Recovery Industry Services Company: Provides an (at-cost) online training and certification program that covers Federal and State laws and various aspects of repo. Some companies will provide this training, and in some states it is required. I believe financial institutions look favorably on those who have taken the training, so I self-enrolled in the CARS Agent course for $75 and am currently working through it.
  
  
• RecoveryMaster.com: This company provides repo training. It looks legit, but they haven't responded with prices. Best case scenario is to get hired with a company and let them pay you while you learn. Still, if you lived in a place and can't find work in the industry to get experience, this might be an option.

Lex's Progress
A few days ago I resigned from my position with the Air Force. Sitting for 8 hours in an office with no windows in a cubical was driving me mad. Not sure why, but I started looking at how to start a towing company and that led to repo. Didn't take long to realize it could be a lucrative Fastlane business, but not one that everyone is cut out for.

The more I researched, the more I liked it. But I don't have experience. So I looked up local towing and repo jobs on Indeed and applied. The first job didn't respond, so I called them. They didn't answer the phone so I left a message. They didn't call back. I applied to another position. This one texted within a couple hours to get info on my driving experience. The next day, I got an "sorry, but we didn't choose you" email.

Since I didn't have anymore leads on jobs, I joined a Facebook Repo Group with 14k members. I asked what they look for when they hire drivers and got feedback. The next day I asked about ways to get trained without a job in the industry. I got some troll responses, some people offering to train me if I fly across the country, and a referral to local place that might have a position.

Since it was evening time, I waited until today before making contact. In the meantime, I enrolled in the RISC CARS online training and began working toward certification. I figured that would show a level of commitment since it cost $75.

This morning, I called the referral and talked with the owner. He was a nice guy, but said he didn't have any positions for someone without experience right now. What he did have was another contact. He put me in touch with another company that's closer to where I live. So I gave them a call. The owner was on another call, but the woman who answered the phone said I should come in and apply and meet him, so I drove up there this afternoon.

When I walked in, the owner was behind the desk. I introduced myself and talked to him for a few minutes. I filled out the application and other paperwork. He said once they verify I have a clean background and driving record, I can come in for a ride-along to see what it's like, then get started. He said it's basically a *set your own hours* job, $75 per car and I can work whenever I want day or night. He said they'll train me.

So that's where we are.

Once I have training and bit of experience, the next step will be to secure a wrecker so I can branch out on my own.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[RicardoGrande]

Just two cents, but if you do start this in a state that allows it, you gotta upload youtube shorts.
There's a few guys doing it already, some of them can be heavy, but one guy here in the south is mostly repo'ing luxury or sports cars the former owners could clearly never afford and you see him get his life threatened or run stealth missions to pick up the vehicle without getting shot.

 

[Kevin88660]

It is interesting because it overlaps between transportation and debt recovery.

 

[amp0193]

I come and go from the forum, and check in a few times every few months.

And every time it seems like you've got a new thread on a new idea.

What about committing to something and sticking with it for years, and seeing where that takes you?

------------

On the topic of this thread, and might be of interest to you if going down this road: e-bike bounty hunter for hire.

E-bikes get stolen all the time. More and more of them have gps or air tags and the owners know where they are.

Police rarely step in to do anything on recovery.

E-bikes are a rapidly growing early-stage market, basically no competition, and no need for a 100k wrecker.

And you're recovering from thieves instead of people too broke to pay their bills.

And to second what @RicardoGrande suggested, recovery makes for great content: Bike Hunters - VanMoof

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Lex DeVille]

Just two cents, but if you do start this in a state that allows it, you gotta upload youtube shorts.
There's a few guys doing it already, some of them can be heavy, but one guy here in the south is mostly repo'ing luxury or sports cars the former owners could clearly never afford and you see him get his life threatened or run stealth missions to pick up the vehicle without getting shot.

I intend to create content around this topic if I get that far. There are probably some privacy laws that need to be minded, but it should be okay.

What about committing to something and sticking with it for years, and seeing where that takes you?

I started starting businesses around 2007. If that's not commitment, I don't know what is.

It's not like a disagree with you.

But I don't go into an idea thinking, "I'm going to do this for 3 months then start something new" (although I recognize the pattern). Usually, I think, "this is the one." Why waste time on what's not the one if this is the one?

I also tend to do what people think I shouldn't do, because, somewhere deep within my psyche, I find satisfaction in proving that there is no right way and that whatever way you choose can probably work to reach your goals.

Goals:
- Move to the mountains - I did that
- Achieve time freedom - I did that, and am working on doing it again
- Create passive income systems that sustain me - I did that, and am working on doing it again
- Learn piano - still doing that
- Become a doctor - Almost done with that
- Do whatever I want - Still doing that
- Own a castle - Still need to do that

And you're recovering from thieves instead of people too broke to pay their bills.

I'm reading that one is morally better than the other, but I imagine there is a lot of overlap. If I couldn't figure out how to put food on the table for my daughter, I would become a thief. So the bounty hunter might as well do repo and get the bounty on the bike I stole plus the car I can't pay for.

I don't know much about e-bikes, but this might be a valuable market for a repo business. From what I think I know about bounty hunting, it is time-consuming for a much smaller return than auto repo unless you're hunting very evasive and probably incredibly dangerous bounties.

 

[heavy_industry]

Dear Sir or Madam,

You have 24 hours to pay the invoice.

Otherwise, we will need to send in our professionally-trained agent to repossess your vehicle:

 

[Kevin88660]

I come and go from the forum, and check in a few times every few months.

And every time it seems like you've got a new thread on a new idea.

What about committing to something and sticking with it for years, and seeing where that takes you?

------------

On the topic of this thread, and might

And you're recovering from thieves instead of people too broke to pay their bills.

And to second what @RicardoGrande suggested, recovery makes for great content: Bike Hunters

I come and go from the forum, and check in a few times every few months.

And every time it seems like you've got a new thread on a new idea.

What about committing to something and sticking with it for years, and seeing where that takes you?

------------

On the topic of this thread, and might be of interest to you if going down this road: e-bike bounty hunter for hire.

E-bikes get stolen all the time. More and more of them have gps or air tags and the owners know where they are.

Police rarely step in to do anything on recovery.

E-bikes are a rapidly growing early-stage market, basically no competition, and no need for a 100k wrecker.

And you're recovering from thieves instead of people too broke to pay their bills.

And to second what @RicardoGrande suggested, recovery makes for great content: Bike Hunters - VanMoof

To be fair most aren’t broke. They just didn’t manage their finance well.

Too many people live pay cheque to pay cheque while servicing car loans and housing loans.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Xavier X]

When Lex makes it big and diversifies in the future...

View: https://www.youtube.com/watch?v=P0LkMrPMMhw

 

[James Klymus]

I've also been following your posts on the forum over the years and it's interesting to see all of the different ventures you're involved in Lex.

I tend to be like you, With a lot of different interests from online business to brick and mortar traditional businesses.

I think it's good to follow your interests. I hope you're able to find something that "sticks" at some point, You seem like a really creative person, But somebody who has a lot of energy and motivation on something new, Then it dies out after a while and on to the next idea.

Is there a possibility you're able to buy a repo/towing business from somebody who's looking to get out/retire?

 

[Lex DeVille]

I've also been following your posts on the forum over the years and it's interesting to see all of the different ventures you're involved in Lex.

I tend to be like you, With a lot of different interests from online business to brick and mortar traditional businesses.

I think it's good to follow your interests. I hope you're able to find something that "sticks" at some point, You seem like a really creative person, But somebody who has a lot of energy and motivation on something new, Then it dies out after a while and on to the next idea.

Is there a possibility you're able to buy a repo/towing business from somebody who's looking to get out/retire?

Yes, that energy frequently dies out if I'm not seeing the results I want to see after 1 - 3 months (sometimes up to 6 months). I'd say that's one of the reasons I'm hesitant to start a repo business or to purchase a business if one were available.

In the past, I bought a course on shed building, a pickup truck, a trailer, and a boatload of tools and power tools to the tune of close to $30k. The process was slow and I lost interest after several months. Ultimately, I made zero sheds, sold the truck and trailer, and eventually sold most of the tools.

$30k is probably the bare minimum I'd spend to get into repo as a business, and that's if I did it without buying a business. In the past, I thought the investment would be enough to fuel me to keep going, but apparently not.

If I do it as a job, I can get a feel for the work and the business side without any of the risk. If it turns out it's not for me, then so be it, but at least I won't be on the hook for tens of thousands of dollars.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[jokul]

Dude, you write a lot

 

[Lex DeVille]

Dude, you write a lot

So?

 

[ZF Lee]

Dude, you write a lot

Well, welcome to the Forum...

E-bikes get stolen all the time. More and more of them have gps or air tags and the owners know where they are.

Where I come from, it would be lucky if you can find them back in one piece...if they haven't turned into scrap to be sold off.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[amp0193]

I also tend to do what people think I shouldn't do, because, somewhere deep within my psyche, I find satisfaction in proving that there is no right way and that whatever way you choose can probably work to reach your goals.

I get that, I'm the same way. Naysayers and haters are my fuel. Responded with more thoughts in the other thread.

I'm reading that one is morally better than the other, but I imagine there is a lot of overlap.

yeah, on second thought, I think you're right.

I don't know much about e-bikes, but this might be a valuable market for a repo business.

Leasing model for e-bikes is somewhat popular in Europe, but rare in the U.S.

I doubt many people are getting bank loans with an e-bike as collateral either.

But lots of people buying e-bikes with Buy-Now-Pay-Later providers like Affirm. No idea what the terms look like on those agreements or if Affirm would have any desire to have someone repo the bikes though.

 

[Kevin88660]

I did not do the research for sure but the question I have is that am I entering a debt collection industry or just a transportation industry.

Transportation industries is hot now in my country. I have a friend who is servicing one client only, and he is running out of cars (subcontractors) who can help him to fulfill the order.

Basically he is servicing one marine company who needs to move works from one point to another point and he only has one bus. So the only way is to find other subcontractors (other drivers) to make it. He eats the spread too and in return he has to pay the subcontractors earlier than he gets paid.

During the pandemic period a lot of bus companies went bankrupt. Their business model was make money, get loan, buy more buses, rinse and repeat until the black swan happens .

 

[Lex DeVille]

I did not do the research for sure but the question I have is that am I entering a debt collection industry or just a transportation industry.

Transportation industries is hot now in my country. I have a friend who is servicing one client only, and he is running out of cars (subcontractors) who can help him to fulfill the order.

Basically he is servicing one marine company who needs to move works from one point to another point and he only has one bus. So the only way is to find other subcontractors (other drivers) to make it. He eats the spread too and in return he has to pay the subcontractors earlier than he gets paid.

In the US there is overlap with the debt collection industry, and many of the rules that apply to debt collection also apply to repo.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Kevin88660]

In the US there is overlap with the debt collection industry, and many of the rules that apply to debt collection also apply to repo.

Im googling repo agents in singapore and I struggle to even find the webpages.

I am sure they do exist. Because when I used to work in the bank one of the phone enquiry we get is that their car (with hired purchased agreement) went missing.