When drivers fail to pay their auto loans, the lender often hires someone to repossess the vehicle. In many states, repossessors do not need a court order as long as the lender gives enough notice to the driver and the repossessor acts peacefully. Repossessors often charge several hundred dollars for their services, and repossession can take only 15 to 20 minutes if everything goes smoothly. Thus repossessors can make significant money in exchange for very little of their time.
Number of Clients
Locate Repos.com reports that the amount of money an auto repossessor makes varies depending on how many clients he can get. An independent repossessor can charge $250 or more for each repossession. After deducting fees and expenses, the repossessor must pay he may get between $100 and $200 for himself. However, the repossessor gets paid by the client, so he must obtain a steady number of jobs to earn a living.
May lenders expect auto repossessors to locate missing vehicles and pay the fees for this investigation themselves. Repossessors must also pay for transportation to the repossession site and may have to take pictures or otherwise document the condition of the vehicle at the time of repossession. The repossessor usually takes these fees into account when deciding how much to charge a particular client.
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Types of Clients
Auto repossessors commonly work with banks or other lenders to repossess autos when drivers default on loan payments. Some used car dealers make loans to prospective customers as well. On average, repossessors charge $200 per repossession to banks or other lenders and $100 per repossession to used car dealers. Repossessors occasionally work with car rental agencies if a customer fails to return a rental vehicle as promised. This type of repossession is often more expensive as it requires using skip traces or other methods to find the vehicle prior to repossession.
Most repossessors are able to obtain steady work without spending money on advertising due to high demand, according to Locate Repos.com. Most repossessors are able to find work by contacting auto lenders and others in the auto business and asking if they need help repossessing vehicles. In addition, if a repossessor successfully completes an assignment, the lender is likely to hire him again. Some lenders deal with hundreds or thousands of clients, providing a repossessor with a significant amount of work if even a small percentage of these clients default on their obligation.