The repo business is more profitable than ever with auto repossessions at an all-time high. You can make as much as $500 per repo-ed vehicle, but it is not cheap to invest in a tow truck.
You don’t necessarily need a tow truck in order to start your own repo company. These are three ways to get into the repo business on a tight budget.
Tip #1: Partner with a Locksmith to Literally Drive the Repo Cars Away
Today, every car that a finance company owns has its key code on file. The key codes act as a blueprint that shows locksmiths how to make a key exactly the same way as the original.
You can search online for key codes for domestic and foreign vehicles in under an hour, even if the bank doesn’t have them. You will need to provide the make, model, and VIN number. Click here to read about Here are some things you need to know if you want safe trailer towing.
You can take your original key with you to the repo site. Then, someone can follow you there and you can drive away the car!
Tip #2: Work from Home and Help Banks Find Repo Cars
To make a living in repossession, you don’t have to be a repo man. Start by helping dealerships or banks find difficult-to-find debtors. Skip-tracing is a service that helps you find the right person. They’re willing and able to pay a lot for this service, as their cars are worth thousands.
Skip tracing can be done for $30-$100 per hour by banks or other repossession companies. You will need to spend time and money on training but you can make $60,000 in your first year – even if you don’t have a degree.
Tip #3 – Become A Repo Job Broker
You could set up a website to find repossession job leads in your area and then sell them to other repo companies. As you get more experience in the repossession industry, you can take on more jobs.
These money-making strategies are not meant to replace the use of the right repossession tools. However, they will help you make enough money to purchase the equipment you need.