The repo business can be a lucrative venture, which leads many people to wonder how to become a repo agent. A typical repossession takes fifteen to thirty minutes, and a repo agent can charge anywhere from $150 to $200 for this service.
- Start by learning how to become a repo agent by working for someone who already has a repo business. Contact you Secretary of State’s office to see what kind of license you will need to become a repo agent. Figure out how you are going to establish a client base. You can introduce yourself and your service to banks, car loan businesses, new and used car lots and car rental lots.
- Make a brochure for yourself that lists your services as a repo agent, including your address and phone number. Have this information in a letter format, too, that you can send to prospective clients, along with your brochure. Wait a few days and then call the places you sent your letter to. See if you can set up an appointment with them. Put an ad in the Yellow Pages and online, too. That way, private citizens who want your services can contact you.
- You will want to hire a driver that can take you to the repossession site. Once you get there, be sure to fill out an inventory and condition report. A repo agent’s clients will require this. Take a picture of the repossessed property, too.
- Figure out how much you are going to charge for your services as a repo agent. Standard rates that repo companies charge, as of 2010, are $45 for the driver, $15 for the report you make out, $25 an hour to find the vehicle and $15 for insurance. Banks and loan companies usually tell you what they will pay, typically $200 for the service. Used car dealers pay about $100. Also, don’t forget to work out a deal with a towing company, unless you have your own tow truck. You won’t always have a key or a key code to get to the car. And, take some precautions. You’ll probably be dealing with some angry folks.