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Tuesday, April 21, 2009

2009 Repossession Report - 3 Reasons Why You Should Start Your Career in the Repo Business

When the economy is in recession, more consumers fall behind on their monthly car payments.  When debtors miss too many payments, creditors hire  repossession agencies to get their vehicles back.  While most financing companies work with people who default on their loan once, they're less flexible when consumers go 90 days late (or more) on their auto loan contracts.

The good and bad news is, repossessions are rising, which means banks, car loan companies and used car lots can't find enough recovery agents to handle the demand.  And, in most cases, you don't need a college education or formal training to become a repo man.

If you're unemployed, sick of your job - or just looking for a career change, here are three reasons why now's a good time to look into the repo business...

Reason #1 - Repossessions Are Up 12% Because More Consumers are Falling 90+ Days Behind on their Car Payments

Loan defaults are rising, and they're expected to keep rising throughout 2009.  Manheim Auctions, the nation's largest vehicle auctioneer, reports a 12% increase in auto repossessions over 2008 (1.6 million total.)

That's because banks issued mortgages to people living beyond their means and subprime auto loans to people who couldn't afford the car payments.  All it takes is losing a job for someone living paycheck-to-paycheck to get a car repossessed.

And, while that's unfortunate, it's good news for companies in the repo industry.  The repo business keeps growing!

Reason #2 - Recovery Agents and Repo Business Owners Can Earn Six-Figure Salaries

Repo men - or revery agents - typically make 40% of the repo fee for every car they recover.  Repo fees vary greatly by state, but they're usually between $250 and $500.  How much a financing company or car dealership pays to get their car back depends on
The condition of the vehicle,
How much data collection work (called skip-tracing) the repo agency has to do to find it, and,
How easy (or difficult) it is to recover the vehicle

While most recovery agents are not salaried, a repo man who pulls in two $500 repossessions per night could earn $104,000 a year.

Repo business owners can make even more money, although many got their start working for someone else.

Reason #3 - The Repossession Industry is Huge, but There Aren't Enough Repossession Companies to Handle the Demand

Right now, repossession businesses are swamped with repo jobs.  That's good news for anyone looking to get into the repossession industry - regardless if you start your own business or work for someone else.

And, while California, Florida and Louisiana require repo men to be licensed, most other states only require you to carry adequate insurance and bonding.  That means it's possible to earn six-figures a year as a recovery agent - even if you don't have a college degree!

The repo business isn't for everyone, but if you have a burning desire to improve your financial situation - you could turn a bad economy into a great opportunity.

(expert=Dirk_Windler)

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