Repossession is kind of a sidestreet industry not known to many, as of the last few years the cable has shown allot more about car repossessions despite the fact that its all garbage and any of those actions will land a newly licensed repoman in jail.
To repossess is to take back collateral a car, boat, aircraft, heavy equipment, house or anything that was used as collateral, believe it or not I recently saw a contract for dogs when I was dog shopping that they could repossess the dog at any time if they thought the purchaser was breeding.
A repossession can be initiated by anyone who has the contract, it does not have to be a bank specifically. An example would be, lets say you hold the lien on a car you helped a friend buy. He does not make payments to you, you can go ahead and repossess the unit from him and legally take ownership. There are some things that you have to make sure are proper prior to doing the repossession, in fact I would always recommend calling the state first to make sure you are not breaking the law. It must be after a certain amount of time or other laws that may or may not be in your specific state. Always check the rules by calling the state.
Usually the person that has the lien does not want to do the actual repossession on their own, so this is where a repoman comes in handy. They will send the order to a licensed repoman along with whatever proper documentation is required and the repoman will effectively take the vehicle, usually without the debtor knowing.
The repoman then stores whatever the collateral is for the person that hired him until the repoman gets paid and further instructions.
Some normal pricing amounts to charge doing repossessions
- Cars between $300 and $500 with no skip tracing
- Boats by the foot, usually between $600 to 2000 for boats under 32 feet. Also remember boats have allot of other expenses involved that need to be added. ie towing, storage fees due, skip tracing, captain, trailer are just a few.
- Tractor trailers around $700 to 1500 that heavy duty tow trucks or keys made.
- Aircraft to be determined between company and bank, similar to large yachts.
Repossession can be a lucrative job for the right people. There are certain qualifications that need to be met prior to deciding you want to be a repoman.