Auto Repossession Company
The business that booms when the economy doesn't
Auto repossession companies are hired by banks, credit unions, and auto lenders to recover vehicles when borrowers default on loans. Repo agents are paid $150-$400 per recovered vehicle — and in 2024, US auto repossessions surged 23% year-over-year as consumer debt stress mounted. This is one of the few businesses that performs better during economic downturns. Established operators with lender relationships clear $250K-$600K per year with a small fleet and 3-5 drivers.
Avg Revenue
$300K
Profit Margin
30%
Acquisition Multiple
1.5x - 3x
Startup Cost
$30K - $100K
Difficulty
3/5
How It Works
Banks and lenders assign accounts to you when borrowers are 60-90+ days delinquent. You locate the vehicle using LPR (license plate recognition) technology and the skip-tracing tools, then recover it during off-hours (2-5am is peak). The vehicle is towed to a secured lot. Lenders pay $150-$400 per recovered unit, plus storage fees. Volume is the key — operators doing 200+ repos/month build strong lender relationships that feed a steady pipeline.
Revenue Range
Pros
- +Counter-cyclical — demand spikes when the economy weakens
- +2024 repos up 23% YoY as consumer debt stress rises
- +Per-unit model scales linearly with more trucks and drivers
- +LPR technology dramatically increases efficiency and recovery rates
Cons
- -Can be confrontational — requires composure and strong conflict de-escalation
- -Significant liability exposure without proper insurance and protocols
- -Licensed tow trucks, storage lots, and bonding requirements vary by state
Best For
Operators comfortable with night work, confrontation risk, and compliance-heavy environments who want a countercyclical business
Operating Costs
Primary costs include tow truck payments, LPR camera systems ($5K-$20K), storage lot rent, insurance (substantial), driver wages, and skip-tracing subscription services. Margins are 25-35% after all costs.
Where to Buy
Find repo and towing businesses for sale
Industry association with business listings and lender connections
Quick Facts
- Category
- service
- Difficulty
- 3/5
- Acquisition Price
- $450K - $900K
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Auto Repossession Company
$300K/yr • 30% margins • 1.5x–3x multiple
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