Auto Repossession Company
The business that booms when the economy doesn't
Bottom line
Worth studying, but do not buy without strong local proof.
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
$50K - $200K
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
BizBite underwriting snapshot
Pass for now
Auto Repossession Company has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.
Category-level fit before lender-specific diligence.
Weak source data caps the final score.
Why it may work
- +Attractive 30% estimated margin profile
- +SBA dataset shows 12 recent comparable loans
Be careful
- !Source link status has not been verified yet
- !No last-checked date yet
- !No category operating model yet
- !No category model yet
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 488410 · Motor Vehicle Towing
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal |
|---|---|---|---|
| Nov 2025 | TN | $1.2M | $1.4M |
| Nov 2025 | CA | $1.7M | $2.0M |
| Nov 2025 | NC | $1.2M | $1.4M |
| Jun 2025 | FL | $1.4M | $1.6M |
| May 2025 | CA | $539K | $634K |
| Mar 2025 | MO | $5.0M | $5.9M |
| Mar 2025 | VA | $4.8M | $5.6M |
| Feb 2025 | NH | $640K | $753K |
| Sep 2024 | TX | $1.5M | $1.8M |
| Sep 2024 | AZ | $270K | $318K |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
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.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Find repo and towing businesses for sale
Industry association with business listings and lender connections
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- service
- Difficulty
- 3/5
- Buy price
- $450K–$900K
Buyer's Toolkit
Essential tools to get started
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Ready to Buy? Start Here →
Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
Some links may be affiliate links. We only recommend tools we'd use ourselves.
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