Getting Your First Client
Talk to the Right PeopleOnce you have your established your repossession business and meet the requirements that lenders require, you can begin obtaining clients.
A repossession business can make a lot of money, if you know what you are doing. In a good economy, a repossession company can make good money, but in a recession it can be a goldmine. It is a business that most people would not even think of starting because of the danger involved. There are thousands of firms in American and Canada doing collateral recovery and it is a niche market most people know little about. Most repo companies do not advertise in the phonebook and many are not well known. They work at night, out of small offices and most of the public will never meet them unless they are behind on their car payments. Some do a large volume of work and have many employees and others are very small and just have a few workers. Big and small companies are both making good money recovering cars for lenders.
The First Repossession is Just the BegginingRepo companies obtain repossession orders from banks, credit unions, title loan companies, nationwide finance companies and sometimes by-here-pay-here car lots.
Getting contracts with auto finance companies are easy to get and they often have a lot of repossession work to issue. The fees are negotiated and are sometimes all inclusive. This means that the fees include the repossession, condition report, making of keys, and transport of the vehicle to wherever the lender requests. Other clients pay more for keys, transport by miles, skip tracing costs and other expenses the repossession company may incur.
After a new client uses you and is satisfied with your performance, he will probably use you again. As long as you are doing a good job and keep the repossession cost reasonable, you should be able to keep the client. The amount of work issued will depend on the how many auto loans the lender writes and how many people go into default each month.
I believe that ten lenders is all that is needed to stay busy with a small repossession company. If you can get nine local banks, credit unions or auto finance companies and one major finance company (like Ford Motor Credit, Chrysler Financial etc) to use you, then I believe that you can be a success in the business.
You will need to start out by contacting all of your local lenders in person and any national lenders by phone. You will want to have nice business cards and a brochure printed that lists all services that you offer and the prices you charge. It should detail your experience in the business and demonstrate that you can get the job done for the lender. Contact the collections manager of your local banks and the vendor department of the nationwide finance companies that you contact. If someone is reluctant to use you, then offer to do a few repossessions at a discounted rate so they see your performance. Remember, a rejection today does not mean a “no” forever. You may get the contract next week, next month or even next year. Always be checking back with the collections manager to keep the idea of using your company fresh in his mind.
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