This business is an asset recovery and repossession agency covering Orange and Los Angeles counties. They specialize in vehicle recovery for lenders: primarily banks, credit unions and auto dealerships. Their core service is car pickup and storage, but they also offer skip tracing, condition reports, locksmith services, and impound recovery. 90% of the recovered assets are automobiles; the other 10% are boats, motorhomes, trailers, and other equipment.
A repo begins when the business is notified by a lender that a loan is in default and the vehicle needs to be recovered. The car is located using a variety of modern technology and their tow truck brings it back to the secured storage yard. Once repossessed, the staff parks the car on the lot, and bags and tags all the personal property into secured storage (up to 60 days). 40% of the cars are reclaimed by owners who become current on their debt; the other 60% are transported on behalf of the lender for auction or resale.
The industry is a high-margin business; each repossession has multiple profit centers. In addition to asset recovery, they also charge for vehicle and personal property storage, rekeying cars and pickup appointments. Occasionally vehicles and personal property go unclaimed by both lender and owner; they are sold for additional profit.
The business comes fully equipped. Major assets include one car with Clearplan cameras (for asset location), 5 tow trucks (1 flatbed, 2 also equipped with Clearplan cameras), a forklift with wheel lift attachment, office equipment, and much more. The business also comes well-staffed: 3 core drivers, a pool of independent drivers, an office manager, and a lot manager. Please note that the current yard/property storage location will have to be moved after the current lease expires.
It’s time for the owner to semi-retire and focus on his other ventures; so he is looking for a successor to take this repo business to the next level. This is an extremely lucrative opportunity for either an existing repo company or an individual looking for a business with a solid foundation and multiple avenues for growth. The owner will stay for a transition period to transfer his institutional lender and dealership relationships.
