Repo Business Booming

According to a recent report on rising delinquencies on subprime auto loans, the repossession industry is continuing to benefit, seeing a banner year as repos have continued to rise since the peak of the Pandemic in 2021. In March, the percentage of delinquent subprime auto loans increased to 5.3 percent, up from 2.6 percent two years ago. Various factors are at play, including rising interest rates, higher prices for used and new cars, and inflation pinching consumers across the board.

At the recent North American Reposessors Summit conference in Orlando, Florida, it was reported that repo companies are having a hard time keeping up with demand and finding drivers. “As the economy curves down, our industry curves up,” said Ben Deese, vice president at North Carolina-based Home Detective Co. The $1.7 billion industry primarily recovers assets like cars, trucks, and boats, all requiring skilled tow truck drivers.    

Speaking to this point with TIW, Jordan McIntosh of Rapture Enterprises of Burnsville, North Carolina, who services the Appalachian region covering several states, spoke of his current need for more drivers, noting that during the Pandemic a lower demand caused some of his agents to opt for unemployment benefits.  

He said, “We lost a lot of good agents, but fortunately had some good guys who saw the need to keep our company open. That’s what got us through until the volume started coming back. In January of 23’ we broke our record for the numbers of vehicles we picked up.” 

Anticipating this summer’s volume, McIntosh has bought five late model trucks in the last year and has been adding drivers "pretty much consistently." He said, “I’ve got seven drivers now, but to be honest with you, I could use seven more.” 

Source: Bloomberg, motor1.com and Tow Industry Week