Anatomy of a Repo

I have posted many repo stories on here. However, I have never fully disclosed what work went into each repo I ever did. Earlier today, I had just such a request, so here you go:

First, car rental agencies, in this strange twisted plot to make a profit, actually want to get paid for the rental of their cars. I know, it sounds evil, but it is perfectly legal in all fifty states (fifty-seven, if you are muslim, or President Obama). These car rental agencies usually want credit cards, for several reasons:
a) a credit card is a fluid amount of money - it can be charged again when a renter keeps the car longer than originally anticipated.
b) a person with good enough credit to actually have a credit card (with some room on it for the charges) is historically a better risk than someone who does not. "Risk" in this sense refers to likelihood of returning the car, paying the full amount, and avoiding damaging the rented car.
c) folks who own credit cards that are not maxed out are typically more responsible and can actually be reached via phone in the event that such contact is needed for any reason.
d) cash is limited to a finite amount. When the rental exceeds the originally anticipated length, the renter must actually physically bring more cash in to stay current on the rental. Someone without a credit card is highly unlikely to do so.

Second major factor in a repo is an event that causes the renter to feel the need to go past due. This can actually take many forms. Some renters simply do not know that the insurance company paying for the rental have stopped paying. Some renters are trying to defraud the car rental agency. Most renters who require repossession have an odd mix of antipathy, entitlement mindset, strange sense of denial, and a general lack of desire to meet a problem face-to-face.

The third major factor in a situation that leads up to the repo is the actual action of the rental going past due. Most car rental agencies do not mind if you keep the car longer than you originally anticipated - provided you pay for such use of their car. Hey, the fact is that then they do not have to worry about finding another renter for that car at that time. ut when somebody's monety runs out - cash deposit is exhausted, or credit/debit cards decline additional charges - then the clock starts ticking. The rental agency is usually paid by the day or week on most rentals, and therefore charges accrue as time passes.

At this point, I would do the following actions:

1. Call the renter. In all seriousness, I would have been making calls before the rental goes past due. All car rental agencies require payment in advance, in addition to a security deposit over and above estimated rental charges. When a renter goes a day past the estimated return date, a simple call usually allows the agency to know the renter's intentions and provides a new estimated return date.

2. If / when a renter would not answer direct calls, I would place indirect calls. If the renter's car was in the shop, I would call the shop and/or the insurance company to obtain further information. In the event the shop is going to need more time to repair the renter's car, then the insurance company will usually authorize more days, with a few exceptions (like - the policy maximum number of days has been reached).

3. If indirect calls were not useful, then I would usually begin a "skip-trace" as these actions are known in the credit and collections industry. Attempts to reach known family, friends, or places of business were the common tactics. Simple calls placed could yield important information. If it got to this phase, there was a serious chance the rental would go past due. At this stage, if the renter's address on the driver's license did not match what they told me, I would begin reverse searching phone numbers at both addresses.

3.a) As an addendum to the previous actions, a quick swing by the residence or place of business for a quick chat with the renter could clear things up. If the renter had fallen on hard times and could not pay their cell phone bill, coupled with the rental agency having no other contact info, it would be easy to arrive at this point. However, I was always cautious, as a person who does not pay their own phone bill rarely pays much more on a rental car bill.

4. In the absence of direct contact (phone or in-person) to this point, I would gain information (ie - try to find out where renter lives, where renter works, renter's schedule at work). These tidbits would be very useful in reclaiming the car rental agency's property.

4.a) In a cash-only rental (or no deposit at all), the renter was required to fill out a form ("cash-qualificaation form") with additional information. This is exactly why the car rental agency requires this information! So they could track down delinquent rentals!

5. After obtaining information on the renter - often jotted down on a printed map of the renter's residence or place of employment - a key to the car would be obtained. Usually, this meant contacting a dealership and using the VIN number to obtain a key code that the parts department could use to make the key.

5.a) Often, an experienced employee at a car rental agency would be able to tell potential problem renters before the rental took place. Since one could not "discriminate" against a renter who otherwise qualified at the time, another solution was to rent a car for which one already had a duplicate set of keys. Made this part easy!

6. The hunt. Go to renters place of employment, during his/her shift and reclaim the car. Go to the renter's house early in the morning and reclaim the car. Sometimes, other times of day were appropriate. I would refer back to the cash-qualification form to learn more. It was always best not to interact with the renter during this phase.

Some people ask why not try to talk to the renter when reclaiming the car. There are several reasons, all related to safety. First, a renter in such a situation is either a scam-artist, or under high stress - no need to further escalate either situation. Second, the renter might not recognize you as being from the rental agency and think you are some hoodlum trying to steal the car they are renting - not likely, but possible. Third, when the agency has the car back in its possession, it is in a much stronger position to control the situation - no need to beg the renter to bring back the car or anything like that.

7. Clean the repossessed car. Cars that had to be repo'd are typically filthy and in poor condition. Future renters will complain about the smells, dirt, bottles, trash, handguns, pet hair, and other such things. I don't blame them - nothing is worse than a dirty rental car. And you would not believe the condition of some of the returned cars.

Sometimes, regular returns (non-repo's) were nasty, as well. I often wondered how some people who had a car just a few days could get the car so dirty.

8. Take an inventory of the personal effects found in the rental car. Yes, there will be all types of things. I have found phones, cell phone chargers, a magazine to a GLOCK, video games, sexual toys, CD's, food, DVD's & video tapes, and all sorts of other personal effects in returned rental cars.

9. Rent the repo'd car to another (hopefully, paying) renter. This is actually very important because some renters grow attached to cars - partcularly in the cases of repo's. When they realize it is nothing personal on your part because you just rented the car back out like some sort of car-renting machine, renters often get back to their senses. It is at this stage that the fact that they owe the agency money comes screaming to the forefront of the renter's mind and they often will have a strong urge to leave, lest they be forced to pay.

10. If there is a remaining balance (and there usually is), the renter was placed in collections for the amount owed. An I-9 form was filled out so that the amount owed could be reported to the IRS as unearned income (similar to bad debt from a loan). Also, the renter that owed the company money was placed on the "Do Not Rent" list - which would preclude them from renting at any other locations in the world for life.


Hope this guide helps!