Repossession services are available through multiple providers so why pay more than what the low-cost provider is willing to accept? The image illustrates four trade-offs between repossession fees and recovery results. When recovery fees are driven down to rock bottom levels, the service provider (whether a direct agent or a forwarder/skip company) is typically forced to reduce resources such as less skip tracing, fewer agent runs, lower quality data information which ultimately results in fewer vehicle recovered. For one, repo agents will inevitably have to reduce the number of times an address is run, reduce the fee to the driver, or both. In addition, good data can be several dollars per report. Low fees make it very difficult to utilize that data source. Lastly, cost is an important variable in the repossession management process, but pushing costs too low can produce a diminishing return.
Here are 4 trade-offs between repo fees and results.