vLane Blog

My Job as a Bill Collector for a Major Auto Manufacturer

From djay, Featured Contributor
Posted on June 17, 2008

Filed under Industry

How high gas prices affect you, me and my employer.

All hours of the day, seven days a week, during dinner time, even on Sunday. I leave the same message on your voice mail every time I call. I call you at work, on your cell phone ... I might even call your parents or neighbors to try to get a hold of you. Yep. I'm a bill collector, for one of the Big 3 Automakers in Detroit.

You fell in love with that wine red SUV the moment you laid eyes on it two years ago, back when gas prices were the last thing on your mind. Now, every trip to the gas station feels like you're being treated to a Brazilian wax.

The state of affairs at the pumps effects my relationship with the customer as well as the well-being of my company, both of which I must take into consideration on a daily basis.

More expensive gas means people have less money to pay their car note. I keep this in mind when I am trying to help a customer through their time of hardship. An unfortunate truth about the collection business is that, under some circumstances, we have no choice but to protect our assets and repossess a vehicle. This is something that I attempt to avoid; it means a devastating financial loss for the customer and the company. It's a textbook lose-lose situation, especially now.

What happens after a vehicle gets repossessed? We sell it, and try to cut our losses. We auction it off to the highest bidder, and attempt to collect on any dollar amount still owed. Of course, repossessed vehicles rarely (read: never) sell at auction for their estimated value, but we are able to recover some of our losses by auctioning the vehicles.

At least, that's the way it used to be.

The Big Three are stuck right now: not only are new SUVs not selling, but customers who own SUVs and other large trucks can't afford them because of gas prices, and their vehicles get repossessed. Once repossessed, we attempt to sell them at auction ... but who wants to buy an SUV these days? Every SUV we repossess loses the company thousands of dollars ... not only can we not sell it, but we have to pay storage fees for the vehicles as they sit in the parking lot taking up space.

Okay, so repossessions are hurting more than ever. What does this mean for me? More importantly, what does this mean for you? Well, it means that I will be making even more phone calls then I used to (if that's even possible), and hopefully it means that collectors are willing to be more lenient in setting up arrangements to help you through your time of difficulty. You may not want that gas guzzler anymore, but neither do we.

I always do everything I can to avoid repossessing a vehicle. Ninety-nine percent of the time, an agreement can be made that makes everybody happy. You don't want to be that other one percent, though.

Read More:

• Honda Gives its New Fuel Cell Car to Movie Stars
• Things my Dad Taught me About Driving
• U.S. Government says Gas to Peak at $4.15 This Summer

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djay is a featured contributor for vLane.