Kelowna News

Rising gas prices have translated into a boom for the repossession business, but even the repo man is feeling the effects.

Les Mitchell of Wolfco Bailiffs, says business is booming because people simply can't afford to put fuel in their toys and gas guzzlers.

"I would say that in the last six months, the number of repos has definitely increased. Most of the repossessions used to take place in the Lower Mainland but now we're getting repos from everywhere including Kelowna, Penticton, and Kamloops. There's no area of B.C. that is left alone."

And Mitchell says it's not just the middle or low income classes that are having to surrender their vehicles.

"In the past, we used to work in set areas such as low income housing -- areas where people were not as financially well off as others. We wouldn't normally go into neighbourhoods where doctors and lawyers live, but that has all changed. Now we're going into neighbourhoods that we never frequented. We've picked up vehicles from top executives and all kinds of vehicles, not just RV's and boats. We're also picking up their cars and SUV's."

Mitchell says another reason why repos are on the way up is because of a steady increase in insurance rates.

"They can't afford the fuel and they can't afford to insure it. It's not just gas, it's insurance too. That's why you see so many vehicles with temporary insurance on them these days.

He says that, unlike in the old days when a repo would show up with a tow truck, clients who can't afford their vehicles are simply surrendering them.

"Years ago, we would send a tow truck to pick up the repossessed vehicle, not any more. You can show up at the person's door and they'll be waiting for it to be picked up. In fact, some will even call the finance company and tell them where to find it. It's that easy."

In fact, Mitchell says there are so many repossessed vehicles that repo companies are running out of parking space. He says it's also expensive to track down and tow repossessed vehicles.

"People may think it's fantastic for the repo business because we're picking up these vehicles left, right, and centre but fuel is also affecting us to. Even the repo man is feeling the pinch."

Many repossessed vehicles end up on the auction block. Abe Kroeker of Auction World in Kelowna, says people are turning their backs on their gas guzzlers.

"The market has shifted to the point where people are simply walking away from their vehicles because the value has dropped so much. They're giving up the money that they've invested in it and taking their losses."

Kroeker says that, as a result of glut of SUV's and big trucks, prices have tumbled.

"We're definitely seeing more larger trucks and SUV's on the lot and that has flooded the market and as a result, driven the price down. For instance, we had a Lincoln Navigator for sale worth more than $40,000 three months ago -- we sold it for $25,000."

Interview with Les Mitchell of Wolfco Bailiffs (Kelly Hayes)