Fuel Crisis in Repossession: The Numbers Don’t Lie

This is not a problem that individual companies can simply absorb in silence.

EDITORIAL

The recent editorial featuring Acme Recovery Adjusters was intentionally written with a touch of humor, including the tongue-in-cheek image of Vespas being used as tow trucks. Beneath that humor, however, was a very real and urgent issue facing the recovery industry.

For years, the lending community has asked for hard numbers, while the repossession industry has often been reluctant to provide them. That hesitation is understandable. Data can easily be taken out of context, and in some cases, there is concern that open discussion could even raise questions about collusion. Still, there comes a point when the numbers are too significant to ignore.

Today, I want to share actual operating data from a real repossession company. More importantly, these figures reflect the same challenges recovery companies are facing across the country. Some readers may find the numbers alarming. Others may find them empowering. Either way, they deserve careful attention.

I strongly encourage everyone reading this to run the same analysis against their own operations. Ask yourself a difficult but necessary question: is this sustainable? How long can your company endure a slow financial bleed before the consequences become impossible to ignore?

Here are the actual numbers:

From February 16 through March 15, the company burned 17,625.091 gallons of fuel and recovered 1,630 units. That means the operation averaged 10.81 gallons of fuel per recovery. The increased fuel expense translated to an additional $21.11 in cost per recovery, or $32,773.76 in added monthly expense.

To put this into perspective, on February 16, on-highway diesel prices were in the $3.53 to $3.75 range, averaging around $3.68 per gallon. By March 24, that same diesel had climbed to $5.54 per gallon.

These are not theoretical figures. They are real-world costs affecting real businesses every single day.

Conversations about these rising expenses are already happening at both the state and national levels among lenders, forwarders, and recovery professionals. But the more important question is whether you know your own numbers. Are you having these same one-on-one conversations with your clients? Are you evaluating your own business carefully enough to ensure survival?

Many hoped this challenge would be brief and temporary. Perhaps it still will be. But at the current pace, that optimism is becoming harder to justify. As of this writing, crude oil stands at $102.50 per barrel. That means the numbers listed above are already outdated. They represent only a snapshot in time, and the reality today is even more costly than it was when this data was first calculated.

This is not a problem that individual companies can simply absorb in silence. It demands a unified voice, a clear message, and a willingness to confront the issue directly. The data is here. The question now is what each of us will do with it.

Sincerely,

The American Recovery Association

About the American Recovery Association (ARA)
The American Recovery Association is the world’s largest association dedicated to the advancement and professional development of the recovery and remarketing industry. ARA provides education, compliance resources, and advocacy for hundreds of recovery professionals nationwide. It is also the host of the annual North American Repossessors Summit (NARS), the largest event in the industry. 🔗 Visit: repo.org | 📞 Call: (972) 755-4755