: Approximately 10% of subprime car notes result in repossession, requiring a robust recovery strategy.

: Investors can purchase notes at a percentage of face value, potentially yielding effective annual percentage rates (APRs) of 15% to 30% or higher.

: Focus on reliable, high-resale models like Toyota or trucks, and avoid high-maintenance "muscle" cars.

: You need a pre-arranged outlet for repossessed vehicles, such as a partnership with a licensed dealer, as individual investors often lack the necessary dealer licenses for high-volume sales. Pros and Cons Higher yields than traditional real estate notes Active management required (collections, repos) Shorter terms mean quicker capital rotation Rapidly depreciating collateral High demand from liquidity-starved dealers Significant regulatory and licensing hurdles

: Primary opportunities lie with independent "Buy Here, Pay Here" (BHPH) dealers who need immediate liquidity rather than long-term interest payments.

: Unlike real estate, vehicles are depreciating assets. If a car is repossessed, it is rarely in good condition and requires repairs before resale.