Miss a car payment or 12? If you live in Toronto, and renege on your car loan, there's a good chance your vehicle will end up in a 1.8-hectare site located near The Queensway and Kipling Avenue. This locale marks the headquarters of Repo Depo, a world leader in handling repossessed ASSETs.

"All kinds of freaky stuff rolls in here," says William Meany, Repo Depo's enthusiastic young president.

That's putting it mildly - the southwestern Toronto site features everything from a red 1997 Hummer (suggested list price $99,999) to a tan 1995, six-cylinder Mercedes-Benz ($23,999 asking price) and a 2000 Nissan Xterra with a stick-shift and a list price of $27,999.

Founded in 1978, Repo Depo has 26 outlets across the country and handles roughly 1,200 vehicles at any given time. While cars are the main focus, the company also deals in boats, motorcycles, truck rigs, RV's and motorhomes.

Repo Depo works with every major bank in Canada, as well as several credit firms and a handful of insurance companies.
These businesses provide Repo Depo with vehicles that have been repossessed under the Bankruptcy and Insolvency Act, plus insurance and mortgage acts or similar pieces of legislation.

Repo Depo takes these vehicles, sets suggested retail prices and then brokers their sale.

Profits go to the creditors to help pay off the owners' arrears. Repo Depo gets either a flat fee or a commission for its efforts, depending on whom the company is doing business with.

The company used to handle cars and other items seized by police under the Proceeds of Crime Act, but no more. RCMO regulations stipulate that these ASSETs - taken from felons involved in criminal proceedings - be stored for months, or even years, which was a drag on business.

The company rarely has problems with irate owners trying to reclaim their property.

"I can't remember an incident of someone getting upset or violent to get their vehicle back," says Mr. Meany.

Customers of Repo Depo have the opportunity to make incredible bargains, but have to exercise caution in making a purchase. Cars are sold "as is", with no warranties (aside from what might come from the manufacturer).

"We encourage people to bring a mechanic to check out the car," says Mr. Meany.

Once customers find something they like, they can put in a bid. This can be done in person, by filling out a form, or over the Internet at www.repo-depo.com/.

Repo Depo claims the largest Web site for the public sale of repossessed products in the world.

The company is working on a new site, which will feature a map of North America (Repo Depo deals with 150 American banks and creditors and has ambitions to expand its operations south of the border), photos and vehicle information.

Winning bidders are asked to put down a 10% deposit, which entitles them to a test drive. Customers who purchase vehicles can get their money back if they are dissatisfied. Refunds don't happen very often, however; Mr. Meany estimates Repo Depo only hands out about two each year.

While potentially risky, the Repo Depo concept clearly appeals to a lot of people.

The company grossed $50-million last year and brokered the sale of 12,000 to 15,000 "units" nationwide (a unit being anything from a boat to a Buick).

The highest price ever reached for a Repo Depo vehicle was $200,000 for a Ferrari, recalls Mr. Meany. This pales in comparison to other ASSETs handles by the firm. In the past, Repo Depo has sold an aircraft worth $15-million and a yacht for $1-million.

Mr. Meany, a 30-year-old University of Toronto dropout, views his line of work as both a commercial venture and a civic service.

"We make sure these cars and ASSETs are available to the public. In the past, they were hidden at dealer-run auctions," he says.

Such auctions feature low, wholesale prices, but are only open to auto dealers looking for resale vehicles.
Repo Depo offers higher-end, retail prices for its products, but this, too, is a good thing, says Mr. Meany.

"It's a win-win situation," he says. "We win by being in business. The bank gets more money than at a dealer auction. And the original owners get as much money as possible to go to their debts."