Diesel Hits Record High

Diesel just hit a record national average of $5.85 per gallon, according to AAA data reported by Fox Business. That’s up from approximately $3.76 per gallon before the Iran conflict began—an increase of about 56%.

For repossessors, that’s not just another news headline. It’s a direct increase in the cost of doing business.

A recovery truck getting 10 miles per gallon now costs about $58.50 to drive 100 miles, compared with roughly $37.60 when diesel was $3.76. That’s nearly $21 more for every 100 miles, or about $418 more for every 2,000 miles driven.

And the truck still has to drive those miles whether the recovery pays $400 or $600. The agent still has to roll to the address, search for the vehicle, hook it, transport it and get back home.

The problem is simple: fuel costs can change overnight, but recovery rates often don’t.

With diesel now at a record high and additional pressure expected from global fuel disruptions and seasonal demand, recovery companies should be taking a hard look at their mileage rates and fuel surcharges.

Nobody expects a repossessor to control the price of diesel. But if the cost of putting the truck on the road keeps climbing while the recovery fee stays the same, eventually somebody is paying for that difference.

And it usually isn’t the lender.