Car Repossession Statistics
- Auto loans totaling 568.6 billion dollars in 2018-19
- Repossessions can occur within 90 days of loan default
- 20 percent of all American purcahses are automotive related
- In Chicago alone each night there are 10,000 repossession opportunites for tow trucks
- For 2019 so far repossessions totaled 2.4 million units up from 1.8 million in 2017
- 6.7 million buyers are over the 90-day default term in June 2019
- 2017 repossessions totaled 1.8 million units
- in 2018 repossession increased by almost half a million units from 2017
Americans do not suffer from the inadequacy of private commuting like some countries do. Everybody seems to be crazed about luxury car loans. That is probably why the market is doing very well with a constant growth curve dating from about six years back. The car industry is doing phenomenally well, but analysts are skeptical about the profound effects that the auto industry has on the national economy. With about half of Americans in debt over auto loans, it seems that 44 percent of Americans opted for personal convenience over making plausible investments to secure their future economics and cash flows.
According to the popular informal blog, Finders.com, Americans took auto loans totaling 568.6 billion dollars in 2017-2018 alone. That isn’t healthy at all for the economy.
A popular blog for small business and marketing advice, Brandongaille.com, suggests that the American economy is about to suffer a major setback if Americans keep taking auto-loans that they cannot afford and then doubling down with an auto title loan. It states that a whopping 20 percent of all American retail purchases are made in the automobile market. Considering that almost half of Americans take automobile loans to hit the road fashionably, it is no surprise that the nation faced an outstanding debt of over 1.3 trillion dollars two years ago. That debt grew much larger in 2017 and 2018. The information, which the site attributes to Quartz Media, reveals just how compromised the people are.
According to the Chicago Tribune, the repossession man is everywhere. He is also an efficient predator who watches his victims, discretely, for a while before moving in on them. He explains that the repossession agents from different companies and agencies know they should always tag their towing trucks along when trailing a loan defaulter. They move with their laptops and high-speed cameras attached to their cars to spot and identify the thousands of cars scheduled for repossession after over 90 days of loan defaulting. The article further explains that the default rate is soaring high because people are under negative social pressure to borrow unsustainably. Repo agent Derek Lewis, the main character of the article, claims that his tracking system for cars scheduled for repossession identifies over 10,000 repossession-targeted vehicles in every one of his eight-hour shifts.
According to the chief economist at Cox Automotive, Tom Webb, Americans are increasingly losing their creditworthiness due to unsustainable automobile debt acquisition. The concerned economist thinks that if Americans do not get their lending behavior in order, the repossession rates will only go higher. As things stand, over 100,000 more cars were repossessed in 2017 than in 2016. In fact, 2017 repossessions totaled 1.8 million units. 2018’s Manheim Used Car Market Report suggests that matters are about to get much worse.
According to the Washington Post, over 6.3 million folks in the country face losing their automobiles. It takes 90 days of loan defaulting for auto loan lenders to come collecting, and they always make good of their auto and title loan repossession warnings. The publication, citing data from the New York Federal Reserve, reports that repossession increased by almost half a million units from 2017 to this winding up year. The article goes on to state that payment delinquency on auto loans is increasing faster than people are increasingly taking the loans. The trend is worrying because, throughout the time frame, unemployment has been on a steady decline. Now, unemployment is at only four percent. However, despite the positive progress, auto loan defaulting is at its highest. Further data analysis from the feds indicates that Americans have a trend in defaulting that stems from their credit sources. Apparently, auto loan lenders are experiencing more than double the defaults that traditional lenders face.
Therefore, as Americans continue to borrow more than the ever did before for vehicles, lending facilities are investing more skill and equipment into repossession and remarketing. In fact, Quartz Media suggests that just like when people defaulted on mortgages during Bill Clinton’s administration, things will spin out of control. Perhaps more regulations are needed to tighten things up. Already, some lenders drive their borrowers crazy with demands of about 20 percent interest rates.