As Auto Loan Delinquencies Soar, Repossessions On Track To Break Record

Auto loan delinquencies among low-tier consumers have significantly increased, coinciding with rising new vehicle prices and high monthly payments. This situation is leading to a surge in car repossessions across the United States. Over 7.5 million repossession assignments have occurred this year, potentially exceeding 10.5 million by year-end. The number of actual repossessions is expected to reach levels unseen since the 2009 recession, potentially exceeding three million. A significant portion of Americans, particularly younger generations, are living paycheck to paycheck, struggling with financial expenses. Monthly auto loan payments are a major burden for these individuals, alongside other financial hardships. Subprime auto loan delinquencies are also on the rise, indicating growing financial strain. The average price of a new vehicle has reached a record high, further exacerbating the problem. Auto debt in America has surpassed $1.66 trillion, with increasing delinquencies and defaults. Advocacy groups highlight predatory lending practices as contributors to these challenges, pushing prices higher for borrowers.