Repos Are Expolding As Car Payments Go Through The Roof
The number of people defaulting on their auto loans is rising quickly and industry observers on are high alert because of it. Not only is the number of repossessions on subprime loans doubling, the rate of repos on prime loans has also reportedly risen twofold since 2020.
That’s a huge red flag, reports Barron’s, who spoke to dealer Lucky Lopez. He says that most of the repossessed vehicles he is seeing go to auction had loans that originated in 2020 and 2021. Normally, he reports, the loans are scattered across many years, since people fall on hard times at different moments in their lives.