Nearing Historical Highs
There is a rising trend of people having their cars repossessed. According to industry research firm Cox Automotive, an estimated 1.73 million vehicles were repossessed last year – the highest repossession rate since 2009, as reported in the Wall Street Journal. Why is this happening? It turns out, there are many contributing factors.
High Payments & High Prices
For many Americans, cars are a necessity for everyday life. As car prices surge and incentives disappear, this leads many people into sizable loans with high interest rates. Data from Experian in June 2025 says the average monthly auto loan payment has risen to $682, a 28% increase over just 5 years.
Source: Experian Q2 Data
The increased payments closely follow the price. Pandemic era supply chain issues lowered the supply of available vehicles, which drove up the demand and therefore the price. While the supply chain issues have recovered to some extent since the pandemic, other factors like tariffs and automotive companies wanting to recuperate profits have caused car prices to stay inflated or even continue to rise. There’s little sign of relief on the horizon.
Financial Wellbeing after the Pandemic
While Americans are no strangers to rising prices, there are other complicating factors especially for younger borrowers. Notably, student loans came due again starting on September 1, 2023 after a three and a half year hiatus due to the COVID-19 forbearance from the Department of Education.
Considering that 1 in 4 Americans have student loan debt, according to the Pew Research Center, resuming another payment after not making it for years threw a wrench into a lot of people’s financial wellbeing. Additionally, the financial support of the pandemic stimulus and higher unemployment payouts were no longer available.
Millennials and Gen Z typically rely on credit cards more than previous generations, and with higher usage, more people have mounting consumer debt, which impacts their credit score and interest rates when buying cars. Unable to keep up, delinquencies are on especially on the rise among the younger generations.
Across all generations, the amount of people with credit scores below 670, otherwise known as subprime borrowers, who are at least 60 days late on their car loans has doubled since 2021, according to Fitch Ratings.
What does this mean for repossessors?
Repossessors, whether new to the business or already established, have an opportunity to scale during this season like never before. And the good news is you don’t need six figures to invest in the right equipment for the job. A tool like the Minute Man XD Slide-In Wheel Lift enables you to quickly transform a medium duty pickup into a high-speed repo vehicle. This high-quality, proven product is perfect for repossession, road side service, auto club towing, and municipal towing.
Learn more about how to start your own repossession business on our blog, where we highlight the 9 steps to starting your own repo business.
