Auto repossession is on the rise again, and it’s becoming a real issue. Small dealerships are struggling, with many going bankrupt, and the situation could get worse in 2025. Repossessions are spiking, though detailed data is hard to come by, especially since the last available numbers are from December 2022. The Consumer Financial Protection Bureau (CFPB) reported a 22.5% increase in repossession assignments compared to pre-pandemic levels. The banks are starting to sell these repossessed cars at auctions, typically around February or March, as the tax season kicks in. It’s a messy situation for both car buyers and dealers.
1. Auto repossessions are rising. However, the repo. data is not available after December 2022. The CFPB cites that the voluntary surrender of cars have decreased, and the repos. are spiking, again. Due to the lack of data, we are constantly speaking with dealers, auction houses…
— Unicus (@UnicusResearch) January 27, 2025
12. The CFPB estimates that the repos. must have spiked in 2023 and 2024. Our multiple dealership and auto industry sources shared with us that there has been a spike in repos. in 2024 and more repos. are expected in 2025. pic.twitter.com/AbdDVhSHX4
— Unicus (@UnicusResearch) January 27, 2025
Google Searches for "give back car" making all time highs pic.twitter.com/haWZbE2yXw
— Darth Powell (@VladTheInflator) January 27, 2025