High interest rates and tight budgets are making monthly bills unaffordable for a growing number of vehicle owners.
Car repossessions rocketed higher in the first half of the year, a sign of rising consumer distress as the US Federal Reserve weighs interest rate cuts.
So far in 2024, repos are up 23% compared with the same period last year, according to data from Cox Automotive. With high interest rates and inflation hitting household budgets, the spike in seizures provides a window into the average consumer’s financial health at a key time for policymakers. Repos started ticking up last year and have now surpassed pre-pandemic levels, up 14% compared to the first half of 2019.