Americans are facing a surge in car repossessions, unrelated to mechanical issues but tied to financial troubles. A Cox Automotive report from July 2024 highlights that repossessions have jumped 23% compared to last year and are 14% higher than pre-pandemic levels in 2019. Repossession typically occurs when car payments are overdue by two to three months.
The car market has had a tumultuous year, with early-year price drops and a major cyber attack in June. However, used car dealers saw a 1.8% rise in wholesale prices in early June. Data from Edmunds showed that the annual percentage rate (APR) for used and new vehicles in June 2024 was 7.3% and 11.5%, respectively.
High car loan interest rates are partly to blame for the increase in delinquencies. Strategies to avoid auto loan delinquency include maintaining communication with your lender, exploring refinancing options, and even selling the car to pay down the debt.
For those seeking car loans with less-than-perfect credit, platforms like MyAutoLoan offer an opportunity to compare rates without affecting credit scores through soft credit checks. MyAutoLoan provides up to four pre-qualified loan offers with APRs starting at 5.01% and requires a minimum FICO score of 575.
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