Repossession in Auto Finance

Auto loan balances reached over $1.64 trillion in 2024, making auto finance one of the largest sources of consumer credit outside of mortgages. Yet, despite its scale, detailed data on repossession trends has been scarce, until now. The CFPB’s recent report highlights some unsettling shifts: repossession assignments surged past pre-pandemic levels in 2022, and the use of third-party repossession services has doubled since 2018, leading to higher costs for consumers. As vehicle prices fluctuate post-pandemic, these repossession trends shed light on growing financial risks for borrowers.