Repo Man: Back In Action!
SECOND QUARTER REPOSSESSIONS SURGE 70 PERCENT …
Repossessions of automobiles are on the rise in America as more people struggle to make their car payments. Now … is that due to the ongoing sluggishness of the “recovery?” Or is it good news (i.e. more people are buying cars)?
Eh … it’s a little of both.
“The number of delinquencies and repossessions rising is what we would expect as the auto industry sells more vehicles,” a representative of Experian told NBC. “But this slight uptick is one to keep an eye on.”
“Slight uptick?” Experian’s own data reveals a 70.2 percent year-to-year increase in repossessions during the second quarter of 2014. That’s hardly what we would refer to as a “slight uptick.” It also fuels concern that there is a new subprime loan bubble about to pop …
The average American auto loan is currently a five-and-a-half year process – with monthly payments averaging around $474. The longer-term loans have been used to reduce monthly payments – leading to more sales.
Sound familiar? It should … it’s exactly the sort of shady financing that led to the last financial crisis.