SHARE

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.