Free Republic

LAS VEGAS (KSNV) — A perfect economic storm of inflation, soaring gas prices and the unintended consequences of the federal pandemic relief programs is closing in on many car owners. “We’re talking, on average, 15,000 repos a day nationwide,” said Mark Zane, owner of a repossession company and president of the Nevada Association of Licensed Repossessors. Zane says repossessions were all but non-existent during the pandemic because banks were working with car owners to defer payments or help them get caught up. Those days are ending, however, and banks are taking the necessary steps to start the repossession process on...

From dealers to lenders to tow truck operators, reports have poured in this month about a disturbing trend of rising car and truck repossessions. Lisa Beilfuss Popeo, who covers the economy for Barron's, recently reported that vehicle repossessions have doubled among “prime” borrowers, which includes consumers with good credit scores. "One red flag is the rate of repossession for prime borrowers is starting to rise. It's not just subprime borrowers that are having problems," Popeo told CBS News. The reason for the sharp increase in repossessions is not exactly clear. Some point to a bubble in the car market that...

The jobs report and minutes from the Federal Reserve’s June meeting were the economic highlights of the week, but they are, respectively, a lagging indicator and old news. This column instead digs into the auto market, where there is an underappreciated ticking time bomb. Lucky Lopez is a car dealer who has been in the business for about 20 years. In recent meetings with bankers, where he bids on repossessed vehicles before they go to auction, he has noticed some common characteristics of the defaulted loans. Most of the loans on recently repossessed cars originated during 2020 and 2021, whereas...

The jobs report and minutes from the Federal Reserve’s June meeting were the economic highlights of the week, but they are, respectively, a lagging indicator and old news. This column instead digs into the auto market, where there is an underappreciated ticking time bomb. Lucky Lopez is a car dealer who has been in the business for about 20 years. In recent meetings with bankers, where he bids on repossessed vehicles before they go to auction, he has noticed some common characteristics of the defaulted loans. Most of the loans on recently repossessed cars originated during 2020 and 2021, whereas...