They're Coming to Take Your Car

With the housing market as bad as it has been, it is no wonder that the auto loan industry is feeling the pinch as well. As people get behind in their bills, it is only natural that auto loan payments would come right behind mortgages. For those that choose not to pay their auto loans, or are unable to, unfortunately they won’t have their cars for long.

The “repo man” as they are most commonly referred to, is a person who comes and takes your car for failure to pay your auto loan. It doesn’t matter where you are, or what your situation is, the holder of your auto loan will call them and they will come take your car back – as simple as that.

However, with things being as bad as they are, those in the industry say that the number of cars that they have had to repossess over the past few months has grown drastically. They say that the banks have been calling more often on people who have defaulted on their car loans.

They say that they are much busier than they were a year ago, before car loans and mortgages got so far behind for so many people. According to the American Bankers Association, 2.86% of auto loans are now in delinquency status, which is a 16 year high for the industry. They say that with auto loan delinquencies continuing to increase, and the number of autos being repossessed increasing, things are going to continue to get worse for the industry as a whole.





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