Car Debt
The Car Repossession Numbers Are Screaming a Warning Most People Are Ignoring. During the 2008–2009 Global Financial Crisis, about 1.7 million vehicles were repossessed in a year. That was considered catastrophic. Today, auto repossessions are already back at — and in some measures above — pre-GFC levels, and they’re still rising. This isn’t a prediction. It’s already happening. What changed? During the COVID years, car prices exploded. Supply chains broke. Stimulus checks hit bank accounts. Interest rates were near zero. People didn’t buy cars. They overpaid for them. Used car prices jumped over 40% at the peak. New cars stretched into 72- and 84-month loans. Monthly payments quietly crept toward $700+ for the average new vehicle. And here’s the trap most people fell into: Cars depreciate. Debt doesn’t. Millions of borrowers who took out loans in 2021–2023 are now underwater — owing more than their car is worth. That’s the danger zone. Once a borrower is underwater: • Refinancing is i...
