As lenders are getting more flexible with auto loan terms and approving more sub-prime auto loans, repossession rates are surprisingly dropping.
According to Experian Automotive, the repossession rate in the fourth quarter of last year dropped 28 percent. Though there was a slight increase in delinquencies during that same time, this statistic shows that car buyers are making their payments on time, even if they had subpar credit or no credit prior to getting the auto loan.
Hopefully the repossession rate will continue to drop. Many people with challenged credit are in need of another chance to rebuild their credit history, and one of the best ways to re-establish credit is with an auto loan. When lenders see that consumers are less likely to fall behind on their payments and go through repossession, they will be more willing to take a chance on someone with challenged credit.
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Nice article here, thanks! It’s nice to see that repossessions are down 28% last year, however delinquencies were up!? Delinquencies are a nuisance to the lending industry and they cannot be minimized. People can call it what they want, but it will never replace the truth which is a lot of consumers simply don’t see the importance of honoring a contract! In other words, paying their car payment when they initially agreed to pay their payment. I obviously understand that there are always exceptions, but that’s not what’s plaguing the system, it’s the lazy consumer that wants to spend their money elsewhere and never figured out how to live within their means. Stiffer consequences, otherwise the problem is here to stay. Thanks for being here. This is some other info I found useful: http://creditletters.eu.pn/help-my-car-was-repoed/