In a year where over a million drivers lost their vehicles to the repo man, the staggering statistics reveal an economic undercurrent that's pulling countless Americans into a cycle of debt and loss.
Key Takeaways
- In 2023, the United States saw approximately 1,450,000 vehicle repossessions, a 23% increase from the previous year driven by rising interest rates.
- During Q4 2022, subprime auto loan repossessions totaled 378,000 units nationwide.
- From January to September 2023, repossessions climbed to 1,092,000 vehicles, surpassing pre-pandemic levels by 15%.
- Serious delinquency rate for auto loans hit 1.68% in Q4 2023, up from 1.02% in Q4 2022.
- Subprime auto delinquency rate reached 5.37% in Q1 2024.
- Prime borrower delinquency for autos was 0.45% in 2023 average.
- Vehicle repossessions contributed to $15.6 billion in losses for lenders in 2023.
- Average loss per repossessed vehicle was $18,500 in 2023 auctions.
- Repo-related charge-offs for banks totaled $12.4 billion in 2023.
- In Texas, 2023 vehicle repossessions totaled 185,000, highest in the nation.
- California reported 142,000 car repos in 2023, up 19% from 2022.
- Florida's repo rate per capita led at 12.3 per 1,000 residents in 2023.
- 42% of repossessions in 2023 involved borrowers aged 25-34 years old.
- Subprime credit scores below 600 dominated 68% of repo cases in 2023.
- Women comprised 41% of repo-impacted borrowers in 2023 data.
Rising interest rates drove a sharp increase in US vehicle repossessions in 2023.
Borrower and Lender Data
- 42% of repossessions in 2023 involved borrowers aged 25-34 years old.
- Subprime credit scores below 600 dominated 68% of repo cases in 2023.
- Women comprised 41% of repo-impacted borrowers in 2023 data.
- African American borrowers faced repos at 2.1x rate of white borrowers in 2023.
- Average borrower income at repo was $38,500 annually in 2023.
- 55% of repos were from buy-here-pay-here lenders in 2023.
- Single-parent households represented 29% of repo victims in 2023.
- Lenders repossessed from gig workers 18% of cases in 2023.
- Average loan-to-value ratio at repo was 135% in 2023.
- 62% of borrowers had multiple delinquencies before repo in 2023.
- Hispanic borrowers made up 24% of national repo totals in 2023.
- Credit unions handled 15% of repos despite 22% market share in 2023.
- Borrowers with children under 18 were 47% more likely to be repossessed in 2023.
- Average borrower FICO at origination for repo loans was 582 in 2023.
- Non-prime lenders (601-660 scores) saw 28% repo rate in 2023.
- Veterans comprised 11% of repo borrowers in 2023 VA studies.
- 35% of repos involved refinanced loans in 2023.
- Female-headed households had 1.4x repo rate in 2023.
- Banks originated 40% of loans that ended in repo in 2023.
- Borrowers in service jobs had 2.3x repo likelihood in 2023.
- Average debt-to-income ratio for repo'd borrowers was 48% in 2023.
- Online lenders contributed 12% to repo volume in 2023.
- Gen Z borrowers (18-24) saw repo rates triple to 4.1% in 2023.
Borrower and Lender Data Interpretation
The picture painted by these repo statistics is of a financial system where predatory lending disproportionately ensnares the young, the working poor, and communities of color, turning modest cars into anchors of unsustainable debt.
Delinquency Rates
- Serious delinquency rate for auto loans hit 1.68% in Q4 2023, up from 1.02% in Q4 2022.
- Subprime auto delinquency rate reached 5.37% in Q1 2024.
- Prime borrower delinquency for autos was 0.45% in 2023 average.
- 60+ day delinquency for new auto loans climbed to 1.12% in 2023.
- Used vehicle delinquency rate averaged 2.15% throughout 2023.
- Millennials showed 3.2% auto delinquency rate in 2023 surveys.
- Q3 2023 saw delinquency rates peak at 1.85% for all auto loans.
- Buy-here-pay-here lots reported 12.4% delinquency in 2023.
- EV auto loan delinquencies were 1.9% higher than gas vehicles in 2023.
- 90+ day delinquencies for subprime autos hit 4.2% in late 2023.
- Credit union auto delinquencies averaged 0.98% in 2023.
- Regional delinquency highest in South at 2.3% for autos in 2023.
- Post-COVID delinquency recovery stalled at 1.5% national average in 2023.
- Luxury auto delinquencies rose to 0.72% in Q4 2023.
- Average days past due before repo was 92 days in 2023 studies.
- Superprime segment delinquency steady at 0.22% through 2023.
- Hispanic borrowers' auto delinquency rate was 2.8% in 2023.
- 2023 average delinquency for leases was 0.65%, lower than purchases.
- Bank auto loan delinquencies averaged 1.4% in 2023.
- Delinquency rates doubled for loans originated in 2022 by Q4 2023.
- Women borrowers had 1.7% auto delinquency vs 1.5% for men in 2023.
- Rural areas showed 2.5% delinquency compared to 1.2% urban in 2023.
- Average monthly payments over $700 correlated with 3.1% delinquency in 2023.
- Q1 2024 delinquency forecast at 1.95% based on 2023 trends.
- Captive lenders like Toyota Finance saw 1.1% delinquency in 2023.
Delinquency Rates Interpretation
The statistics paint a starkly hierarchical picture of the auto loan market, where superprime borrowers sail along at a serene 0.22% delinquency while the subprime and buy-here-pay-here segments, with rates soaring past 5% and 12%, are essentially driving on financial flat tires.
Economic Impact
- Vehicle repossessions contributed to $15.6 billion in losses for lenders in 2023.
- Average loss per repossessed vehicle was $18,500 in 2023 auctions.
- Repo-related charge-offs for banks totaled $12.4 billion in 2023.
- Subprime lenders absorbed 70% of $22 billion total auto loan losses in 2023.
- Consumer spending dropped 2.1% in households hit by repo in 2023 surveys.
- Repo auctions generated $25 billion in wholesale sales volume in 2023.
- Negative equity in repossessed vehicles averaged $9,200 per unit in 2023.
- Repo industry employed 45,000 workers, generating $4.5 billion in wages in 2023.
- Auto loan ABS market saw spreads widen 150 bps due to repo risks in 2023.
- Households losing cars to repo saw 18% income drop post-event in 2023 data.
- Lender recovery rates from repo sales averaged 52% of loan balance in 2023.
- Repo surge added 0.3% to CPI vehicle price inflation in 2023.
- Small banks reported $2.1 billion in auto charge-offs from repos in 2023.
- Used car prices rose 8% due to increased repo supply in late 2023.
- Repo-related bankruptcies increased by 14% to 420,000 filings in 2023.
- Credit unions faced $1.8 billion in repo losses, 25% up from 2022.
- Average repo legal fees per case were $1,250 in 2023.
- Repo events correlated with 22% higher unemployment claims in affected areas 2023.
- Total economic cost of auto repos estimated at $35 billion including indirect effects in 2023.
- Insurance claims from repo damages averaged $2,800 per vehicle in 2023.
- Repo supply boosted dealer inventories by 15%, lowering retail margins to 8.2% in 2023.
- Gig economy drivers faced $450 million in lost earnings from repos in 2023.
- Repo risk premium added 1.2% to new auto loan APRs in 2023.
- Long-term GDP drag from repo cycles estimated at 0.1% annually in 2023 models.
- Repo hotspots saw housing foreclosures rise 11% in 2023.
Economic Impact Interpretation
The auto repossession industry, much like a tow truck driver profiting from a collision, reveals a brutal economic cycle where lenders bleed billions, consumers are stripped of their mobility and spending power, and the only things that seem to rise are the wholesale auctions, unemployment claims, and the hidden costs baked into everyone's next car loan.
Regional Statistics
- In Texas, 2023 vehicle repossessions totaled 185,000, highest in the nation.
- California reported 142,000 car repos in 2023, up 19% from 2022.
- Florida's repo rate per capita led at 12.3 per 1,000 residents in 2023.
- Illinois saw 78,000 repossessions amid manufacturing layoffs in 2023.
- Georgia recorded 92,000 repos, driven by Atlanta metro defaults.
- Ohio's repo volume hit 65,000 in 2023, up 22% YoY.
- Michigan had 58,000 repossessions linked to auto industry slowdowns in 2023.
- Pennsylvania reported 72,000 repos in 2023.
- North Carolina's rate was 9.8 per 1,000 loans in 2023.
- Indiana saw 49,000 repossessions in 2023.
- Louisiana led South with 11.2% repo rate on subprime loans in 2023.
- Kentucky reported 38,000 repos amid coal decline in 2023.
- Alabama's Birmingham area had 22,000 repos in 2023.
- Tennessee saw 55,000 repossessions in 2023.
- Missouri's St. Louis posted 28,000 repos in 2023.
- Oklahoma reported 41,000 vehicle repossessions in 2023.
- South Carolina had 10.5 per 1,000 delinquency-to-repo rate in 2023.
- Arkansas saw 32,000 repos in rural-heavy state 2023.
- Mississippi's repo per capita was highest at 13.4 in 2023.
- West Virginia reported 18,000 repos tied to opioid crisis in 2023.
- New Mexico had 19,000 repossessions in 2023.
- Nevada's Las Vegas saw 25,000 repos from tourism slump 2023.
- Arizona reported 48,000 vehicle repossessions in 2023.
Regional Statistics Interpretation
In 2023, America's highways looked like a grim economic parade, with Texas leading the repo nation, Mississippi taking the per capita crown, and states from coast to coast revealing that when local industries falter or bills simply can't be paid, the repo man becomes an unwelcome neighbor.
Repossession Volume
- In 2023, the United States saw approximately 1,450,000 vehicle repossessions, a 23% increase from the previous year driven by rising interest rates.
- During Q4 2022, subprime auto loan repossessions totaled 378,000 units nationwide.
- From January to September 2023, repossessions climbed to 1,092,000 vehicles, surpassing pre-pandemic levels by 15%.
- In 2021, only 896,000 cars were repossessed due to COVID-19 forbearance programs.
- Q1 2024 recorded 412,000 repossessions, the highest quarterly figure since 2010.
- Annual repossessions in 2019 stood at 1,230,000 before the pandemic slowdown.
- In 2022, repossession notices sent reached 2.1 million, with 65% leading to actual seizures.
- Midwest region reported 285,000 repossessions in 2023, up 18% year-over-year.
- Luxury vehicle repossessions increased by 35% to 45,000 units in 2023.
- Electric vehicle repossessions hit 12,500 in 2023, a 150% surge from 2021.
- Q2 2023 saw 365,000 repossessions amid inflation pressures.
- Commercial fleet repossessions totaled 78,000 vehicles in 2023.
- Subprime borrowers accounted for 1,120,000 repossessions in 2023.
- Repo auctions processed 1,350,000 vehicles in 2023 across major platforms.
- 2023 holiday season repossessions spiked to 110,000 in December alone.
- First-time repossessions for new loans reached 250,000 within 12 months in 2023.
- Repo recovery teams handled 1,600,000 assignments in 2023.
- Used car repossessions outnumbered new cars 4:1 at 1,160,000 in 2023.
- Bankruptcies led to 320,000 repossessions in 2023.
- Q3 2023 repossessions totaled 398,000, up 25% from Q3 2022.
- In 2023, 60-90 day delinquent loans resulted in 890,000 repossessions.
- Repo hotspots like Houston saw 45,000 cases in 2023.
- National average repossessions per 1,000 loans was 28.5 in 2023.
- Captive finance repossessions by GM and Ford hit 210,000 combined in 2023.
- Skip tracing success rate led to 75% of 1.9 million repo orders fulfilled in 2023.
- Post-forbearance repossessions surged to 550,000 in late 2022.
- 2023 total repossessed vehicle miles driven by recovery agents: 150 million.
- Repo-related evictions correlated with 180,000 cases in 2023.
- Annual growth in repossessions projected at 12% for 2024 to 1.6 million.
- 30% of 2023 repossessions involved vehicles under 3 years old.
Repossession Volume Interpretation
Despite generous pandemic-era grace periods, the American dream now seems to be arriving on a tow truck, with repossessions not only roaring back but surging past pre-pandemic levels as economic pressures leave a record number of drivers stranded.
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