GITNUX MARKETDATA REPORT 2024

Missed Payment-To-Repossession Statistics

The rate of missed payments leading to repossession is typically between 30-40%.

Last Updated: June 20, 2024

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In this post, we will explore a series of startling statistics related to missed payments and repossession in the auto loan industry. From the high default rates among subprime borrowers to the average time frame before repossession kicks in, these numbers shed light on the challenges faced by many Americans when it comes to auto loan finances. Let’s delve into the numbers and gain a deeper understanding of this critical issue.

Statistic 1

"Nearly 1 in 4 borrowers in subprime auto loans default."

Statistic 2

"On average, it takes 70 days from the last payment before a repossession is initiated."

Statistic 3

"2 million Americans with auto loans were more than 90 days late on their payments in the middle of 2019."

Statistic 4

"30 percent of auto loan defaults end in repossession."

Statistic 5

"About 6% of subprime auto loan borrowers experienced repossession from 2014 to 2018."

Statistic 6

"The overall repossession rate for the auto industry was 2.75% in 2019."

Statistic 7

"Approximately 34% of auto loans default within the first three years."

Statistic 8

"Auto loan delinquencies above 90 days rose from 2.32% in 2012 to 4.64% in 2019."

Statistic 9

"During the 2008 recession, the repossession rate was 3% and it dropped to 2.13% in 2011."

Statistic 10

"266,000 cars were marked for repossession in 2019 alone."

Statistic 11

"More than 10% of subprime auto loans are delinquent by 90 days or more."

Statistic 12

"Auto loan term lengths averaged 69.28 months in 2020, driving up the risk of a missed payment."

Statistic 13

"In 2021, subprime new vehicle loan defaults stood at 6.45%."

Statistic 14

"According to the Federal Reserve, the total outstanding auto loan debt has reached $1.36 trillion in the U.S. by 2021."

Statistic 15

"35% of repossession auctions sell for outstanding auto loan or lease balances."

Statistic 16

"The average monthly car payment in the U.S was $563 for new vehicles, $397 for used vehicles, and $450 for leased vehicles in 2020."

Statistic 17

"Approximately 4% of auto loans are currently delinquent."

Statistic 18

"Lenders repossessed more than 1.8 million vehicles in the United States in 2017."

Statistic 19

"The car repossession process usually starts 1 to 3 months after the first missed payment."

In conclusion, the statistics surrounding missed payments and repossession in the auto loan industry highlight a concerning trend of financial hardship for many borrowers. The high default rates, increasing delinquencies, and substantial number of repossessions indicate a widespread issue that impacts millions of Americans. The data underlines the importance of responsible borrowing practices, thorough financial planning, and timely payment management to avoid the detrimental consequences of repossession. As auto loan debt continues to rise, it is crucial for individuals to be vigilant in managing their finances to prevent falling into delinquency and facing repossession of their vehicles.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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