GITNUX MARKETDATA REPORT 2024

Repossession Credit Impact Duration Statistics

The impact of a repossession on credit scores can last up to seven years.

With sources from: autocreditexpress.com, debt.org, experian.com, creditcardinsider.com and many more

Statistic 1

Repossession can lower your credit score by 100 points or more.

Statistic 2

Repossession stays on your credit report for 7 years from the date of the first missed payment.

Statistic 3

It takes around 3 months of missed payments before the lender considers repossession.

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A repossession could prevent you from getting other loans for up to 5 years.

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More than 75% lenders wouldn’t approve a personal loan after a repossession.

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The percentage of auto loans that end in repossession is approximately 2.71%.

Statistic 7

After 1-18 months of on-time payments, you may qualify for an unsecured card after a repossession.

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The immediate impact of repossession is often a drop in credit score by 60-240 points.

Statistic 9

Approximately 1 in 5 auto title loans lead to a car being repossessed.

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Subprime auto borrowers are estimated to have a 10-25% chance of getting into a repossession.

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Approximately 33% of all repossessed cars are sold at auction.

Statistic 12

Nearly 50% of all repossessed cars were owned by people under the age of 30.

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Over 25% of repossessions in 2017 were from auto title loans.

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Collections arising from a car repossession can worsen credit impact by another 75 points.

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Half of the applicants were rejected for car finance due to a past vehicle repossession.

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Among “deep subprime” borrowers with credit scores below 550, auto loan delinquency rates are close to 30%, heightening repossession risks.

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In this post, we will explore the significant impact of vehicle repossession on credit scores and financial prospects. With a collection of eye-opening statistics, we highlight the duration, consequences, and prevalence of repossession in the realm of personal finance. Understanding these key data points can provide valuable insights for individuals navigating the complexities of credit management and loan acquisition.

Statistic 1

"Repossession can lower your credit score by 100 points or more."

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Statistic 2

"Repossession stays on your credit report for 7 years from the date of the first missed payment."

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Statistic 3

"It takes around 3 months of missed payments before the lender considers repossession."

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Statistic 4

"A repossession could prevent you from getting other loans for up to 5 years."

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Statistic 5

"More than 75% lenders wouldn’t approve a personal loan after a repossession."

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Statistic 6

"The percentage of auto loans that end in repossession is approximately 2.71%."

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Statistic 7

"After 1-18 months of on-time payments, you may qualify for an unsecured card after a repossession."

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Statistic 8

"The immediate impact of repossession is often a drop in credit score by 60-240 points."

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Statistic 9

"Approximately 1 in 5 auto title loans lead to a car being repossessed."

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Statistic 10

"Subprime auto borrowers are estimated to have a 10-25% chance of getting into a repossession."

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Statistic 11

"Approximately 33% of all repossessed cars are sold at auction."

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Statistic 12

"Nearly 50% of all repossessed cars were owned by people under the age of 30."

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Statistic 13

"Over 25% of repossessions in 2017 were from auto title loans."

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Statistic 14

"Collections arising from a car repossession can worsen credit impact by another 75 points."

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Statistic 15

"Half of the applicants were rejected for car finance due to a past vehicle repossession."

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Statistic 16

"Among “deep subprime” borrowers with credit scores below 550, auto loan delinquency rates are close to 30%, heightening repossession risks."

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Interpretation

Repossession of a vehicle can have severe and long-lasting consequences on an individual's credit score and financial future. The statistics presented highlight the significant impact of repossession, including credit score drops of 100 points or more, a seven-year presence on credit reports, hindered loan approvals for up to five years, and limited access to personal loans. With repossession rates for auto loans around 2.71%, and nearly 1 in 5 auto title loans resulting in repossession, it is clear that the risks are substantial, especially for subprime borrowers. The data also indicates that repossession disproportionately affects younger individuals and can lead to further credit deterioration through collections. It is crucial for individuals to be aware of these risks and consequences to make informed financial decisions and mitigate potential future hardships.

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