GITNUX MARKETDATA REPORT 2024

Repossession Duration On Credit Report Statistics

The average duration of a repossession on a credit report is typically seven years.

Last Updated: June 17, 2024

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In this post, we will explore various statistics related to auto repossession and its impact on credit reports in the United States. From the duration of repossession stays on credit reports to the likelihood of defaulting on subprime auto loans, we will delve into the numbers that shed light on this financial aspect of many Americans’ lives.

Statistic 1

"The typical repossession stays on a credit report for seven years from the original delinquency date,"

Statistic 2

"The impact of repossession on your credit score can diminish over time,"

Statistic 3

"Almost 1 in 5 subprime auto loan borrows default,"

Statistic 4

"Late payments prior to repossession can remain on your credit report for 7 years,"

Statistic 5

"Debt collectors may contact you to recover a deficiency balance after repossession,"

Statistic 6

"More than 2 million people in the US suffer auto repossession each year,"

Statistic 7

"Voluntary repossession and involuntary repossession equally negatively affect a credit score,"

Statistic 8

"It takes an average of five months of no payments for banks to initiate a repossession,"

Statistic 9

"Auto repossessions peaked in the US in 2009, with over 1.9 million vehicles repossessed,"

Statistic 10

"0.45% of all auto loans ended in repossession in 2018,"

Statistic 11

"Repossessions can result in your credit score dropping anywhere between 30 and 150 points,"

Statistic 12

"In 2016, over 6 million US consumers were at least 90 days late on their car loan repayment,"

Statistic 13

"The car repossession process can begin after only a few missed payments, usually within 3-6 months,"

Statistic 14

"Almost 4% of auto loans were at least 90 days late in Q3 2019, leading to potential repossession,"

Statistic 15

"Repossession cannot happen until you are at least 60-90 days late on your payment, depending on state laws,"

Statistic 16

"Once your car has been repossessed, it is typically sold at auction and the money applied to your debt,"

Statistic 17

"For those paying 2 months late, the risk of repossession increases by 20%,"

Statistic 18

"Approximately 1 in 4 subprime auto loans result in car repossession,"

In summary, auto repossession has significant implications for individuals’ credit reports and scores, with repossession typically lasting seven years and potentially resulting in a substantial drop in credit score. The statistics reveal a concerning prevalence of car repossession in the US, impacting millions of individuals each year. Late payments, defaults, and subprime auto loans are key factors contributing to repossession, underscoring the importance of timely loan repayment. Additionally, the repossession process can initiate relatively quickly after missed payments, emphasizing the need for proactive financial management to avoid such consequences.

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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