Auto Loan Delinquency Rates: What’s the Current Status?
COVID Relief brought stimulus money to people across the US. For some, it was a much-needed respite. It kept food on the table, the lights on, and roofs over heads. For many, those funds have ceased.
Our economy has hit a bit of a rough patch too. Inflation has brought rising prices, which means Americans find themselves with increasing debt. The dollar isn’t stretching as far as it once did, stressing household budgets. In some cases, people find themselves defaulting on payments. It can be worrisome without a lending partner like Bay Motor Finance to help you navigate this news and the ins and outs of dealer-assisted financing.
Although repossessions are on the rise, there is no repo crisis at hand. Industry insiders reported that in 2019, auto loan delinquency data hovered around 1.7 million total cars repossessed. In 2020 and 2021, rates dropped to industry lows. More assistance programs and stimulus packages were available to keep auto delinquencies (and housing foreclosures) from hitting crisis levels. Yet, we now see predictions that repossession rates will return to pre-pandemic levels. In our industry, we consider those “normal numbers.”
Falling behind on payments of any kind is never good. That’s especially true with auto loans. People need their cars to get to work and put food on the table. That’s why most car owners feel a sense of commitment to keep up with their payments. So although we are experiencing an increase, these are nowhere near historical levels. Nowhere near the Great Recession. Yet as with all numbers and data trends, it’s our job to keep an eye on them and then pass on that information to you.
Bay Motor Finance wants our clients and dealership partners to know we take auto loan delinquencies seriously. Our team is always looking for ways to improve our processes to ensure we provide the best client service possible. We comb through every file by hand, crunch the numbers ourselves, and ensure your qualified customers receive the streamlined financing to purchase the car they deserve.
We are committed to being your preferred dealer partner––always. Our mission continues: to provide vehicle financing within Maryland and Delaware to franchises and independent dealers who help their customers secure near-prime and sub-prime credit. If you have questions, please get in touch. We are the one-stop shop for all your vehicle financing needs.
We are here for you.
We are here for your customers.
We are Bay Motor Finance.
