On January 23, the CFPB published a report titled, “Repossession in Auto Finance,” which discussed auto loan repossession trends, drawing on data from a pilot program that started in February 2023. The report revealed outstanding auto loan balances exceeded $1.64 trillion by the third quarter of 2024, with repossession assignments increasing to 0.75 percent for all outstanding loans by December 2022, which represented a 22.5 percent rise from December 2019 levels. Despite this increase in assignments, the completion rate of repossessions dropped from 38 percent in 2019 to 27 percent in 2022. Furthermore, the average deficiency balance — what consumers owed after their repossessed vehicle is sold — fell during the pandemic due to rising used car prices but increased again in 2022, surpassing pre-pandemic levels. Finally, consumers were more likely to make payments sufficient to regain possession of their vehicle in 2021, after a repossession had occurred, than consumers did pre-pandemic; however, that level fell throughout 2022 as used car values declined. The report emphasized the limited availability of detailed repossession data and the importance of understanding patterns to assess consumer risks more effectively. It also noted the potential consumer and lender risks associated with the increased use of repossession forwarders, which were the third-parties who provide repossession and recovery management services.
