Car repossessions peaked across the US at 1.9 million in 2009; but these numbers have since fallen by .6 million.
The change, experts believe, is due to a couple of factors:
1. Car owners are recovering economically. Perhaps they've gotten jobs they couldn't get in 2009, or make more money now than when the recession was at its worst.
2. Perhaps more importantly, car owners are more thrifty. Drivers aren't investing at the same rate in expensive cars. There are less newer models and leased cars on the road now than before the recession. In fact, the average age of vehicles on the road has stayed steady at around 11 years since 2010.
People are also looking to used cars - even trading in their newer, expensive cars for older cars they can safely afford.
3. Car loan companies are scaling back. Some lenders, concerned about the way credit checking was done leading up to the recession, are being more careful about whom they lend to and how. So some people are finding it harder to buy an expensive car in the first place.
These changes are hurting the auto repossession industry, which was making a lot of money off the recession. The repo industry thrives when America's car owners struggle with unemployment, lost real estate value, and medical debt.
As a bankruptcy lawyer in Kansas City, I haven't seen car repossessions fall as much as the numbers might lead you to believe. People still come into my office all the time to stop repossession in Kansas City and get on the right track.
If you're facing repossession, contact our KC bankruptcy lawyers today. Don't wait: it's completely avoidable if you just get the help you need, and the conversation is free.