Americans are struggling with a spike in car trouble that has nothing to do with their carburetors or brake pads. According to a July 2024 Cox Automotive report, car repossessions are up 23% compared to last year, which is also 14% higher than the 2019 pre-pandemic levels.
Repossessions occur when you fall behind on your car payments, usually by two to three months. The car market has faced its fair share of challenges this year with prices slipping at the start of the year to a widespread cyber attack in June. Recently, there have been positive signs for used car dealers, as wholesale used-vehicle prices increased 1.8% in the beginning of June, a modest growth. According to data from Edmunds, an online source for automotive information, the June 2024 APR for used and new vehicles was 7.3% and 11.5% respectively.
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