Car Repossessions Are On The Rise Amidst Strained Consumer Wallets
An unfortunate trend for car buyers is the inability to make their payments. While recently car prices have started to drop, over the past 2 years car prices have been at all-time highs and those who bought at these prices are now facing an unprecedented inflation rate that has made everyday necessities also at an elevated price.
This rise in inflation has caused car repossessions to skyrocket amid a strained period of time where consumers haven’t been able to fork up enough cash to pay their car payments, which as previously stated, were already above the usual price. While car repossessions had previously dropped greatly towards the start of the pandemic, as a result of stimulus checks which created a false sense of security for many buyers. Many industry experts are not optimistic about what the upcoming year holds for consumers, as currently, the rate of loan defaults is exceeding where we were in 2019 according to a recent Fitch report. This paired with the fact that many consumers are going past their budget to not only afford a car; but owning a car has also gotten more expensive through the likes of insurance, gas, and repairs costing more than they ever have before.
Where Do Repo Companies Currently Sit?
Did You Know That In 2022 30% of Repo Agencies Shut Down Due To a Lack of Business & Profits? That is right… a major chunk of the industry shrunk as a result of the influxes of cash the government injected into the United States economy, eliminating the usual/natural demand for repo agencies across the country. However, the tides have now turned and the industry is being hit hard by the demand, as the president of International Recovery Systems in Pennsylvania said he “can’t find enough repo men to meet the demand or space to hold all the cars his company has been tasked with repossessing”.
While it remains to be seen, if the economy falters like many are predicting in in 2023, the demand facing the tow truck drivers and repo companies across the country will only rise with many car buyers presumably falling behind on their car payments. The importance of associations like the Towing and Recovery Association cannot be overstated in times like these when their trades become key to the success of many, including BHPH Auto Dealers.
BHPH Auto Dealers Should Take Caution with Reliable GPS Tracking
For BHPH Dealers across the United States, being proactive rather than reactive to an ever-so-volatile economic climate by protecting their auto-lending collateral from lapses in payments. Dealers need to keep in mind there will always be a market for cars, and for consumers, there is unlikely to be any relief over the next year. Between continuing to escalate interest rates and inflation levels staying above average, there is no need for dealers to risk not being able to recover an asset after failed payments.
iGotcha GPS has empowered those in the BHPH landscape for 17 years, providing swift and reliable vehicle tracking software. The award-winning application that many dealers have trusted for years will assist in all facets of your dealership’s needs. Mitigate risk, reduce delinquency, and improve lot management through our advanced technology. Ensure your team can work to recover collateral with ease with the simplistic ‘Locate on Demand’ button. Knowing where your assets are when you need to locate them is key, do not frustrate your valued repo company, get ability to quickly make time and money-saving decisions.
Protect Your Auto Collateral With iGotcha GPS & Let 2023 Be Your Best Year Yet
Drive your dealership with confidence and make sure you never have to write an asset off again! While the current economic state may come with some uncertainty, do not leave any uncertainty on the table when it comes to protecting your collateral. With iGotcha GPS, our eye is your peace of mind, contact a member of our team by clicking the button below to learn how our solutions can propel your business forward.
