Car Repossessions Are Expected To Hit 3 Million This Year

Car repossessions in the United States are expected to reach or surpass 3 million in 2025, marking one of the highest levels seen since the Great Recession. This surge highlights severe financial stress among consumers and indicates an accelerating rate of auto loan delinquencies across both subprime and prime borrowers.​​

The Numbers Behind the Surge

• By November 2025, more than 2.2 million vehicles had already been repossessed, with projections suggesting the final tally will cross 3 million by year-end.​​

• This figure is nearly on par with 2009’s peak (about 3.2 million), making 2025 the worst year for repossessions in over a decade.​

• The surge is being driven not just by assignments (permissions to recover vehicles) but also actual retrievals, with 10.5 million repossession assignments forecasted for the year—although only about 3 million cars will actually be taken back by banks.​

Key Contributing Factors

• Rising car prices have led to higher monthly payments, many now averaging $700–$1,000 per month.​

• Interest rates have doubled since pre-pandemic years, and insurance costs are also climbing.​

• Delinquencies have hit historic highs, with 6.43% of subprime auto loans at least 60 days past due as of August 2025.​

• Many Americans are facing stagnant wages and increased debt loads, making auto payments unsustainable.​

Context and Implications

• The spike in repossessions is not limited to subprime borrowers; prime customers with good credit are also at risk.​

• Lenders are less lenient, with fewer opportunities for borrowers to reinstate their loans once they fall behind.​

• The current car repossession trends are viewed as a warning sign of broader economic trouble, indicating that consumer financial health is deteriorating.​

This dramatic increase underscores serious challenges facing both households and the auto finance industry for the remainder of 2025.​​