Bloomberg is sounding the warning bells. Americans are falling behind on their car payments at a faster rate since the last financial crisis in 2009. Worse PRIME customers normally only make up 2% of all repos and have doubled to 4% now. You can argue it’s a combination of pent up Covid 19 demand where people are comfortable now taking on credit. It’s also a continuation of supply chain issues where used and new car inventories decreased during the pandemic. That’s caused a rapid increase in the price of both new and used car prices. CBS News reports that USED CAR price averages have jumped 17% to $32,000. Finally when the FED raises interest rates from 3.25% to 7.50% in NINE months, you have a ticking time bomb. There is now a combination of low inventory, higher prices and the doubled of interest rates.
Some analysts think that the FED rate hikes is doing what was intended–cooling off demand. Other analysts think the current wave of repossessions, combined with all of the announced job layoffs will lead to a lot of financial stress to a group of people who already had limited income.
We’re seeing it now ourselves. Our office has seen a 50% increase in car and truck repossessions over the past two months. Are you facing repossession? We can help. We can stop any future action immediately.
Bankruptcy Can STOP Repossessions
Has your truck been repossessed? We can help. As long as your truck as not been sold at an auction, we can typically get it returned to you in two to four days.
If your car or truck has been repossessed, we can file an emergency chapter 13 bankruptcy case within one day, and we can typically have your vehicle returned within two to four days. Call Busby & Southward today at (713) 974-8099.