Source: The New Yorker Daily (paywall)
With $1.7 trillion in outstanding auto debt and repossession rates matching 2008-2009 peaks, lenders are aggressively reclaiming vehicles. The post-pandemic consumer credit expansion has stalled. Subprime auto lending has expanded, wages have stagnated relative to vehicle prices, and used car costs remain elevated despite the end of the microchip shortage. For manufacturers and dealers, rising repos threaten residual values and demand. For millions of consumers, losing a car often means losing the ability to work.