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“I’ve never seen this many expensive car repos in my life.”
Robb, the car repo expert, is visibly taken aback as he walks through the Bank of America repo lot. He (@robbthecarguy) is astounded by the sheer number of high-end, expensive new cars that populate the lot.
I’ll cover what Robb finds in his TikTok clip and then reveal new information on what’s going on with financed cars now and what new car shoppers need to know.
First, picture Robb, who knows about the repossession business because he buys these cars from Bank of America to resell to his customers. He cannot believe what he sees as he checks out the vehicles.
Robb says, “I’ve never seen this many repos in my life. I come to Austin every week, and I’ve always said the car economy is doing good, but now, for the first time, I’m not going to lie; it’s bad. I’m in the Bank of America repo lot.”
He looks at least three new Chevrolet Corvettes, a BMW i8 sports car, a BMW M6 coupe, a new Chevrolet Silverado pickup, and then comes to a new Chevrolet Tahoe, all expensive, high-end vehicles.
He can’t believe his eyes.
“Bank of America is a top finance company that only works with franchise dealers. Look at the level of repossessions that are sitting here. Here’s a brand new 2024 Chevrolet Tahoe with only 27,000 miles. The inside still smells new; it’s mint; it’s in mint condition, he says, shaking his head in disbelief.”
High-income earners are walking away from their cars.
“This is Bank of America, and to qualify for these new car loans, you must make six figures,” he says. “These people are getting their cars reposed, and they don’t even care about their credit.”
“Here is another one, a 2025 Honda Accord with only 2,500 miles. They just gave up; they gave up; this is a repossession. They didn’t even make their first payment.”
“Here is another Corvette. This is a brand-new Chevrolet Corvette. It has 6,000 miles; they didn’t even get a chance to enjoy it.”
Next, Robb looks at a $150,000 BMW i8 sports car.
“Look at this BMW i8 sports car. These are high-dollar earners; look at this. The economy is tanking.”
A sense of worry creeps into Robb’s voice as he contemplates the state of the auto industry. Business is getting worse, and it’s a cause for concern.
“For the first time, I’m worried about the auto industry. I’ve been contemplating the economy for a long time. Business is getting worse.”
“Cars have now priced themselves out of the market.”
“If you get a 2010 Toyota Corolla, it will resell for about $8,000 or $9,000. That’s astronomically expensive for a 15-year-old car. I’m seeing 2002 -2006 Hondas selling for $5,000. Things are just crazy right now. ”
“I don’t know how our car dealer will stay in business.”
Have new car prices priced themselves out of the market, like Robb says?
1 In 5 New-Vehicle Loans Are 84-Month
According to a report from Automotive News, one-fifth of all new-vehicle borrowers during the first quarter took out 84-month loans, an all-time record, according to Edmunds data.
The report says 20% of borrowers took out 84-month loans in the first quarter of 2025. “That’s car loan debt, which theoretically won’t be repaid until the first quarter of 2032.”
In perspective, in 2019, only 13 percent of borrowers agreed to an 84-month term (which, in theory, would see them paid off at the beginning of next year).
“The auto finance market showed signs of steadiness in Quarter one of 2025, but that stability doesn’t mean affordability has improved,” Jessica Caldwell, Edmunds’ head of insights, said on April 3.
“When 1 in 5 new-car buyers take on seven-year loans, it’s clear how many consumers are still financially stretched. Even with relatively flat rates, the continued reliance on extended terms and high monthly payments reveals how challenging car buying remains.”
Used cars are not exempt from high prices.
Robb says a 2010 Toyota Corolla will resell for about $8,000 or $9,000. That’s astronomically expensive for a 15-year-old car.
Edmunds says “a growing number” of customers have also chosen 84-month loans to finance used vehicles.
In the first quarter of 2019, only 5.3 percent of used-vehicle loans ran for 84 months. That share rose to 10 percent in the first quarter of 2024 and 12 percent in the first quarter of 2025.
“I don’t like going 84 months,” Michael Cummings, vice president at Cummings Automotive and the general manager for its I-10 Toyota dealership in Indio, Calif., told Automotive News.
Are Car Repossessions On the Rise?
Car repossessions are on the rise, according to data from Cox Automotive. There has been a 23% increase in car repossessions compared to the same period last year, and they are also 14% higher than pre-pandemic levels. This surge is attributed to factors like rising interest rates, inflation, and consumers struggling to keep up with car payments.
Here’s a more detailed look:
- Increased Repossession Assignments: The Consumer Financial Protection Bureau (CFPB) has noted that vehicle repossession assignments have surpassed pre-pandemic levels, indicating a growing number of vehicles becoming eligible for repossession.
- Rising Costs: High interest rates and inflation have pushed car payments to record highs, making it harder for consumers to afford their vehicles.
- Delinquencies: Data from the New York Fed shows that delinquency rates have also risen beyond pre-pandemic levels, suggesting that more people are struggling to keep up with their car payments.
- Economic Factors: The rise in repossessions is often viewed as a sign of broader economic stress and financial strain among consumers.
- Impact on the Used Car Market: The increase in repossessions can also impact the used car market, as lenders like Bank of America may sell repossessed vehicles, potentially increasing the supply of used cars and affecting their prices.
What Can Car Buyers Do To Protect Themselves From Having A Car Repossession?
To prevent car repossession, car buyers should prioritize making timely payments, communicate with their lender about any difficulties, and explore options like refinancing or selling the car. They can also consider negotiating with the lender to reinstate the loan or explore bankruptcy as a last resort.
Preventative Measures
- Make timely payments: Staying current on your car payments is the most effective way to avoid repossession.
- Communicate with your lender: Contact your lender as soon as you anticipate having trouble making payments. They may be able to offer solutions like payment deferrals or a revised payment plan.
- Refinance your loan: If your credit is still good, refinancing with a lender offering a lower interest rate or longer term can make your payments more affordable.
- Consider selling the car: If you cannot make payments, selling the car yourself may help you pay off the loan and avoid a deficiency balance.
Other Options if Repossession is Imminent:
- Reinstate the loan: You can stop the repossession by paying off all past-due payments, late fees, and any repossession costs.
- Negotiate with the lender: You may be able to reach an agreement to reinstate the loan, make a lump sum payment, or arrange a payment plan.
- Voluntary surrender: If you can’t afford the payments, surrendering the car voluntarily can be less stressful than having it repossessed.
Conclusion
Robb, a seasoned car buyer from Bank of America, is shocked at the number of luxury and high-end vehicles being repossessed by Bank of America. A 2024 Chevy Tahoe owner walks away from their new SUV with only 27,000 miles. It’s a growing and troubling trend.
It’s Your Turn
Do you have a new car loan? How many months did you finance your vehicle? Click the red Add New Comment link below and let us know.
Check out my 2025 Chevrolet Tahoe story: My Customer Just Traded in Her 2025 Chevy Tahoe With Only 98 Miles, It’s the 2nd Worst Trade I’ve Ever Seen
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you’ll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Denis Flierl via Robb
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Source: torquenews.com
