According to an article in the Star-Telegram, we may be heading for a car financing crisis with many car buyers unable to find financing for a new/used car or unable to pay off existing car loans and/or facing car repossession .
The article said:
Some 3.25 percent of all indirect auto loans were at least 30 days overdue in the third quarter, the American Bankers Association reports. That’s the worst showing since the group began compiling such numbers in 1980. Indirect loans are those arranged by a third party, typically an auto dealer, and they account for 90 percent of all car loans.
Many consumers are receiving car loans from the subprime market which are very costly with high interest rates. Currently, the number of repossessions on cars financed with these types of loans is skyrocketing as more consumers face job losses and foreclosures . There was a recent report about how Repo men were finding it difficult to make a living because those facing repossessions are fighting harder to hold on to their cars by hiding them. If the trends continue in their current direction we may see a crisis in the car industry similar to real estate with more Americans facing repossession of their vehicles.
Unless you live in New York or another city with highly developed transportation systems, having a car is an essential life tool. Without a car many Americans cannot make the often long commutes to their jobs. Fortunately, using bankruptcy, a debtor may be able to keep their car if they need it to get to work. If you are facing a repossession or you suspect that you won’t be able to continue to pay for you car loan, contact a bankruptcy attorney today to find out your bankruptcy options.