CFPB - Consumer Financial Protection Bureau
01/23/2025 | Press release | Distributed by Public on 01/23/2025 08:30
Repossession in Auto Finance
Outstanding auto loan balances totaled more than $1.64 trillion through the third quarter of 2024, representing over 100 million active auto finance accounts and $63 billion in new monthly originations as of April 2024. Despite auto loans being one of the largest sources of consumer credit outside of mortgage lending, detailed information about the auto finance market is limited.
In February 2023, the CFPB launched the auto finance data pilot and issued nine market monitoring orders to three banks, three finance companies, and three captive lenders to provide information about their auto lending portfolios. This allows the CFPB to examine trends that may create risks for consumers, including a better understanding of loan attributes that may result in increased consumer distress.
While some estimates of repossession volume exist, currently available data do not provide detailed information on repossessions. As with foreclosures and evictions, repossessions are extremely disruptive because the consumer may lose access to their vehicle, which may also prevent the consumer from getting to work; the consumer may still be required to repay any outstanding balance from the loan plus fees associated with the repossession; or the consumer may see a negative impact to their credit score. However, the level of available data on repossessions is significantly less compared to other credit markets.
This dataset provides insight into an area of the market for which limited publicly available data exists. The dataset provides a measure of the impact of the COVID-19 pandemic on auto loan servicing and repossession practices. Further, this data provides more detail into how vehicle price increases stemming from COVID-era supply chain disruptions may have impacted consumers post-repossession.