COVID-19 has disrupted the economy, leaving millions of Americans struggling to pay their bills. The economy is slowly improving, but this doesn’t mean that all families have bounced back. It can take months, if not years, to recover from an income loss.
One of the biggest monthly bills for Americans is their car payment. The average monthly car payment in the U.S. is $563 for new vehicles, $397 for used vehicles and $450 for leased vehicles. With payments this high, some people have stopped paying them due to pandemic-related hardships.
If you’re in this boat, you might be wondering if your car can be repossessed. Below is everything you need to know about car repossessions during COVID-19.
Are Cars Still Being Repo’d in 2021?
In difficult times, repossessions go up. Due to the coronavirus recession and high levels of unemployment, over 7 percent of all car loans in the U.S. are in some type of deferment program. Missing car payments damage credit scores and can result in a visit from the repo man.
While some lenders have declined repossessions during COVID-19, not all have. And unlike mortgages, utilities and rent payments, there hasn’t been much relief for auto loans. So, while many lenders have tried to be more flexible with auto repossessions, they are still happening every day during the pandemic.
Where Do Repossessed Cars End Up?
While it’s always in the consumer’s best interests to speak with their lender and try to work something out, it doesn’t mean they’ll get to keep the car. Lenders can still repossess vehicles without warning.
When a car is repossessed, the lender usually tries to work something out with the owner. If they can’t catch up on their payments, the car will usually go to an auction. Most commonly, repos go to dealer-only auctions where you’ll need a dealer’s license to place a bid. This is why dealerships get their hands on repos first.
But there are options for the general public. On RepoFinder.com, banks, lenders and credit unions sell their vehicles directly to the public – no dealer’s license required. You can browse our selection of vehicles for free and place a bid at your convenience.
What are the Benefits of Buying a Repossessed Car?
Due to pandemic-related hardships, car repossessions are up in many areas. While it’s not fun to be on the giving side of this relationship, people who are shopping for affordable, accessible cars can benefit.
Here are some of the advantages to buying a repo car:
- Cheaper than new and used cars from the dealership – pay a fraction of the price!
- Work directly with the banks and lenders – no middleman to drive up prices or complicate the process
- Highly motivated sellers that are open to negotiations
- All-in-one shopping experience as you can get financing directly from the seller
- Wide selection of vehicles available for purchase NOW – unlike the dealerships that are facing a chip shortage
While it’s unfortunate that cars are still being repossessed, it does allow for a strong repo inventory for those searching for cheap, readily available vehicles. Find a car that suits your needs and budget today on RepoFinder.com.