Auto Repossessions Climb as Economic Strain Hits Drivers

Car repossessions are surging across San Diego County as more families fall behind on auto loan payments, reflecting a growing national problem fueled by high prices, housing costs and job losses. The Federal Reserve reports 3.88% of auto loans were delinquent in the third quarter of 2025 — the highest level since 2010 — with subprime borrowers facing the greatest risk.

Tow truck drivers say the impact is immediate. Alex Alvarez of Active Recovery Services said repossession assignments in San Diego have jumped sharply in recent months.

“Before, we were doing two or three repos a day,” Alvarez said. “Now we’re getting calls constantly. It’s a big change, and it’s happening fast.”

Similar trends are emerging nationwide. Industry data show roughly 1.7 million vehicles were repossessed across the U.S. last year, the highest total since the Great Recession, as delinquency rates among subprime borrowers continue to climb.

In Utah, America First Credit Union reports more members falling behind on car loans, with a growing number voluntarily surrendering vehicles. Veteran repossession operator Rich Whittaker said the reasons are strikingly consistent.

“Every person I deal with has a reason they fell behind,” Whittaker said. “Job loss, higher costs, less work — it’s the same story over and over.” Source: https://kutv.com/and https://www.nbcsandiego.com