Tow Companies See Surge in Car Repossessions

It's been a busy year for repossessions with car seizures in the US increasing by 23 percent compared to the same period in 2023, according to recent data from Cox Automotive. The figures reveal that repossessions have now returned to pre-pandemic levels, having experienced a sharp decline in 2021 and 2022, before starting to climb again in 2023. Based on the current trajectory, it is projected that 1.6 million vehicles will be seized by the end of 2024, a significant increase from the 1.1 million repossessions in 2021 and 1.5 million last year.

The surge in repossessions is advantageous for tow truck companies across the nation. As more vehicles are seized, the demand for towing services has skyrocketed, Companies like Jerr-Dan are seeing increased business as they provide the essential services needed for the growing number of repossessions.

Cox Automotive does not anticipate a reduction in repo rates to the lows of 2021 in the near future. Instead, it forecasts that repossessions will rise to 1.7 million in 2025, a level not seen since 2019, and could reach 1.8 million annually from 2026 to 2029. This sustained increase in repossessions ensures a steady demand for tow truck services, benefiting the industry. Source: www.carscoops.com