On the surface, the economy looks like it’s holding up. The stock market is up, unemployment remains relatively low, and consumer spending hasn’t slowed much. But if you shift your focus to the road, the numbers tell a different story.
Repossessions, delinquent loans, and trade-ins for less expensive vehicles are all on the rise, and 2025 could be a record year for all of it.
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According to industry data from CURepossession.com, more than 3 million vehicles are expected to be repossessed by the end of this year. That figure has only been surpassed once, in 2009, during the height of the Great Recession.
If you’re worried your car might be next, it’s important to understand your rights. The North Carolina Department of Justice notes that creditors are not required to give you advance notice before repossessing your vehicle. They are legally allowed to enter your property to take the car, as long as they do not breach the peace. You can read more about your rights on the NC DOJ’s website here.
A new study from VantageScore, a national credit scoring company, shows that auto loan delinquencies have risen more than 50 percent over the past 15 years. What’s surprising is who’s falling behind: delinquency rates among prime borrowers, those with higher credit scores and incomes, are climbing even faster than those with subprime loans.
VantageScore’s vice president said the trend indicates that economic pressures are no longer only hurting certain “income levels,” suggesting that middle- and upper-income Americans are increasingly feeling the financial strain.
Experts tell WRAL 5 On Your Side several factors are fueling the problem: high borrowing costs, rising car prices, and unstable employment. Even as wages have grown in some sectors, many households are struggling to keep up with monthly car payments that now average well over $700 for new vehicles.
If you’re struggling to make your payments, don’t ignore the problem. Contact your lender as soon as possible; many offer payment plans, temporary hardship programs, or deferment options. Even partial payments can help prevent a default or minimize late fees.

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