Repossession are on the rise as the car industry recovers.

Car Industry Recovers

As the car industry recovers so does the repo man.I came across an article that talks about as the car industry

recovers so does the repo man.

Yahoo Finance Source – As the Car Industry Recovers, the Repo Man Does, Too

If you have ever had your car repossessed or had to turn in

your car its not a good feeling for you.

Waking up and your car is gone an you have to get to work can be such a stressful

experience.

Or in my case when I had to file bankrucptcy I had to turn my car in on Christmas Eve.

That really put a damper on my holidays.

With a rise in auto sales there also comes the increase in people defaulting on their loans.

"Many auto loans are finally going to borrowers with damaged credit, which inevitably leads to more defaults — and more business for the repo man."

Sub-prime loans are now fueling the market with buyers who during the recession

were unable to finance an automobile while the car industry recovers.

The sub-prime market needed to be changed not only with cars but with mortgages as

well.

Many people with poor credit where put in loans that they truely could not afford.

"The demise of subprime lending was a necessary correction, since too many people got loans they couldn’t afford or financed a car purchase by borrowing against home equity that suddenly evaporated."

As the car industry recovers with sub-prime buyers depending on the interest rate they

recieve will often play apart if they will default on the loan.

The article also states that many of the people with the sub-prime loans don't own a

home.

"Now we’re paying for cars before we pay for homes.” Some car owners, as a result, are a lot more defiant when the repo man comes around, even if they’re months behind on their loan."

Simply stated people who stop paying on everything else if it meant not losing your home.

With no home to pay for you would likely mean that you will make your car payment.

As the car industry recovers many lenders will start to lower the credit critera for loans once again.

Hopefully the banks and wall street have learned there lessons regarding sub-prime lending.

That way the country doesn't end up the state we were in just a few short years ago.

As the car industry recovers I do hope that the repo man doesn't get his business back

to the levels they were during the recession.

Are you paying your car note on time as the car industry recovers???

Your Financial Coach,

Renee Lawson