‘Finances are getting tighter’: US car repossessions surge as more Americans default on auto loans
Wall Street sounds alarm over strain throughout car lending market as experts warn of potential risks for wider economy
Edward Helmore in New York
17 Oct 2025
Wall Street sounds alarm over strain throughout car lending market as experts warn of potential risks for wider economy
www.theguardian.com
Alarm bells are ringing on Wall Street. The recent collapses of Tricolor, a used car seller and sub-prime auto lender, and First Brands, an auto parts supplier, have put the finance industry on edge, almost two decades after problems in the sub-prime mortgage lending market set the stage for the global financial crisis.
“When you see one cockroach, there are probably more,” Jamie Dimon, the JPMorgan Chase CEO, ominously cautioned analysts this week, after the US’s largest bank disclosed a $170m charge tied to Tricolor’s bankruptcy. “Everyone should be forewarned on this one.”
As the car lending market shows signs of strain, business around repossessions is booming. “Right now, we’re overwhelmed with work,” George Badeen, who runs Midwest Recovery and Adjustment in Detroit, Michigan, said.
The so-called repo man, tasked with recovering vehicles from drivers who default on loan agreements, was eulogized in music by Bruce Springsteen and in the 1984 Alex Cox film Repo Man.
Repossessions – especially in the sub-prime auto market – are on the rise, according to Badeen, who is also president of the Allied Finance Adjusters trade body. “We’ve seen some sub-primes making changes, which probably indicates they’re having issues,” he said. “They’re not financing cars like they were. Two years ago they were financing anybody.”…
Repo man Todd O'Connor raises a car for towing in Oneida, N.Y., on Oct. 12.
