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APCar repossessions 2025 Car repossessions US recession warning: Car repossessions in the United States have surged to their highest level in 15 years, raising concerns among economists about the financial strain facing millions of Americans.Car Repossessions Surge to Record Highs in 2025As per CU Repossessions’ analysis of the Recovery Database Network, more than 2.2 million vehicles have already been repossessed this year, and that number is expected to climb past 3 million by the end of 2025, reported CBS 8.The sharp rise has sparked debate over whether the trend points to a broader economic slowdown, or even a looming recession, as per the CBS 8 report.Economists Divided: Is Recession Coming in USAlan Gin, Economics Professor at the University of San Diego, said that, “Some people think that we're headed for a recession, other people think that we’ll remain positive, but growing only slowly,” as quoted by CBS 8.Gin said the rise in repossessions doesn’t necessarily guarantee a recession, but it does signal a cooling economy, particularly in areas like job growth and wages, as per the report.Live EventsHe explained, “If people aren’t getting raises or new jobs, they could be impacted in terms of their ability to make payments, particularly with the cost of other products increasing,” as quoted in the report.ALSO READ: Fed interest rate decision today: 25 bps cut from Powell and co? Here's what to watchInflation Forces Americans to Make Tough ChoicesWith inflation continuing to push up the price of essentials like housing and food, many households are being forced to make difficult financial choices, and for some, that means putting car payments lower on their list of priorities, as per the CBS 8 report.Gin also connects today’s spike to trends that began during the COVID-19 pandemic, when many Americans, flush with savings, bought cars at inflated prices and high interest rates, as per the CBS 8 report.He said, “A lot of car buyers ended up underwater — the car was worth less than the actual value of the loan. So financially, it might have made sense for them then to default on the loan, as opposed to trying to pay it off,” as quoted by CBS 8.ALSO READ: Government shutdown SNAP benefits: 25 states sue Trump for food freeze - what are the alternatives for millions?Car Prices Hit Record Highs in USNow, the average price of a new car in the US has topped $50,000 for the first time ever, according to Cox Automotive, a level that’s making ownership increasingly out of reach for many families, as per the CBS 8 report.Warning Signs of Financial Stress Across the EconomyGin cautions that while unemployment remains relatively stable, the rise in repossessions is a warning sign. When Americans can’t keep up with payments on something as essential as a car, often their only way to get to work, it reveals deeper financial stress spreading through the economy, as per the CBS 8 report.However, he pointed out that it’s too soon to tell whether repossessions will continue to climb or start to level off, but said that during past downturns, spikes in car repossessions have coincided with job losses, as per the report.FAQsWhy are car repossessions increasing in 2025?Rising inflation, stagnant wages, and higher car prices are making it harder for Americans to keep up with auto loan payments, as per the CBS 8 report.How many cars have been repossessed so far?Over 2.2 million vehicles have been repossessed this year, with the total expected to exceed 3 million by year’s end, as per the CBS 8 report.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onCar repossessions US recession warningwhy are car repossessions increasingUS economy slowdown 2025US car market slowdowninflation impact on car loansrecession indicators 2025high car prices 2025why Americans can’t afford car paymentsUS recession warning 2025 latest news (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onCar repossessions US recession warningwhy are car repossessions increasingUS economy slowdown 2025US car market slowdowninflation impact on car loansrecession indicators 2025high car prices 2025why Americans can’t afford car paymentsUS recession warning 2025 latest news(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless
