With tariffs and inflation driving up car prices, more Americans are finding they cannot keep up with their auto loan payments — and repossessions are on the rise.
New data from Cox Automotive, a global automotive services and technology company, shows repossessions increased 43% over a one-year period. The company expects that trend to continue.
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If your vehicle is repossessed, experts recommend acting quickly. Start by calling your lender to confirm the repossession and learn where your car is located. Once you have that information, you can plan your next steps.
One of those steps should include contacting your insurance provider, since coverage requirements may vary. In some states, such as Florida, you are also required by law to retrieve and surrender your license plate after a repossession.
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After addressing immediate concerns, finding a credit counselor may help you navigate the financial fallout. A low credit score can lead to higher auto insurance costs if you try to buy another car.
This story was originally published by Susan El Khoury with the Scripps News Group in Tampa.
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