Search
 

Deflating a Vehicle Repo Bubble Before It Pops

Losses are lurking behind the spotlight of record auto lending activity.

By Michelle A. Samaad | Updated on May 26, 2014

Lurking in the background behind the spotlight of record auto lending activity are the financial losses that occur when loans go bad.

In 2013, there were approximately 1.4 million vehicle repossessions in the United States, according to Auto Financial Group, a Houston firm that provides residual-based finance products for credit unions. The average charge-off per vehicle for credit unions was approximately $7,317 per unit and for banks, $7,618. Taking the average loss between banks and credit unions, which is estimated at $7,400, it would come to approximately $10.3 billion in losses, AFG found.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Dig Deeper

 

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.