I just read an article that none other then CNN wrote stating the repo business is in decline due to the growing economy. This is what they write
People say, ‘Oh you guys must be doing amazing!'” Lennon said. “It’s the total opposite.”
Repossession specialists, better known as “repo men,” are suffering a nationwide decline in business. There were about 1.3 million auto repossessions in 2012, down from 1.9 million at the height of the recession in 2009, according to Tom Webb, chief economist forManheim Auctions. Data from Experian Automotiveshows a one-third drop in repossessions over the same time period.
As the economy recovers, more Americans have been able to keep up with their car payments. The percentage of Americans more than 90 days late on a car loan declined to 4% in the fourth quarter of 2012, down from 5.3% in the fourth quarter of 2010, according to data from the Federal Reserve Bank of New York.
For those in the repossession business, those are grim statistics.
The real reason the repossession business is down is due to several factors and not one of them is due to a growing economy. In fact in a growing economy the repossession business is typically great and flourishing also. It was also strange that they used Manheim Auctions in the article as Manheim auctions are also laying off thousands of people nationwide according the Central Florida location of Manheim auctions.
The auction business is down because the used car market is bad. People hold on to their vehicles much longer now so cars that show up at the auctions have much greater mileage due to the poor economy and poor economic recovery. Second is the fact that banks do not loan on cars as easily as they did years ago. Credit rating must be higher then ever, just like mortgage loans. So the only people loaning on cars are the actual car finance companies for new cars. New car sales are typically lower then used car sales and more people are paying cash for used cars then ever.
The article above is completely distorted with information as to why the repo business is bad. The stock market is doing well due to the large corporations doing fairly well in a down economy but these corporations are not the car consumers so it is not trickling down as it should be in a proper economy. Car consumers are working less hours now ever, small business is in deep over regulated crap and as of now the outlook is weak for any type of change in banks attitudes towards loaning consumers money.