The American Repossessor

As the economic slump continues, many people are struggling to make ends meet, and unfortunately, vehicle repossessions are on the rise. Having a car repossessed hinders more than just a car owner’s mobility; it has a severe impact on credit scores, limiting the ability to get loans or credit cards for up to seven years.

According to the American Bankers Association, the number of direct auto loans that were at least 30 days delinquent increased from 2.03 percent to 3.01 percent during the first quarter of 2009, and delinquent auto loans through dealers hit 3.4 percent in March. Perhaps not surprisingly, the number of repossessed vehicles jumped 12 percent to 1.67 million nationally in 2008 and is expected to increase by another 5 percent in 2009, according to Manheim Consulting.