There's a troubling situation spreading among car owners that could portend an implosion of the used car industry, according to a new report.
Repossessions occur when a borrower falls behind on their car payments, giving the lender the right to seize the vehicle.
The rise in repossessions comes after car prices surged during the pandemic, as auto manufacturers struggled to meet demand amid chip shortages and other issues.
Used car prices rose particularly sharply, with the average used car price jumping almost 17% in May to more than $32,000.
"You have used car prices skyrocketing and people having to borrow more and more to get their hands on a car," Beilfuss Popeo said.
That's caused concerns among experts that the used car market is in a "bubble," Beilfuss Popeo noted. »