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Repossession Rates Rise 36% Over Last Year

There are new auto financing numbers to report from the first quarter of 2014, and if you’re an automotive lender you might want to have a seat. According to Experian’s comprehensive new report “State of the Automotive Finance Marketing First Quarter 2014,” repossession rates are up a staggering 36 percent over last year. 

One of the reasons for the increase might be the incredible growth in the deep subprime financing market. While nonprime/prime lending for new automobiles was up nearly 20 percent, and subprime lending was actually down 11 percent over the same period last year, deep subprime lending skyrocketed by 51.15 percent.

A similar trend played out among used automobile financing, as prime lending was up 21.16 percent, subprime lending was down 20.89 percent, and deep subprime lending was up 21.24 percent – another net gain for high risk lending over the previous year.

For auto lenders who are just getting to the party, there’s no better way to protect your assets than by investing in a telematics solution. With a system such as GoldStar GPS from Spireon, BHPH dealers can keep track of their vehicles 24/7, with no complicated equipment or risk of detection. When a borrower is late with a payment, the system can send multiple alert messages, and, if needed, disable the vehicle’s starter until restitution has been made. Lenders who’ve added GoldStar GPS to their operations have seen recovery costs decrease by an average of 40 percent.

Why Wait?

With numbers like those, you’d be silly not to invest in a telematics solution of your own.  And for a limited time, you can trade in your old GPS devices for the Talon CDMA – even if your devices come from one of our competitors!

Call for details:  1-866-655-8825.

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Recent Bloggers

  • Corinna Tutor
    VP, Integrated Marketing
  • David Meyer
    Executive Vice President, Sales & Services Automotive Solutions
    Spireon, Inc.
  • Neil Fisher
    Vice President of Field Sales, ASG
    Spireon, Inc.