According the retail auto auction giant Manheim, auto repossessions reached an all-time high in 2008, and are expected to go even higher in 2009. A record 1.67 millions cars and trucks were repossessed in 2008, 12% more than in 2007. Looking toward the year ahead, Tom Webb, chief economist for Manheim predicted, “We won’t have a 12 percent increase, but I would expect something in terms of less than a 5 percent increase.” Webb also expects wholesale prices of used vehicles to begin to rise again late in 2009 as the credit freeze begins to show signs of thawing. Over the past two years, bloated new vehicle inventories have driven down the price of used vehicles.
The Manheim Used Vehicle Value Index in December stood at 98.0, down from 98.3 in November and 110.2 in December 2007, and is currently sitting at a historical low. New vehicle sales to rental companies are down, and new vehicles sold through lease fell below two millions for the first time in over ten years.
Tags: 2008, increase, reposessions