New data shows auto repossessions surged in the first half of the year, driven by elevated inflation and high interest rates, resulting in increased consumer distress (read: here & here) as the labor market slows. 

Before we delve into the data from Cox Automotive, let's revisit several of our reports from mid-2022, showing how we have been diligently tracking the perfect storm brewing for auto repossessions:

July 2022: Are We Headed For An "Auto Loan Crisis" As Delinquencies Begin To Rise?

December 2022: Perfect Storm Arrives: "Massive Wave" Of Car Repossessions And Loan Defaults To Trigger Auto Market Disaster, Cripple US Economy

January 2023: "It's The Perfect Storm": More Americans Can't Afford Their Car Payments Than During The Peak Of Financial Crisis

November 2023: Americans Panic Search "Give Car Back" As Subprime Auto Loan Delinquency Erupts

February 2024: "Garbage Deals": Dealership Puts Customers In Cars With $3,000 Monthly Payments

Two years later, the deterioration has accelerated. Cox data shows repos jumped 23% in the first six months of this year compared with the same period in 2023. Repos started moving higher last year and have now exceeded pre-Covid levels, up 14% compared to the first half of 2019.