How High Are Car Repossession Rates in 2026?
Behind the rising repossession numbers is plain arithmetic: a car payment that used to fit, and a budget that no longer makes room for it. If that’s where you are, here is where the lines are that decide what happens next.
Are car repossession rates actually rising?
Yes, and sharply.
Auto-Loan Serious Delinquency, 2003–2026
The Repo Line (New York Fed Household Debt and Credit Report), via American Default Research.
Share of auto-loan balances 90+ days delinquent, by quarter. Now the highest on record.
About 1.7 million vehicles were repossessed in 2024, according to Cox Automotive estimates — the most since 2009. Those full-year totals come from private trackers and land months after the year ends. The number we can watch in real time is delinquency, which the Federal Reserve Bank of New York publishes every quarter. The share of auto-loan balances at least 90 days behind has climbed from a post-COVID low near 3.7% in 2022 to 5.60% in Q1 2026, the highest on record.
Here is what makes that heavier than it sounds. A car payment is the last bill most people stop paying, because a car is how you get to work. So when this number reaches the highest on record, it means a growing share of households have already cut everything else they can. That is the same squeeze our American Distress Index tracks across the whole economy: the savings buffer is gone, and the bills people used to protect are starting to slip.
Which states have the highest repossession risk?
The pain is concentrated, and repossession tends to follow delinquency. These are the states where the largest share of auto loans are seriously past due right now:
| State | 2019 | 2025 |
|---|---|---|
| District of Columbia | 9.8% | 13.6% |
| Mississippi | 7.5% | 7.7% |
| Georgia | 6.3% | 7.0% |
| Alabama | 6.6% | 6.5% |
| Louisiana | 6.9% | 6.5% |
See all 50 states and D.C.
| State | 2019 | 2025 |
|---|---|---|
| District of Columbia | 9.8% | 13.6% |
| Mississippi | 7.5% | 7.7% |
| Georgia | 6.3% | 7.0% |
| Alabama | 6.6% | 6.5% |
| Louisiana | 6.9% | 6.5% |
| Indiana | 5.2% | 6.3% |
| Michigan | 5.3% | 6.3% |
| South Carolina | 6.4% | 6.2% |
| Nevada | 5.8% | 6.2% |
| Delaware | 5.5% | 6.1% |
| New Mexico | 6.4% | 6.1% |
| North Carolina | 5.7% | 6.1% |
| Maryland | 5.1% | 6.0% |
| Texas | 5.8% | 5.8% |
| Tennessee | 4.8% | 5.7% |
| Arkansas | 5.5% | 5.6% |
| Illinois | 4.5% | 5.6% |
| Arizona | 5.2% | 5.6% |
| Missouri | 4.8% | 5.5% |
| Florida | 5.8% | 5.5% |
| Oklahoma | 5.6% | 5.5% |
| Ohio | 4.6% | 5.3% |
| West Virginia | 5.4% | 5.3% |
| Kentucky | 5.0% | 4.9% |
| California | 4.9% | 4.8% |
| Pennsylvania | 4.4% | 4.8% |
| Virginia | 3.9% | 4.6% |
| New York | 4.1% | 4.3% |
| New Jersey | 3.9% | 4.2% |
| Kansas | 3.4% | 4.0% |
| Montana | 4.0% | 4.0% |
| Colorado | 3.4% | 4.0% |
| Washington | 2.6% | 3.8% |
| Hawaii | 4.1% | 3.7% |
| South Dakota | 3.4% | 3.6% |
| Wisconsin | 2.7% | 3.6% |
| Oregon | 2.6% | 3.6% |
| Rhode Island | 3.1% | 3.5% |
| Iowa | 2.9% | 3.5% |
| Wyoming | 3.7% | 3.5% |
| Idaho | 2.9% | 3.3% |
| Nebraska | 2.8% | 3.3% |
| Maine | 3.1% | 3.1% |
| Connecticut | 3.1% | 3.1% |
| Minnesota | 2.3% | 3.0% |
| New Hampshire | 2.9% | 3.0% |
| Utah | 2.6% | 3.0% |
| Alaska | 2.5% | 2.9% |
| North Dakota | 2.9% | 2.9% |
| Vermont | 3.2% | 2.8% |
| Massachusetts | 2.8% | 2.6% |
Figures are the share of auto-loan balances 90+ days delinquent, from the New York Fed Consumer Credit Panel and Equifax. The full state-by-state picture is in our default rates by state breakdown.
How many missed car payments before they take the car?
Usually three or more. There is no national rule, but many lenders begin once the loan is roughly three months past due. Technically, a single missed payment can count as a default if your contract says so, and under the Uniform Commercial Code your lender can take the car without going to court. In practice they wait, which is exactly why those 90-days-behind numbers are the clearest read on who is at risk.
How long does the repossession process take?
Once you are in default, it can move fast. Most states allow what is called self-help repossession: no court, no advance warning, as long as the lender does not break the peace, such as cutting a lock or entering a closed garage (CFPB). The slow part is the months of missed payments before that. The repossession itself can happen in a single morning. That gap, months of warning and then a sudden tow, is the window where the next section matters most.
What options come up when borrowers are behind?
Several options usually come before the tow truck, but they depend on the lender, the contract, and state law. Borrowers often ask lenders about a hardship deferment, a payment extension, or moving the due date. A repossession loses money for the lender too, so some lenders offer short-term workout options before the account goes to recovery.
A loan modification is a separate question. Stretching the loan term can reduce the monthly payment, but it also changes the loan economics and may add interest over time.
State rules matter too. How fast a lender can act, and whether you can get the car back after, depends on where you live (CFPB guidance).
Common signs that the clock is running include a missed-payment notice, a call from the lender, or a force-placed insurance letter. Our debt collection help page explains the next contact points.
Can you get your car back after repossession?
Often, if the borrower acts before the sale. Some states or contracts allow reinstatement, which means paying what is past due plus fees and resuming the loan. Redemption means paying the full remaining balance and reclaiming the car. If neither path is available, some borrowers try to buy the car back at the lender’s auction.
One hard truth: if the car sells for less than you owe, you can still be billed for the gap, called the deficiency, on top of towing, storage, and auction fees. Losing the car does not always clear the debt.
How long does a repossession stay on your credit?
The CFPB says a repossession can stay on your credit reports for up to seven years from the date you first fell behind. Handing the car back yourself, a voluntary repossession, lands on your credit the same way as an involuntary repossession. Its weight does fade over time, and steady on-time payments on anything else start rebuilding the score right away.
None of this means the number on your statement is your fault. The same forces showing up in our data, higher prices and a thinner cushion, are landing on millions of households at once. Knowing where the lines are is how you stay ahead of them.
Frequently Asked Questions
What is a voluntary repossession?
A voluntary repossession is when you return the car to the lender yourself instead of waiting for it to be taken. Fee treatment still depends on the lender, contract, and state, and it still counts as a repossession on your credit.
How much are car repossession fees?
Lenders add the cost of towing, storage, and resale to your balance. The exact amount varies by lender and state, and you can owe those fees even after the car is sold.
Can you get another car loan after a repossession?
Usually yes, though often at a higher interest rate. It gets easier as the repossession ages and as you rebuild a record of on-time payments on other accounts.
Does a repossession hurt your credit?
Yes, and the drop is steep. The CFPB says a repossession can stay on your credit reports for up to seven years from the date you first fell behind.
Methodology
How this guide is built
This guide treats serious auto-loan delinquency as the public quarterly proxy for repossession pressure because no official national repossession-rate series exists. The state table uses New York Fed Consumer Credit Panel and Equifax state borrower delinquency data. Cox Automotive estimates are included as an externally cited annual repossession count.
National trend: New York Fed Household Debt and Credit Report auto-loan serious delinquency series.
State table: New York Fed Consumer Credit Panel and Equifax state borrower delinquency data.
Repossession count: Cox Automotive CAMIO estimate, cited as an external annual source.
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Corrections and updates
Last reviewed 2026-07-06
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