Will Assignments Overwhelm As Delinquencies Chart Into Levels Never Seen?

The latest numbers aren’t just another post-pandemic spike or a repeat of the 2008 crash—they’re the highest delinquency levels ever recorded since Fitch Ratings began tracking the data in the early ’90s. Subprime 60-day defaults climbed to 6.65% in October, up from 6.50% the month before and 6.23% in October 2024. For the repossession industry, that steady upward trend means phones ringing more often, assignments increasing, and recovery teams staying busier than ever.

These figures focus solely on subprime borrowers—drivers with shaky credit who already face steep interest rates and tight budgets. When the cost of living rises and incomes don’t keep up, these consumers are often the first to fall behind, which directly translates into more involuntary repossession activity. Meanwhile, prime borrowers continue to hold steady at a 0.37% default rate, underscoring where the surge is truly coming from.

As vehicle payments soar and household budgets are stretched thin, the ripple effects are hitting lenders as well. Two major subprime financiers, Tricolor and PrimaLend, declared bankruptcy this fall. Their collapse narrows credit access for high-risk borrowers but also signals that the broader auto finance sector is under pressure—pressure that inevitably spills over to repossession agencies as portfolios deteriorate.

Nobody wants to fall behind on their car note, but when families must choose between transportation and essentials like food and rent, car payments are often the first to slip. And with Americans now owing a staggering $1.66 trillion in auto debt, many consumer-advocacy groups warn that these rising delinquencies could be the early warning signs of deeper economic instability.

Still, the outlook isn’t universally grim. Analysts at Cox Automotive insist there’s “no sign of a domino effect poised to rock the auto market or the economy.” But on the ground, repossession agents know what rising delinquencies really mean: continued demand, heavier caseloads, and an industry that typically expands whenever the economy contracts.