Repo lots overflow with reclaimed cars (USA Today)
02-14-08, 09:30 AM
#1
Lead Lap
Thread Starter
Join Date: Jan 2004
Location: Florida
Posts: 437
Likes: 0
Received 0 Likes
on
0 Posts
Repo lots overflow with reclaimed cars (USA Today)
http://www.usatoday.com/money/autos/...repo-man_N.htm
Repo lots overflow with reclaimed cars
By Chris Woodyard, USA TODAY
Car and truck repossessions this year are headed for the highest level in at least a decade, thanks to easy credit and a faltering economy, says an economist for one of the largest wholesale auto auction services.
So many vehicles are being snatched from owners who stop making payments that some repo operators and auto auctioneers say lots are overflowing.
This year's predicted 10% rise in vehicle repos to 1.6 million would be a third higher than 10 years ago, says Thomas Webb, chief economist for a unit of Atlanta-based Manheim, which sells cars to dealers worldwide. The increase comes atop a 10% rise in repos last year.
Webb blames overly "generous" auto loans in the past couple of years as a key factor in driving up defaults that lead to repossessions.
He says the rate might be even higher if employment hadn't remained strong despite the slowing economy.
FIND MORE STORIES IN: Daytona Beach | Repo
An executive at another big auto auctioneer says that easy subprime car loans in recent years are a big reason for the flood of repossessed cars.
"We're experiencing significant growth in repo volume to the point where we're using additional lots to store them," says Tom Kontos, executive vice president of Indiana-based Adesa Auctions. "Our inventories are growing to record levels," caused by repos on top of a glut of cars coming off leases and out of rental service.
While the nation has been transfixed by rising home foreclosures, scant attention has been paid to what is usually a consumer's second-largest purchase: their car or truck.
Wells Fargo, (WFC) for example, reported last month that it charged off $1 billion in auto loans last year, 3.5% of its portfolio, compared with $857 million in 2006. The bank says it expects a higher write-off rate this year.
The rise of bad loans, however, has meant busy times for "repo men," whose work can involve seizing cars from driveways in the dead of the night.
"Our business has skyrocketed," says Patrick Altes, president of Falcon International in Daytona Beach, Fla. In recent times, his service saw a first wave of defaults that involved picking up boats and recreational vehicles.
Now, it's cars and trucks, often in affluent neighborhoods.
"A lot of the vehicles we're getting are high-dollar pickups" whose owners got caught in the construction downturn, Altes says.
The repo surge has boosted business for locksmith Amy Palmer. She makes new keys for seized vehicles at Manheim's auction lot in Ocoee, Fla., one of Manheim's 144 locations in 14 countries.
"It's phenomenal," she says. "If you're not paying for your house, who is paying for the car?"
I just thought you guys might find this interesting... or maybe I'm just biased... Patrick Altes (who is quoted in the middle), is my dad.... and it is insane how busy we have been lately!
He is also going to be on national Fox News tonight... not sure what time though.
Repo lots overflow with reclaimed cars
By Chris Woodyard, USA TODAY
Car and truck repossessions this year are headed for the highest level in at least a decade, thanks to easy credit and a faltering economy, says an economist for one of the largest wholesale auto auction services.
So many vehicles are being snatched from owners who stop making payments that some repo operators and auto auctioneers say lots are overflowing.
This year's predicted 10% rise in vehicle repos to 1.6 million would be a third higher than 10 years ago, says Thomas Webb, chief economist for a unit of Atlanta-based Manheim, which sells cars to dealers worldwide. The increase comes atop a 10% rise in repos last year.
Webb blames overly "generous" auto loans in the past couple of years as a key factor in driving up defaults that lead to repossessions.
He says the rate might be even higher if employment hadn't remained strong despite the slowing economy.
FIND MORE STORIES IN: Daytona Beach | Repo
An executive at another big auto auctioneer says that easy subprime car loans in recent years are a big reason for the flood of repossessed cars.
"We're experiencing significant growth in repo volume to the point where we're using additional lots to store them," says Tom Kontos, executive vice president of Indiana-based Adesa Auctions. "Our inventories are growing to record levels," caused by repos on top of a glut of cars coming off leases and out of rental service.
While the nation has been transfixed by rising home foreclosures, scant attention has been paid to what is usually a consumer's second-largest purchase: their car or truck.
Wells Fargo, (WFC) for example, reported last month that it charged off $1 billion in auto loans last year, 3.5% of its portfolio, compared with $857 million in 2006. The bank says it expects a higher write-off rate this year.
The rise of bad loans, however, has meant busy times for "repo men," whose work can involve seizing cars from driveways in the dead of the night.
"Our business has skyrocketed," says Patrick Altes, president of Falcon International in Daytona Beach, Fla. In recent times, his service saw a first wave of defaults that involved picking up boats and recreational vehicles.
Now, it's cars and trucks, often in affluent neighborhoods.
"A lot of the vehicles we're getting are high-dollar pickups" whose owners got caught in the construction downturn, Altes says.
The repo surge has boosted business for locksmith Amy Palmer. She makes new keys for seized vehicles at Manheim's auction lot in Ocoee, Fla., one of Manheim's 144 locations in 14 countries.
"It's phenomenal," she says. "If you're not paying for your house, who is paying for the car?"
I just thought you guys might find this interesting... or maybe I'm just biased... Patrick Altes (who is quoted in the middle), is my dad.... and it is insane how busy we have been lately!
He is also going to be on national Fox News tonight... not sure what time though.
09-12-08, 05:36 AM
#4
Lexus Champion
here at the dealership where i work, we currently have several high end european repo's on the lot; porsche, audi, saab, etc. it's crazy. they must have come from the auction.
09-12-08, 07:12 AM
#5
Super Moderator
The problem is widespread here in Miami, and also the rest of Florida, because we are fueled heavily by construction and to an extent tourism, neither of much we are getting these days.
09-12-08, 12:34 PM
#6
Lexus Champion
Join Date: Jan 2003
Location: NYC/ATL
Posts: 2,618
Likes: 0
Received 0 Likes
on
0 Posts
My buddy bought a Camry 2 weeks ago and while we where waiting for the paperwork 3 German vehicles, an A6, S550 and an E500, all which where less then a year old where being traded for Toyota's, the owners where all looking for lower car payments
09-12-08, 11:06 PM
#7
Lexus Champion
My boss at work told me a story where he had to repo a Civic Si with just a freshly-cut key and the Honda HDS iPaq to reinitialize the immobilizer. As soon as he pulled away the owner has chasing him down the street.
And we've been getting a ton of rollbacks lately, mostly from people with bad credit locked into high-APR loans on used cars. The finance admin told me we've had to repo a $12K Dodge Avenger that was financed on a 20% APR loan. We've been getting a few Land Rovers and Jags come in as trade ins and I just saw a Yaris repo from Toyota Financial get a safety check done on it before it gets sent out for detail.
And we've been getting a ton of rollbacks lately, mostly from people with bad credit locked into high-APR loans on used cars. The finance admin told me we've had to repo a $12K Dodge Avenger that was financed on a 20% APR loan. We've been getting a few Land Rovers and Jags come in as trade ins and I just saw a Yaris repo from Toyota Financial get a safety check done on it before it gets sent out for detail.
Trending Topics
09-13-08, 05:52 AM
#8
Lexus Fanatic
09-13-08, 05:57 AM
#9
Lexus Fanatic
No. I strongly discourage this practice. It's your money of course, and your decision, but auction repos can be extremely risky, for a number of reasons. I've been to auctions myself, watched how they operate, and have seen people (including friends) get stuck with some bad buys.
Now, I'm not saying that EVERYTHING at the auction is risky (sometimes there are good deals to be had), but, IMO, the risks far outweigh the benefits.
09-15-08, 05:31 PM
#11
Driver School Candidate
Join Date: Sep 2008
Location: Arizona
Posts: 1
Likes: 0
Received 0 Likes
on
0 Posts
http://www.usatoday.com/money/autos/...repo-man_N.htm
Repo lots overflow with reclaimed cars
By Chris Woodyard, USA TODAY
Car and truck repossessions this year are headed for the highest level in at least a decade, thanks to easy credit and a faltering economy, says an economist for one of the largest wholesale auto auction services.
So many vehicles are being snatched from owners who stop making payments that some repo operators and auto auctioneers say lots are overflowing.
This year's predicted 10% rise in vehicle repos to 1.6 million would be a third higher than 10 years ago, says Thomas Webb, chief economist for a unit of Atlanta-based Manheim, which sells cars to dealers worldwide. The increase comes atop a 10% rise in repos last year.
Webb blames overly "generous" auto loans in the past couple of years as a key factor in driving up defaults that lead to repossessions.
He says the rate might be even higher if employment hadn't remained strong despite the slowing economy.
FIND MORE STORIES IN: Daytona Beach | Repo
An executive at another big auto auctioneer says that easy subprime car loans in recent years are a big reason for the flood of repossessed cars.
"We're experiencing significant growth in repo volume to the point where we're using additional lots to store them," says Tom Kontos, executive vice president of Indiana-based Adesa Auctions. "Our inventories are growing to record levels," caused by repos on top of a glut of cars coming off leases and out of rental service.
While the nation has been transfixed by rising home foreclosures, scant attention has been paid to what is usually a consumer's second-largest purchase: their car or truck.
Wells Fargo, (WFC) for example, reported last month that it charged off $1 billion in auto loans last year, 3.5% of its portfolio, compared with $857 million in 2006. The bank says it expects a higher write-off rate this year.
The rise of bad loans, however, has meant busy times for "repo men," whose work can involve seizing cars from driveways in the dead of the night.
"Our business has skyrocketed," says Patrick Altes, president of Falcon International in Daytona Beach, Fla. In recent times, his service saw a first wave of defaults that involved picking up boats and recreational vehicles.
Now, it's cars and trucks, often in affluent neighborhoods.
"A lot of the vehicles we're getting are high-dollar pickups" whose owners got caught in the construction downturn, Altes says.
The repo surge has boosted business for locksmith Amy Palmer. She makes new keys for seized vehicles at Manheim's auction lot in Ocoee, Fla., one of Manheim's 144 locations in 14 countries.
"It's phenomenal," she says. "If you're not paying for your house, who is paying for the car?"
I just thought you guys might find this interesting... or maybe I'm just biased... Patrick Altes (who is quoted in the middle), is my dad.... and it is insane how busy we have been lately!
He is also going to be on national Fox News tonight... not sure what time though.
Repo lots overflow with reclaimed cars
By Chris Woodyard, USA TODAY
Car and truck repossessions this year are headed for the highest level in at least a decade, thanks to easy credit and a faltering economy, says an economist for one of the largest wholesale auto auction services.
So many vehicles are being snatched from owners who stop making payments that some repo operators and auto auctioneers say lots are overflowing.
This year's predicted 10% rise in vehicle repos to 1.6 million would be a third higher than 10 years ago, says Thomas Webb, chief economist for a unit of Atlanta-based Manheim, which sells cars to dealers worldwide. The increase comes atop a 10% rise in repos last year.
Webb blames overly "generous" auto loans in the past couple of years as a key factor in driving up defaults that lead to repossessions.
He says the rate might be even higher if employment hadn't remained strong despite the slowing economy.
FIND MORE STORIES IN: Daytona Beach | Repo
An executive at another big auto auctioneer says that easy subprime car loans in recent years are a big reason for the flood of repossessed cars.
"We're experiencing significant growth in repo volume to the point where we're using additional lots to store them," says Tom Kontos, executive vice president of Indiana-based Adesa Auctions. "Our inventories are growing to record levels," caused by repos on top of a glut of cars coming off leases and out of rental service.
While the nation has been transfixed by rising home foreclosures, scant attention has been paid to what is usually a consumer's second-largest purchase: their car or truck.
Wells Fargo, (WFC) for example, reported last month that it charged off $1 billion in auto loans last year, 3.5% of its portfolio, compared with $857 million in 2006. The bank says it expects a higher write-off rate this year.
The rise of bad loans, however, has meant busy times for "repo men," whose work can involve seizing cars from driveways in the dead of the night.
"Our business has skyrocketed," says Patrick Altes, president of Falcon International in Daytona Beach, Fla. In recent times, his service saw a first wave of defaults that involved picking up boats and recreational vehicles.
Now, it's cars and trucks, often in affluent neighborhoods.
"A lot of the vehicles we're getting are high-dollar pickups" whose owners got caught in the construction downturn, Altes says.
The repo surge has boosted business for locksmith Amy Palmer. She makes new keys for seized vehicles at Manheim's auction lot in Ocoee, Fla., one of Manheim's 144 locations in 14 countries.
"It's phenomenal," she says. "If you're not paying for your house, who is paying for the car?"
I just thought you guys might find this interesting... or maybe I'm just biased... Patrick Altes (who is quoted in the middle), is my dad.... and it is insane how busy we have been lately!
He is also going to be on national Fox News tonight... not sure what time though.
John Philips
Used Cars
Thread
Thread Starter
Forum
Replies
Last Post
LexFather
Car Chat
2
11-23-12 03:04 PM
