Riding with the repo man (update)

Key Takeaways

An estimated 3 million cars were repossessed in 2025, a number on par with the Great Recession.
The episode examines delinquent car loans through the perspectives of a salesman, a driver, and a repo man.
Technological advancements like GPS trackers have significantly streamlined the car repossession process for lenders.
Higher car prices are leading to longer loan terms, increasing the risk of default, particularly for subprime borrowers.
The subprime auto loan crisis, while smaller than the 2007 mortgage crisis, represents a significant personal crisis for millions of Americans.

Repo man Larry Baker in Ohio attempts to repossess a car from a customer who is six payments behind.
This micro-level story frames the episode's broader exploration of the macro issue of delinquent car loans and repossessions.
The segment introduces the real-world challenges faced by repo agents and borrowers.

Rick Rikert, a third-generation car salesman, explains how his dealership uses subprime financing for individuals with bad credit.
Rick differentiates between responsible subprime lending, which helps customers reestablish credit, and irresponsible practices that push unaffordable terms.
His company reports a low repossession rate of 6% for its subprime loans, with 92% of subprime borrowers reportedly making payments on time or not seriously behind.

Stephanie Waldrop, a 23-year-old from Mississippi with bad credit, secured a subprime loan for a $12,000 used Ford Fusion.
The loan came with a 23% interest rate and terms that would effectively double the car's sticker price over 48 months.
Due to reduced income from a new job, Stephanie missed payments, resulting in her car's repossession after three months and two and a half payments behind.

Repo man Larry Baker details how the repossession business has transformed from requiring detective work to relying on technology.
In the past, agents used limited information and social media, sometimes employing trickery, to locate vehicles.
Today, Larry demonstrates using an iPad and GPS trackers to quickly pinpoint and repossess financed vehicles, completing one in five minutes.

The discussion highlights a broader subprime auto loan crisis, putting millions of Americans at risk of repossession.
While not as large as the 2007 mortgage crisis in total debt, individual auto repossessions constitute a significant personal crisis.
Stephanie Waldrop's credit score dropped significantly after her car was repossessed, further impacting her financial standing.

An estimated 3 million cars were repossessed in 2025, a number comparable to the severity seen during the Great Recession.
A car dealership owner reported nearly double the repossessions since 2019, attributing the rise to higher car prices and longer loan terms.
In Fall 2025, 6.6% of subprime borrowers were at least two months behind on payments, marking the highest rate recorded since before the financial crisis.