Repo Man

Americans push limits. It is an integral piece of our nation’s DNA and arguably part of what makes our nation exceptional.  Unfortunately, not all limit-pushing is good. Perhaps this note pushes a certain limit, and its result is less than pleasing (you be the judge), but let’s try anyway.

In the dystopian setting of the 1984 movie "Repo Man," there might just be a metaphor for the current state of car ownership. The film's protagonist navigates Los Angeles, filled with eccentric characters and cosmic oddities.  Today's car owners traverse an economic backdrop fraught with peculiar uncertainties and skyrocketing costs.  This combination has led to a surge in car repossessions.  According to this article from Bloomberg, cars being confiscated are up 23 percent compared to a year ago. They started rising noticeably last year and have now surpassed pre-pandemic levels, reaching 14 percent above totals in the first half of 2019.

High payments have become the norm, with new cars demanding a monthly outlay of $739 and used ones $549.  Folks are trying desperately to keep the repo man at bay but are stretching their budgets to do so.  As essential living costs climb, certain populations are having to deprioritize auto loans.  Once manageable car payments are now ignored. 

Many households are searching for an answer, much like the “Repo Man” pursues a mysterious Chevy Malibu with extraterrestrial ties.  Optimists might argue there's a glimmer of hope on the horizon, individual clamoring about potential relief from the Federal Reserve is on the rise.  This possible reprieve is unlikely to be as dramatic as the "Repo Man's" flight into the unknown, his escape from a chaotic world.  Instead, future car purchasers might soon find lowered borrowing costs, but even this modest adjustment is unlikely to offer a full escape for those with stretched budgets.