Car repossessions on the rise

Car repossessions on the rise

I heard a story a couple of weeks ago that there are expensive lease cars being left at the airport as formerly wealthy owners who took on Aston Martins, Porsches, Lamborghinis and Bentleys before the economic downturn now can’t afford the multi-thousand-dollar-per-month payments. Rather than take a $300,000 hit on an 18-month old DBS, they’re just quitting the country.

And, it’s not just in New Zealand – Dubai is seeing people leave the country because if you fall behind with your payments there, authorities can remove your travel visa, and don’t look on it leniently.

Another side effect is an increase in repossessions. In the US,  violence between repo men and car owners is on the increase. Yahoo! news reported that in Alabama a car owner heard someone trying to steal his car at 2:30am, confronted 3 men with a gun, fired at them, they fired back, and he ended up dead. Now, one of the repo men, a former Marine and part-time preacher is awaiting trial on a murder charge.

Repossessions increased 9% in the USA in 2007 and 12% in 2008. They’re slated to increase by at least 5% this year.

It’s less likely, though, that a shooting will occur in New Zealand over repossessing a car – we don’t have the guns…or sharp-shooting ex-Marines.

I heard a story a couple of weeks ago that there are expensive lease cars being left at the airport as formerly wealthy owners who took on Aston Martins, Porsches, Lamborghinis and Bentleys before the economic downturn now can’t afford the multi-thousand-dollar-per-month payments. Rather than take a $300,000 hit on an 18-month old DBS, they’re just quitting the country.

And, it’s not just in New Zealand – Dubai is seeing people leave the country because if you fall behind with your payments there, authorities can remove your travel visa, and don’t look on it leniently.

Another side effect is an increase in repossessions. In the US,  violence between repo men and car owners is on the increase. Yahoo! news reported that in Alabama a car owner heard someone trying to steal his car at 2:30am, confronted 3 men with a gun, fired at them, they fired back, and he ended up dead. Now, one of the repo men, a former Marine and part-time preacher is awaiting trial on a murder charge.

Repossessions increased 9% in the USA in 2007 and 12% in 2008. They’re slated to increase by at least 5% this year.

It’s less likely, though, that a shooting will occur in New Zealand over repossessing a car – we don’t have the guns…or sharp-shooting ex-Marines.

« | »

Let us know what you think

Loading Facebook Comments ...
Read previous post:
Drug dealer’s Porsche becomes school teacher

Recently I came across a rather strange piece of automotive news, about a Porsche 911 dressed up as a police...

Close