Car loan deliquencies on the rise

KEENE, N.H. There aren’t enough hours in a day for Jim Coppo to do his job. A few years ago, Coppo was repossessing two or three cars on an average day. Today, he tows away eight or nine, and would do more if he had time. As many Americans struggle with mountainous debt and the threat of losing their homes to foreclosure, others are losing their vehicles at the highest rate in a decade.

“We’ve been watching this over the past several years, and auto loan delinquencies have been steadily getting higher,” said Keith Leggett, a senior economist with the American Bankers Association. Coppo, whose territory covers Cheshire County, said he’s noticed not only an increase in business but a change in the types of vehicles he repossesses.

Instead of the Dodge Neon in the parking lot of an apartment complex, he now finds himself towing BMWs, Jaguars, Land Rovers and expensive trucks from middle- and upper-middle class homes. “I’ve had to deal with friends. It’s the same with every situation. You feel bad as it is,” he said. “I just treat every single repo with the utmost respect. Somebody’s in a bad spot.

It’s not necessarily their fault.” Gerald Neiman, a Keene bankruptcy lawyer, said car owners are considered in default of their loans if they miss a single payment, but banks or financiers rarely will repossess before exhausting other options. Indirect or subprime loans through dealerships or other third parties have become more common than direct bank loans.