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By KSPR NEWS Feb 26, 2008
Millions of vehicles across the country and hundreds here in the Ozarks will be snatched from their owners who stopped making payments. Car and truck repossessions are predicted to hit the highest level in decades and that trend is leaving driveways empty in the Ozarks.
Most people have heard about the home foreclosure crisis but little has been said about the nearly two million people expected to lose their cars this year because they can't afford them.
Repossession agents like Mitch Jones are searching for and repossessing cars and trucks in record numbers. Jones says, "They keep them hidden down the street or in a parking lot." Jones says desperation can lead to even odder attempts to keep a car. He says, "Some people chain them to their front porch.” Soon 1.6 million Americans may watch their car get towed away this year.
It just takes 15 seconds for Corporate Recovery agents to lock and load. Last year just 48 cars filled their lot and this year 78 in just two months. Owner Robi Felton says, "We've almost doubled." Felton says SUV's and large trucks are sitting in her lot waiting to be towed to auto auctions. Felton says, "The fuel prices, groceries, everything's gone up. It’s tough for the average American family to feed their family, fuel and get to work."
A bad economy is good for the repo-business but Felton says she and Jones are just the middle men. Felton says, "We're not the mean guys. Life happens. We didn't make it happen to them.” Some lenders say generous sub prime loans and the housing crisis could be to blame. Empire Bank Senior Vice President Doug Page says, “Some say many people took out cash advances to pay for their mortgages. The payments increased and so did the high credit card debt and it trickled down to the auto industry." Page says conservative lending has helped the bank buck the national trend but the company could tighten its lending policy if the trend continues.
Jones will keep his eye out for the cars he's in charge of repossessing to pay his own bills.
Most lenders give someone between 60 and 90 days to make good on their payments before repossession. They say if the customer is willing to work out a payment plan they are often willing to hold off on taking the car. They say your best bet is to budget within your means and get financial advice before making a big purchase.
By KSPR NEWS Feb 26, 2008
Millions of vehicles across the country and hundreds here in the Ozarks will be snatched from their owners who stopped making payments. Car and truck repossessions are predicted to hit the highest level in decades and that trend is leaving driveways empty in the Ozarks.
Most people have heard about the home foreclosure crisis but little has been said about the nearly two million people expected to lose their cars this year because they can't afford them.
Repossession agents like Mitch Jones are searching for and repossessing cars and trucks in record numbers. Jones says, "They keep them hidden down the street or in a parking lot." Jones says desperation can lead to even odder attempts to keep a car. He says, "Some people chain them to their front porch.” Soon 1.6 million Americans may watch their car get towed away this year.
It just takes 15 seconds for Corporate Recovery agents to lock and load. Last year just 48 cars filled their lot and this year 78 in just two months. Owner Robi Felton says, "We've almost doubled." Felton says SUV's and large trucks are sitting in her lot waiting to be towed to auto auctions. Felton says, "The fuel prices, groceries, everything's gone up. It’s tough for the average American family to feed their family, fuel and get to work."
A bad economy is good for the repo-business but Felton says she and Jones are just the middle men. Felton says, "We're not the mean guys. Life happens. We didn't make it happen to them.” Some lenders say generous sub prime loans and the housing crisis could be to blame. Empire Bank Senior Vice President Doug Page says, “Some say many people took out cash advances to pay for their mortgages. The payments increased and so did the high credit card debt and it trickled down to the auto industry." Page says conservative lending has helped the bank buck the national trend but the company could tighten its lending policy if the trend continues.
Jones will keep his eye out for the cars he's in charge of repossessing to pay his own bills.
Most lenders give someone between 60 and 90 days to make good on their payments before repossession. They say if the customer is willing to work out a payment plan they are often willing to hold off on taking the car. They say your best bet is to budget within your means and get financial advice before making a big purchase.