Car repossessions are surging — a troubling sign for the used car market

[kamapisaachi]

There's a troubling situation spreading among car owners that could portend an implosion of the used car industry, according to a new report. 

Repossessions of vehicles are surging, and have even doubled among so-called "prime" borrowers, or people with good to excellent credit scores who are considered the least likely to default on their lows, Lisa Beilfuss Popeo, a senior writer for Barron's, told CBS News

Repossessions occur when a borrower falls behind on their car payments, giving the lender the right to seize the vehicle. The rise in repossessions comes after car prices surged during the pandemic, as auto manufacturers struggled to meet demand amid chip shortages and other issues. Used car prices rose particularly sharply, with the average used car price jumping almost 17% in May to more than $32,000. 

[Googlie]

Why is it a trouble sign for used car market ? 
 

if I understood correct it’s the opposite 

car owner does not pay emi 

bank takes the car 

car comes to auction 

dealer buys the car 

car is now available in used car market 

 

so inventory increased right ? 

[iddaritho]

20 minutes ago, Googlie said:

Why is it a trouble sign for used car market ? 
 

if I understood correct it’s the opposite 

car owner does not pay emi 

bank takes the car 

car comes to auction 

dealer buys the car 

car is now available in used car market 

 

so inventory increased right ? 

My car was stolen last week , 2012 Honda Accord sports edition with leather seats 

insurance paying for totaling the car they offered me 10800 dollars 

KBB value is 10600 to 11800 , but I didn’t enter body repair in the stuff 

I was surprised with the cost of the car now 

2020 same car dealer offered 4800 dollars 

so I didn’t sell it and decided to keep it as a 3 rd car