DRN held its first-ever Virtual Showcase in October 2020, hosting experts from various segments of the auto industry. Part of the agenda focused on repossession. We hosted a number of our Affiliates as well as several industry leaders to discuss the state of the repo industry coming out of the Covid-19 pandemic, as well as areas of needed change within the broader auto finance industry.
Like so many others, the U.S. repossession industry took a direct hit from the COVID-19 pandemic. Business closures, transitions to remote work arrangements and quarantine orders meant there were fewer drivers on the roads. In addition, federal and state moratoriums on repossession activities during the pandemic caused repossession volumes to drop quickly and significantly. Government stimulus packages, loan deferments and extensions and other aid efforts were put in place to help individuals weather the financial storm created by the pandemic.
Fortunately, repossessions have begun to rebound as restrictions have lifted, drivers are back on the roads and businesses are returning to more normal operations. Of the agencies represented in our Affiliate Roundtable, current volumes (October 2020) ranged from about half of what they were prior to Covid-19, with a few at or near normal levels again. “Running at 50% was the new norm,” stated a repossession agency owner. “We had a fast drop to zero in March, then slowly were back up to 50% for months. But we’re on pace to hit 70% this month.” Agencies and lenders alike are hitting the reset button as delinquency processes restart.
To learn more about how the industry adapted, click here.
