Car repossessions surge

Updated

While car dealers are apparently more willing than ever to make it easier for people to buy cars they can't afford with 7-year loans, lenders are also busy repossessing cars at the highest rate in more than a decade.

Thomas Webb, chief economist for a unit of Atlanta-based Manheim told the USA Today that vehicle repossessions are set to rise about 10% this year to 1.6 million -- that's about a third higher than number that got a visit from the repo man 10 years ago.

The culprit? You guessed it: easy subprime loans that let people with bad credit and no money buy cars they had no business owning.

The best part? A lot of the cars being repo'd are flashy cars in expensive neighborhoods where people overextended themselves, thinking that it was their divine right to have real estate that appreciated in the double digits every year.

Hell hath no fury like a bubble burst.

Advertisement