From dealers to lenders to tow truck operators, reports have poured in this month about a disturbing trend of rising car and truck repossessions.
Lisa Beilfuss Popeo, who covers the economy for Barron's, recently reported that vehicle repossessions have doubled among “prime” borrowers, which includes consumers with good credit scores.
"One red flag is the rate of repossession for prime borrowers is starting to rise. It's not just subprime borrowers that are having problems," Popeo told CBS News.
The reason for the sharp increase in repossessions is not exactly clear. Some point to a bubble in the car market that was caused by rapidly rising prices due to a shortage of new cars and trucks.
The average price paid for a used vehicle in June was around $32,000 – an all-time high. Popeo thinks the rise in repossessions will result in a lot more used cars on the market, which could temper rapidly rising prices, especially if it’s accompanied by softening demand.