LAVAL, Quebec, Canada–Defaults on automobile loans in the U.S. have punched the gas. 

According to new data from Cox Automotive and reported by Auto123.com, the 2,332,837 defaults recorded in 2024 exceeded the levels of the Great Recession.

In all, some 1.73 million vehicles were repossessed, the most in more than 10 years. The repossession rate jumped to 2.3%, a return to pre-2008-crisis levels.

“With a mix of mass layoffs, economic instability and new tariffs that will send prices up, the U.S. seems heading for a recession,” the forecast stated.

Default Rates

According to Cox Automotive, the default rate reached 3.13% in 2024, its highest level since 2011. As Auto123.com noted that compares to:

• 2007: 3.18%

•    2008: 3.76%

•    2009 (peak): 4.12%

•    2010s: around 2%

The report noted that Cox Automotive estimated that March sales will not be immediately impacted by economic uncertainty and what were then threats of new tariffs. But with the tariffs now in place, longer-term they are expected to “disrupt the entire automotive market,” the report said.