The American Financial Services Association (AFSA) announced in a blog post that vehicle repossessions remain rare in the United States, citing federal data and describing industry efforts to work with borrowers before any repossession occurs.
The association’s statement follows a response submitted to Senator Elizabeth Warren’s staff regarding vehicle finance practices and misconceptions about repossessions. According to AFSA, “repossessions are rare, with more than 99 percent of financed vehicles staying with borrowers per a 2025 Consumer Financial Protection Bureau report.” The association also described “extensive notifications and outreach to borrowers before any repossession occurs.”
In the Southern United States, auto loan delinquency rates vary by state, but overall repossession volumes reflect a small fraction of financed vehicles. Reports indicate that states like Texas had around 190,000 estimated repossessions in 2024, yet this represents a low rate relative to the 22 million registered vehicles there. This underscores how vehicle financing supports regional mobility and economic participation.
Nationally, vehicle financing contributes substantially to the U.S. economy. Oxford Economics research shows it added $125.5 billion to GDP in 2023 while supporting 680,000 jobs. The industry enables over 80 million Americans to access work and education through credit availability.
The American Financial Services Association was founded in 1916 as a trade group representing consumer credit providers. According to its official website, AFSA advocates for responsible lending and policies expanding credit access, focusing on consumer education and industry standards. The association represents more than 410 member companies in the consumer credit sector, including suppliers; it promotes financial literacy through its education foundation; works to protect consumer access to credit; maintains high-level relationships with Congress and regulatory agencies; advocates for policies advancing the industry; and offers educational resources such as compliance training and leadership programs.
