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Auto loan delinquencies have risen above pre-pandemic levels after hitting record lows during COVID — and more borrowers are now facing defaults and repossessions.A recent report from the Recovery Database Network (RDN), says more than 2.5 million cars were repossessed last year, and this year is on track to hit 3 million, the most since 2009 (1).Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPThis pattern of rising auto loan delinquencies and repossessions often appears when household budgets are under strain. Auto finance is a significant slice of consumer credit, with more than $1.6 trillion in balances across over 100 million active accounts (2). (Compare that to $13.07 trillion for mortgages, $1.65 trillion for student loans and $1.23 trillion for credit cards.)When times get hard and consumers tighten their belts, the first payment they postpone is on their credit card, and the last one is on their home. Auto loans fall somewhere in between.But how worrying is the rise in delinquencies and repossessions? Is this a signal that the larger economy is falling apart, or is it a symptom of something else?A report by the Consumer Federation of America says that “auto loan default rates … are climbing at rates that mirror the years immediately preceding the Great Recession (3).” It’s becoming clear that the economy is slowing down as hiring and spending have softened since late 2024.In August 2025 the BLS counted only 22,000 new jobs and a 4.3% unemployment rate, and jobs from 2024 were revised down to 911,000 (4). The “Sahm rule,” an index the St. Louis Fed uses to track the probability of a recession based on how fast unemployment is rising, flipped to recession-on briefly last year, and has hovered close to recession territory in 2025.Adding fuel to the argument that we’re headed to recession, the Conference Board now projects real GDP growth of 1.6% in 2025, down from 2.8% in 2024 (5). Add slipping consumer expectations and you have a recipe for economic contraction in the new year.Trending: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)Not all indicators point to a current or imminent recession, however. Recent New York Fed readings show the transition from short-term delinquencies — those who are late on a payment but send in the check within a month or two — to people who are more than 90 days delinquent on a loan is holding fairly steady (6). 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