All Podcasts / Planet Money / Riding with the repo man (update)
Planet Money
Planet Money

Riding with the repo man (update)

February 04, 2026 • 29m

Summary

⏱️ 6 min read

Overview

Planet Money investigates the epidemic of car repossessions in America by following three interconnected stories: a used car dealer selling subprime loans, a young woman who falls behind on payments, and a repo man tracking down vehicles in the middle of the night. The episode reveals how GPS tracking technology has made repossessions easier, contributing to a rise in subprime auto lending, and provides a 2026 update showing the situation has worsened to Great Recession levels.

The Subprime Auto Loan Crisis Emerges

In 2019, approximately 7 million Americans were at least three months behind on their car payments, signaling a troubling trend in the auto loan market. The episode revisits this issue in 2026, revealing that even more people are now behind on payments and facing repossession. This investigation takes a unique Rashomon-style approach, examining the crisis through three different perspectives: the car salesman, the driver, and the repo man.

  • About 7 million Americans were at least three months behind on car payments in 2019, around the time lenders start considering repossession
  • In 2026, even more people are behind on car payments and more cars are being repossessed
  • The episode tells the story from three perspectives: the salesman, the driver, and the repo man
" If used car salesman is the worst person in the world, I am the king of the worst people in the world. "

The Salesman's Perspective: Subprime Lending Done Right

Rick Reichert, a third-generation car dealer in Ohio, explains the delicate balance of subprime lending. His dealership uses techniques like 'the Columbo' to subtly identify customers who need subprime loans while maintaining their dignity. Rick argues there's a responsible way to do subprime lending that considers the customer's long-term success, though he acknowledges that about 6% of his subprime loans result in repossession—a necessary tradeoff for serving people with bad credit who still need transportation.

  • Dealerships use 'the Columbo' technique—looking over the shoulder to mention guaranteed credit approval—to subtly identify subprime customers
  • Rick's company has exactly 6% repossession rate on subprime loans over two years
  • At least 92% of people with subprime auto loans are paying them off on time or not seriously behind
  • Irresponsible lenders have gotten 'very loose' extending credit to people who shouldn't have those terms
" Me as a dealer, I want them to make the payment. I want that car to get them where they need to go. I want their credit reestablished to where we can get them in a prime loan and really get someone back on their feet. "
" So as long as we want to play in that field of lending, there's always going to be some form of repossessions. There's just no way around it. "

📚 4 more sections below

Sign up to unlock the complete summary with all insights, key points, and quotes

Listen on Apple Podcasts More Episodes from Planet Money