Autotrader says “Don’t Panic” over Loan Defaults and Car Repossessions

Jonathan Smoke is the chief economist at Cox Automotive.

Fact: Car reposessions are not above normal levels. So don’t worry.

In today’s market, the deterioration of consumer credit, and auto loan performance, in particular, is a worrying sign for industry watchers. In the context of high inflation and with the Fed intent on slowing the economy and weakening the labor market, there are indeed clear signs of stress in the system. Continued jobless claims are increasing, up from their historic lows.

repossessed cars for sale

Auto loan delinquencies are also continuing to rise, and auto loan defaults are growing as well. As a result, car repossessions are also increasing, but they too are rising from record lows. Through any economic cycle, increases in defaults and repossessions are a normal, expected occurrence.

Manheim Auctions are not flooded with repos

At our Manheim auctions, the volume of repossessed vehicles sold has increased in 2022 compared to 2021 – up 3% year to date – but the total volume of repossessed vehicles sold will finish the year below 2020 and down more than 25% compared to 2019. Overall, car repossession volume at Manheim, while increasing, is not yet near red-alert levels. If fact, repossessions are only tracking back toward historical norms.

Car Repossessions

It is important to remember that auto loans normally have negative equity. These are financing products on depreciating assets. And yes, despite a period in 2020 and 2021 when used vehicles were INCREASING in value, automobiles are depreciated assets. Over time, they always have been and always will be depreciating assets. Negative equity in an auto loan is not some exotic thing – it is a very normal and planned-for occurrence.

Throughout the pandemic and still now, consumers have been putting more money down in absolute dollars and as a share of loan amounts. This is helping prevent the stronger relative equity positions from deteriorating. In fact, our recent analysis of likely equity positions on outstanding auto loans suggests that they are in better shape than normal right now. And this means that consumers often have more options if a loan falls into default, and lenders are more likely to work out an agreeable deal, reducing the likelihood that a repossession is the end result.

Importantly, the current loan portfolio is relatively healthy. The total number of loans is down (a result of lower sales since spring 2020), and the share of subprime and deep subprime loans, the riskiest loans that drive more than 60% of repossessions, are down even more. This context is just not conducive to a crisis.

The real worry in the market right now is a recession, not a tsunami of repossessions. We have been expecting loan defaults and repossessions to increase, but long-term expectations through mid-decade (2025) suggest overall defaults and car repossessions will remain within expected norms.

The year-over-year increases may be notable – and headline-grabbing – but context matters. The industry is not facing an unprecedented wave of defaults and repossessions, but the current economic environment and the possibility of a recession will certainly drive an increase in both.

NJ State Auto Used Cars

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Text — 201-200-1100 

Call — 201-200-1100 

Electric Vehicles? Will High Prices Hurt EV Adoption?

High Prices, Range Anxiety Holding Back EV Adoption as electric vehicles punished for a variety of reasons.

While the tax credits for new and used electric vehicles included in the Inflation Reduction Act will do its part in making electric cars more attractive to American consumers, Statista’s Felix Richter notes that there’s more than just the high purchase price keeping Americans from buying electric.

According to a recent survey conducted by AAAone quarter of Americans say that they would be likely to buy an electric vehicle (excluding hybrids) as their next car. That leaves three quarters who don’t see themselves plugging in instead of filling up just yet.

And the reasons for that hesitancy are mainly threefold. As the following chart shows, it all comes down to three factors: high prices, range anxiety and charging challenges.

electric vehicle adoption

Search Used Hybrid and Electric Vehicles for Sale in New Jersey

The value of my used car – Top 10 factors

When someone says, “I want the real value of my used car” – oftentimes what they mean is:

  • How much is my car worth?
  • What’s the value of my used car?
  • What can I get for my car?
  • How much can I get if I trade it in?
The Top 10 Factors That Affect The Value Of My Used Car

I want to know the real value of my used car

Finding the right value is not always easy. But there are 10 simple things to consider which will affect used car value.

Read the top ten factors you should consider when selling or trading your used car.

Get an Instant Cash Offer in Jersey City, NJ

Get an Instant Cash Offer in Jersey City, NJ

Driver tried to beat Holland Tunnel toll with James Bond style device

License plate black-out device

License plate black-out device used to skip $16 Holland Tunnel toll

Another driver tried a James Bond move of skipping a $16 toll at the Holland Tunnel, Port Authority police said.

Some people said, he needed a faster car like the ones at NJ State Auto used car dealer: search coupes for sale.

Holland Tunnel

This device wasn’t quite like the rolling license plates of James Bond’s Aston Martin had in the movie “Goldfinger,” which Bond’s spy agency colleague Q assured him were the way to beat tolls in New York City.

An eagle-eyed Port Authority cop spotted the New Jersey license plate device and stopped his car. The person was arrested and taken to the Port Authority police Holland Tunnel Command.

The easy method of keeping electronic toll readers from detecting his front plate was simpler: He didn’t have a front plate.

But driving without a front plate is a fineable offense in both New York and New Jersey.

Toll evasion is a violation of public trust that’s even more egregious when the person charged works at an agency that uses revenue from tolls to pay for transit service.

The cashless toll collection system at the tunnel either reads a vehicle’s E-ZPass transponder or photographs the front and rear license plates so the vehicle owner can be billed for the toll. In this case, the car had no front license plate, police said.

New York Daily News

NJ Driver’s Licenses Feel Fake

The state Motor Vehicle Commission tweeted this month that New Driver’s Licenses and ID cards being issued have a new feel and look.

N.J. Driver’s Licenses Feel Fake

The most obvious change incorporates the MVC’s new logo and color scheme also seen at agencies and inspections stations.

But some drivers said the new documents have a different feel than the old ones — people said they feel fake.

Gone is the plastic-feel of the old license that was slightly thinner than a credit card or corporate ID. Some drivers said the new license has been rejected when they used it for proof of being of legal drinking age at bars.

The new licenses and IDs have a different feel to them and include several improved security features, said William Connolly, an MVC spokesman.

“Both changes help MVC to combat fraud and identity theft, enhance security of individuals’ personal information, and make it more difficult for fraudsters to produce counterfeit NJ licenses and IDs,” he said, declining to describe exactly what the features were for security reasons.

The change happened when the MVC switched from issuing driver’s licenses at agencies to issuing them from a central facility and mailing them to drivers, Connolly said.

New Jersey is one of more than two dozen states that switched from issuing licenses at agencies to producing them at a central license facility.

So, why the different feel?

“The improved security features could not be implemented using the old technology that was used to print licenses and IDs (in agencies),” Connolly said. “The new material and centralized production make the new licenses and IDs more secure and less susceptible to fraudulent reproduction.”

Renew New Jersey Driver’s License

Q: Can I renew my driver’s license online in NJ?

A: Yes, you can renew your NJ driver’s license online.

Renew New Jersey Driver’s License

Renew New Jersey Driver’s License

There are two ways to renew your New Jersey driver’s license or photo ID. Renew your NJ license:

  • Online.


  • At a Motor Vehicle Commission (MVC) office.

If you are eligible, you must renew online. However, if you decide to request a REAL ID for the first time, you must do so in person.

Renew Your New Jersey License Online

You can renew your New Jersey license or state ID online if you(r):

You MUST renew your New Jersey driver’s license online if you are eligible.

To renew your NJ license or ID online, visit the MVC online portal and provide your:

  • Zip code.
  • Driver’s license number.
  • Social security number (SSN).
  • Email address.
  • Credit card information for payment. The MVC accepts Visa, MasterCard, American Express, and Discover cards.

Your renewal will be effective immediately. Once you complete the transaction, print the temporary license and keep it with you when you drive. 

It will take approximately 10-20 days to receive your license in the mail.

And when you are ready to start shopping for a car, check out some of these articles below:

Capital One Auto Loan Pre Approval

Bad Credit Car Loans

Stimulus Check Update 2021

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Get your Stimulus Check Update here.

Want to find when and how the IRS sent your 2021 Economic Impact Payment?

Use the IRS web page “Get My Payment” tool to find the status of your money. So far more than 35 million people have used the tool to get their 2021 stimulus update.

Here is the web link to the IRS Search Tool to “GET MY PAYMENT

Good Luck everyone.

Stimulus Check Update in Jersey City

The IRS search tool is updated only once per day and that people should not call the IRS because they said they can’t handle it. The IRS is in panic mode and is saying don’t call us because phone operators have no information. Just keep logging in for daily updates. I know, everyone wants a update on their Stimulus Check.

As of March 17th, the Internal Revenue Service said it had sent out covid relief money to more than 90 million Americans under the initial round of payments.

Here is what the IRS said on their web site:

The first batch of payments will be sent by direct deposit, which some recipients started receiving as early as March 12.

Additional batches of payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card.

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Auto Service Tip: 4 Reasons to Avoid Driving on Underinflated Tires

How Do You Know Your Car Needs Service?

Finding out there’s something wrong with your car can be equally stressful and frustrating. But if you identify the problem early on, you can tackle it before it turns into an irreversible issue. Be on the lookout for these ten signs — they will signify that your car needs immediate service. 


How Do You Know Your Car Needs Service?

The check engine light is on

A glowing check engine light is never a good thing. It often signifies there’s something wrong with one of the hundreds of systems in your car’s computer. It’s not necessarily a cause for panic, but it’s a definite indicator that you should take your car in for an inspection.

There’s smoke coming from under the hood

If you’re driving and notice smoke coming from under the hood, it could be a sign that the engine is overheated. This could destroy your car if you continue to drive and refuse to service it. Pay attention to the temperature gauge. If it seems too high, schedule an appointment for a maintenance check.

The transmission seems off-kilter

When it seems like your car is having trouble speeding up, and it feels shaky or it’s making strange noises, there could be an issue with the transmission. The transmission is essentially your car’s power system, so it needs proper maintenance. If you don’t take care of it, you could find yourself stranded on the side of the road waiting for a tow-truck to haul your car away.

There are major fluid leaks

Are there any major fluid puddles on the ground underneath your car when it’s parked? The leak could be coolant, transmission oil, engine oil, or brake fluid. Or, it could also just be cold water dripping from the air conditioner. While the latter is normal, other fluid leaks could keep your car from running smoothly. Be sure to take it in to the mechanic as soon as you can.

There’s a strange noise while driving

If you hear strange noises while you’re driving, take your car to the shop. A dragging noise could be coming from your wheels, which would signify the wheel or differential bearing is failing. A grinding noise usually occurs when your brakes have gone bad, so you need to get them checked and replaced immediately.

The car is constantly shaking while in motion

A car that shakes while driving over poor road conditions is normal. But if you notice it’s vibrating on a smooth street with no obstructions, you need to take it in. It could indicate a number of issues, such as an unbalanced tire or a bad universal joint. Failing to take care of the vibration could smoke the engine or transmission, ultimately leaving you without a running car.

You’re stalling at intersections

Stalling at an intersection is dangerous. If your car is sluggish and not performing the way it was built to, it could be a sign that the spark plugs need to be replaced, the fuel filter is clogged, or something more severe is occurring in the transmission. Schedule an appointment with the mechanic to take care of this problem before it turns into something serious.

It’s difficult to start it up

If it takes more than one turn of the key to get your car started every day, something’s wrong. It could just be a bad battery, but it might also be a defective starter that needs to be replaced. Regardless of the issue, it needs to be taken care of or you’ll be using public transportation to get around.

Your fuel mileage is bad

If you’ve noticed you’re filling your gas tank more often than normal — and you’re not using your car any more than usual — there’s an issue with your ride that needs to be taken care of. A sticking brake pad or improper tire pressure could be to blame, so take it to the shop for a check-up.

Shifting gears is rough

Driving an automatic car provides a smooth, reliable shift in gears. But if it seems less efficient than usual, causing your vehicle to hesitate or jolt between shifts, your transmission needs attention. Schedule an appointment  to change the transmission fuel, filters, and screens.

Schedule Service in Jersey City, NJ

If your car shows any of these signs, just bring it in to NJ State Auto Used Cars. Our maintenance workers will help fine-tune your ride and take care of any issues. 

If you feel as though the damage is done and you need a new car, just head on over to our lot. We’ve got hundreds of quality used CARFAX-certified vehicles to choose from in our inventory of used cars for sale in Jersey City, New Jersey.

4 Tips for Protecting Your Car Against Rain Damage

Spring showers bring May flowers, but they can also bring a whole lot of damage to your vehicle. Everyone knows the harm snow and ice can do to their cars, but many people don’t consider the effects of rain. The excess moisture can degrade paint jobs and cause mold to grow if water leaks inside the vehicle, so it’s a good idea to know what to do to keep your car in top shape, despite any showers.


Follow these tips to make sure your car is high and dry this season.

Protecting Your Car From Rain Damage

Rain, rinse, repeat

There’s a new mantra you should adopt this season: When it rains, get a car wash. Now, it may not be economical to head to the car wash after every little shower, but if there’s a big rainstorm it’s vital to make your way over there as soon as possible. 


According to Auto Detail Doctor, one of the most important times to wash your car is immediately after it rains. Contrary to popular belief, rain is not giving you a free car wash by clearing away dirt and grime on your car — it’s actually adding more pollutant-filled soot and sediment to your car’s surface. The contaminants in this caked-on layer of yuck actually wear away at your paint job, and a professional scrub can help clear away all this nastiness. At the very least, give your car a rinse in the driveway.

Close your windows

This one might seem obvious, but how many times have you walked out to your car after a rainstorm to realize you left the windows open the whole time? Everyone’s been there. If water leaks into your car’s interior, it can damage the fabric and cause a buildup of mold. This spring, make it a habit of always shutting your car windows, especially if rain is in the forecast. Don’t forget about closing sunroofs and rear windows, too.

Target moisture

If the last tip failed to make an impression on you and you find yourself staring at an inch of water on the floorboards and spongy seats, it’s time to get serious about drying out your vehicle. This is a multi-step process. If you’ve got an inch or more of standing water on the floor of your car, use a wet/dry vac to suck out as much of it as you can, followed by using thick cloth towels to absorb any water that collected on seats or carpets.

Next, use heavy airflow to dry out the interior of the vehicle. Open all doors and windows and then place a large fan on the ground near the car, setting it at an angle so that the air blows through the inside of the car. It’s most effective to do this drying-out procedure inside your garage and letting the car sit for at least a day. If you’re pressed for time or on the road, you can also use your car’s heater to dry out the vehicle, but it’s less efficient and should only be used as a temporary solution. Finally, spot-dry any remaining damp areas with a blow dryer.

Out, dang spot

Getting a car wash immediately after a rainstorm will help prevent most water spots and paint damage, but if you live in an area where the rain is more acidic, it could be a good idea to invest in a paint cleanser. The product will decontaminate the surface of the car’s exterior to prevent damage from the rain. Use the paint cleanser after getting a car wash for best results — it removes extra grime and helps protect your car against the next downpour.

Find Out More About Maintaining Your Car in Jersey City, NJ

Taking steps like these to protect your car from preventable degradation is key to preserving the value of your car. For more tips and advice on how to maintain your vehicle, reach out to us at NJ State Auto. When you shop here, you know that our inventory of used cars for sale is well taken care of.