In a trending TikTok clip with nearly 20,000 views, a car dealer once again delves into the world of car repossessions at what he claims to be a CarMax lot. However, it’s noted that the financing banks typically manage repossessions.
The video, posted by Cheese (@thankuscheese), showcases a range of vehicles, from luxury Jaguars and Range Rovers to everyday Hondas, all repo’d, painting a vivid picture of the economic pressures facing American car owners today. The TikToker claims that the repossessions are a negative sign, and research suggests he is correct.
“Got a Jaguar repo right here, got a Challenger, right behind that, or it’s a Charger, positive. Right here, Honda CR-V repo. Look at this Range Rover; this was a repo, too. It’s crazy, won’t even start. It needs to jump, but damn,” Cheese narrates as he walks through the lot, highlighting the diversity of repossessed vehicles. The presence of personal belongings still in the cars—”It’s still got drinks in it, a little ducky,” he points out—underscores the suddenness of these repossessions, often leaving the former owners in shock and disbelief.
One commenter had a harsh claim against vehicle retail giant CarMax, writing, “CarMax is crooked. I bought a Mercedes C class from them, and it had been wrecked. They told me to pick out another one, and I did. It was wrecked.”
Most viewers expressed concern about the pricing of cars, including rising interest rates. Concerning actual repossessions, one person noted, “CarMax isn’t screwed unless the car is financed with Carmax financing; it’s the banks who’re getting screwed outta money.”
This visual and impactful storytelling by Cheese brings to light the recent uptick in vehicle repossessions, a trend supported by Cox Automotive data that indicates a 20.4% increase in vehicle repos. The pandemic era, characterized by government stimulus checks and a general sense of financial flexibility, saw a decrease in repossessions. However, as the stimulus dried up and economic realities set in, many Americans could not keep up with their car payments, leading to increased repos.
Inflation, vehicles’ soaring costs, and higher borrowing rates further compound the negative economic strain. According to Kelley Blue Book, the average price for a new car has slightly increased while loan rates remain high, pushing more car owners toward financial distress. The situation is dire, with Cox Automotive estimating that 1.5 million vehicles would be repossessed by the end of the year, marking a significant rise from the previous year.
@thankucheese Carmax repossessions are on the rise and it just keeps getting worse. #carmax #carmaxauction #auction #cars #rangerover #mazda #dealer #wholesale #retail #repossessions #repo #repossession #fyp #fy #viral #trending ♬ Beautiful Things – Benson Boone
Lenders are reportedly adopting aggressive tactics to manage the surge in delinquencies, with reports of repossession agencies receiving incentives to recover vehicles from defaulting borrowers. This situation paints a grim picture of many Americans’ financial challenges, exacerbated by the economic aftermath of the COVID-19 pandemic.
The TikTok video by Cheese doesn’t just highlight the prevalence of car repossessions; it serves as a cautionary tale about the fragility of financial stability and the importance of managing debts wisely.
As Cheese walks through the lot, pointing out the varied makes and models of repossessed vehicles, the message is clear: the wave of repossessions spans across economic classes, affecting both luxury and standard vehicle owners.
The Daily Dot has contacted the TikToker and CarMax for comment.