Planet Money

Riding with the repo man (update)

February 4, 2026

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  • The current surge in car repossessions, estimated to reach 3 million in 2025, mirrors the severity seen during the Great Recession, driven largely by an increase in subprime auto loans. 
  • The repo business has become significantly easier due to technology like GPS tracking, which reduces the detective work previously required to locate delinquent vehicles. 
  • While subprime lending is crucial for those with poor credit, irresponsible lending practices and the rising cost of vehicles are contributing factors to the growing number of defaults and repossessions. 

Segments

Repo Man Ride-Along Introduction
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(00:00:33)
  • Key Takeaway: Repo man Larry Baker repossesses a black Chevy Cruz in the early morning hours.
  • Summary: The Planet Money team accompanies repo man Larry Baker on a late-night repossession in Ohio. The target is a black Chevy Cruz whose owner is six payments behind on the loan. Larry notes that his wife, who usually assists, is out sick, leaving him slightly more exposed during the operation.
Introduction to Three Perspectives
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(00:02:54)
  • Key Takeaway: The episode structure follows a Rashomon style, detailing the delinquent car loan lifecycle from three viewpoints.
  • Summary: The hosts introduce the structure of the episode, which will tell the story of a delinquent car loan from the perspectives of the salesman, the driver, and the repo man. They frame this as a micro-story to explain the macro issue of rising repossessions. The segment sets up the three main characters whose stories will be interwoven.
Salesman’s Perspective on Subprime Loans
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(00:04:18)
  • Key Takeaway: Car dealerships use the ‘Columbo’ technique to subtly offer guaranteed credit approval to customers with bad credit.
  • Summary: Rick Rikert, a third-generation car salesman, explains dealership jargon like ’towers’ where finance decisions are made. He details the ‘Columbo’ move, a subtle way to signal that subprime financing is available without offending customers with good credit. Rikert argues that responsible subprime lending focuses on setting customers up for future prime loans, unlike irresponsible lenders who push unaffordable terms.
Driver’s Experience with Subprime Financing
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(00:10:04)
  • Key Takeaway: Stephanie Waldrop accepted a 23% interest rate on a $12,000 used Ford Fusion, leading to high monthly payments.
  • Summary: Stephanie Waldrop, seeking to replace her high-mileage Ford Explorer, secured a subprime loan for a red Ford Fusion. The loan terms included a 23% interest rate, resulting in a $466 monthly payment for 48 months. She missed payments after quitting her high-paying job due to workplace discrimination, leading to the car’s repossession.
Repo Man’s Evolving Job Tactics
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(00:15:41)
  • Key Takeaway: GPS tracking has made repossessions significantly faster and easier for repo men compared to the manual tracking required in the MySpace era.
  • Summary: Repo man Larry Baker describes how his job has changed, noting that lenders now install GPS trackers on subprime financed cars. This technology allows him to locate vehicles instantly, contrasting sharply with the past need to use social media and trickery to find debtors. Despite the ease, he acknowledges the misery of waking up to a missing car.
Update on Repossession Trends
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(00:25:06)
  • Key Takeaway: Repo rates are now higher than in 2019, driven by more expensive cars requiring longer loan terms (up to 84 months) for subprime borrowers.
  • Summary: Repo activity has been rising steadily since the pandemic lull, with 2025 estimates exceeding 3 million repossessions, matching Great Recession levels. Larry Baker has retired from the business due to increased desperation and conflict among debtors. The current dealer notes that repos are up because cars cost more, forcing lenders to stretch terms to 84 months, increasing borrower risk.
Update on Stephanie Waldrup
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(00:28:10)
  • Key Takeaway: Donations allowed Stephanie Waldrup to buy back her repossessed Ford Fusion, though her credit score suffered significantly.
  • Summary: Following the original broadcast, public donations enabled Stephanie to retrieve her red Ford Fusion before it was auctioned. She drove the car home, feeling great relief, but the repossession severely damaged her credit score. The hosts were unable to track her down for a final 2026 update.