Auto Loan Delinquencies Remain Elevated: What Florida Drivers Should Know Before Repossession

Auto loan trouble can leave a person facing two problems at once: losing transportation and still owing money on the loan.

Subprime auto loans packaged into asset-backed securities reached a 7.00% rate of 60-or-more-day delinquency in January 2026, according to S&P Global Ratings. That measure had declined to 5.64% by April. Separately, Fitch Ratings reported subprime 60-plus-day delinquencies at 5.80% in June 2026, up from 5.60% in its prior-year comparison, and 6.13% in July. Fitch says the July update revised index coverage and restated historical data, so year-over-year comparisons should be read using its revised series. These figures describe different reporting measures, but both point to continued strain among subprime auto borrowers. S&P Global Ratings. Fitch Ratings’ August 2026 update.

Federal Reserve Bank of New York: The broader picture matters, too. The Federal Reserve Bank of New York reported that U.S. auto loan balances rose to about $1.71 trillion in the second quarter of 2026, while transitions into early auto-loan delinquency ticked up.

Repossession may not end the debt

When a lender repossesses a vehicle and sells it, the sale proceeds may not cover the full loan balance, repossession costs, and other permitted expenses. Depending on the loan and applicable law, the borrower may still face a deficiency balance. Florida law describes how proceeds, expenses, deficiencies, and any surplus are handled after a secured creditor disposes of collateral. Florida law describes how proceeds, expenses, deficiencies, and any surplus are handled after a secured creditor disposes of collateral.

So, having the car taken does not necessarily make the underlying financial problem go away. A borrower may lose the vehicle and still have a remaining debt to address.

Why timing can matter

A bankruptcy filing generally triggers an automatic stay that pauses many collection actions, subject to exceptions and court orders. For someone who is behind on a car loan, Chapter 13 may provide a way to propose a court-supervised repayment plan that addresses overdue payments while dealing with other debts. Whether that is feasible depends on the person's circumstances, income, loan terms, and proposed plan.

Timing is especially important in Florida. The Eleventh Circuit has held that, under Florida law, a vehicle repossessed before a bankruptcy filing generally is not part of the bankruptcy estate in a way that allows the debtor to compel its return through bankruptcy. That can make recovery of a vehicle substantially more difficult after repossession.

A bankruptcy filing does not guarantee that a borrower can keep a vehicle, stop every repossession, or recover a car already taken. Prior bankruptcy filings, creditor motions, the facts of the repossession, and other legal issues can affect how the automatic stay applies.

Get advice before the situation changes

If you are behind on a car loan, do not assume your only choices are to catch up immediately or wait for repossession. Speak with a qualified bankruptcy attorney promptly about your specific situation. If the vehicle has already been taken, get advice as soon as possible; deadlines and the status of a sale may matter.

Stewart Law helps Florida consumers evaluate bankruptcy options, including Chapter 13. Learn about Chapter 13; try the Chapter 13 Payment Estimator; or read our FAQ on whether bankruptcy can stop vehicle repossession in Florida.

This article is general information, not legal advice. Whether bankruptcy can help depends on the facts of each case.