Auto-finance expert and business consultant Bill Ploog, who spent more than three decades with Ally and GMAC, shared insightful data on LinkedIn earlier this week about payment extensions, which are creating a ripple effect.

The American Recovery Association addressed that impact on Thursday morning.

Ploog posted charts on the social media site with a header, “Below Prime Auto Loan Extensions: The Repeat Extender Trend,” featuring metrics from December 2016 through February of this year.

Ploog determined the percentage of extensions in month going to repeat extenders — borrowers who had already been previously extended— sat at 52% in February.

He also indicated the cumulative percentage of all extensions ever given that went to repeat extenders stood at 46%.

Ploog explained that extensions approached 70% in 2020 in connection with the pandemic. He added, “After the pandemic dip, repeat extensions climbed back and remain stubbornly high (~50–55%) — a clear sign of ongoing below prime stress.”

And Ploog didn’t just wave a magic auto finance wand to generate these metrics. He said his information stems from 4.3 million distinct loans extended across 20 of the largest U.S. auto lenders from data sourced from publicly available filings to the Securities and Exchange Commission.

“If you work in auto finance, you should be using this free source of highly accurate, detailed loan-level data for benchmarking,” Ploog said.

The data likely shows it’s likely a busy scene within servicing and collections departments at finance companies. Meanwhile, an industry message from ARA president Todd Case described a much different situation for repossession agents.

Case said ARA wanted to address the recent slowdown in assignment volume being experienced across the repossession industry.

“Initially, many attributed this decline to seasonal factors, particularly tax season, when consumers used refunds to bring accounts current. However, it is now clear that what we are seeing is not temporary. A broader shift is underway,” Case said.

“Financial institutions are increasingly adjusting their recovery strategies. Accounts that were once placed for repossession at 60 days past due are now often being held at 90 days, 120 days, or longer, as lenders work to keep consumers in their vehicles. While delinquencies may be rising, assignment flow is being delayed, reduced, or, in some cases, eliminated,” he continued.

“At the same time, many agencies are now feeling margin pressure. Fixed expenses tied to trucks, staffing, and debt incurred during the recent high-volume period are not adjusting at the same pace as the decline or delay in assignments. This creates a tightening environment where cash flow and cost control become critical,” Case went on to say.

Case then articulated five recommendations to repossession agents, including:

—Be cautious with spending and expansion: Avoid major purchases or growth decisions based on expected volume that may not materialize.

—Protect cash flow: Monitor receivables closely and address aging balances quickly, especially with higher-risk clients.

—Evaluate client risk: Treat your clients the same way they evaluate borrowers. If you do not assess their financial stability before accepting work, you are taking on the risk that they may not pay.

—Strengthen payment protections: Consider retainers or tighter terms where appropriate. Accepting work without safeguards is extending unsecured credit.

—Align operations with reality: Adjust staffing, assets, and expenses to reflect current, not projected, assignment levels.

“The recent slowdown is proving to be more than a seasonal event. It reflects larger structural changes within the lending environment that will continue to influence the repossession industry,” Case said.

“ARA remains committed to supporting its members through this period with continued guidance, advocacy, and market awareness,” he continued. “We urge all agencies to remain vigilant, protect their businesses, and approach this environment with both caution and discipline.”