Car repossessions are surging across San Diego County as more families fall behind on auto loan payments, mirroring a national spike in delinquencies. Tow truck drivers say they are now fielding far more assignments than at any point in recent years, with some vehicles being taken within minutes . According to the Federal Reserve, 3.88% of auto loans fell into delinquency in the third quarter of 2025 — the highest rate since March 2010. Borrowers with subprime credit are seeing the greatest impact, with 15.78% of people with scores below 620 now behind on payments. Alex Alvarez from Active Recovery Services tows a car on his “repo” list. Repo companies are busier in San Diego Alex Alvarez of Active Recovery Services located one of the cars on his repossession list in a shopping center parking lot. Within minutes, he hooked, lifted, and towed the vehicle away. “It has to be fast, because people will want to get in the vehicle before we hook it up,” Alvarez said. Alvarez said the job is difficult. Especially when he considers how losing a car can affect a family that heavily relies on it. “This job is not easy; it’s not for everyone,” said Alvarez. “I’ve had a lot of employees that just come and go, and they tell me the same thing: it’s not for them, but if I don’t do it, you know, some other repossession company is going to pick it up,” he said. Ezekiel Rodriguez was surprised to see the car towed a few days before starting a new job. Subprime borrowers at greater risk Ezekiel Rodriguez, a construction worker, happened to be driving the vehicle Alvarez picked up. He said it belonged to his girlfriend, who let him borrow it while she traveled out of the country for a family emergency. “I’m buying work boots to start work on Monday, and all of a sudden I just started seeing a tow truck,” Rodriguez said. Rodriguez said losing the car puts his job at risk. “Because I start at four in the morning, and there is no MTS at that time, and Uber right now is so expensive,” he said. Alvarez said his workload has risen dramatically in recent months. “Before, we used to do about two to three repos a day. Right now we’re receiving like 10 assignments a day,” he said. Some tow truck operators say the emotional toll can be heavy. “Sometimes I wish I could do something for them, but if I did something for them, then I’d have to do something for everyone else, you know, so that part we can’t do,” said Steven Estrada of RJ Towing. Simon Goodall, Caribou CEO, says auto loan refinancing can lower car payments and/or interest rates. Auto loan refinancing Financial experts say there are ways to avoid repossession, including refinancing. Simon Goodall, CEO of Caribou, said lowering the monthly payment can make a major difference. “Changing your car payment from being $600 a month to $450 a month can make it a lot more affordable and a lot easier to pay,” Goodall said. He added that many borrowers may qualify for better terms because their credit has improved since they first purchased their car. “Because if they bought a car and their credit wasn’t great, but they made a payment consistently, oftentimes their credit scores improved, and they might not even know it,” he said. Goodall said some borrowers are opting for extended loan terms, including 84-month loans, which can lower required payments without necessarily increasing total interest. “If you want an 84-month loan, to begin with, so you have a lower required payment, but you want to pay more than the minimum, you’ll pay your car off faster…So it’s complete flexibility,” he said. He said people refinancing at 84 months are saving about $179 a month. Communication with the lender is key For anyone already behind on payments, experts recommend contacting the lender as soon as possible. Some lenders may offer temporary assistance to help borrowers keep their cars. Another option is to voluntarily surrender the vehicle, which borrowers can do on their own terms. Lenders may be willing to cover or split this cost, as it’s often lower than the cost of involuntary repossessions. Plus, the borrower avoids being surprised with a repo tow at any given moment. Rodriguez said he is trying to stay optimistic as he works to recover the car. “And now I’m like, OK, all right. Let’s see what proceeds,” he said. Families whose cars are repossessed have 15 days to work out a plan with their lender and retrieve the vehicle from the tow yard. Because tow yards charge by the day, acting quickly is critical. This story was originally reported for broadcast by NBC San Diego. AI tools helped convert the story to a digital article, and an NBC San Diego journalist edited the article for publication. ...read more read less