Record Car Repossessions: A Warning for High Earners on the Work-Optional Path

Understanding the Spike in Record Car Repossessions

Have you noticed more repossession trucks on the road than usual? According to the latest data, 1.73 million vehicles were repossessed in 2024, a level not seen since the Great Recession. Forecasts suggest 2025 could see as many as nearly 3 million repossessions. These eye-opening numbers reflect the lingering effects of pandemic-era relief programs ending, persistent inflation, and rising interest rates that make auto financing costlier for everyone—including high earners.

You might be thinking: “Car repossessions are a problem for subprime borrowers, not people earning multiple six figures.” Yet industry reports show a growing number of higher-income and prime borrowers facing repossessions. In the medical sales world, it’s easy to let an impressive paycheck overshadow vulnerabilities—especially when commissions fluctuate. The harsh truth is that no one is immune from the crunch if monthly auto payments mushroom beyond sustainable levels.

Why does this matter if you’re sitting on a solid salary, maybe even a healthy bonus structure? Because if you’re working toward a “work-optional” life—being able to step off the quota treadmill when you choose—surprises like a repossession can derail your game plan.

Year	Repo Assignments	Completed Repos	Delinquency Rate	Notable Factors
2019	Baseline	Baseline	0.61%	Pre-pandemic
2021	Lower	Lower	1.57%	Pandemic relief, low delinquencies
2022	+22.5%	Down	3.52%	Relief ends, inflation rises
2024	N/A	1.73M	2.33M defaults	High rates, high car prices
2025 (est.)	N/A	Nearing 3M	Projected to rise	Continued stress, high projections

As you scan these numbers, remember that repossession rates serve as a barometer of financial strain. When people can’t keep up with auto loans, it’s often due to juggling a tight budget, shrinking stashes of emergency cash, or unexpected dips in income. Those realities can affect you even if your compensation surpasses $200,000 annually.

The “High-Earner’s Paradox” and Lifestyle Inflation

In many corners of the medical sales world, the vehicle parked in your driveway is a common yardstick of success. Showing up to a major hospital system in a top-tier brand can feel like part of your professional image. The paradox? Even a six-figure income can buckle under a luxury car payment if you’re racking up 2,000–3,000 miles a month on the road. Commissions might be red-hot one quarter but dip the next, leaving you momentarily stretched.

This is the high-earner’s paradox: A strong salary masks poor cash-flow management. You feel comfortably distant from repossession nightmares… until a delayed commission check arrives in the same month as a giant auto repair bill. Lifestyle inflation—upgrading your car or doubling your loan term because you “earned it”—feeds right into that cycle. The glow of a brand-new SUV can fade quickly when you realize it’s taking a bigger bite out of your take-home pay than you anticipated.

Doctors and executives aren’t the only ones targeted by lenders offering enticing (but long) loan terms to seal the deal on a dream car. Sales reps negotiating medical device bids often believe the next big commission will keep everything afloat. Yet the data shows an uptick in repos even among prime borrowers. So if you’re shelling out over $900 a month for a vehicle, you might be fine… unless something changes. And in sales, something always changes.

Why This Matters for the Work-Optional Path

Many in medical sales aim to make work optional well before a traditional retirement age—ideally not waiting until your 60s to find more balance. “Work-optional” simply means having enough investment income or passive streams to cover the majority of your monthly bills. It’s liberating to choose whether to keep hustling or to dial back hours and recapture family time.

Here’s the catch: Large car payments cut into the money you can earmark for investing. Picture each auto loan payment as a scooped-out portion of your future nest egg. The more you channel into depreciating assets (like vehicles), the fewer dollars remain on the table for compounding over the next decade. The mismatch between a stable or growing investment portfolio and a ballooning car loan balance can jeopardize your milestones.

Imagine you’re 40 years old: still a prime time to accumulate wealth, but also prime time to get serious about reducing debt if an early exit from the daily grind is your goal. A major default (including a repossession) can also wreck your credit score, raising borrowing costs on everything from mortgages to small business loans—hardly the ideal scenario for a family that wants financial flexibility. In short, car debt is a danger zone for anyone eyeing an early or partial retirement since it competes directly with your bigger ambitions.

Practical Strategies to Safeguard Your Financial Freedom

You already have the drive to build a robust career in medical sales. The next step is ensuring that your high income enhances your future instead of enslaving you to your monthly bills. Here are some strategies to consider:

Right-sizing liabilities: Set a target for what portion of your net income should go toward vehicle expenses. This means everything, including gas, maintenance, and insurance. If it’s creeping too high (like 20% of your take-home pay), you risk crowding out key investments or savings.

Stress-testing cash flow: Medical sales can be cyclical. Factor in lags between commission checks or potential job changes. Ask: “If I earn 30% less for six months, can I still handle this car payment without dipping into emergency funds?” If not, consider refinancing or a simpler ride.

Automate investments: By paying yourself first, you lock in automatic contributions to savings, brokers, or tax-advantaged accounts before you see the money. If you never see it, you can’t spend it—especially not on impulsive upgrades that deliver short-lived joy.

Build liquidity reserves: Aim for reserves covering six to 12 months of fixed costs, especially if you have a big auto note. This keeps short-term disruptions from turning into repossession or expensive quick-fix loans. Having that cushion also gives you more leverage if you decide to scale back your workload temporarily.

Income Range	Recommended Monthly Vehicle Budget	Actual Avg. Monthly Payment	Impact on Savings Rate
$200K–$250K	$500–$700	$750 (New Car Avg.)	–5–8% savings shortfall
$250K–$350K	$700–$900	$900+ (Luxury Segment)	–7–10% savings shortfall

Just look at this table comparing recommended monthly vehicle budgets against actual averages. Even a few hundred dollars extra each month can slice off a significant chunk of savings potential. It adds up, especially over a decade.

Slashing Taxes and Investing Smarter for a Resilient Future

Another piece of the puzzle? Taxes. If you’re a W-2 medical sales rep, you might have a 401(k) with a generous match. But perhaps you’re not maxing it out because you’re juggling steep auto loans or other obligations. Missing out on tax-deferred growth can easily cost you tens of thousands of dollars over the course of a career.

Also, certain roles blend W-2 and 1099 income streams. In those scenarios, you might have the option to deduct some auto-related expenses if the vehicle is genuinely used for business. Of course, consult your tax professional to ensure you’re taking legitimate deductions. Strategic use of HSAs, backdoor Roth IRAs, and other vehicles can also help you keep more of each commission and direct it toward your investment goals. To uncover additional ways to trim your tax bill, explore our specialized tax-planning strategies for medical sales professionals.

At Pulse Wealth, this is exactly where we roll up our sleeves and dig in. We’re a flat-fee fiduciary firm, meaning we don’t push any investment or insurance product to receive commissions. Our job is to safeguard your finances, period. Sometimes that might mean telling you not to buy the fancy new SUV—even if you can afford it on paper—because it’s at odds with your bigger plan to be financially free in your mid-50s. Our approach is to help you see all possible angles so you can make financially healthy choices that align with your personal ambitions.

How to Stress-Test Your Plan (Without Losing Momentum)

Rising repossessions underscore how critical it is to “check under the hood” of your finances regularly. Running scenario analyses can be more than a corporate exercise; it’s how you catch vulnerabilities before they cause real pain.

Ask yourself these basic questions:

What if your main client or region shrinks its budget by 30% next year? Could you handle reduced commissions while still making monthly payments, maxing out your retirement contributions, and covering your living expenses?

What if you endure a health setback, or you decide you want to scale back your travel schedule? Would your finances stay intact without the same level of monthly income?

What if there’s a market downturn just as you switch to a part-time schedule? Do you have enough liquidity to avoid tapping investments at a loss?

If these questions send a slight chill down your spine, don’t panic. It’s better to acknowledge risk than to ignore it. That’s where I come in. I’m David Dedman, ChFC®, AWMA®, founder of Pulse Wealth, and a flat-fee fiduciary with over 30 years of experience. If you’d like to talk through your unique situation, schedule a Free Intro Call. We’ll dig into your numbers, explore your “what if?” scenarios, and see where you can tighten or retool your strategy for maximum resilience. You can also start by completing our quick online financial assessment to pinpoint the areas that need the most attention.

Frequently Asked Questions

Why do repossessions continue to rise despite a healthy job market?

Many of the financial safety nets provided during the pandemic—like stimulus checks or paused student loans—have disappeared. Inflation remains sticky in areas like housing, transportation, and food. Coupled with higher interest rates on auto loans, even “stable” earners can find themselves stretched too thin.

What if I have enough assets but still carry big car loans?

Large debts can undermine an otherwise strong balance sheet by tying up cash flow and putting more pressure on your monthly budget. In downturns or if your commissions dip, high auto payments can force you to liquidate assets at the worst times.

Is refinancing an option if rates are higher than before?

It can be, but it depends on your credit score, the equity in your vehicle, and your overall financial plan. Sometimes it’s better to downsize the vehicle, free up monthly cash flow, and reallocate that money toward investments or an emergency fund.

How does lifestyle inflation sneak up on high earners?

Each pay raise or big commission check can lead to incremental upgrades: a nicer car, a more lavish vacation, or higher monthly subscriptions. Over time, these extra expenses become “normal,” making it hard to dial back without feeling a downgrade in lifestyle. Proactive budgeting and automated savings can help keep you anchored.

How often should I revisit my financial plan?

At least once a year or whenever a major life change happens—such as a shift in your compensation structure, new job, or considerations like buying a second home. Small tweaks can keep you from major detours, especially if your goal is to become work-optional sooner.

Staying on top of debt, stashing money for future you, and building tax efficiency isn’t flashy, but it’s exactly how you preserve your options down the road. With record car repossessions as a stark warning, now is the time to make sure your monthly payments don’t sabotage your bigger picture. If you’d like to explore strategies for strengthening your finances and keeping your vision of an early exit from full-time work on track, I invite you to book a Free Intro Call. Because no matter how much you earn, you should never feel trapped by your paycheck—or your car payment.