Planet Money: “Riding with the Repo Man (Update)”

Date: February 4, 2026
Hosts: Kenny Malone & Preeti Varathan

Overview

This episode of Planet Money explores the intensifying world of car repossessions in America—using the classic “Rashomon” approach to tell the story from three distinct perspectives: the used car dealer, the buyer, and the repo man. The hosts revisit a 2019 segment and update listeners on the evolving realities of the auto loan market as repossessions surge to levels rivaling the Great Recession. Through first-hand accounts and expert insights, the episode lays bare the economic forces and human consequences behind a growing “subprime auto crisis.”

Key Discussion Points & Insights

1. Anatomy of an Auto Repossession

• The episode kicks off with Kenny and Preeti riding along at 1AM with Larry Baker, a veteran repo man in Ohio, as he quietly repossesses a black Chevy Cruze from a suburban driveway.
• Kenny shares: “My heart is genuinely pounding pretty hard, like there's a chance somebody is gonna wake up and come out here.” (02:00)
• The immediacy and emotional tension underscore how disruptive repossession is for everyday Americans.

2. Three Perspectives on the Car Loan Crisis (Rashomon-Style Storytelling)

A. The Dealer: Rick Reichert

• Rick Reichert, third-generation dealer near Columbus, describes the process and jargon of subprime lending:
  • On welcoming all customers: “As you’re walking on the lot…by the way, we have guaranteed credit approval. If that’s something you think you may need.” (07:18)
  • He calls this “the Columbo” method—an old-school, subtle way of acknowledging questionable credit without offense.
• Rick admits the risks: “A lot of lenders have gotten very loose…extending money to individuals that probably shouldn’t have had those loans.” (08:26)
• He notes his default rate is 6%, lower than average, but says zeroing out repos would mean turning away all riskier borrowers:
  • “As long as we want to play in that field of lending, there's always going to be some form of repossessions.” (10:37)
• Responsible subprime lending, he argues, focuses on helping people rebuild credit and keeping them as future customers.

B. The Driver: Stephanie Waldrop

• Stephanie, a bubbly goth from Mississippi, experiences both the promise and peril of subprime auto loans:
  • On her motivation: “I was like, I have the money, I have the means. I’m getting a car today.” (11:10)
  • Upgrades from a rundown Ford Explorer to a red Ford Fusion—"Being colorblind, that's the one color I could see very well. So that's why I wanted that red car." (13:02)
• She describes her unfavorable loan: 23% interest on a $12,000 car, monthly payments of $466, nearly double the car’s value over 48 months (13:13).
• Stephanie ultimately falls behind after taking a lower-paying, less-hostile job for her mental health:
  • “When it comes to your mental health and something that's material, the mental health outweighs material any day.” (15:20)
• On seeing her car towed: “I'm like, tell my boyfriend. I was like, I have a situation. I was freaking out.” (16:12)
• The repo drops her credit “like a bad habit.” (25:08)

C. The Repo Man: Larry Baker

• Larry shares practical and emotional lessons from years in the trade:
  • “Lesson two, do your repossessions in the middle of the night. Because if people are sleeping, there will be less conflict, but that doesn't mean zero conflict.” (17:41)
  • On the risks: “That's why I carry a .45 automatic.” Only twice in 15 years did he pull it; guns have been pulled on him four times. (17:50–17:58)
  • “Most people are good. And remember, you are meeting them at one of the worst moments in their lives.” (18:10)
• Larry admits lending companies now use GPS trackers, making it far easier to repossess cars:
  • “Nowadays, Larry says, part of the deal when you buy a car with a subprime loan is that the lender is going to stick a GPS tracking device onto your car.” (20:26)
  • “GPS don’t lie.” (20:58)
• The business gets easier for lenders, harder for the vulnerable borrower.

3. How the Crisis Got Worse: 2026 Update

• Rising Repos: Repossessions have climbed steadily, even surpassing Great Recession levels: “...final tally for 2025…estimate it will end up as more than 3 million cars repoed last year. And that would be more than 2019.” (27:03)
• Adapting Borrowers: People have become more desperate and creative in hiding their cars to stave off repossession, leading to dangerous confrontations: “My brother in law was shot in the leg trying to repossess a car before.” (26:50)
• Dealership Economics: Cars have gotten more expensive, subprime borrowers are offered longer 84-month loans at greater ultimate cost, and repossession rates have doubled at dealers like Rick’s. (28:12)
  • “In 2019, you could find a $10 to $15,000 car for a subprime loan. Now…you're looking $20, $25,000 vehicles.” (28:24)
• Credit Deterioration: As of Fall 2025, 6.6% of subprime borrowers were at least two months behind on payments—a post-financial crisis record. (29:12)
• Not Mortgage Crisis Scale, But Personal Disaster: “There is just way less auto debt…But an auto repossession is clearly a crisis when it is your car.” (23:24)

Notable Quotes & Memorable Moments

• "Four years of college and I chose to do this." – Larry Baker (03:56)
• "This is what happened when I laid this down in order to pick up another part in my life." – Stephanie Waldrop, on losing her car after prioritizing a healthier job (16:30)
• "Lesson two, do your repossessions in the middle of the night." – Preeti Varathan (17:41)
• "GPS don't lie." – Larry Baker, showing how tracking has changed the repo industry (20:58)
• "I feel for some people... you know, taking somebody's property and... making them... stranded. You know, they could have... a couple kids, and you're really going through some hard times." – Larry Baker, on the emotional fallout of his job (22:46)
• "It dropped like a bad habit." – Stephanie Waldrop, on her post-repo credit score (25:08)
• "Honey, sometimes I don't even know." – Stephanie, on how she gets around after losing her car (25:50)

Important Segment Timestamps

• [01:03–03:26]: Real-time car repossession; emotional landscape of the process
• [05:21–10:47]: The dealer’s perspective on credit, subprime loans, and ethics of lending
• [11:07–16:38]: Stephanie’s journey as a buyer—her loan, struggles, and repossession
• [16:57–23:17]: Larry the repo man: his methods, risks, industry changes
• [23:17–24:36]: Framing the current surge in repossessions as a potential crisis
• [26:06–29:47]: Updates as of 2026: repo industry, dealership, and Stephanie’s fate

The Human Side, Finale, & Listener Impact

• Stephanie’s story touched listeners after the 2019 episode: “The donations poured in. She was able to go back and buy her specific car back.” (29:21)
• Larry has now retired from the business, while Rick’s dealership is run by a new family member.
• Stephanie’s current whereabouts are unknown, but her story offers hope and caution for people navigating America’s increasingly precarious economy.

Tone & Style

The episode maintains Planet Money’s trademark blend of sharp reporting, human stories, and dry humor. Both hosts and guests deliver anecdotes and candid insights in a conversational, sometimes wry style—balancing empathy for those affected with a clear-eyed analysis of broader economic realities.

For further updates, the show encourages listeners to check out their upcoming book and reach out if they have similar stories.