Nassau Asset Management credits rising fuel costs for a nationwide increase in tractor-trailer truck repossessions and liquidations in the fourth quarter of 2005. Compared to the fourth quarter of the previous year, tractor-trailer truck repossessions increased 145 percent, Nassau reported. Construction equipment repossessions, meanwhile, increased 44 percent.
Nassau reported in November that equipment repossessions and liquidations in the first three quarters of 2005 increased significantly for the first time since 2002. “We believe fuel costs in 2005 have contributed directly to the rise in truck repossessions, and may have had some impact on construction repossessions,” says Edward Castagna, Nassau president. “But it is important to note that more positive factors are also at play.”
Volume has increased across the equipment leasing industry, which means that more leased equipment was on the marketplace in 2005 than the year before, Castagna says. “Naturally, there will be a rise in repossessions and liquidations when the pool of equipment in the marketplace has increased,” Castagna says. The fourth quarter traditionally is the slowest for repossessions and liquidations.
Nassau provides asset recovery, appraisal, collections, liquidation and remarketing services for equipment leasing and finance companies nationwide.