In a decade of repossessing cars in Hawaii, Matt Taufetee has never recovered so many vehicles.

"This is the busiest it's ever been in the 10 years I've been in the business," said Taufetee, owner of American Lenders of Honolulu, which does vehicle repossessions for three local banks.

"I would say in the past year it went up a lot."

Taufetee's not alone. Other "repo men" report they're busier now than a year ago as some consumers run aground financially and have trouble making car loan payments.

While no figures are kept on repossessions, anecdotal information indicates they are creeping upward.

The same is happening nationally. Special Finance Magazine this month reported that American Bankers Association data show indirect auto loan delinquencies are at a 16-year high, reaching 2.86 percent in the third quarter.

Locally, First Hawaiian Bank, the state's largest auto lender, said it hasn't had a rise in delinquencies but that the market is fragmented, with credit unions collectively providing more car financing than it does.

Most auto repossession companies contacted by The Advertiser said they've seen a growing number of people having to give up their cars. The repossessions may increase more as Hawai'i's economic growth slows and as consumers facing budget-busting increases in adjustable mortgage payments make choices about what to cut and what to keep.

Hawai'i's unemployment has been creeping up, with December's 3.2 percent seasonally adjusted rate being the highest in 43 months. Meanwhile, the construction industry, considered a barometer for new car sales, has been slowing.

SPENDING HANGOVER

Wendy Burkholder, head of the Consumer Credit Counseling Service of Hawaii, said the number of people coming in for help rose 20 percent last year and that she expects to see increases this year.

During the first two weeks of January, Consumer Credit Counseling Service of Hawaii saw as many people in two weeks as it normally does in a month, she said.

"We're getting into the hangover phase of the spending spree we've been on," said Burkholder, who added that in a booming economy some people could find as many jobs as they needed to generate extra cash.

"That's not the case anymore," he said.

Burkholder said people are struggling with subprime loans, adjustable rate mortgages, rent increases and maybe a slowdown in their work. Easy financing available to some car buyers is also a culprit, she said.

"Two years ago you may have been able to afford a car or truck payment of $700 a month," she said.

The kinds of vehicles repossessed range from compact economy cars to luxury models, with many being sport utility vehicles and big pickup trucks that get lower gas mileage and cost more to operate as gasoline prices rise, Taufetee said.

Where he had been averaging 10 to 20 repossessions a month, he now has as many as 60.

"A lot of it has to do with people buying things beyond their means," he said.

Clint Araki, owner of O'ahu based Tow Boyz, agreed. "Some people, honestly, they overextend themselves," he said, and "business increases when the economy is slower."

At RT's Service LLC, one of the state's largest vehicle recovery companies, more people were hired to handle the growth. Brandon Farias came on as a company manager after his uncle said he needed help with the business.

"We're extremely busy," said Farias, adding that business is up about 10 percent from a year earlier. Financial institutions make it easy to get loans and some people get in a bind when the economy slows down, he said.

"I personally think the way the economy goes reflects on the way repo's happen," Farias said. He said some of the recoveries are from construction workers who bought trucks when the building industry was growing faster and now have fallen behind in payments.

NO RECESSION HERE

Other credit payment problems are on the rise also, said Marvin Dang, an attorney whose law practice is one of the largest in the state when it comes to debt collection.

He said the number of car repo cases he receives from lenders had probably risen 10 to 15 percent in the past year, but that other credit collection cases had risen as well, requiring him to hire more attorneys and legal assistants.

Pearl Imada Iboshi, chief economist for the state Department of Business, Economic Development and Tourism, said the rise in repossessions might be expected with the slowing of the economy.

The state's forecast for 2008 isn't as rosy as it was three or four years ago when the economy was booming.

But Iboshi said it still is showing gains and none of the talk about the nation possibly slipping into recession applies when it comes to Hawai'i.

"There is pretty strong consensus that there will be slower growth over the next few years, but it's still growth," said Iboshi, who said the 2008 projection calls for 2 percent growth when adjusted for inflation.

"It's not exciting growth," Iboshi said. "But it's not recession."

Reach Greg Wiles at gwiles@honoluluadvertiser.com.