Car Repossession Law
Although the car repossession law is quite consistent across US states, it is wise to check with a lawyer in your own state to be sure how the law affects your situation. As an indication, though, the following paragraphs are true of Californian car repossession law.
Should you fall behind with your car loan payments, then the creditor has the right to repossess the vehicle. Should they want to carry out the car repossession, they do not need a court order or judgment first. In so doing, they are not allowed to cause a breach of the peace or force entry, nor are they normally allowed to go into your garage. They are able to use duplicate keys or to hotwire the car to get it started.
The law does allow you to get back the car that has been subject to repossession. You can do this by paying any overdue amount, plus any costs and fines that may have been applied. Such costs can be very high. If you are not able to pay, then it is open to whoever repossessed the car to sell it at auction. Should things reach that stage, they have to give you 15 days notice of the auction.
When the auction takes place, you just have to hope that either you can win the bid and get the car back, or the amount that wins the bid is enough to pay off the debt. However, usually in car repossession cases, the vehicle is sold at less than the amount owed.
The difference between the amount owed and the winning bid is called the deficiency, and that is your responsibility to pay. The car repossession law does allow you to remove your personal belongings from the car, but that has to be done within the time stated in the contract.
If it is at all possible, you should try to avoid you car being repossessed, so that the car repossession law does not even come into play. The law may seem quite harsh when your car is towed away and you then have all the extra costs of that and any court hearing.