What happens if my car gets repossessed, and can I get it back?

If you default, the lender can repossess the car, often without warning, and in many states without going to court. After repossession they usually sell it at auction; if the sale price is less than what you owe plus fees, you can be sued for the deficiency balance. To recover the car you generally must either reinstate the loan by paying the past-due amount plus repossession costs, or redeem it by paying the full balance, and the window is short and state-specific. Repossession badly damages your credit for years. If you see default coming, contact the lender first about a modification, deferment, or voluntary surrender, which may reduce fees though it still hurts your credit.