Unfortunately, if you fail to pay for your car as stated in the terms of your loan contract, your vehicle can be repossessed at anytime. Other terms may also exist in your contract as reason for repossession, such as failing to carry a full coverage insurance policy. If you have defaulted on your loan, your lender is within its rights to take its car back.
Your Contract
Read your contract over completely to determine why your vehicle can be repossessed. Many contracts state a late payment as reason to take your car back, but most banks do not employ a repossession company so soon. Most banks would prefer to work with a borrower to make payments rather than repossess a car right away. Also, your contract may state other reasons for repossession, such as lack of insurance, although most banks will add on an expensive full coverage policy instead of taking your car. Call your lender if you have any questions.
Bank Contact
Your bank will likely try to contact you constantly before taking your car back. Instead of waiting for a repossession, call your lender as soon as you know you can't make your car payment. The bank may be able to offer you a deferment in payments, allowing a month or two before any more payments are due. Alternatively, your bank may offer to refinance your loan to extend your term, resulting in a lower monthly payment. Your bank does not have to contact you if it plans to take your car. Your contract further explains its terms for repossession.
Repossession Procedures
The company taking your vehicle does not have to contact you, either. They may speak with you if you catch them taking your car, but the repossession company works for and answers to the bank it is hired by. After all, until the car is paid off, it belongs to the bank as collateral for the loan extended to you. The repossession company can take the vehicle from your property, your place of employment or from any place you've left it, such as in a parking lot while shopping.
Your Personal Property
Even if your vehicle was taken without notice, you can get your property back from the repossession company. Once you determine who took your car, which you can do by calling the police or your lender, you can call to make an appointment to clean out your car. If you do catch the repossession company taking your car, the workers are likely to allow you to take your belongings out of the car before it is towed.
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