Most people don't have the luxury to pay cash to buy a brand new car and it is very common to get a loan from the bank or other lending institution to make car purchases. In doing so they have to sign a contract between them and the lender, agreeing to certain terms most importantly making regular and on time payments.
Your car could get repossessed if you miss a payment or payments. The bank usually doesn't want to repossess your car - they are more interested in getting back the money they lent to you and would charge you late fees and higher interests if payments are not on time which is only fair.
Should you have difficulty making payments they best thing to do is to call or see your lender and explain to them that you are having problems making the payments. Talking to your lender could help in the event that your car gets repossessed. If you don't talk to them and your car gets repossessed you might have a harder time getting your car back. Try to avoid getting your car repossessed in the first place.
When your car gets repossessed, the lender may have you pay off the entire balance of the loan to get back the car. They would usually set a certain amount of time for you to reclaim your car before they put it up for auction.
In addition to paying the balance you would also be required to pay any fees incurred by the bank during the repossession. These would include fees for storage, towing etc.
If you can, try to pay more than the payments are just to regain the confidence of your lending institution. Hopefully,you wont have to be in this position and fighting to get back your repossessed car.
Source: www.motocycles.net
