Notice is given
Notice is the time from when the repossession orders come from the lender to when the car is actually repossessed. Notice usually is in the form of a letter, in which the repossession company tells you that you are in danger of having your car taken and gives you a final chance to bring your loan current. Repossession is an expensive process, so they want to make sure you have no intention of paying for the car before they repossess it.
Removal of personal objects
Once the repossession agent takes the car from you, she will remove any personal object from the car. This basically includes anything that did not come with the car when you purchased it, such as CDs, clothing, papers and purses. If you have added after-market accessories to the car, such as stereo systems or security systems, these are considered part of the car and will be taken with it. You will be given notice when you can pick up your personal items from the impound lot or the repossession office.
The car will be taken to an impound lot. The impound lot may be public, like the lot used for cars that are seized by police, but it is most likely private and owned by the repossession company. While in the impound lot, you may have a chance to purchase the car by paying back the loan in full. If you are not able to do so, the car remains at the impound lot until the time of auction.
Your car will be sent to the next bank auction. At a bank auction, cars are sold to bidders in an attempt to recoup the amount of the loan for the bank. Most auctions take place in a city other than the city that the car was seized in, to avoid irate car owners who lost their car due to nonpayment. Most cars go for prices well under what they are worth at a car auction.
Once the car is sold at auction, the amount it sold for is given to the bank to apply to the outstanding loan. Any money left over is the sole responsibility of the debtor. If the debtor is not able to pay the full amount left over after the sale of the vehicle, the lender can send the case to court and have a judgment brought about to the debtor, which can lead to wage garnishment until the balance is paid in full.