What is auto repossession?

Auto repossession is the process by which a lender or leasing company reclaims a vehicle from a borrower who has defaulted on their loan or lease payments. When a borrower fails to make agreed payments, the lender has the legal right to repossess the vehicle, usually without needing a court order. The repossessed vehicle may then be sold at auction or through other means to recover the remaining debt. The process must comply with state laws, and borrowers are typically notified of their rights and any remaining balance after the sale. It is important for borrowers to communicate with lenders if they are having trouble making payments to avoid repossession.