 TITLE: Can You Buy a Car With a Repossession on Your Credit Report? CONTENT: How Does Auto Repossession Work?\n--------------------------------\nWhen you finance a vehicle purchase with an auto loan, the lender owns the car until you pay off the debt—at that point, the lender will send you the title, and you'll own the vehicle free and clear. And since the car is theirs while you make payments, the lender has the right to take possession of it if you stop making payments on your loan.\nRepossession laws vary from state to state, and lenders can set different rules on how long your account can be delinquent before it's determined to be in default. In many states, lenders are even allowed to seize the vehicle without notice as soon as you're in default. State or local laws may also prohibit lenders from certain tactics, such as removing a car from a closed garage without your permission, using physical force or making threats.\nOnce your car is repossessed, a lender may sell it at auction to recoup its losses. If your car is auctioned for less than what you owe, you may still owe the difference to the lender. You'll also be on the hook for expenses related to the repossession, including storage, sale preparation costs, attorney fees and more. END