1. Default on Loan Payments: If you fail to make your car loan payments on time, the lender may consider you in default. The grace period for missed payments before default can vary, but it is typically around 10 to 30 days.
2. Notice of Default: After you default on your loan, the lender is required to send you a "notice of default" or a "breach letter." This notice will inform you that you have missed payments and that you have a certain amount of time (usually around 10 to 30 days) to bring your loan current.
3. Repossession: If you do not bring your loan current within the specified timeframe, the lender can proceed with repossessing your vehicle. This process can involve the lender hiring a repossession agency or using its own employees to physically take possession of the vehicle.
It's important to note that state laws may vary regarding repossession procedures, so it's best to consult with a local attorney or legal expert to understand the specific regulations and timelines applicable in your jurisdiction. Additionally, many lenders may have their own internal policies and procedures for repossession, which can differ from the general legal requirements.
