Why does a car get repossessed?

There are a few reasons why a car may be repossessed. The most common reason is that the borrower has failed to make the required payments on the loan. Other reasons may include:

- The borrower has failed to maintain the car in good condition

- The borrower has failed to keep the car insured

- The borrower has attempted to sell or transfer the car without the lender's permission

- The borrower has filed for bankruptcy

When a car is repossessed, it is taken by the lender or a repossession agency. The lender will then sell the car at a public auction to recoup the amount that is owed on the loan.

If your car is at risk of being repossessed, it is important to contact your lender immediately to discuss your options. There may be ways to prevent the repossession, such as making a partial payment or entering into a repayment agreement.