In some situations, you may end up in a poor scenario where financial institutions have to take very punitive measures in relation of missed finance payments on a car or motor vehicle. This may result in the repossession of your vehicle. But it is important to know that financial institutions will give you sufficient opportunities to resolve the issue and avoid the worst case scenario mentioned.
In effect if the bank has tried to resolve repayments from your side and has not been able to acheive this, they are bound to go into the next level where they will request legal intervention that will be required for you to be forced to repay via legal means. If that situation fails, then the bank has no alternative than to request a repossession of the vehicle due to debts owed.
Vehicles that have been repossessed are generally sold via auction by financial institutions to recover debt that may be owing to them that you may have created. Banks will look for the opportunity to get the best value of money for the vehicle, and quickly, hence why they use an auction where every indiviuals and businesses who may want to purchase bank repossessed cars will be in one place to ensure a fast deal as close to the market rate as possible.
Once they have sold the bank repossessed car, they will expunge the debt that you have through the income that they got from selling that vehicle, however, if there is a balance left in that account, the bank will still hold you liable to settle the balance. If the amount that has been received through this action is higher than what was owed, then the balance taking into account all costs including any legal costs will be paid back to yourself. In this sense, the bank is not attempting to penalise the consumer, but get back whatever is owed to them, if there is anything remaining then this can be paid back to yourself.