According to LawNY, a debt collector can repossess a car if the debt is secured. A secured debt has something that is used as collateral for the loan. In this case, the car is collateral for the loan and it may be repossessed if the loan is not paid.
Once repossessed, the creditor may then sell the car. The selling price of the car will go towards the remaining balance of the loan. The debtor is responsible for paying the difference between the sale of the car and the total loan value. For example, if a debtor owes a creditor $5000 and does not pay it back on time, the creditor may repossess and sell the car for $4500. The debtor must then pay the $500 balance.