California law permits cars to be repossessed after one late or missed loan payment. Cars may be repossessed after missed insurance payments as well.If you get behind on your car payments or don't have auto insurance, the loan company can take your car. This is called vehicle repossession. Learn where to file a complaint about banking and investment products, retirement plans, and the companies and professionals that offer them. A repossession can negatively impact your credit report for many years. Here are a few ways to remove them from your credit report now. You have 30 days to respond to a debt lawsuit in California. Unlike some other states, California does not require the finance company to notify you before they repossess your vehicle. Repossession is legal because, when you take out a loan to buy a vehicle, the lender holds a lien on the car.