 If the borrower cannot pay back the loan or is late with his or her payments, the title loan lender may seek to take possession of the car and sell it to offset what is owed.Typically lenders choose this option as a last resort because it may take months to recover the vehicle, and repossession, auction, and court costs all decrease the amount of money they are able to recoup.During this time, the lender is not collecting payments yet the vehicle is depreciating.