Yes, if you don’t cover the loan within the agreed period, the lender has the right to take possession of your vehicle. Some states have strict laws surrounding vehicle repossession, meaning you may be granted some extra time to pay off the debt, or you will get the difference between the debt you owe and the amount the car has been sold.
To avoid repossession, make sure you borrow an amount you’re positive you’ll be able to repay on time. That way, you know your vehicle is lien-free as soon as you cover your debt towards the lender. Even with state regulations that protect borrowers, you will still lose the vehicle if you ignore your payments.