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How long does it take before the repo man has you in his sights? That depends on your payment history. "Banks use collection systems that are very sophisticated," said a source who worked for the credit department of a large Japanese automaker. "If you are considered a flight risk, you could come up in the collection queue only 10 days following your due date. If you're not risky, you'll come up later."

Most credit departments want you to call to make arrangements for payment as soon as you know you will be late. "If not, they might get nervous and try to nab the car," he said. "On the other hand, some people are chronic 'wait-payers' and the lender tries to keep them in the car as long as they can."

Our source emphasized two points. If a person is given a 30-day extension by the loan company, that's 30 days from when the payment was due, not from the day the extension was granted. "Some people don't realize that and they think they now have two months." Secondly: "As soon as you are one day late you are in default on your loan."

From Edmunds.com