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In order to take your car by repossession, the lender must have a written agreement confirming your consent to the possessory lien. Also, the lien must be perfected by registering it with the Dept. of Motor Vehicles.
Your friend's legal recourse is a lawsuit for default on the loan, which would entitle him to a money judgment, which can be used to garnish or execute on your nonexempt assets, such as the vehicle. But, the outcome would be that the sheriff would sell the car at public auction in order to pay off the judgment.
The only way that your friend could get your car via an involuntary legal process would be to win that auction.
Hope this helps.
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