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NO, the city CANT repossess your car. They can impound it for a violation of a city law. The only one who can repo a car is the LEINHOLDER. THEY can repo it as a result of the city impounding it for the cities reasons. And only repo it AFTER they pay the city and/or impound fees.
Yes - they can have it towed for example if it is abandoned on the side of the road and the lender would have to pay the amount due to get it back just to repossess it. Their lien takes precedence over all others.