I’ve had friends who’ve been pulled over while passing through Illinois and asked to hand over their wallets just so the cops can count their money. They only had a few bucks and were let go, but I’m sure if it was a little too much, the cops would’ve claimed it was drug money and taken it. The cops didn’t mention speeding or any sort of crime, so their reason for pulling them over was pretty clear. They probably target non-local people because nobody is going to come back just for a hundred bucks or so, and if they need to make up a ticket on the spot, few people will bother to fight it.
It’s like the Police has a letter of Marque to do piracy. [0] Except that means they are at war with you, not a foreign country.
The police department will determine if it is worth ‘paying off’ the remaining loan amount, so they can seize the car and sell it at auction.
This is a problem that could be easily greatly improved with legislation (and without requiring the more radical and controversial step of abolishing civil forfeiture entirely) - each state could legislate that civil forfeiture proceeds are to be paid into the general state budget not kept by the local police forces. This would remove much of the incentive for overuse of civil forfeiture.