Once your car is repossessed, the lender will typically sell it at auction. If you still owe money on the loan than the proceeds of the sale, you will be responsible for paying the difference. This amount is known as the "deficiency balance".
The amount of the deficiency balance can vary depending on several factors, including the amount of you still owe on the loan, the sale price of the car, and any associated costs such as repossession fees and towing charges.
If you cannot afford to pay the deficiency balance, you may be able to negotiate with the lender to settle the debt for a lesser amount. You may also be able to file for bankruptcy, which would discharge the debt. However, bankruptcy can have serious negative consequences, so it is important to seek legal advice before filing.
