Do you have to pay the difference on a repossession car loan?

When you default on your car loan, the lender has the right to repossess your car. This means they can take it back and sell it to recover the money you still owe. If the sale of the car does not cover the full amount of your debt, you may be required to pay the difference. This is called a deficiency balance.

The amount of your deficiency balance will depend on several factors, including:

- The value of your car

- The amount of money you owe on your car loan

- Any fees and costs associated with the repossession and sale of your car

In some states, you may be liable for the deficiency balance even if you voluntarily surrendered your car to the lender. In other states, you may only be liable if the lender was able to sell the car for less than the amount you owed.

If you are facing a deficiency balance, it is important to talk to an attorney to learn about your rights and options. There may be ways to negotiate with your lender or reduce the amount of your debt.