You May Still Owe Money after Repossession of the Car

When an automobile is repossessed, the odds are that the lender is going to sell it for a price that is less than what you owe on the loan. This means that even though your car is gone you are still liable for the remaining amount of the balance for which the lender can come after you. If the account is passed on to a collection agency then the collection agency may pursue you for the remaining amount of money.

For this reason try and reach some sort of an agreement or renegotiated terms with the lender before the repossession of the vehicle.