In cases where a customer can no more afford their car repayment, they could voluntarily choose to surrender the car. Or, when they’ve missed payments that are too many the financial institution might repossess the vehicle. If either of those things happen, there is a chance that is good the buyer will nevertheless owe cash on the mortgage.
Regardless if the financial institution sells the repossessed or surrendered car at auction, the value may well not protect the whole loan stability. It is typically billed to the consumer if it doesn’t, the amount left over is called a car loan deficiency, and.