When a car is repossessed or voluntarily surrendered, the vehicle is generally sold at auction. If the amount received at auction is less than the amount owed, there is a deficiency and the lender can still sue for that amount. Your lender will send you a statement showing the amount received from the auction, and then deduct the costs of sale and the loan balance, the balance still owed is the deficiency. The result is the same whether the vehicle was repossessed or voluntarily surrendered.
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