Owning a car provides the freedom to go where you want to go, when you want to go. Whether you’re traveling to work, school, or a vacation destination, having your own vehicle allows you to make money, get an education, and take trips to visit family and friends. While car ownership has these pros, the cons are the maintenance that comes with it.
If you need to replace an alternator, an engine, or repair any structural damage, you’ll most likely be paying a few thousand dollars. This means that after you pay your other bills (such as your mortgage, electric bill, etc.), you may not have enough money left over to pay your car loan. If you’ve fallen behind on your monthly payments, you may be facing a car repossession.
According to car repossession laws in Kentucky, the creditor for your car loan can take your car back if you fail to keep your payments current. After your car is taken away, the lender might sell your car at auction. To make matters worse, if they sell it for less than what it’s worth, you’ll be stuck with the balance, which is called a “deficiency balance.”