Kentucky residents who fall behind on their car loan payments may end up losing their vehicles. Peoplemay choose to voluntarily surrender their car to the lender, or the lender may repossess a person's car after a number of missed payments. Regardless of how they lose their car, they may still owe money on it even though the car is no longer in their possession.

Many people get 'upside down" in their car loans very quickly after purchasing a new car. Being 'upside down" in a car loan means that a person owes more on their loan balance than their car could actually be sold for. If a new car has depreciated in value significantly, the car owner could owe thousands of dollars for a car loan deficiency even after the car has been repossessed or surrendered to the lender.