A person may owe money after his car is repossessed. The Federal Trade Commission explains that a consumer still must pay money if there is a deficiency, or a difference between the amount he owes plus repossession expenses and the amount of money the creditor obtained after reselling the car.
If a consumer owed $5,000 on the car, the creditor's repossession expenses were $250, and the car was sold for $4,000, there is a deficiency of $1,250 that the consumer still owes to the creditor. The FTC explains that repossession expenses include fees pertaining to the premature end of a lease as well as the physical repossession. Most states allow creditors to sue consumers for these debts.