What happens if your car is repossessed in New Jersey?

If your car is repossessed in New Jersey, the lender will typically notify you of the repossession and may sell the vehicle at an auction to recover the outstanding loan balance. You have the right to redeem the vehicle by paying the full amount owed, including any fees, before it is sold. After the sale, if the proceeds do not cover the debt, you may still be responsible for the remaining balance, known as a deficiency. Additionally, repossession can impact your credit score negatively.