Legal Question in Credit and Debt Law in Pennsylvania

You will then not only be out the car, but you will still be liable for the balance owed on the $9,000. The car will be sold and any proceeds applied to reduce the balance, but if a vehicle needs $5000 it is not going to bring in very much at a sale, plus the car lender will add in collection and other costs. If you do not pay or negotiate a resolution of the deficiency, the car lender (or its assignee) can and will sue you and recover a judgment if they have a mind to do so.

What may also occur is that the car may have so little value that the lender may decide against repossessing the vehicle. However, they can still sue you for the balance remaining on the loan.

I would not let the car be repossessed if you can afford it, but if car a needs that much work and is not running, you may have no other choice. A repossession will negatively affect your credit.