Glossary
Recourse vs. Non-Recourse Auto Loan
Recourse loans let the lender pursue you for any deficiency after repossession; non-recourse loans do not.
Most U.S. auto loans are recourse. After repossession and resale, you can be billed for the remaining balance (the 'deficiency'). A handful of states limit deficiency claims; check your state's repossession laws.
Related terms