What is my best option regarding with my car and my unpaid balance?

I think that you need to consult with a lawyer that specializes in "lemon law" cases. YOu may have a remedy, in your state, to sue the seller for the defective vehicle.

Sadly you still owe the $4000, you should seek to cut a deal with the lender, but unless you are not collectable it is doubtful they will given much. You can ask them to clear the title to allow you to sell the car, !00% proceeds to them, for whatever remaining value it has.

You can arrange to surrender the collateral (the car with the blown engine) to the bank. The little or nothing that they get from salvage value should then be deducted from the remaining balance owed, which you can expect them to sue you for. If the applicable contract?interest rate is outrageous enough, getting a judgment placed against you for the unpaid balance may be an improvement in the long run, as currently judgments in WI accrue interest at the rate of 12% per year. If your financial circumstances are bad enough, you may wish to consider speaking with a bankruptcy lawyer. Independently, you may want to see if you can get some credit counseling, preferably from a non-profit or a credit union, to try and get yourself out of this cycle of debt. Good luck.

You could contact the bank an ask if they will waive any deficiency judgment if you turn it in to them and sign over your interest in the car to the bank. Even if they will not waive a deficiency judgment, it would probably be in our interest to turn the car in as they will add costs of repossession to the debt you owe them.

Contact the bank and try to work it out with them. If you quit paying on the loan, the bank will repossess the collateral, which is the car. They will then have to tow the car since it is not drivable. The towing charge will be added to whatever you owe, and if the bank has to get an attorney involved, you will have to pay that attorney's fee, as well. If your car engine is "blown" as you put it, the bank will sell it as scrap to a junk yard, and perhaps might only get a few hundred dollars for it if you're lucky. The bank will sue you, which will add filing fees, service of process fees, etc., onto the amount you will ultimately owe the bank. That will probably add at least $500 to what you owe the bank. You will have the bank's attorneys' fees added on to what you owe the bank, which will probably be well over $1,000. The best thing to do is go to the bank, sit down with someone in that department, explain to them the situation, and see what you can work out. Keep in mind that they have you over a barrel, and the more you resist, the more it will cost you. Go to the bank and do the best job you can to minimize the damages, which will probably, if you're lucky, result in you having to pay them several hundred dollars a month until the original loan is paid off, but that beats having to pay several thousands of dollars more if you don't work it out with them and they end up suing you. Good luck!

The bank will want all of the money you agreed to pay, i.e., the loan balance. Have you checked with a trusted local repair shop/mechanic about an engine swap with a reliable engine out of a like totaled car? Frequently, that is affordable, where a rebuilt or new engine is not.