What if fair market value is less than what is owed on the car?

It is what is it. This is often the case with a new car that loses several thousand in value when up drive it off the lot.

Your options are to try to sell car for the value you think it is worth —if it’s a rare car or one in high demand you may get more than book value.

Otherwise, book value such as Kelly blue book will give the value if you sell or if you trade in.

You can always hang on to it and use it as second car, use for teenager car or donate.