What to do with a car loan when the car has fail?

So I've purchase this car which is 5 years old a 2012 Honda Accord exl v6 coupe in 2017, I purchase it from a local dealer but it's not a certified pre owned. However I bought the car "As is" in August 2017 and it has fail in December 2017 long story short it needs a new engine cost almost $5000 the mechanic says everything comes to $4827 plus it need suspension and a lot more it has 122,803 miles should I voluntary reposses it or what I'm in a bad situation I owe 7,287 on the loan what to do?

Still gotta pay back the loan.

File a law suit against the dealer, it is clearly an illegal sale to sell you a car that is clearly failing like that. Their actual mechanics TOLD them THAT when they EXAMINED THE CAR!

They won't get anything or virtually anything for the car when you "voluntary reposses" and they'll come after you for the remaining balance.

Because you failed to do a proper pre-buy inspection and apparently failed to do any preventive maintenance, you are now in a very bad situation. Even if the car is repossessed you will be responsible for repayment of most of your loan unless you declare bankruptcy, in which case you'll be unable to obtain another car loan. Your only good option is to keep paying your loan and repair the car. I'd get at least 2 other quotes on the repair. Maybe find a good used engine taken from a wrecked Accord of the same year.

If you bought the car AS IS, you can't stop paying the loan just because the car has mechanical issues. It is NOT THE FAULT OR RESPONSIBILITY of the lender to guarantee you a working car.

You bought it as is nothing you can do but pay off the loan. And pay for it to be fixed or scrap it for what you can get and still pay the loan and get a beater until it is payed and you can save enough for a new down payment.

I would price a engine from a wrecking yard, no reason it has to be a brand new one. It will be LOTS cheaper and will get you going sooner.

Either put a used motor in it or go bankrupt over $7,287.

You still owe. Even if you did a voluntary repo, you're still on-the-hook for paying what you owe. It doesn't absolve you of the debt.

Find an engine in a salvage yard, or a new one. But, keep that loan current.

Since your loan contract has nothing to do with the condition of the vehicle, you keep making those loan payments. If you let them repossess the car, you still are responsible for the loan. They've got you either way.