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If Jeremy is a minor, the contract is void and unenforceable. Each party should be returned their property (Jeremy's money and Smooth's car).
If Jeremy was an adult, the contract is valid and enforceable. In this case, Smooth could accept the car back and let Jeremy walk away. Or, it could take the car back, sell it and seek the balance between what the sale brings and what Jeremy owes (called a deficiency judgment) from him.
Equity would be putting the parties back in the positions they were before the contract was entered into IF the contract is void.
Equity would also be selling the vehicle to generate money to pay off or pay down the loan if the contract is valid.
The legal remedy would be voiding the contract because minors can't enter into binding legal agreements/contracts if he was a minor.
The legal remedy would be seeking a deficiency judgment against Jeremy for the balance of the loan if the contract is valid.