1. Should liquidated damages be deducted for early repayment of a car loan?

Corresponding liquidated damages are required for early repayment of a car loan. At present, the sources of automobile loans mainly include bank loans, loans from financial leasing companies and loans from automobile finance companies. There are roughly two calculations for liquidated damages for early repayment of car loans: one month's interest is paid as liquidated damages; liquidated damages are calculated according to a ratio of one thousandth of the balance. How much penalty will be deducted for early repayment of a car loan? 1. Bank liquidated damages: If an individual applies for a car loan at a bank and repays it early, the bank will charge a certain amount of liquidated damages. Liquidated damages are basically 2%-5% of the repayment amount. Some banks charge several months of interest as liquidated damages. Different banks charge different penalty fees. However, most banks will not charge liquidated damages on car loans that have been repaid for one year. 2. Auto finance company liquidated damages: If you apply for a car loan with an auto finance company, the amount of liquidated damages will be higher than that of a bank if you repay the loan early. Generally speaking, if the repayment is less than one year, you need to pay 8% of the repayment amount, and 5% of the repayment amount after one year.

2. When I buy a car, I pay it in installments and it takes three years to pay it off. I earn enough in one year, can I pay it off in advance?

Early repayment of a loan means that the borrower applies to the bank for early repayment of his/her loan part, and ensures that the loan in the previous month has not been overdue and that the loan of the current month is repaid; according to the date specified by the bank, the entire loan part is paid at once Pay off or partially pay off. From a legal perspective, repaying a loan early is a breach of contract, and many banks do not agree. Even if some banks agree to your early repayment, you still have to pay all the interest. Therefore, it is not cost-effective to repay the loan early.

3. I took out a 36-month loan to buy a car and have paid it back for 22 months. If I want to repay it early, I will default...

Banks survive by collecting interest.

You pay 36 months of interest first, then the principal.

So you don’t have to pay it off, you can deposit the remaining balance in the bank.

It will be automatically deducted to the bank every month, and there will still be some interest money left.

4. I have paid off the car loan for 36 months and have paid it off for 22 months. If I want to repay it early, are there any liquidated damages?

Generally, the liquidated damages for car loans are generally more than the penalty for early repayment. 3% of the amount