It won't be cheap to repay the car loan in advance. If the borrower wants to repay the car loan in advance, according to the regulations of most banks, he needs to pay a certain amount of liquidated damages. At present, there are two ways to calculate the liquidated damages for prepayment of auto loans: one is to pay one month's interest as liquidated damages; The second is to calculate the liquidated damages according to the ratio of a few thousandths of the difference. Paying off the car loan at one time is a breach of contract and usually requires payment of liquidated damages. However, different institutions charge different rates of liquidated damages, and may be different according to the different repayment time. The loan contract will generally specify the specific amount of liquidated damages. If the loan time is less than one year, the bank will generally charge about 2%-5% of the prepayment amount, and will also charge interest for several months as a penalty. The liquidated damages of auto financing companies are relatively high, generally about 8% of the prepayment amount.

Conditions for loan to buy a car

I. Legal Identity If you want to apply for a car loan, the first thing you need is legal identity. You can provide documents to prove your identity, such as ID card and household registration book. Although these documents are available to ordinary people, they are also the basic conditions for applying for a car loan. If the basic conditions are not met, then you can't get a loan.

Second, the relevant qualifications In addition to having a legal identity, the person applying for an auto loan must also have some relevant qualifications, such as proof of credit information and proof of repayment ability. Financial institutions, that is, lending institutions, will review these qualifications to see whether they have good credit and performance ability, and whether they have enough economic ability to repay car loans. Moreover, some institutions will also review the marital status of borrowers and need to provide marriage certificates and other documents.

Third, the choice of institutions The institutions and channels for issuing auto loans in each region are different, which can be roughly divided into three types, namely, banks, finance companies under auto companies and private lending institutions. As long as the borrower has legal status and meets the relevant qualification requirements, it can make loans in almost all banks; The financial companies under the automobile company provide zero-interest loan services for car owners, but most 4S stores will charge financial service fees; As for the third type, it is to buy a car in full after the loan, and then mortgage the car to private lending institutions. When you have legal status and relevant qualifications, you can apply for a loan directly from a lending institution. Personally, I suggest choosing financial companies under banks and car companies, and the last one is not recommended. Generally, the audit of bank loans is about one month, and the loans of financial companies are generally within half a month.