If you pay off the car loan in full, you need to settle the loan principal and interest in one lump sum. The calculation of interest is based on the date when you pay off the principal and interest of the bank, and no interest will be calculated on the day after settlement. The prepayment of car loan itself is a breach of contract. Generally, it is necessary to pay a certain penalty for paying off the car loan in advance, but it depends on how the lending institution stipulates it. I suggest you refer to the loan contract.

Calculation method of repayment of principal and interest in advance of automobile loan

1. Interest is calculated according to the number of days before settlement.

If you repay the car loan in advance, the loan will settle the bank principal and interest in one lump sum, and the interest calculation will be based on the date when you pay off the bank principal and interest, and no interest will be paid on the day after settlement (if you borrow the bank principal, you will pay the interest money in a few days). The calculation of interest is based on the total initial loan amount and calculated according to the bank loan interest rate at the time of signing the contract. If the bank interest rate changes during the repayment period, it will be adjusted with the interest rate and remain unchanged for one year.

2. Early repayment requires payment of liquidated damages.

Around the problem of how to pay the interest on prepayment of automobile loans, we also need to pay attention to the fact that prepayment of bank loans is a breach of contract (loan contract), which will cause certain losses to banks, so banks will charge a certain handling fee (liquidated damages). It is understood that there are probably two algorithms for liquidated damages: paying one month's interest as liquidated damages and calculating liquidated damages according to the proportion of the remaining amount.