No, under normal circumstances, there will be no penalty for paying off the car loan after one year. Different banks and auto financing companies have slightly different regulations on prepayment. When banks apply for car loans, they generally need to pay a certain amount of liquidated damages for prepayment, which is basically 2%-5% of the repayment amount. Some banks charge interest for several months as liquidated damages. There are generally two kinds of liquidated damages for early repayment, one is to pay one month's interest as liquidated damages, and the other is to calculate liquidated damages according to the proportion of one thousandth of the balance.