1. It is generally legal to collect liquidated damages for early repayment of auto loans. When signing the loan contract, the lending institution and the lender have agreed to repay the loan before the repayment period to collect liquidated damages. It is clearly stipulated in the loan contract that the loan shall not be repaid in advance within half a year or one year, or how much liquidated damages shall be paid before the repayment period.

2. Legal basis: Article 394th of the Civil Code of People's Republic of China (PRC).

In order to ensure the performance of the debt, if the debtor or a third party mortgages the property to the creditor without transferring the possession of the property, if the debtor fails to perform the due debt or realize the mortgage according to the agreement of the parties, the creditor has the right to be compensated in priority for the property.

The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property that provides guarantee is the mortgaged property.

2. What are the requirements for applying for a car loan?

1, with valid identification and full capacity for civil conduct;

2. Can provide a fixed and detailed address certificate;

3. Have a stable occupation and the ability to repay the loan principal and interest on schedule;

4. Personal social credit is good;

5. Holding a car purchase contract or agreement approved by the lender;

6. Other conditions stipulated by the Cooperation Organization.