Legally speaking, if the vehicle is scrapped, your contract with the bank needs to continue to be performed. That is, you need to repay the loan. Otherwise, if the vehicle is scrapped due to default, it should be due to an accident, and you can file a claim with the insurance company. And if you stop repaying the loan, the bank can sue you for breach of contract. Even if the vehicle may be mortgaged to the bank in the end, your personal credit system will definitely be affected.

According to relevant laws and regulations, if the vehicle is hit and scrapped in an accident, if the car loan has not been repaid at this time, the loan contract between you and the bank still needs to continue to be performed, that is, the borrower still needs to repay the loan. Otherwise, it will be suspected of breach of contract and legal liability will be pursued. In addition, if an accident causes the vehicle to be scrapped, you can make a claim from the insurance company if you have purchased the corresponding insurance.

Compensation for vehicle scrapping in traffic accidents:

For vehicles that have been damaged in traffic accidents, insurance companies will advocate a "repair-oriented" standard. If the vehicle does not reach the scrapping standard, compensation will be paid according to the terms signed in the contract, and the compensation amount will be used to repair the vehicle. If the damage to the vehicle has reached the level of scrapping, that is, when the estimated repair cost of the vehicle is the same as or higher than the actual value of the vehicle, the insurance company will make claims under vehicle scrapping insurance. Therefore, if the car owner thinks that his car is scrapped, he cannot apply for a scrap claim. It will also depend on the evaluation results of the appraisal department. For novices, traffic accidents are very easy to occur due to lack of experience. The cost of repairing one or two parts of many vehicles can reach thousands of yuan. Therefore, many car owners reasonably purchase car damage insurance, which may cause partial deformation of the body of the vehicle, or the vehicle may be scrapped. , you can get some compensation.

Legal basis:

"People's Republic of China and Civil Code"

Article 675 The borrower shall return the loan within the agreed time limit . If there is no agreement on the loan period or the agreement is unclear, and it cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; the lender may urge the borrower to return it within a reasonable period of time.

Article 676 If the borrower fails to repay the loan within the agreed time limit, he shall pay overdue interest in accordance with the agreement or relevant national regulations.

Article 216 of the "Civil Procedure Law of the People's Republic of China" After accepting the application, after reviewing the facts and evidence provided by the creditor, if the relationship between the creditor's rights and the debt is clear and legal, the People's Court shall A payment order shall be issued to the debtor within fifteen days from the date of acceptance; if the application is not established, the ruling shall be dismissed. The debtor shall pay off the debt within fifteen days from the date of receipt of the payment order, or submit a written objection to the people's court. If the debtor does not raise any objection and fails to perform the payment order within the period specified in the preceding paragraph, the creditor may apply to the People's Court for execution.