If your car is totaled due to a collision and the loan has not been repaid, generally speaking, the department where your car was loaned will deduct the cost of your loan based on the insurance claim, and the rest will be returned to you.

1. Car owners who apply for scrapping and renewal should fill in an "Application Form for Approval of Motor Vehicle Change, Transfer, Modification, Suspension, and Scraping" and stamp it with the car owner's seal.

2. Register and review the application, and issue a "Vehicle Scrapping Notice" to vehicles that have reached the scrapping age; for motor vehicles that have not reached the scrapping age, after the vehicle is inspected and determined to meet the vehicle scrapping standards, the vehicle scrapping notice will be issued. "Vehicle scrap notice".

Legal Basis

Article 667 of the "People's Republic of China and Civil Code" defines a loan contract. A loan contract means that the borrower borrows money from the lender and returns the loan when due. and a contract to pay interest.

Article 668 of the "People's Republic of China and Civil Code" Form and Contents of Loan Contracts A loan contract shall be in written form, unless otherwise agreed upon for a loan between natural persons. The content of a loan contract generally includes terms such as loan type, currency, purpose, amount, interest rate, term and repayment method.