Entries are
When you purchased the car
Car A/c debit 100000
car loan a/c cr 100000

for first loan instalment

debit car loan A/c
debit Interest on car loan(calculate interest amount)
credit Bank a/c 3055.55

When you sold the car
Debit Bank/Cash a/c 120000
credit Car A/c 110000
credit profit on sale of asset 10000

For the settlment of loan

Debit Carloan a/c (balance of the car loan after deuducting the principal portion from the first instalment)
Credit bank a/c

If bank charges any loan pre-close charges

debit that amount in bank charges and credit to bank a/c

I hope it will help you