You can only use overlay commands with overlay looping. Instead of using the pause command, just make the overlay shift to the same spot in 0.2 seconds
&overlay CAR shifts to 100 265 in zone 1 in 0.15 then overlay CAR shifts to 100 265 in zone 1 in 0.2 then overlay CAR shifts to 100 275 in zone 1 in 0.15 loop infinite times