How to Request an Automobile Payoff Letter

When buying a new car, you may prefer to sell the old car outright rather than roll the old loan into a new car payment. Although you could wait to buy the new car until you make the monthly payments and the loan is satisfied, you do have the option to pay the car loan early. Request an automobile payoff letter from the loan originator. An automobile payoff letter provides the total amount of money needed to pay off the loan on your car and receive title.

Instructions

1

Find your initial loan documents. Review the documents for a prepayment penalty clause and the terms of the penalty. Calculate the amount of the penalty, if there is one.

2

Compose a short letter. Place the loan number under the address with the make, model and vehicle identification number of the car. These items should be on your loan documents. Add a line requesting a payoff amount for your car. Mail the letter with your monthly payment.

3

Call the loan company. Give your loan number, which is the same on the coupon sent with the loan, and ask for the credit department. Explain to the credit department representative that you would like a written letter with the payoff amount for your vehicle.

4

Visit the loan company's online website, if you make online payments. Click on the "Contact Us" tab that provides you an email address or opens up a form to complete. Request a payoff letter for your car.

5

Check the company's online website for the payoff amount. Click on the "Payment," "Make Payment" or "Payment Information" tab that should open a "Prepayment" option. Select the "Prepayment Option." The screen provides you the total amount due to repay the loan. Not all companies offer this option.