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FINANCE

Pay-Off Letter / Pay-Off Quote

A written quote from your current lender of the exact amount needed to satisfy your loan, valid for 10-14 days.

// Why it matters

A pay-off letter (or "10-day payoff") is a written quote from your current auto lender stating the exact dollar amount needed to close your loan — principal plus accrued interest through a specific date. Required when you trade in a financed vehicle, refinance, or sell to Carvana/CarMax. Call your lender or pull it from their app; the figure is usually valid 10-14 days. Pay-off is what determines your positive or negative equity — trade value minus pay-off balance. Dealers occasionally inflate the pay-off in trade-in math hoping you won't verify; always have the lender's written quote in hand before signing.

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