Getting a car loan payoff quote can be a daunting task, especially if it's your first time. There are many factors to consider, and it can be hard to know where to start. In this article, we will provide you with tips on how to get the best car loan payoff quote for your situation.
What is a car loan payoff quote?
A car loan payoff quote is a calculation of how much money you will need to pay your lender if you want to pay off your car loan in full. This calculation takes into account the interest rate, the term of your loan, and any fees that may apply. This information can help you decide whether or not refinancing or getting a new car is the right decision for you.
How to get a car loan payoff quote
Step 1: Contact your lender
You'll need to speak with someone at your current lender and request a payoff quote amount. Some lenders will require you to call them but many now make it much easier by simply offering real-time payoff quotes online. If you can't use their online portal to calculate loan payoff quotes then you'll need to contact them another way. Check your loan terms to see how your lender typically prefers this to be handled.
Step 2: Decide whether to accept the quote within the allotted time given
Payoff quotes typically have an expiration date so you'll need to decide whether or not to accept the quote by the deadline. If you can't pay off your car loan by the time specified you'll typically accrue more interest and your original quote will no longer be valid. Most lenders offer at least a one-week "good for" timeline, though many lenders will give you around 30 days to take them up on the offer.
Step 3: Keep detailed records
If you decide to take the lender up on your payoff quote, you'll want to ensure your transaction goes smoothly. Try to pay off your loan at least a few days before the deadline so that the lender has plenty of time to process your transaction. Keep detailed records that show the withdrawal made from your bank account and any payment confirmation messages you receive. Payoff quotes happen often so your lender will have a process for handling things, but it's always better to be safe than sorry and have records on your side that show you did everything correct and within the specified time.
Step 4: Pay off your loan
Once you have determined your payoff plan, make the necessary payment. Then, your car will be completely paid off—congrats!
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Original Source: Credello: How to Get a Car Loan Payoff Quote
