Understanding your vehicle loan payoff

If your car has a loan, the lender holds the title until the balance is cleared. That is the whole complication, and it is manageable.

Ask for a payoff quote early

A payoff quote is the exact amount to clear the loan, valid through a stated date. It is not the same as your remaining balance on the app.

Positive and negative equity

• If the sale price is above the payoff, the difference comes to you
• If it is below, you pay the difference to clear the title
• Either way, the lender is paid before the title transfers

The lender's timeline, not the buyer's, usually decides your closing date.

Plan for a few extra days

Lenders differ on how they accept payment and release a title. Confirm their process before you agree to a handoff date.