The Vehicle Payoff Sample Letter form is a crucial document for individuals aiming to transfer their vehicle loan to the State Department Federal Credit Union. A payoff letter provides instructions on how to pay off a loan with a lump sum before the loan term ends.Learn how payoff letters work. An auto loan payoff letter is just a way to prove that you have paid in full for a car. If you are selling your vehicle, often the buyer will ask to. First, get a piece of paper and a pencil or pen. Then write your request on the paper. Take your statement and explain you want to payoff the loan. To receive a copy of a loan payoff statement, please fill out the below request form. Debt settlement can negatively affect your credit score, which can make it more difficult for you to secure financing in the future.