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.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. Paying off your car loan faster is possible here are ways to do it and reduce the amount of interest you pay. This Payoff Transmittal Letter serves as a formal request to close your loan account. If you request a copy of the title, you will find out if the lien has been removed. A real cash offer to sell your car today. Name. The lender will release the electronic lien and DMV will mail you a paper title to the address on file. Car title loans are an option for those who have paid off their auto loans, but need cash now. Your account number is provided with the loan details in the welcome letter that you receive in the mail after your new loan is funded.