Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.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. In obtaining the payoff demand statement, sellers can better assess whether the liens are valid or whether they have already been satisfied. This is an example of a payoff letter used in a syndicated loan transaction. What is a Payoff Agreement? A payoff agreement is an informal contract in which a creditor agrees to accept the balance of a debt owed as full payment. An auto loan payoff quote, sometimes called a 10day payoff, states how much you need to pay off the loan balance. An auto loan payoff quote, sometimes called a 10day payoff, states how much you need to pay off the loan balance.