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.To receive a copy of a loan payoff statement, please fill out the below request form. A 10 day payoff is crucial to getting your old loans paid off during a refinance. Learn how it works from start to finish. 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 letter should have a formal, respectful and positive tone. It should also include all key information that the creditor or collection agency needs to know. How do I pay off my auto loan?