Creating a payoff letter is essential to any loan or mortgage repayment process. Our free templates and this guide can help you get started.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. Request a payoff quote before you send your final payment. Enclosed with this letter, you will find a formal payoff statement confirming the full satisfaction of your loan. Using a credit card to pay off a car loan typically has to be done via a balance transfer. This process involves moving debt from one place to another. 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. Using a credit card to pay off a car loan typically has to be done via a balance transfer.