Payoff quote, explained

What it means

A payoff quote tells you the dollar amount needed to satisfy your auto loan completely. It's usually higher than your current principal balance because it includes interest that will accrue up to the payoff date you specify. Most lenders provide a 10-day payoff quote showing what you owe if you pay by a certain date. After that date, daily per-diem interest applies. You request a payoff quote from your lender by phone, online portal, or written request.

Why it matters

You need a payoff quote in three situations: refinancing your loan, selling your car privately, or trading it in. The number determines whether you have equity (the car is worth more than the payoff) or you're upside down. Timing matters because interest accrues daily on most loans. If you get a quote but don't pay for three weeks, you'll owe more. When you're upside down and want to sell, you'll need to bring cash to the transaction or roll negative equity into a new loan.

What to do

If you're thinking about refinancing, request a payoff quote and compare it to your car's current market value. Enter both numbers into our refinance verdict tool to see whether a refi makes sense and how much you could save with a lower rate.