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How do I find out the payoff amount on a car loan?
I have about 10 months left on my car loan, but I just got a small inheritance and I want to pay it off completely. How can I find out the payoff amount on a car loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Paying off your
car loan
early is a great way to save some cash! If you want to get a payoff letter for the car loan, simply contact your lender.Most lenders allow you to call for a payoff letter while others have this information online. However, you should note these key ideas:
- Your remaining balance is not the payoff amount because it doesn’t include additional interest. Make sure to obtain a payoff letter and not just the remaining balance.
- Payoff amounts are good for 10 days after you request them. If you pay off the balance within this time, you shouldn’t have a problem. If you wait longer than 10 days, you will need to request a new payoff letter.
- Make sure your lender doesn’t have a prepayment penalty. If they do, these fees could offset the reduction in interest payments. Call to make sure.
After you pay off your loan, congrats! You have some extra disposable income each month. And you also have another huge decision. While you can keep full coverage car insurance after you pay off the loan, you can also switch to different coverages or drop your coverage amounts. The only surefire way to know what to do is to analyze your coverage needs and search car insurance rates on the Jerry app.
As a licensed broker,
Jerry
helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!View full answer
- Gregory R.
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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