How To Read Loan Payoff Documents
When a seller still owes money on their vehicle, you'll need a loan payoff document to complete the deal. This guide walks you through the key fields you'll need to identify and match in DealNow's loan payoff feature.
What You're Looking For
Every payoff document contains the same core information, even if the layout varies by lender
Screenshots can sometimes provide the needed details, but confirm they all show the same loan, vehicle, and lender. If anything is unclear, request an official payoff letter from the bank.
| Payoff Amount | The total to pay off the loan so the bank releases the title to you |
| Good Through Date | The payoff amount is only valid until this date |
| Per Diem | Daily interest charge if payment arrives late (If missing, see below to calculate) |
| Account Number | Needed to ensure payment is applied correctly and successfully |
| Lienholder Overnight Payoff Address | Where to send the funds (often different from the regular payment address) |
| VIN | Confirms it's the right vehicle |
| First & Last Name (or Entity/Trust) | Confirms the seller owns the loan & vehicle |
Overnight payoff addresses are usually auto-filled from DealNow’s bank database. If there isn't a bank, please contact support and they will finish the loan payoff and find the correct address.
Where to Look
- Top of document: Account number, borrower name, lienholder info
- Middle section: Vehicle details (year, make, model, VIN)
- Payoff section: Total amount, good-through date, per diem — usually in a highlighted box or labeled "Payoff Quote"
- Bottom or second page: Payment addresses and wire instructions
Can't Locate Per Diem
If the document does not list a per diem, you can estimate it using the loan’s interest rate.
How to estimate it
- Find the interest rate on the loan or payoff document.
- Move the percentage two decimals to the left.
- Multiply that number by the principal (payoff amount works too) then divide by 365.
Principle Amount: $10,000
Interest Rate: 8% → 0.08
$10,000 × 0.08 ÷ 365 ≈ $2.19 per day (2.19 is your per diem)
If the interest rate isn’t listed, assume 8% to stay on the safe side. Any overpayment will be refunded by the lender to the seller.
Quick Troubleshooting
| Good-through date has passed | Seller needs to request a fresh payoff letter |
| Amount doesn't match what seller quoted | Use the official document — it includes interest and fees they may have overlooked |
| Can't find a field | Call the lender using the number on the document or Contact the seller to turn in another document (or screenshot) containing the field |
Borrower name doesn't match seller
- Confirm the seller owns the vehicle and loan.
- Co-borrower listed: Add them as a co-seller on the deal in the Party section, approve the loan.
- Entity or trust listed: Add the entity/trust in the Party section.
- Small name differences (ex: Ben vs. Benjamin): Confirm with the seller and update if appropriate in the Party section.
The sellers name must match the name on the vehicle title.
In very rare cases, the bank documents will not have the same name as the title document. It is okay to approve the loan and close the deal with the name on the title.
Need Help?
Stuck on a tricky payoff document? Reach out — we're happy to help.
📧 support@dealnow.com 💬 Chat with us in the app