1. The seller requests a current payoff
Ask the lender for a written payoff quote and its valid-through date. Confirm the account information the dealer may use, accepted payment methods, and whether the title is electronic or paper.
2. The dealer verifies the vehicle and loan
The selected dealer normally confirms identity, VIN, mileage, condition, ownership names, lender details, and the payoff amount before finalizing the purchase. A material difference from the listing can change the offer or stop the transaction.
3. The purchase funds are divided
The dealer's documents should show the purchase amount and lender payoff. When the offer exceeds the payoff, ask how and when the remaining equity will reach you. When the payoff is higher, confirm how the shortfall must be paid before handoff.
4. The lender releases its interest
After receiving valid payoff funds, the lender follows its title-release process. Ask who receives the title or electronic release and how the dealer confirms that the lien was satisfied.
5. The parties complete the handoff
Before releasing the vehicle, confirm the final inspection result, payoff confirmation, seller payment, possession date, keys, plates, insurance timing, and any state reporting responsibility. Keep copies of every signed record.