In NB, what should I know about early payout process for car loans?

To initiate an early payout for your car loan in New Brunswick, you must first contact your lender-be it a bank, credit union, or captive finance company-to request a precise payout statement. This crucial document will detail the exact amount required to fully satisfy the loan on a specific date, encompassing the outstanding principal, any accrued interest, and potential administrative fees. While New Brunswick's consumer protection legislation generally limits excessive prepayment penalties on standard auto loans, it's imperative to scrutinize the statement for any modest administrative charges or interest differentials that might apply, especially for closed-term agreements. The payout statement typically has a short validity period due to daily interest accrual, making prompt payment within that window essential to avoid recalculation. Upon successful full payment, the most critical step is ensuring the lender formally discharges the lien on your vehicle with Service New Brunswick. You must receive official confirmation of this discharge, as it legally confirms your full ownership and is vital for future transactions like selling the vehicle or using it as collateral. Why this matters: Meticulously understanding this entire process protects you from unexpected costs, ensures you gain clear legal title to your vehicle, and avoids future complications, offering significant financial flexibility and peace of mind in a dynamic market like 2025.