Many automotive consumers are refinancing their loans to achieve greater affordability.

Second-quarter data compiled by Experian show refinances in the segment jumped 70% year-over-year.

“Although affordability continues to be a topic of conversation in the automotive industry, with interest rates trending downward, we’re seeing more borrowers taking the opportunity to lower their monthly payments,” said Head of Automotive Financial Insights Melinda Zabritski.

Consumers who refinanced in the quarter trimmed 2% from their interest rates to an average of 8.45%, cutting the average monthly payment by $71, Experian said.

Despite the activity, the average new-vehicle loan amount rose more than $1,000 to $41,983, and the average used-vehicle loan amount increased $481 to $26,795.

Credit unions handled the bulk of auto refinances in the quarter, according to the research, raising their share of the market from 63% to 68%, followed by banks at about 22%. Consumers refinancing through credit unions cut their monthly payments by $87, while those who did so through banks reduced theirs by $46.

But when it comes to auto financing overall, banks led with about 28% of the market, up from about 25% a year earlier, Experian found. Meanwhile, captive lenders’ share fell from 30% to about 27% while credit unions added one percentage point share to 21%.

Captives, though, led the way in new-vehicle financing at 52%, which is down from 61% a year earlier.

Banks, meanwhile, grew their leading share of used-vehicle financing from 27% to 29%.

“The shift in lender market share highlights an increasingly competitive landscape for automotive financing,” Zabritski said. “With banks showing a renewed focus in automotive combined with new OEM relationships, we’re seeing a completely different environment. In an ever-evolving industry, leveraging the most current data can help automotive professionals identify emerging patterns and adapt to changing dynamics.”

REPORT: State of the Automotive Finance Market