MENU
SEARCHReport reveals number of borrowers who’d benefit from the move.
TransUnion found that over half of auto consumers would pursue refinancing for between $50 and $149 in monthly savings.
Pexels/Kaboompics.com
Squeezed from multiple angles, automotive consumers could release the pressure with loan refinancing, a TransUnion report suggests.
It said about 23% of the almost 80 million open U.S. automotive loans are candidates for refinancing, known in the industry as “in-the-money,” because their loan rates surpass the prevailing average annual percentage rate.
Refinancing such loans could save auto borrowers on their monthly payments and cumulative borrowing costs over the lifetime of the loan.
Though higher interest rates today have cut into refinancing savings, the move can still make a big difference in borrowers’ costs, TransUnion said. Average monthly savings from auto loan refinancing was $90 last year, down from $107 in 2021 but nevertheless significant.
The consumer credit reporting agency found that over half of auto consumers would pursue refinancing for between $50 and $149 in monthly savings.
Savings would grow further if the Federal Reserve cuts interest rates, which seemed more likely after the U.S. Bureau of Labor Statistics' dismal July jobs report Friday.
Just a 25 basis-point rate cut would increase in-the-money borrowers by nearly two million, while a full percentage point cut would make another 6.5 million eligible for meaningful savings with a refinancing, TransUnion said.
“Many auto loan borrowers may not realize that refinancing is an option,” said Satyan Merchant, the agency’s senior vice president and auto and mortgage business leader.
“As a result, those who do refinance tend to be more financially savvy and proactive about managing their credit. At a time when other segments of the auto loan market are facing performance challenges, lenders should consider targeting qualified borrowers for refinance opportunities, which have historically shown stronger repayment behavior.”
Consumers are seeking ways to make financing new-vehicle purchases manageable, from extended loan terms to smaller down payments, according to Edmunds.
Read More →
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
Better financing conditions and the potential to save money on monthly payments could drive more consumers to buy out their vehicle leases instead of opting for a new lease payment.
Read More →
Managing a deal from submission to funding works best from a mix of efficient transactional methods and a customer-focused approach.
Read More →
The share of subprime, longest loan terms grow in Q4 as consumers take on more debt over longer terms to afford higher vehicle prices, Experian research finds.
Read More →
A StoneEagle 2025 industry report reads like a stress test. In a noisy year, F&I became the foundation that kept the house standing when the front end thinned.
Read More →
Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.
Read More →
Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.
Read More →
Joel Kansanback – CEO of Strategic Dealer Advisory – will take to the stage at the 2026 event.
Read More →
A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.
Read More →