Caribou's Latest Quarterly Data Shows Refinancing Helped Drivers Cut Auto Loan Rates Despite Higher Borrowing Costs

DENVER--(BUSINESS WIRE)--

Even as drivers faced higher fuel prices and elevated interest rates, auto refinancing continued to offer meaningful savings for car owners seeking to lower their monthly expenses. According to Caribou's latest Auto Refinance Trends Report, customers who refinanced to reduce their monthly payments saved an average of $165 per month, up from $162 in the prior quarter. Customers also lowered their APRs by an average of 3.89 percentage points.

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The report found that millennial car owners continued to see the biggest monthly payment savings from refinancing, while Gen Z drivers achieved the sharpest reductions in APR.

Based on Caribou customers who refinanced during the quarter to lower their monthly payments, the report highlighted several patterns among borrowers:

• The sandwich generation found relief from high car payments. Millennials and Gen X, many of whom are balancing child-rearing with support for aging parents, saw some of the largest monthly savings through refinancing, averaging $179 and $168, respectively. For Millennials, this was their highest average payment savings on record for any quarter. Gen Z borrowers, meanwhile, continued to post the largest APR cuts, averaging 4.89 percentage points, suggesting younger drivers can secure better terms as they build credit.

• Borrowers across credit tiers saved in different ways. Drivers with excellent credit scores of 800 or higher saved an average of $175 per month, more than any other credit group. They also carried the largest loans, reflecting the stronger purchasing power of top-tier borrowers. Drivers with fair credit and good credit began with the highest APRs, but they achieved the largest rate reductions, lowering APRs by 4.94 and 4.97 percentage points, respectively.

• For gasoline and diesel vehicle owners, refinancing savings helped offset the cost of filling up. As fuel prices remained high, gasoline vehicle owners recorded the largest APR drop across fuel types, lowering rates by an average of 3.97 percentage points. Diesel vehicle owners, meanwhile, saw the biggest monthly payment savings at $249, reflecting the larger loan balances often tied to these vehicles.

• America's best-selling vehicles were also among the most frequently refinanced. Pickup trucks made up the top three most-refinanced models in September, underscoring their continued popularity among U.S. drivers. Silverado 1500 owners saved $162 a month, followed by F-150 owners at $199 a month and Ram 1500 owners at $168 a month.

The quarter also showed that refinancing opportunities can remain available even as Treasury yields and interest rates move. Although the Federal Reserve's rate decision drew attention to borrowing costs, individual auto loan rates still depend on factors such as credit history, loan balance and loan term.

“Our latest report shows that a wide range of borrowers continue to find meaningful savings through car refinancing, even as broader interest rates shift,” said Simon Goodall, CEO of Caribou. “The loan someone qualified for when they bought their car may no longer be their best option. Borrowers who have improved their credit or reduced their debt could qualify for more favorable terms today, without having to wait for market conditions to change.”

Drivers can estimate their potential savings with Caribou's auto refinance calculator. Full findings from Caribou's Auto Refinance Trends Report are available at caribou.com/auto-refinance-trends-report.

About Caribou

Caribou is a leading auto refinance marketplace that helps drivers find a better loan for the car they already own. Caribou's AI-powered platform searches thousands of rates across its broad network of lenders in seconds to find personalized options aligned with each driver's financial goals. Caribou aims to make the refinancing process fast, easy and transparent, with expert support available whenever drivers need it. The company is backed by QED Investors, Goldman Sachs and other leading investors. Learn more at www.caribou.com.

* Caribou's Auto Refinance Trends Report is based on consumers whose auto refinance loan funded through Caribou during the quarter, who had an existing auto loan on their credit report and selected a loan offer to reduce their monthly payment. Savings may result from a lower interest rate, a longer loan term, or both, and are not guaranteed.

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KEYWORD: COLORADO UNITED STATES NORTH AMERICA

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SOURCE: Caribou

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