If you’ve been scrutinizing your budget lately, and considering ways to save money, your monthly car payment is probably an expense you’d be happy to shrink. Fortunately, there are options available to drivers seeking to rein in the cost of car ownership without letting go of their ride. Loan modification is one approach to a…
Rates are still the lowest they’ve been all year.
This Month’s Auto Refinance Highlights
More on all of that below. Here’s the Auto Refinance Rate Report for October 2021.
Current average interest rate
The monthly Auto Refinance Rate Report is an analysis of anonymized completed auto refinance applications and funded (closed) loans in our network of more than 150 lenders nationwide.
October 2021 Auto Refinance Rates
📝 The current average auto refinance interest rate is 5.34%. This is an average across all loan terms (36 to 72 months) and all credit profiles for loans approved in the RateGenius network over the last 30 days.
This month, borrowers with all credit backgrounds are getting approved for the lowest rates of the year.
Borrowers with Poor credit scores (<640) are enjoying auto refi rates below 9% across all loan terms while those with Excellent credit (750+) are getting about the same, 2.99% and below on average.
Should I refinance my car loan this month?
With record-low auto refinance rates and record-high used car values, October is a great month to consider refinancing your car loan. Here’s why.
Back in June, we published a report on the impact of used car values on auto loan refinancing applications. We found a 66% increase in auto refinance loan approvals compared to the year before.
If you’re unfamiliar with the auto refinance process, your car’s value is one of many factors in determining whether you’ll qualify for auto loan refinancing. It’s part of your loan-to-value ratio (or LTV), a percentage representing your car’s value compared to how much you owe on the loan. An LTV above 100% means you owe more on the loan than your vehicle is worth. When car values go up, your LTV actually improves which can not only help your auto refinance approval odds — you may end up with even better auto refi loan offers too. (You can learn more about LTV here.)
Car (LTV) Loan-to-Value Calculator
So, if you’re not happy with your current car loan, compare your rate with today’s rates and check out what refinance options are available in your area.
September 2021 Auto Refinance Rates, Savings, Debt
📝 The average overall auto refinance interest rate in September was 5.38% across all customers approved for refinancing. Among borrowers who completed the auto refinance process, the average auto refinance savings was $102.24 per month, and the average auto loan balance refinanced was $24,581.
RateGenius analyzed data on customer applications for auto loan refinancing made between January 1, 2021 and October 10, 2021. This dataset included thousands of anonymized completed auto loan refinance applications. We examined annual savings, changes in interest rates, auto loan debt, and application volume, broken down by credit tier and/or loan term. Savings and interest rate averages are based on approved loans across all loan terms, 36 to 72 months.