Auto Refinance Rate Report: October 2021

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Rates are still the lowest they’ve been all year.

This Month’s Auto Refinance Highlights

The current average auto refinance interest rate is the lowest it’s been all year (again) at 5.34%.

In September, the overall average rate across all approved auto refinance loans dropped to 5.38% — another record low for the year.

Borrowers with scores below 750 are still saving $100+/month on average after refinancing their auto loans. The largest amount saved after refinancing in September was $705.97 per month.

More on all of that below. Here’s the Auto Refinance Rate Report for October 2021.

5.34%

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.

2022 Auto Refinance Rates See Today's Rates

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

How much is your current car loan balance?
What's your car's current value?

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.

What rate can I get? What rate can I get?

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.


Ready to refinance your car loan? Find a Better Loan Now

Report Methodology

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.

About The Author


Cristy S. Lynch

As a personal finance writer, she's covered the automotive industry and insurance for many years. She's written for Credit Karma, The Penny Hoarder, Clever Girl Finance, The Zebra, Bestow, and more.


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