Auto Refinance Rate Report: September 2021

Author Image

More state coverage means even lower rates. It’s a great time to save money on your car loan.

This Month’s Auto Refinance Highlights

The current average auto refinance interest rate is the lowest it’s been all year. At 5.51%, it’s down by 0.12% since last month’s report.

In August, the overall average interest rate across all approved auto refinance loans dropped to 5.53% — a new record low for the year.

Average monthly auto refinance savings may dipped from July to August, from $103.92 to $102.62, but borrowers are still saving over $100 per month by refinancing.

Borrowers with Poor credit scores(<640) saw the biggest decline in refinance savings from July to August, from $113.88 to $103.94, even as interest rates decreased by 1.99% during the same period.

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


Current average interest rate

2022 Auto Refinance Rates See Today's Rates

September 2021 Auto Refinance Rates

📝 The current average auto refinance interest rate is 5.51%. 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.

Read more: Today’s Current Auto Refinance Rates

Auto refinance rates over the last 30 days have remained competitive across all credit tiers and loan terms. The average rate across all approved auto refinance rates is 5.51%, lower than last month’s 30-day average which was 5.53%.

There have been slight fluctuations across all credit tiers and loan terms. For 72-month-loans, rates for all borrowers have dropped except for those with Good credit scores (between 700 and 749). Rates have increased from 2.99% to 3.09% since last month’s report. But 48-month-loan rates in that same credit tier have decreased.

Should I Refinance My Car Loan This Month?

Overall, current auto refinance rates are still really low — but why?  Two things are contributing to the interest rate decline: Lenders are still lowering rates to attract more borrowers, and they’ve also expanded into more states within our network. This means more competitive refinance loan options for car payment shoppers looking for a deal. 

If your auto loan has an interest rate higher than the current auto refi rates for your credit tier and desired loan term, now could be the best time to refinance this year. While rates have been dropping every month, there’s no guarantee it’ll continue this way. If the rate is right, take the leap. You may just be surprised by how much you can save.

Before you apply, be sure to check your credit for free to see where your score falls (Excellent, Good, Fair, Poor). You can try Loan Finder to see estimated auto refinance rates without a credit check. Answer five questions about your current car loan to see refinance offers in your area.

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

August 2021 Auto Refinance Rates, Savings, Debt

📝 The average overall auto refinance interest rate in August was 5.53% across all customers approved for refinancing. Among borrowers who completed the auto refinance process, the average auto refinance savings was $102.62 per month, and the average auto loan balance refinanced was $24,110.

Auto refinance rates in August dropped to 5.53%, down from 6.60% in July. Across all credit tiers, interest rates were the lowest they’ve been all year last month.


The average monthly refinance savings did take a dip from July to August, down $1.31. The group that saw the biggest decline were subprime borrowers with scores below 640 who saved $9.94 less, even as interest rates fell.

Fair borrowers (640-699) saw a slight increase in average monthly savings, now $108.62, the highest all year for that credit tier.

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 September 6, 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

Cristy Lynch is Editorial Director at The Savings Group (AUTOPAY, RateGenius) and one of our resident auto lending experts. 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.

Read More

by Anna Baluch

Can I Take Over Someone’s Car Payments?

Taking over someone's car payments isn't easy or always possible. Here's what you need to know. Owning a car can be expensive. In fact, the latest data from AAA shows that the average yearly cost to own and operate a new vehicle in 2022 is $10,728 or $894 per…

by Taylor K. Medine

Does Being a Cosigner on a Car Loan Affect Your Credit?

Before agreeing to cosign on a car loan, it’s important to understand the risks. Doing the favor of cosigning on someone’s auto loan can help them qualify for the car they want — but whether you should cosign isn’t a decision to make lightly. As a cosigner, you’re responsible for…

by Carter Kilmann

Can I Refinance My Car With the Same Lender?

You can refinance your car loan with your current lender. But you should explore your options first. Replacing your existing auto loan with a new loan (otherwise known as refinancing) can seem like a no-brainer. For instance, you can extend your loan term and lower your monthly payment. You…

Customer Reviews

Read our 11349 Certified Reviews



Apply Now

Lower your interest rate and drop monthly payments by an average of $96*/month!