According to Caribou’s Q3 2026 Auto Refinance Trends Report, customers who refinanced to lower their monthly payments saved an average of $165 a month, up from $162 in Q2. Customers lowered their APR by an average of 3.89 percentage points.
The report, based on Caribou customers who refinanced between July and September 2026 to lower their monthly payments, reveals several notable trends across borrowers:
- The sandwich generation finds relief from high car payments. Millennials and Gen X, many of whom are juggling the financial responsibilities of raising children and caring for aging parents, saw some of the largest monthly savings through refinancing in Q3, averaging $179 and $168, respectively. For Millennials, this marked their highest payment savings of any quarter on record. Meanwhile, Gen Z borrowers continued to see the greatest APR reductions, averaging 4.89 percentage points, highlighting the potential to secure better loan terms as younger drivers build their credit profiles.
- Drivers across the credit spectrum saved in different ways. Drivers with excellent credit (800+ FICO) saved more than any other credit tier, an average of $175 a month. They also carried the largest loans, reflecting the greater purchasing power of borrowers at the top of the credit spectrum. Meanwhile, drivers with fair credit (580–669) and good credit (670–739) started with the highest APRs but achieved the largest rate reductions, lowering their APR by 4.94 and 4.97 percentage points, respectively.
- For gasoline and diesel car owners, refinance savings offset the rising cost of filling up. As elevated fuel prices added to car ownership costs over the summer, gasoline vehicle owners achieved the largest APR reduction across fuel types in Q3, lowering their rates by an average of 3.97 percentage points. Meanwhile, diesel vehicle owners recorded the highest monthly payment savings at $249, reflecting the larger loan balances often associated with these vehicles.
- America’s best-selling vehicles are also among its most refinanced. Pickup trucks accounted for the top three most-refinanced models in September, reflecting their enduring popularity among U.S. drivers. Silverado 1500 truck owners saved $162 a month by refinancing, followed by F-150 owners who saved $199 a month, and Ram 1500 truck owners who saved $168 a month.
This quarter also highlighted how refinancing opportunities can persist even as the broader Treasury market and interest rates change. While the Federal Reserve’s September rate decision drew attention to the direction of borrowing costs, individual auto loan rates depend on a range of factors, including 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.”
