Q2 2026 Auto Refinance Trends Report
Unlocking Key Insights on Trends and Rates in the Auto Refinance Market
scroll
Key Insights
— Caribou customers saved an average of $162/month in Q2 2026*, unchanged from Q1, with savings remaining steady across all three months.
— Average refinance loan amounts remained elevated at about $34K, while original monthly payments ranged from $731 to $747. This suggests borrowers continued to prioritize lower monthly payments as vehicle financing costs stayed high.
— Q2 macro conditions likely reinforced the need for payment relief. Elevated interest rates, higher gas prices in April and May, and broader auto affordability pressure made monthly savings more compelling, even as fuel prices eased in June.
Data updated quarterly
National Trends
Trends by Credit Tier
Credit tier continued to shape refinance outcomes in Q2 2026. Excellent-credit borrowers saw the most consistent savings, averaging about $170 per month, while very good borrowers averaged about $163. Fair-credit borrowers saw the largest APR reductions, averaging about 6.18 percentage points, but their monthly savings varied more from month to month.
Trends by Loan Term
Longer terms delivered the strongest monthly payment savings in Q2 2026, with 84-month refinances averaging about $183/month in savings. By comparison, 72-month loans averaged about $157/month, and 60-month loans averaged about $141/month. Shorter terms saw larger APR reductions, but lower monthly savings because loan balances and repayment windows were smaller.
Trends by Fuel Type
Diesel borrowers led refinance savings in Q2 2026, averaging about $233/month, driven by much larger loan balances of about $52.9K. Electric vehicles followed at about $190/month, while gasoline vehicles remained steady at about $156/month. Hybrid borrowers saw lower average savings at about $118/month, partly due to smaller loan balances.
Key fuel type trends over 12 months
Trends by Body Style
Borrowers refinancing higher-balance vehicles continued to see some of the strongest savings in Q2 2026. Coupes averaged about $184/month in savings, while pick-up trucks averaged about $183/month. SUVs remained steady at about $159/month, supported by loan amounts around $33.6K.
Key body style trends over 12 months
Trends by Generation
Refinance savings held steady across generations in Q2 2026. Millennials led with about $173/month in average savings, followed by Gen X at about $165/month. Gen Z saw the largest APR reduction at about 5.35 percentage points, translating to about $146/month in savings. Baby Boomers averaged about $133/month, reflecting steady payment relief on smaller average loan balances.
Key generational trends over 12 months
