How Much Can You Really Save by Refinancing Your Auto Loan?

With The Federal Reserve’s recent interest rate drop, you might be wondering if refinancing your car loan is worth the time, effort, and savings. The truth is, that refinancing your car loan has the potential to save you a significant amount of money over the life of the loan.

But how much, exactly? Whether you’re looking to lower your monthly car payment, reduce your annual percentage rate (APR), or pay off your loan faster, refinancing your auto loan could be the financial game-changer you’ve been looking for.

On average, customers who refinance their auto loans through Caribou see savings that can range from hundreds to thousands of dollars in both monthly payments and total interest paid*. These savings can vary based on factors like your credit score, loan amount, interest rates, and loan term. To illustrate how refinancing can make a real difference, let’s take a look at a couple of real Caribou customer examples that highlight the financial benefits our customers have experienced.

Example 1: Reducing Monthly Payments and Total Interest Paid

Jeff made a smart move by refinancing, reducing his loan term by 8 payments, and lowering his monthly payment from $782 to $688—all while securing a significantly better rate, dropping from 21.60% to 9.45%. This shift means Jeff will save around $19,000 in total interest, allowing him to pay off his loan faster and keep more money in his pocket over time!

Another customer, Anna, was also looking to lower her car loan payment. After going through Caribou, Anna was not only able to lower her payment from $718.43 to $603.43, saving $115 per month, but she was also able to save $7,780 in interest over the life of her loan.

Check your rates to see how much you can save today!

Example 2: Shortening the Loan Term

Caribou customer Tony decided to shorten his loan term from 56 months to just 36, allowing him to pay off his car much faster. Although his monthly payment went up a bit, Tony was thrilled to secure a significantly lower interest rate—dropping from 7.95% to 4.74%. This strategic move not only sped up his journey to owning his car outright but also led to substantial savings of $3,294 in interest! Now, Tony feels confident knowing he’s building equity in his vehicle sooner and freeing up future finances, thanks to Caribou’s flexible refinancing options.

Example 3: Pro-Rated Refund from Add-Ons Purchased with Your Vehicle

Sarah originally paid for three separate warranties to cover her tires, dent repairs, and cosmetic protection for both the interior and exterior of her car. Fortunately, we offer an “All-In-One” protection plan that bundles all of this coverage into one convenient plan at a single flat rate. By switching to Caribou’s plan, Sarah got over $3,800 back—money she can now put toward other things she loves! Plus, she still has the peace of mind that her car is protected. It’s a win-win: more savings and the same great coverage, all in one package.

Check Rates Without Risk

To view the auto refinance rates and terms you qualify for, we conduct a soft credit pull that won’t impact your credit score—so you can explore competitive rates without risk or obligation.+

Find Out How Much You Can Save

Refinancing loans like your car loan could help you save money and shorten your loan repayment time. Don’t wait to start saving – check your options with Caribou today and take control of your auto loan!

Get Started Now