What Our Data Reveals About Auto Refinancing Across Generations

If you’ve ever wondered whether you’re paying too much for your car loan—or how your financial habits stack up against other generations—you’re not alone. At Caribou, we’ve analyzed thousands of real-life refinances across the U.S. to understand who’s saving the most on their car loans, who’s carrying the biggest debt, and which generation is quietly winning the refinancing game.

Spoiler: There’s something surprising parked in everyone’s driveway.

Monthly Cost of Car Ownership by Generation Full Infographic

Real Drivers, Real Data

This isn’t a hypothetical model or average pulled from banks. Our analysis includes only customers with a good credit score and steady incomes, who refinanced their auto loan through Caribou in 2024. We focused on actual before-and-after outcomes—like rate drops and monthly savings—to reveal how different age groups are managing one of their biggest monthly expenses.

Then we went deeper: not just into what they’re paying, but what they’re driving—and how much of their income is going toward it.

Generational Car Loan Trends, Decoded

This analysis is based on customers who selected a loan offer to reduce their monthly payment. It reflects real refinances from Caribou customers in 2024, with credit scores ranging from fair to excellent.

Breakdown of Gen Z's Monthly Cost of Car Ownership

Gen Z (1995–2012): Efficiency Enthusiasts in the Deep End Early

Average original loan amount: $32,069
Refi loan amount: $28,811
Original APR: 14.05%
Refi APR: 8.50%
APR reduction: 5.56 points
Monthly savings: $126.25
Original payment: $648.37 → $521.75
% of income spent on car payment: 10.46

Despite shorter credit histories and steep starting APRs, Gen Z comes out ahead in rate drops, building early financial momentum by refinancing aggressively.

Breakdown of Millennials' Monthly Cost of Car Ownership

Millennials (1980–1994): The Pickup Truck Pragmatists

Average original loan amount: $38,158
Refi loan amount: $33,313
Original APR: 12.44%
Refi APR: 8.42%
APR reduction: 4.02 points
Monthly savings: $143.04
Original payment: $733.92 → $590.45
% of income spent on car payment: 8.23%

Millennials carry high balances but use refinancing to lower their financial strain—especially in a phase of life where family, housing, student loans, and rising costs collide.

Breakdown of Gen X's Monthly Cost of Car Ownership

Gen X (1965–1979): Financial Powerhouses with a Truck Bed

Average original loan amount: $39,395
Refi loan amount: $34,387
Original APR: 12.19%
Refi APR: 8.39%
APR reduction: 3.80 points
Monthly savings: $147.26
Original payment: $757.69 → $610.54
% of income spent on car payment: 7.60%

Gen X drives the biggest trucks and carries the biggest loans—but they’re still the monthly savings champs, often choosing to refinance based on improved credit and more favorable rate and term options.

Breakdown of Baby Boomers' Monthly Cost of Car Ownership

Baby Boomers (1946–1964): Conservative Borrowers with Smart Timing

Average original loan amount: $35,844
Refi loan amount: $31,481
Original APR: 11.91%
Refi APR: 8.39%
APR reduction: 3.51 points
Monthly savings: $131.57
Original payment: $687.23 → $557.57
% of income spent on car payment: 8.93%

Even in their pre-retirement years, Boomers find meaningful savings through refinancing—proof that it’s never too late to optimize your financial picture. Many Boomers also benefit from established timely payments and long credit histories, which contribute to a stable credit score and stronger refinance terms.

So, What’s the Takeaway?

Whether you’re new to credit, raising a family, or prepping for retirement, refinancing is a smart money move. Here’s what the data makes clear:

Gen Z scores the biggest annual percentage rate (APR) drops, correcting early loan missteps and benefiting from improved credit scores to reduce their APR by 5.56 points.
Millennials and Gen X claim the biggest average monthly savings—$143+ per month.
Gen X leads in total dollars saved per month while keeping car payments under 8% of income.
Boomers benefit significantly from smart refi decisions, saving an average of $131 per month

Across the board, annual percentage rate (APR) reductions ranged from 3.51 to 5.56 percentage points, showing just how powerful refinancing can be—regardless of what decade you were born in.

Your Car Payment Isn’t Set in Stone

The numbers are clear: there’s likely hidden savings in your driveway. And you don’t have to wait years to unlock it. Checking your rate through Caribou takes just a few minutes, won’t impact your credit score, and could result in meaningful savings—just like it did for all the drivers in this report.

Not sure where to start? Our free online calculators can give you a quick sense of what refinancing might mean for you:

Savings by State: See what customers in your state are saving

Savings by Vehicle: See what customers with similar vehicles are saving

Auto Refinance Calculator: Estimate how much you could save

When you’re ready, checkyour rate through Caribou. It only takes a few minutes, won’t impact your credit score (only counts as a soft credit inquiry), and could result in meaningful savings—just like it did for all the drivers in this report.

Want to find out how much you could save?

Start here to explore your options through Caribou and take the first step toward smarter auto loan decisions.

Get your personalized quote here

Disclaimer: This information is estimated based on consumers whose auto refinance loan funded through Caribou between 1/1/2024 and 12/31/2024, had an existing auto loan on their credit report, and selected a loan offer to reduce their monthly payment. Refinance savings may result from a lower interest rate, longer term, or both. There is no guarantee of savings. AYour actual savings, if any, may vary based on interest rates, the repayment term, the amount financed, and other factors.