Why Now Is a Great Time to Refinance Any Car—Except a Tesla

If you’ve been thinking about refinancing your auto loan, you’re not alone. With interest rates still relatively high and inflation squeezing wallets, car owners everywhere are looking for ways to lower their monthly payments. And for many, refinancing is the smartest money move of the year.

But there’s one big, shiny, electric exception: Tesla. Here’s why now might not be the best time to refinance your Tesla—and why it might be the perfect time to refinance just about any other car.

Tesla Resale Values Are Dropping Like a Hot Battery

Just a year or two ago, Teslas were like iPhones on wheels—cool, coveted, and commanding sky-high resale values. But the EV hype wave has cooled. Between Elon’s headlines, surging competition from legacy automakers, and aggressive price cuts on new models, used Tesla values are trending downward.

That’s a problem if you’re trying to refinance.When your car’s value drops, lenders get nervous. They care about your loan-to-value ratio (LTV)—and if your Tesla is worth less than what you owe (a.k.a. underwater), your refinance options shrink dramatically.

Price Cuts from Tesla Itself Don’t Help You

Elon keeps slashing prices on new Teslas to juice demand. Great if you’re buying new—but terrible if you’re trying to prove to a bank that your current car is still worth what you paid. A new Model Y dropping $6K overnight makes your 2021 version look a little… aged.

So… What Cars Are Great to Refinance Right Now?

Glad you asked. Based on our data, refinancing makes the most sense for these vehicles right now:

• Pickups like the Ford F-150 or Toyota Tacoma (they’ve held their value surprisingly well)
• Sedans like the Toyota Camry and Honda Civic (reliable + easy to value)
• Mid-size SUVs with strong resale reputations (e.g. Subaru Outback, Toyota RAV4)
• Cars 2–5 years old with average-to-low mileage

These vehicles hit the sweet spot: predictable resale value, plenty of lender appetite, and lots of potential savings.

Bottom Line

If you drive a non-Tesla, now could be the perfect time to refinance and save hundreds a year. The process is fast, fully online, and you could see offers in minutes—with no impact on your credit.

If you drive a Tesla, don’t panic. Just don’t rush. Keep an eye on your car’s value, wait for the market to stabilize, and make your move when the timing is right.And hey, no matter what you drive, Caribou is always here to help you figure out your best financial lane. See how much you can save now.