Borrowers saved an average of $1,158 by refinancing auto loans in 2021, according to RateGenius’ State of Auto Refinance Report

The report shows that auto refinance has proven to be a powerful financial tool in 2021, saving vehicle owners 16% more than in 2020 and providing insights for those looking to refinance in 2022.

Austin, Texas, February 1, 2022 /PRNewswire/ — RateGenius, an auto financing and refinancing platform, today released its second annual report, the State of Auto Refinance: 2022 Report. The results show that the average borrower saved $1,158 annually, halved their interest rates and had a greater savings effect for consumers with average to low credit ratings. RateGenius data and insights suggest that automatic refinancing is a powerful tool to reduce monthly expenses and meet long-term financial goals.

This year’s State of Auto Refinance report relies on anonymous data from applicants who have completed the RateGenius and AUTOPAY refinance process merged 2021 under the umbrella of The Savings Group. Several findings stand out:

Significant savings were the norm in 2021
In 2021, customers saved on average $1,158 per year after refinancing their auto loans. This is a 16% increase compared to 2020 and the highest amount since records began in 2013. The savings didn’t stop there:

  • One in five (19%) borrowers who refinanced reduced their annual payment by $1,800 or more.

  • More than half of all borrowers (56%) saved between $50 and $149 on their monthly car loan payments.

  • On average, borrowers who refinance halve their interest rate.

Higher credit scores do not guarantee higher savings
Contrary to popular belief, borrowers with the highest credit scores have the least savings after refinancing. A variety of factors such as Data such as credit rating movements, interest rates, and loan balances help lenders determine savings. The report found:

  • Borrowers with scores between 601 and 660 (nonprime) save $99 per month only after refinancing a dollar fewer than people with values ​​between 661 and 780 (prime) who have saved $100.

  • Borrowers with credit scores between 501 and 600 (subprime) saved $91 per month on average more as borrowers with scores between 781 and 850 (super prime) who have saved $85.

Tesla owners save the most but pay the most each month
The electric vehicle brand continues to make waves not only in clean technology, but also in refinancing. Those who refinance their Tesla payments reap the greatest tax benefits compared to other manufacturers:

  • Refinanced Tesla owners saved $153 per month, on average, the most savings of all brands.

  • Despite this, Tesla owners have the highest monthly payment before and after the refinance ($873 v. $720) followed by Audi owners ($743 v. $641).

Pickup owners stay up
Just like in 2020, truck drivers saved the most on auto refinance compared to other vehicle models due to high initial costs and low depreciation over time:

  • Pickup and SUV owners have saved $131 per month and $113 per month the most of a vehicle class. Minivan and station wagon owners saw the smallest savings $75.

“As cars keep their value and interest rates low, auto refinancing has become a very effective tool to reduce monthly expenses and achieve long-term financial goals,” he said Jeff Hutcheson, Co-CEO of RateGenius. “The bottom line is that along with home refinancing and credit card consolidation, people should also think about auto refinancing when strategizing how to pay off debt, save money, and plan for the future.”

About RateGenius

RateGenius is a tech company that created a proprietary, web-based platform that has helped hundreds of thousands of consumers across the country refinance car loans on better terms. Using its network of more than 150 lenders, RateGenius has successfully brokered more than 375,000 loans worth more than 8 billion dollars. The company’s proprietary LOS (Loan Origination System), educational content and customer experience-centric business approach were instrumental to its success. RateGenius’ online application is quick, easy and available from the comfort of your own home at apply.rategenius.com.

About AUTOPAY

AUTOPAY provides a mobile-friendly auto loan financing platform that uses API plugins and easy-to-integrate, white-label user experiences to serve consumers from online sources, direct marketing campaigns, distributors, and proprietary distribution channels. Our solution is a full-service technology and services platform that provides financial solutions from prequalification to title perfection to credit administration. Learn more at autopay.com.

About the savings group

The Savings Group, the parent company of RateGenius and AUTOPAY, is the most diversified consumer marketplace for automotive financing, refinancing and insurance plans. Through a network of more than 180 lenders in all 50 states, The Savings Group offers consumers even more choices in their auto loan origination and refinancing choices and provides loan volume growth to its lender network and partners through a proprietary, web-based platform. The combined company facilitated over 2 billion dollars in auto financing transactions in 2021 with more than 550 employees austin and Denver office hubs.

Contact:
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SOURCE RateGenius

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