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Automotive Refinancing Grows Nearly 70% From a Year Ago, According to a New Report From Experian Automotive
SCHAUMBURG, Ill., August 28, 2025--With interest rates leveling out, consumers are looking for ways to secure more favorable vehicle financing terms. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q2 2025, the volume of automotive refinances increased nearly 70% from a year ago.
About this update from Experian Plc
[{"type":"image","alt":"","displaySize":"","headline":null,"caption":"","credit":null,"className":"","disableSlideshowImg":false,"size":{"original":{"width":480,"height":229,"url":"https://media.zenfs.com/en/business-wire.com/100516546f0bd872d3b4e90177acdc2e"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/zyfgc8tgczpps2zD.F1KqA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTQ1ODtjZj13ZWJw/https://media.zenfs.com/en/business-wire.com/100516546f0bd872d3b4e90177acdc2e","width":480,"height":229}},"lazy":false},{"type":"text","content":"Consumers saved just over 2% on their interest rates after refinancing their vehicle in Q2 2025","length":95,"tagName":"p","attribs":{}},{"type":"text","content":"SCHAUMBURG, Ill., August 28, 2025--(BUSINESS WIRE)--With interest rates leveling out, consumers are looking for ways to secure more favorable vehicle financing terms. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q2 2025, the volume of automotive refinances increased nearly 70% from a year ago.","length":332,"tagName":"p"},{"type":"text","content":"A closer analysis revealed consumers saved just over 2% on their interest rates after refinancing their vehicle in Q2 2025, with the average interest rate dropping from 10.45% to 8.45%. This reduced the average monthly payment by $71 for borrowers who refinanced during the quarter. By comparison, consumers saved an average of 0.93% in Q2 2024, with average rates decreasing from 10.54% to 9.60% after refinancing.","length":415,"tagName":"p"},{"type":"text","content":""Although affordability continues to be a topic of conversation in the automotive industry, with interest rates trending downward, we’re seeing more borrowers taking the opportunity to lower their monthly payments," said Melinda Zabritski, Experian’s head of automotive financial insights. "Banks and credit unions remain key players in the auto refinancing space, offering a range of options that may help borrowers secure better terms."","length":458,"tagName":"p"},{"type":"text","content":"In Q2 2025, credit unions made up the overwhelming majority of automotive refinancing, increasing their share of the market from 63.22% in Q2 2024 to 68.33%. Meanwhile, banks comprised 21.45%, down from 22.71% last year. Additionally, the average monthly payment after refinancing with a credit union dropped $87, while those wh...