AUSTIN, TX, February 1, 2022 /PRNewswire/ — RateGenius, an automotive financing and refinancing platform, today released its second annual report, the State of auto refinancing: 2022 report. The results reveal that the average borrower saved $1,158 each year, cut their interest rates in half and had a greater savings impact on consumers with average to low credit scores. Data and findings from RateGenius suggest that automatic refinancing is a powerful tool for reducing monthly expenses and achieving long-term financial goals.
This year’s State of Auto Refinance report draws on anonymous data from applicants who have completed the refinance process from RateGenius and AUTOPAY, which merged in 2021 under the umbrella of The Savings Group. Several observations stand out:
Significant savings were the norm in 2021
In 2021, customers saved on average $1,158 per year after having refinanced their car loan. This is a 16% increase from 2020 and the highest amount since records began in 2013. The savings didn’t stop there:
- One in five borrowers (19%) who refinanced reduced their annual payment by $1,800 or more.
- More than half of all borrowers (56%) have saved between $50 and $149 on their monthly car loan payments.
- On average, borrowers who refinance reduce their interest rate by half.
Higher credit scores do not guarantee higher savings
Borrowers with the highest credit scores saved the least after refinancing, contrary to popular belief. Various factors, such as changes in credit ratings, interest rates and loan balances, all help lenders determine savings. The report found:
- Borrowers with scores between 601 and 660 (non-prime) spared $99 per month after refinancing, only a dollar less than people with scores between 661 and 780 (bonus), who saved $100.
- Borrowers with credit scores between 501 and 600 (subprime) spared $91 per month on average, Following than borrowers with scores between 781 and 850 (super-prime), who saved $85.
Tesla owners save the most, but pay the most each month
The electric vehicle brand continues to make waves not only in cleantech, but also in refinancing. It was found that those who refinanced their Tesla payments reaped the most tax benefits compared to other manufacturers:
- Tesla Owners Who Refinanced Saved $153 per month on average, the most savings of all brands.
- Even so, Tesla owners have the highest monthly payment before and after refinancing ($873 v. $720) followed by Audi owners ($743 v. $641).
Van owners stay on top
Just like in 2020, truckers saved the most compared to other vehicle models when auto refinancing due to the high initial cost and low depreciation over time:
- Owners of Rescued Pickup Trucks and SUVs $131 per month and $113 per month, respectively, the maximum of all vehicle categories. Owners of vans and station wagons saw the least savings at $75.
“With automobiles holding their value and interest rates low, auto refinancing has become a very effective tool for reducing monthly expenses and achieving long-term financial goals,” said Jeff Hutcheson, co-CEO of RateGenius. “The takeaway is that people should think about auto refinance alongside home refinance and credit card consolidation when developing strategies for paying off debt, saving money and planning for life. ‘to come up.”
RateGenius is a technology company that created a proprietary web-based platform that has helped hundreds of thousands of consumers nationwide refinance auto loans on more favorable terms. Using its network of over 150 lenders, RateGenius has successfully facilitated over 375,000 loans worth over $8 billion. The company’s LOS (lending system), educational content and customer experience-focused business approach have been instrumental in its success. The RateGenius online application is fast, simple and available from the comfort of your home at apply.rategenius.com.
About AUTOMATIC PAYMENT
AUTOPAY offers a mobile-friendly auto loan financing platform that uses API plugins and easily integrated white-label user experiences to provide consumers with online sources, direct marketing campaigns, distribution partners and channels proprietary distribution. Our solution is a full-service technology and services platform providing financing solutions from pre-qualification to title perfection to loan servicing. Learn more about autopay.com.
About the Savings Group
The Savings Group, parent company of RateGenius and AUTOPAY, is the most diverse consumer marketplace for auto finance, refinance and protection plans. Through a network of more than 180 lenders in all 50 states, The Savings Group offers consumers even more choices for their origination and refinanced auto loans, while delivering loan volume growth to its network of lenders and its customers. partners through a proprietary web platform. . The combined company has facilitated over $2 billion in automotive financing operations in 2021, with more than 550 employees between its Austin and denver office hubs.
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