RateGenius: Average refinance rate drops to lowest point of 2021
While consumers with the poor credit profiles didn’t benefit quite as much, RateGenius highlighted through its latest Auto Refinance Rate Report that October contained the lowest average refinancing rate so far this year.
According to the report based on activities through its network of more than 150 finance companies nationwide, RateGenius said the average overall auto refinance interest rate for October came in at 5.37%.
Analysts determined that reading by looking at booked contracts with terms of 36 to 72 months as well as all credit profiles for approved deals delivered in October.
Two other metrics of note from the latest report included:
• $103.79: The average monthly savings in October for all users after refinancing, second to July’s record high of $103.93.
• $24,760: The average balance refinanced in October.
RateGenius went on to mention that all credit ranges — except poor — saw an increase in the average monthly savings. Average monthly savings for contract holders with excellent credit were the highest this year at $93.02.
Average Auto Refinance Interest Rates by Month
Average interest rates by credit tier from Jan. 1 to Oct. 31, 2021, for all approved auto refinance loans in the RateGenius network.
Credit Tier |
Jan-21 |
Feb-21 |
Mar-21 |
Apr-21 |
May-21 |
Jun-21 |
Jul-21 |
Aug-21 |
Sep-21 |
Oct-21 |
||||||||||
All borrowers |
6.48% |
|
6.21% |
|
6.42% |
|
6.45% |
|
6.67% |
|
6.63% |
|
6.60% |
|
5.53% |
|
5.38% |
|
5.37% |
|
750+ Excellent |
4.14% |
|
4.09% |
|
4.01% |
|
3.97% |
|
3.95% |
|
3.88% |
|
3.84% |
|
3.77% |
|
3.71% |
|
3.73% |
|
700-749 Good |
5.00% |
|
4.87% |
|
4.85% |
|
4.79% |
|
4.86% |
|
4.67% |
|
4.59% |
|
4.45% |
|
4.38% |
|
4.30% |
|
640-699 Fair |
7.31% |
|
6.93% |
|
7.00% |
|
6.81% |
|
6.81% |
|
6.61% |
|
6.51% |
|
6.10% |
|
5.85% |
|
5.74% |
|
<640 Poor |
12.21% |
|
11.98% |
|
12.05% |
|
11.56% |
|
11.21% |
|
11.11% |
|
11.32% |
|
9.33% |
|
9.02% |
|
9.03% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Monthly Auto Refinance Savings by Credit Tier
How much borrowers saved after refinancing their auto loans by credit tier from Jan. 1 to Oct. 31, 2021.
Credit Tier |
Jan-21 |
Feb-21 |
Mar-21 |
Apr-21 |
May-21 |
Jun-21 |
Jul-21 |
Aug-21 |
Sep-21 |
Oct-21 |
All borrowers |
$86.11 |
$90.77 |
$89.63 |
$91.50 |
$98.14 |
$99.86 |
$103.93 |
$102.62 |
$102.24 |
$103.79 |
750+ Excellent |
$80.17 |
$85.13 |
$80.85 |
$79.74 |
$85.54 |
$85.18 |
$87.01 |
$85.35 |
$87.35 |
$93.02 |
700-749 Good |
$85.82 |
$87.40 |
$89.69 |
$91.71 |
$94.16 |
$102.05 |
$104.27 |
$105.43 |
$101.69 |
$103.92 |
640-699 Fair |
$90.78 |
$98.00 |
$94.25 |
$97.50 |
$104.34 |
$104.50 |
$107.53 |
$108.62 |
$105.95 |
$109.87 |
<640 Poor |
$88.28 |
$93.80 |
$95.91 |
$98.76 |
$106.89 |
$101.46 |
$113.88 |
$103.94 |
$108.30 |
$102.18 |
|
|
|
|
|
|
|
|
|
|
|
Monthly Average Auto Loan Balance Refinanced by Credit Tier
The average auto loan balance refinanced by credit tier from Jan. 1 to Oct. 31, 2021.
Credit Tier |
Jan-21 |
Feb-21 |
Mar-21 |
Apr-21 |
May-21 |
Jun-21 |
Jul-21 |
Aug-21 |
Sep-21 |
Oct-21 |
All borrowers |
$23,222 |
$23,220 |
$23,271 |
$23,391 |
$23,639 |
$23,950 |
$24,265 |
$24,110 |
$24,581 |
$24,760 |
750+ Excellent |
$23,652 |
$23,553 |
$24,651 |
$24,119 |
$24,541 |
$25,220 |
$24,720 |
$24,705 |
$26,232 |
$26,196 |
700-749 Good |
$24,041 |
$23,941 |
$23,596 |
$23,789 |
$24,200 |
$24,532 |
$25,045 |
$24,843 |
$25,062 |
$25,255 |
640-699 Fair |
$22,707 |
$23,050 |
$22,636 |
$23,192 |
$23,440 |
$23,968 |
$24,589 |
$24,516 |
$24,774 |
$25,201 |
<640 Poor |
$21,274 |
$21,184 |
$21,032 |
$23,394 |
$21,908 |
$21,789 |
$22,161 |
$21,844 |
$22,440 |
$22,877 |
|
|
|
|
|
|
|
|
|
|
|
November 2021: Current Auto Refinance Interest Rates
Average interest rates by credit tier and loan for auto refinance loans this month
Credit Tier |
48-month term |
60-month term |
72-month term |
|
750+ Excellent |
2.93% |
2.59% |
2.70% |
|
700-749 Good |
3.99% |
2.73% |
3.00% |
|
640-699 Fair |
5.38% |
5.51% |
5.65% |
|
<640 Poor |
10.02% |
9.80% |
8.75% |
|
Source: RateGenius database