AUSTIN, Texas -

Auto refinance rates during the last 30 days have remained competitive across all credit tiers and contract terms, especially for consumers with credit scores below 700 interested in 60- and 72-month terms.

Those assertions came as a part of RateGenius’ monthly Auto Refinance Rate Report, which found that the average overall auto refinance interest rate for August came in at 5.53%. That’s the lowest of any month so far this year.

RateGenius explained that the metric is an average across all contract terms (36 to 72 months) and all credit profiles for approved financing during the month.

As of this announcement, the current average overall auto refinance interest rate is 5.51%, which is down 0.12% since July report and the lowest it’s been all year. This is the average across all loan terms (36 to 72 months) and all credit scores (Poor to Excellent) for approved loans in RateGenius’s network over the last 30 days.

Also of note, RateGenius highlighted in the report that prime and non-prime consumers with credit scores between 640-749 gained the most from refinancing in August. However, individuals in the subprime tier with credit scores below 640 saw the biggest decline in refinance savings from July to August, softening from $113.88 to $103.94, even as interest rates decreased by 1.99% during the same period.

SEPTEMBER 2021 AUTO REFINANCE REPORT FINDINGS

Average Auto Refinance Interest Rates by Month
Average interest rates by credit tier from Jan. 1 to Aug. 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

All borrowers

6.48%

6.21%

6.42%

6.45%

6.67%

6.63%

6.60%

5.53%

750+ Excellent

4.14%

4.09%

4.01%

3.97%

3.95%

3.88%

3.84%

3.77%

700-749 Good

5.00%

4.87%

4.85%

4.79%

4.86%

4.67%

4.59%

4.45%

640-699 Fair

7.31%

6.93%

7.00%

6.81%

6.81%

6.61%

6.51%

6.10%

<640 Poor

12.21%

11.98%

12.05%

11.56%

11.21%

11.11%

11.32%

9.33%

Average Monthly Auto Refinance Savings by Credit Tier
How much borrowers saved after refinancing their auto loans by credit tier from Jan. 1 to Aug. 31, 2021.

Credit Tier

Jan-21

Feb-21

Mar-21

Apr-21

May-21

Jun-21

Jul-21

Aug-21

All borrowers

$86.11

$90.77

$89.63

$91.50

$98.14

$99.86

$103.93

$102.62

750+ Excellent

$80.17

$85.13

$80.85

$79.74

$85.54

$85.18

$87.01

$85.35

700-749 Good

$85.82

$87.40

$89.69

$91.71

$94.16

$102.05

$104.27

$105.43

640-699 Fair

$90.78

$98.00

$94.25

$97.50

$104.34

$104.50

$107.53

$108.62

<640 Poor

$88.28

$93.80

$95.91

$98.76

$106.89

$101.46

$113.88

$103.94

Monthly Average Auto Loan Balance Refinanced by Credit Tier
The average auto loan balance refinanced by credit tier from Jan. 1 to Aug. 31, 2021.

Credit Tier

Jan-21

Feb-21

Mar-21

Apr-21

May-21

Jun-21

Jul-21

Aug-21

All borrowers

$23,222

$23,220

$23,271

$23,391

$23,639

$23,950

$24,265

$24,110

750+ Excellent

$23,652

$23,553

$24,651

$24,119

$24,541

$25,220

$24,720

$24,705

700-749 Good

$24,041

$23,941

$23,596

$23,789

$24,200

$24,532

$25,045

$24,843

640-699 Fair

$22,707

$23,050

$22,636

$23,192

$23,440

$23,968

$24,589

$24,516

<640 Poor

$21,274

$21,184

$21,032

$23,394

$21,908

$21,789

$22,161

$21,844

September 2021: Current Auto Refinance Interest Rates
Average interest rates by credit tier and loan for auto refinance loans this month

Credit Tier

36-month term

48-month term

60-month term

72-month term

750+ Excellent

–

2.48%

2.74%

2.99%

700-749 Good

–

2.39%

2.99%

3.09%

640-699 Fair

6.10%

6.12%

5.94%

5.90%

<640 Poor

–

8.77%

8.25%

9.17%

Source: RateGenius database