EV Drivers Who Refinanced with Caribou Saved an Average of $191 a Month in Q2 2026, Greater Savings Than Both Gas and Hybrid Vehicles

Rising gasoline prices and ongoing inflation continued to put pressure on household budgets during the second quarter of 2026, prompting many Americans to look for ways to reduce monthly expenses.

On July 19, Six Americans described to USA Today how rising inflation, over 25% since 2021 and a 3.5% annual rate in June 2026, forced them to cut expenses, tap savings, and struggle with rising transportation, housing, energy, food and health costs.

According to new data from auto refinance platform Caribou, refinancing an auto loan has become an increasingly popular strategy for cutting costs. Customers who refinanced to lower their monthly payments between April and June saved an average of $162 per month, double the national average savings reported by Experian. Borrowers also reduced their interest rates by an average of 4.13 percentage points, the largest average rate reduction seen in the past year.

Caribou’s Q2 2026 Auto Refinance Trends Report highlights several notable developments in the refinancing market.

Borrowers with subprime credit scores benefited the most from refinancing. Customers with credit scores between 580 and 669 lowered their annual percentage rates by an average of 6.18 percentage points, the largest reduction among all credit categories.

Longer loan terms continue to gain popularity as vehicle prices remain elevated. More than half of all refinanced loans in the second quarter had original terms of 84 months. These borrowers reduced their monthly payments by an average of $157 through refinancing.

“We estimate that Americans overpay $54 billion on their auto loans every year,” said Simon Goodall, CEO of Caribou. “Our latest data shows more drivers are catching on, and there’s real savings on the table when it comes to auto refinancing. It’s making a difference for drivers across credit profiles and vehicle types, but plenty of people still haven’t checked what rate they’d qualify for today, even if it takes just a few minutes and could save them thousands of dollars a year.”

Vehicle type also influenced savings. Owners of coupes and pickup trucks achieved the greatest reductions in monthly payments, saving an average of $184 and $183 per month respectively, outperforming drivers of SUVs, sedans, hatchbacks, vans, and wagons.

The report also found that consumers are carrying larger auto loan balances than ever. The average refinanced loan balance reached $34,378 in Q2, reflecting rising vehicle prices and the trend toward smaller down payments.

Electric vehicle owners posted the largest monthly savings of any powertrain category. EV drivers who refinanced saved an average of $191 per month during the quarter, up from $176 a year earlier. Their savings exceeded those achieved by both gasoline and hybrid vehicle owners. As drivers adjust to the expiration of the federal EV tax credit in 2025, refinancing is emerging as another tool that can help reduce the overall cost of EV ownership.

Caribou, which specializes in auto loan refinancing, says its platform helps consumers compare offers from lending partners and lower their monthly payments through reduced interest rates, longer loan terms, or a combination of both. The company reports that refinancing continues to provide meaningful financial relief for drivers navigating higher vehicle costs and broader economic pressures.