OGDEN, Utah–An increasing number of Americans are seeking to refinance their auto loans, according to a new report.
Some credit unions are seeing as many refi applications as they are loans for new vehicles.
In its analysis, Marketwatch cited recent comments by Michael Williams, senior vice president of consumer lending at America First Credit Union in Utah, as noting that in a normal year about 65% of the credit union’s business is new loans. Another 35% comes from refinancing. In 2025, though, it’s “closer to 50-50,” the report stated.
As the CU Daily has recently reported, including extensive coverage out of the Origence Lending Tech 2025 meeting, in 2022, high prices and high rates combined with tight inventories as the result of COVID 19-related production slowdowns that led to 8.1 million fewer new cars rolling off the assembly line, the effects of which are still being felt.
JPMorgan Back in the Game
Marketwatch noted Automotive News had reported that the refinancing numbers int eh Spring led JPMorgan Chase to announce it was reentering the auto loan refinance market.
PenFed Credit Union VP Chris Kleczynski, who oversees its auto market strategy, told MarketWatch refinancing applications have grown from 15% of its business to as much as 25% this year.
“Shoppers who bought at pandemic-era prices find themselves with higher-interest loans on expensive cars,” MarketWatch reported. “They can’t easily trade in those cars to get a lower payment because they bought at an inflated value and may owe more than the car is worth.”
The solution for many, the report noted, isn’t a new car but instead a new loan. The report cited data from automotive refinance company iLending reports that shows the average consumer saves about $140 a month through a refinance.
