Caribou Reports Surge in 84-Month Auto Refinances as Drivers Seek Lower Monthly Payments

New Data Shows Borrowers Choosing 84-Month Terms Are Saving An Average of $179 a Month* As Consumers Prioritize Cash-Flow Flexibility

DENVER, Oct. 29, 2025 /PRNewswire/ -- Caribou, a leading auto refinance platform helping drivers take control of their car loans, today released new data from its updated Auto Refinance Trends Report showing that 84-month refinance terms have become the most popular choice among borrowers for the first time, with customers saving an average of $179 per month in September 2025.* The trend report highlights how drivers are increasingly using extended loan terms to manage cash flow as financial pressures mount for many Americans², and interest rates have begun to ease.

National auto refinancing activity has surged in 2025, with volumes up nearly 70% year–over–year according to Experian³. Caribou's latest trend report provides new insights, including how extended–term refinancing is becoming an important lever for stressed Americans².

Beginning in May 2025, drivers have increasingly opted for longer loan terms to lower their monthly payments as interest rates have eased. In September 2025, for the first time, more borrowers chose an 84–month term than any other option¹. With vehicles lasting longer than ever—the average age for a passenger car is now 14.5 years⁴—a growing number of Americans are choosing a longer loan term as a way to make car payments more manageable while maintaining financial flexibility.

"The reality for many households is that every part of the budget feels tighter as costs like auto insurance, healthcare, and everyday expenses rise," said Simon Goodall, CEO of Caribou. "Drivers are turning to refinancing as a smart financial tool to lower payments and free up cash each month for other needs. For many, it's a simple and accessible way to stay on top of their finances without turning to higher-interest debt. The ability to lower payments by $179 a month is meaningful for most Americans, and we're seeing more consumers prioritize financial flexibility as they navigate financial uncertainty."

About the Report
Caribou's monthly Auto Refinance Trends Report consolidates data from October 2024 through September 2025, covering a growing list of categories such as loan term, credit tier, body style, and fuel type, providing transparency into real refinance behavior—not modeled projections. Access the latest update at caribou.com/auto-refinance-trends-report.

About Caribou
Founded in 2016 and based in Denver, CO, Caribou helps drivers take control of their car loan–with real savings, trusted lending partners, and expert help every step of the way. Through its advanced technology and friendly loan advisors, Caribou makes the entire auto refinancing process quick, easy, and transparent. The company is backed by QED Investors, Goldman Sachs, and other leading investors. See how much you could save at www.caribou.com.

Methodology*
Data includes consumers whose auto refinance loan funded through Caribou in September 2025, had an existing loan on their credit report, and selected a loan offer to reduce their monthly payment. Savings figures represent the difference between prior and new scheduled monthly payments. APR change reflects percentage-point difference between prior and refinanced loans.

Sources:
¹Caribou internal funded loan data
²Financial Stress Survey: 65% of Americans Say Finances Are Their Biggest Source of Stress
³Experian Automotive's 2025 Refinancing Report
⁴Average Age of Vehicles in the US Rises to 12.8 Years in 2025 (passenger cars 14.5)

SOURCE Caribou Financial