Caribou Reveals What Gen Z, Millennials, Gen X, and Boomers Really Pay For Their Cars--and the Potential for Savings Hiding in America's Driveways

DENVER, June 18, 2025 /PRNewswire/ -- Caribou, a leading auto refinance platform helping drivers take control of their car loans (www.caribou.com), today announced a preview of the upcoming Caribou Auto Refinance Trends Report, leading with the first comprehensive analysis of how Americans across generations are saving on their car loans. Drawing on thousands of real-life refinances, the report uncovers new insights into payment reductions, rate reductions, and the broader impact of refinancing on household finances. This analysis was based on consumers whose auto refinance loan funded through Caribou in 2024, had an existing loan on their credit report, and selected a loan offer to reduce their monthly payment.

Despite average monthly car payments reaching $742 for new vehicles and $545 for used vehicles (Experian), many Americans don't realize they can refinance their auto loans to secure better terms. This lack of awareness leaves millions locked into outdated, expensive loans and missing opportunities to reduce one of their largest monthly expenses.

"Car payments represent a major financial burden for many households, yet too often consumers assume they are locked into their original rates," said Simon Goodall, CEO of Caribou. "Our analysis demonstrates that drivers of all ages can unlock meaningful savings by refinancing. This is not simply a financial tip; for many, it's a critical strategy for improving monthly cash flow."

Key Findings: Generational Savings Patterns
Caribou's analysis is based on customers with good credit scores and stable incomes, ensuring the results reflect genuine payment reductions and not outliers. This report breaks down before-and-after savings by generation, highlighting the unique financial challenges and opportunities faced by each group:

Gen Z (1995–2012):

• Highest % of their income going towards their car payment at 10.46%
• Lowest average original starting loan balance of $32,069; with average refi loan amount of $28,811
• Begins with the highest average APR at 14.05%, reflecting limited credit history
• Refinancing reduces APR by 5.56 points to 8.50%
• Gen Z customers were able to save an average of $126/month, reducing their monthly payment from $648 to $522

Millennials (1980–1994):

• Typically carry larger loan balances, with average original starting loan of $38,158 and average refi loan amount of $33,313
• Millennial customers were able to save an average of $143/month, $733 to $590
• APR drops by 4.02 points

Gen X (1965–1979):

• Lowest % of their monthly income going towards their car payment, at 7.60%
• Highest average original loan amount of $39,395; average refi loan amount of $34,387
• Gen X customers realized the largest average monthly savings: $147, from $757 to $610
• APR falls by 3.80 points

Boomers (1946–1964):

• Boomer customers were able to save an average of $131 per month, a meaningful benefit for those approaching retirement
• Boomers also tied Gen X customers for the lowest APR after refinancing at 8.39% APR

The report shows that Gen Z benefits most from APR reductions, Millennials and Gen X secure the largest monthly savings—often due to higher original loan balances—Boomers continue to see significant improvements reinforcing that refinancing is a savvy strategy for all age groups.

With car payments at historic highs and vehicle lifespans increasing, auto loan refinancing remains a powerful yet underutilized tool for improving household finances. The true beneficiaries are those who proactively review their loan terms and take action to secure better rates. For more information and methodology, or to gain access to the full Caribou Auto Refinance Trends Report, please visit caribou.com/generations.

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. See how you could save at www.caribou.com.

SOURCE Caribou Financial