RateGenius Releases March 2022 Auto Refinance Rate Report

Despite rate hikes, borrowers are reducing their auto loan interest rates by a wider margin than in 2021.

AUSTIN, Texas, March 17, 2022 /PRNewswire/ -- RateGenius, an auto refinance platform, released its monthly Auto Refinance Rate Report revealing the current average interest rate has risen to 5.55% — still well below the average at this time last year, 6.23%. 

The Auto Refinance Rate Report provides current and historical interest rate data from auto refinance applications completed within The Savings Group's combined network of more than 180 lenders. This is the first report examining data from both RateGenius and AUTOPAY. You can read this month's full report here, Auto Refinance Rate Report: March 2022.

Current Auto Refinance Rates and Savings

These averages include all loan terms (36 to 72 months) and credit profiles for loans approved in the RateGenius and AUTOPAY networks over the last 30 days.

• 5.55% - Average auto refinance interest rate
• 7.36% - Average interest rate reduction
• $78.76 - Average monthly car loan payment savings

As of this announcement, here are the current average auto refinance interest rates broken down by credit tier and loan term.

For up-to-date auto refinance rates, please visit: rategenius.com/auto-refinance-rates.

The report also found the average interest rate reduction (the interest rate difference before and after refinancing) has ticked upward, +0.26% since RateGenius released its State of Auto Refinance 2022 Report. 

"With inflation on the rise, consumers are facing increasing financial stress," said The Savings Group co-CEO Seth Meyer. "For borrowers seeking creative budgeting strategies to help cope with rising costs, refinancing can be an effective debt payoff tool. Right now, borrowers are cutting their auto loan rates by more than 7% on average. It's likely we'll see that go up as inflation and interest rates continue to climb."

On March 16, 2022, the Federal Open Market Committee announced it will raise the benchmark federal funds rate a quarter-point, bringing it to a target range of between 0.25% - 0.50%, citing improved economic conditions and job gains despite the war between Russia and Ukraine. This is the first rate increase since 2018. The federal funds rate dropped to nearly zero percent in March 2020. 

Auto Refinance Rates and Savings Over Time

The average overall auto refinance interest rate in February was 5.86% across all borrowers approved for refinancing. The average interest rate reduction was 6.46% and payment savings were $101.83 per month.

Methodology: Current average interest rates and payment savings are based on approved auto refinance applications across all loan terms (36 to 72 months) and all credit profiles over the last 30 days. Historical average interest rates are based on auto refinance loans approved between December 1, 2021 and March 14, 2022.

About RateGenius

RateGenius is a technology company which has created a proprietary, web-based platform that has assisted hundreds of thousands of consumers nationwide in refinancing auto loans to more favorable terms. By utilizing its network of more than 150 lenders, RateGenius has successfully facilitated more than 375,000 loans worth more than $8 billion. The company's proprietary LOS (loan origination system), educational content, and customer-experience-focused business approach have been instrumental in its success. RateGenius' online application is quick, simple and available from the comfort of your home at apply.rategenius.com.

Contact: [email protected]

SOURCE RateGenius