Boomers say they had it toughest. Millennials get blamed for everything from killing cereal to crashing the housing market. Gen Z is busy rewriting the rules entirely.
Generational debates are nothing new, but here’s a fresh one to consider: who’s actually saving the most when it comes to refinancing their car loans?
New research from the Caribou Auto Refinance Trends Report offers some real answers, and the findings may challenge what you think you know. While every generation stands to benefit from refinancing, each group sees savings in its own way.
And yes, Gen X is finally getting its moment in the spotlight.
Refinancing Is Still Flying Under the Radar
Car payments have quietly become one of the biggest monthly bills many people face. According to Experian, the average monthly payment for a new car is $742. For used cars, it’s $545. Despite those numbers, most people never revisit their loan after driving off the lot.
Simon Goodall, CEO of Caribou, says it’s time that changed.
“Car payments are one of the biggest monthly expenses for millions of Americans, and for too long, people have assumed they’re stuck with the rate they got at the dealership. Our data shows that drivers of all ages can unlock real savings by refinancing. This isn’t just some money hack; it’s a necessity for many households, and we’re proud to shine a light on how much more Americans could be saving.”
How Each Generation Is Saving
Caribou reviewed thousands of refinanced loans from 2024 to find out how different age groups are doing. While the details vary, the takeaway is clear: real savings are on the table, and no generation is exempt.
Gen Z
Many Gen Z drivers enter the world of auto loans with limited credit history, which often means high interest rates. On average, they start with a 14.05 percent APR. After refinancing, that drops by 5.56 percentage points, bringing their new average rate to 8.50 percent. This change reduces their average monthly payment by $126, from $648 to $522. For younger drivers just getting started financially, that kind of savings can make a real difference.
Millennials
Millennials tend to borrow more than Gen Z, with average starting loan balances around $38,158. After refinancing, they reduced their APR by just over four points and saved an average of $143 per month. That brings their typical payment down from $733 to $590. Whether it’s managing student loans, childcare, or rising living costs, this extra breathing room can be valuable.
Gen X
This group carries the highest average loan balance at $39,395 but also sees the biggest monthly savings. After refinancing, Gen X drivers drop their APR by 3.80 points and reduce their monthly payments by $147. Their average payment goes from $757 to $610. That kind of relief can help with mortgage payments, college tuition, or other big financial commitments.
Boomers
Drivers nearing or already in retirement are also seeing meaningful results. Boomers save an average of $131 per month by refinancing their auto loans. They also tie Gen X for the lowest post-refinance APR, landing at 8.39 percent. For those living on fixed incomes, every dollar saved helps stretch retirement savings further.
What Makes This Data Different
These aren’t national averages or predictions. The findings are based on actual customer outcomes from Caribou auto refinance loans funded in 2024. All included borrowers had an existing auto loan listed on their credit report and refinanced through Caribou with the goal of reducing their monthly payment.
By focusing on real customers with solid credit and steady income, the report gives a clearer picture of what refinancing can actually do.
A Simple Step Toward Lower Monthly Costs
Refinancing is often overlooked, but it can be one of the easiest ways to reduce your monthly bills without changing how you drive. With car payments at all-time highs, now may be a smart time to explore whether your current rate is still serving you well.