iLending Industry Insights – State of Auto/Car Loan Refinance
The Latest Industry Overview from the Top Auto Loan Refinance Company
Englewood CO, Aug. 12, 2025 (GLOBE NEWSWIRE) -- iLending, the nation’s leader in automotive refinancing, has released its Fall 2025 update on the State of the Auto Refinance Industry. This biannual report merges proprietary data from iLending’s national platform with macroeconomic and automotive market trends to deliver a comprehensive view of refinancing activity and what lies ahead for consumers, lenders, and industry stakeholders.
As inflationary pressures and elevated interest rates continue into Q3 and likely into Q4, auto loan refinancing has become one of the few high-impact levers available to many consumers across the country looking to reduce monthly financial strain.
“Consumers are becoming their own CFOs,” said Nick Goraczkowski, President of iLending. “They’re managing household cash flow like a business and auto loan refinancing is a tool they have at their disposal to do that. Our job is to make it easy and stress free.”
Interest Rate Relief Remains Uncertain
Despite some initial signs of macroeconomic softening, the Federal Reserve has yet to lower benchmark interest rates in 2025. Although three modest cuts occurred at the end of 2024, bringing rates down by a cumulative 1%, core inflation and employment data have postponed further reductions. Some on Wall Street are betting cuts will be made in September and December, but only time will tell.
As a result, many borrowers with high-interest auto loans are revisiting their financing options, exploring both money saving and interest rate reduction opportunities. iLending reports that refinance activity has climbed quarter-over-quarter, with client average monthly savings holding steady at $148, up from $145 in the spring report.
Vehicle Values Stabilize
According to the Manheim Used Vehicle Value Index, wholesale prices have stabilized after a 6.8% year-over-year decline earlier in 2025. While depreciation has slowed, upcoming global trade tariff policies, specifically on Chinese EV imports and Asian vehicle components, potentially may spark another pricing swing.
“Used vehicle values have cooled from their pandemic highs, but they’re far from predictable,” noted Goraczkowski. “With equity levels shifting month to month, timing a refinance can be the difference between saving big and potentially getting stuck underwater. We're helping consumers make smart moves before the window closes.”
Digital Shift Accelerates as Consumers Seek Frictionless Savings
In line with broader fintech adoption, more consumers are turning to digital-first auto refinance solutions that mirror the seamless experiences they have come to expect and want from other industries. iLending continues to invest heavily in this space, enhancing every stage of the refinance journey. This includes intelligent pre-qualification tools that can quickly assess borrower eligibility without impacting credit, and smart filling technology that reduces manual entry by leveraging available data securely.
At the heart of this transformation is iLending’s Client Digital Experience (CDX), a proprietary platform designed to empower clients with a personalized, low-effort path to savings. Together, these innovations remove friction, increase transparency, and accelerate time to receive an offer, while maintaining the highest standards of safety, privacy, and data protection.
Lending Appetite Growing – Criteria Remains Tight
While lender appetite is returning, approval criteria remain elevated, especially for sub-prime borrowers. However, competition is increasing amongst the lender network looking for borrowers with an up-to-date and strong payment history, rebuilt/improved credit score, as well as positive equity positions. For clients fitting those criteria, the opportunity for refinance and savings is increasing.
Lenders are launching targeted programs to recapture volume, including longer terms, skip-payment options, and rate-buydown offers, sometimes available exclusively through partners like iLending.
Economic Sentiment: Frugality & Fatigue Drive Consumer Behavior
Reports now show that even high-income earners and households are feeling financial strain, with a growing number struggling to make payments on time. This shift reflects the relentless rise in the cost of everyday essentials such as groceries, gas, insurance, childcare, and more which is placing unprecedented pressure on budgets across all income levels.
Consumer sentiment remains cautious. Recent readings from the University of Michigan reveal a continued decline in confidence, fueled by persistent inflation, stagnant wage growth, political uncertainty, and the return of student loan repayments. Economic fatigue is real, and it is reshaping how consumers approach their financial decisions.
With household budgets under increasing pressure, frugality is taking center stage. Consumers are looking for practical, impactful ways to reduce expenses—without sacrificing their financial stability. Auto loan refinancing has become a valuable tool in this environment, offering a reliable way to lower monthly payments and, in many cases, the option to skip a payment or two. This added flexibility can provide much-needed relief, helping families manage stress and maintain control in an uncertain economic climate.
Compliance and Data Privacy
As a trusted leader in auto loan refinancing, iLending is deeply committed to maintaining the highest standards of regulatory compliance and consumer data protection. In full alignment with the Telephone Consumer Protection Act (TCPA), all client communications are conducted with prior express consent, ensuring a respectful, permission-based experience across all channels.
iLending also prioritizes data privacy through robust security practices and compliance with federal and state regulations. Personally identifiable information (PII) is handled with care, safeguarded through encryption, secure infrastructure, and ongoing internal oversight. This commitment reflects our dedication to transparency, trust, and responsible innovation in every interaction with the clients we serve.
As the regulatory landscape grows increasingly complex and with a rising wave of opportunistic lawsuits driven by disingenuous plaintiffs, many companies are pulling back or taking shortcuts. iLending stands firm in its You First Approach™ by never compromising on ethics, integrity, or the client experience. They contact only with clear, verifiable consent and remain committed to offering real savings opportunities to real people, not chasing leads at the expense of compliance or trust. In a space where others cut corners, iLending leads with purpose, putting people, not loopholes, first.
Outlook for Remainder of 2025: Opportunity, Uncertainty and Resilience
Looking ahead, iLending projects continued strength in the auto refinance market, especially as broader credit markets remain tight and used car affordability continues to weigh on potential trade-in buyers.
Refinancing remains a high-leverage, low-friction way for consumers to improve financial stability.
Summary
Based on current conditions, iLending assesses the opportunity to save through auto refinancing as:
- Moderate to Strong for sub-prime and near-prime borrowers with vehicle equity and recent credit improvements.
- Moderate for prime borrowers seeking payment flexibility and savings, not just rate reductions, along with the ability to defer a payment or two.
- Elevated urgency for loans originated at peak pandemic-era values.
While auto loan rates remain higher than the historic lows seen just a few years ago, recent trends suggest some easing across the market. This gradual shift, coupled with strategic refinancing options, is creating new opportunities for payment relief. Through term extension, skip payment options, and more favorable lender programs, borrowers can reduce monthly obligations without increasing financial pressure. iLending continues to invest in tools and technologies that make it easy for clients to find relief quickly. As consumers navigate a complex and evolving auto finance landscape, the company remains focused on delivering flexible, personalized solutions that ease monthly burdens and support long-term financial stability.
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About iLending
Founded in 2006, iLending has facilitated over Four Billion in loans and is the national leader in auto refinancing, saving consumers an average of $148 per month on their car payments. iLending has helped thousands of families save millions in payments and over 5% in interest rate reduction on average.
Through a best-in-class, technology-driven process, and strategic partnerships with lenders nationwide, iLending offers terms that consumers cannot find on their own. iLending exists to empower families by reducing financial stress and improving peace of mind. We are a BBB Accredited Business and maintain an A+ rating. www.ilendingdirect.com
Attachments
Chad Nordhagen iLending 303.607.6220 cnordhagen@ilendingdirect.com
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