The Latest Industry Overview from the Top Auto Loan Refinance Company
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.”
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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.
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