Received a Mailer?


Industry Insights February 2024

iLending Industry Insights – State of Auto/Car Loan Refinance

The Latest Industry Overview from the Top Car Loan Refinance Company

(Englewood, CO, February 13, 2024) – iLending, a national leader in automotive refinancing, is pleased to announce the next installment of our report on the State of the Car Loan Refinance Industry. These insights are based on our internal data coupled with industry and consumer information. The intent of the publication is to provide meaningful insight for those interested in the auto loan refinance market, as well as for consumers that may be considering refinancing their existing auto.

As the conclusion of 2023 approached, iLending engaged in a comprehensive review of the demanding landscape within the Auto Refinance Industry spanning the previous 12-18 months. This introspection centered on identifying pivotal insights and strategic investments aimed at enhancing and fortifying the business for the times ahead.

iLending is now looking forward and optimism is in the air as strong signals of an improving economy and interest rate reductions are providing hope for even more families to save money and improve their financial wellbeing.

“iLending strategically positioned itself to endure the challenges faced over the last 18 months.” stated Nick Goraczkowski, President of iLending. “Despite the obstacles, our dedication remained unwavering to assist those seeking refinancing options, allowing us to continue to help thousands of clients in 2023.  We actively invested in our business, process and client experience and are now prepared to expand our support further as we expect interest rates eventually to decrease.”

Interest Rates & Interest Rate Environment

The Auto Refinance Industry is on the precipice of a strong recovery as all indications are that interest rate reductions are on the short-term horizon.  The Federal Reserve has held rates steady since September of 2023, plateauing and staying at the current 5.33% rate.  The good news continues to be the signal that rate reductions will take place in Q2 of this year.

“We fought our way through a tough 2023 and I’m proud of what we accomplished and still helped a lot of clients and their families.” said Goraczkowski, “We expect rates to come down soon, and we are uniquely positioned to support partners and lenders to ultimately help more and more clients obtain their financial goals with an auto loan refinance”.

Despite the continued challenges expected in the short term, iLending is quite optimistic for 2024, and their ability to help clients and their families lower car payments and save money for what matters most to them.

FRED Graphc



Inflationary pressures, having reached their peak in July of 2022, have since demonstrated a significant downturn. This notable stabilization and subsequent decline have kindled optimism throughout the industry, fostering expectations for forthcoming reductions in interest rates over the near to mid-term. Furthermore, recent economic analyses have suggested the likelihood of a “soft landing” for the economy, signaling a transition towards a notably more stable lending environment.

Inflation Chart



Used Car Book Values

Used car prices, having surged to unprecedented highs a few years ago, are currently projected to undergo a period of stabilization subsequent to experiencing a decline over the past couple of years. This anticipated stabilization in used car prices holds the potential to reinforce the reliability and consistency of book values, particularly for consumers considering a car loan refinance. The evolving landscape in the used car market reflects a shift to a more conducive environment for individuals seeking to optimize their financial affairs in regard to automotive financing.

Mannheim Used Car Values January 2024

 Lender Environment 

Interest rates also put significant strain on lenders, credit unions and financial institutions that support the Auto Loan Refinance Market, resulting in a tightening of lending criteria. As they navigated the challenges posed by interest rate increases, lenders became more cautious in their lending practices, leading to stricter eligibility requirements for borrowers. This made it more challenging for some consumers to access the benefits of auto refinancing.

Despite these challenges, lenders and financial institutions have remained committed to serving customers and meeting their needs. Most lenders are approaching 2024 with renewed optimism in growing their auto refinance loan portfolios. Heidi McMillen, Director of Lender Relations at iLending summed it up, “It’s been tough on our lenders, but we are all starting to see the light at the end of the tunnel with rates.  Tempered excitement is how I’d define the current sentiment for 2024.”


Election Year 

Predicting the precise impact of a presidential election on interest rates in 2024 is challenging due to the multitude of factors that influence interest rate decisions. While presidential elections can have implications for economic policies and market sentiment, the Federal Reserve ultimately determines interest rate changes based on a variety of economic indicators, including inflation, employment levels, and economic growth.

That said, presidential elections can introduce uncertainty into the market, which may affect investor confidence and influence short-term fluctuations in interest rates. Additionally, the economic policies proposed by the winning candidate and the perceived effectiveness of those policies in addressing economic challenges could influence the direction of interest rates.

iLending will continue to closely monitor economic indicators, central bank announcements, and market dynamics to gauge potential shifts in interest rates in 2024. While the presidential election may play a role in shaping market sentiment, it is just one of many factors that contribute to interest rate decisions.



Based on the factors above, iLending believes the opportunity for consumers to qualify for and save money by refinancing their existing auto loans is: Above Average for mid- and sub-prime borrowers and Average for Prime borrowers due to interest rates being high.

Rates have plateaued and are expected to decrease, creating optimism and a realistic expectation that more Americans will be able to save money and free up cash in 2024.  Opportunities continue to be available to extend term to save on payments, as well as depending on the Lender, clients can skip one, two and sometimes even three payments.

Recognizing that saving money is a top priority for many individuals, particularly given the ongoing strains of expenses like housing, groceries, travel, and household items, iLending remains dedicated to helping clients reduce their monthly car payments and enhance their cash flow.


About iLending

Founded in 2006, iLending has facilitated $3.6 Billion in loans and is the national leader in car refinancing, saving consumers an average of $132 per month on their car payments. iLending has helped over 154,000 families save more than $243 million in payments or 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.



Chad Nordhagen



What would you do with an extra $148* in your pocket?

Start Saving Now