To Save Money, Look Into Refinancing Your Car Loan

I don’t recommend car loans, but if you have one, do this. Tips on food too.

The average borrower who refinanced saved more than 2.2 percentage points on an interest rate last quarter.

Here’s a helpful tip courtesy of the Wall Street Journal: Now Is a Great Time to Refinance Your Auto Loan

Americans are finding that one of the few ways to save money in the car market is by refinancing their auto loans.

Drivers who refinanced in the first quarter of 2026 saw a 2.24 percentage point interest rate decrease on average from their original loan, compared with a 0.47 point decrease two years earlier, according to the credit bureau Experian. The number of car owners refinancing has nearly doubled over that time to about 111,000 in the first quarter of this year.

Most other costs associated with owning a car have gone in the other direction. Car prices have risen sharply since the industry faced a series of pandemic-era supply-chain issues. Car maintenance and insurance costs have risen faster than inflation in recent years, and gas prices have surged in recent months.

But lenders have been lowering rates on refinances since the Federal Reserve began cutting interest rates in 2024. Buyers with high payments found that refinancing drove their costs down by an average of $81 a month in the first quarter.

“Being able to refi and save almost $100, that’s pretty considerable,” said Melinda Zabritski, head of automotive financial insights at Experian.

For Kayla Barkdull, a 39-year-old manager at a Las Vegas bar, refinancing cut her interest rate in half. 

Barkdull got her 2019 Volkswagen Atlas in 2023 at 11.8% APR with monthly payments of $641. She was rejected just over a year ago when she tried to refinance. But she decided to check her chances again once her credit score hit the high 600s earlier this month. Navy Federal Credit Union offered her a 5.7% interest rate.

“I cried when I got approved,” Barkdull said.

My Top Tips for Everyone

1. Get a freezer

2. Buy what is on sale

3. Buy only what is on sale except for items you cannot freeze or store

4. Shop on sale days

You can save 30 to 40 percent or more buying meat on sale. I routinely save 33 percent or more on my whole grocery bill.

Albertson’s / Kroger has 10 percent off on the first Wednesday of every month. That is on top of any other sales.

Albertson’s / Kroger has an app. Some deals requite the app. The is hard to use and confusing, but get the app and use it. If you can’t find an item in the app (stuff is missing all the time), get assistance at checkout.

These app deals are often 2 for the price of one, but in limited quantities. Try to buy meat on those days.

I believe there are sale days for veterans at some stores.

Take advantage of all of these options.