#United States #Denver #Auto Loans #EV Savings #Caribou

The Shift Towards EV Loans Refinancing

As the federal electric vehicle (EV) tax credits approach their expiration date on September 30, 2025, a new report from Caribou, a premier platform for auto refinancing, sheds light on the growing trend of refinancing among EV owners. Despite a slowdown in government support, there’s a silver lining for electric vehicle drivers looking to save on their auto loans.

Increased Savings for Electric Vehicle Owners

According to Caribou's data, refinancing an electric vehicle can yield substantial monthly savings compared to traditional gasoline vehicles. Nationally, EV owners who refinance their loans are enjoying an average reduction of $166 per month. In contrast, traditional gasoline vehicle owners are seeing average savings of $138 per month, marking a noteworthy 20% greater reduction for EV owners.

Refinancing benefits are particularly advantageous for new EV owners, as these savings can begin to materialize only four months after the purchase. This reveals a strategic opportunity for those who bought their vehicles within the last year to consider refinancing, especially as the summer of 2025 unfolds.

Stats at a Glance

These numbers reflect the refinancing activity of consumers whose auto loans were finalized through Caribou from July 2024 to June 2025. The data shows a clear financial incentive for EV ownership, especially in the shadow of potential government support that's set to wane.

California's Leading Role in EV Savings

California has emerged as the leader in EV refinancing, with average savings for electric vehicle loans hitting $176 per month. This is notably higher than the $150 average savings for gasoline vehicles and $138 for hybrids. This trend not only emphasizes the state's commitment to electric mobility but also points toward a ripe opportunity for consumers eager to optimize their auto loans.

California Savings Breakdown

Consumers are capitalizing on these financial benefits, carving out a significant advantage over traditional vehicle financing scenarios.

The Importance of Timing

For consumers looking to purchase U.S.-assembled EVs in 2025, timing becomes critical. Buyers may qualify for both the federal EV tax credit and the new incentives introduced under the One Big Beautiful Bill Act (OBBBA). This conjunction creates a unique opportunity to compound these government credits with the advantages afforded through refinancing.

Potential buyers should be aware, however, that the advertised government incentives may not always align with expectations, and smart decision-making is essential. Simon Goodall, CEO of Caribou, pointed out that while federal tax credits have been instrumental in encouraging EV adoption, the journey doesn’t end there. Refinancing your loan remains a critical factor for ongoing financial relief.

Conclusion

As the landscape of electric vehicle ownership shifts with the conclusion of federal tax incentives, one thing remains clear: refinancing presents a golden opportunity for EV owners to reap substantial savings. Whether through immediate monthly cost reductions or combining benefits with government credits, now is an optimal time for EV drivers to explore their refinancing options.