The average person saves $115 a month, according to Caribou.
SAN ANTONIO — The summer season is just a few days away, and many families will be traveling which costs a lot more this summer. If you’re having a hard time coming up with the cash, you may have untapped savings sitting in your driveway.
Families listen up, you could turn your car loan into extra cash for summer road trips. How is that possible? Refinancing! And many people don’t even know that is an option. Simon Goodall, the CEO of Caribou told us, “But very few people realize it. Last year less than 700,000 Americans refinanced their car, but 100 million Americans have car loans today.
Caribou says recent surveys show 82 percent of Americans plan to travel this summer. Out of those 75 percent are choosing to drive instead of fly, partially because of the high cost of air travel. Refinancing that auto loan saves an average of $115 a month that could be used for that hop down the highway. Goodall told us, “The state of auto finance reports show that people’s payments are going up, and that people are paying an awful lot in interest every month on their car payments, and they’re paying too much.”
How much people pay on their auto loan varies by age. Gen X has the smallest share of their income going towards car payments at about seven-and-a-half. Gen Z has the highest share of income at more than 10 percent. And millennials tend to have the highest loan balances averaging over $38,000 when they buy a vehicle. Goodall said, “The average new car payments are skyrocketing. They’re over $740 a month. The average used car payments well into $500 a month right now.”
Goodall also says with a higher purchase price also comes higher insurance premiums, so take that into consideration when you’re in the market for a new ride.