ORLANDO, Fla. — Many Florida drivers may be paying more than they need to on their auto loans, according to a new national survey from Caribou.
The auto refinancing company surveyed 2,000 current auto loan holders and found that 70% have never checked to see whether they qualify for a lower rate.
The survey did not break down results by state, but the findings may be especially relevant in Florida, where many residents rely on cars for work, school, errands and daily transportation.
Caribou found that nearly 1 in 3 borrowers struggled to make a car payment on time in the past year. Another 22% said their monthly payment is currently difficult to afford.
The survey also found that many borrowers felt pressure during the original financing process. About 44% of respondents said they felt moderately or very pressured when financing their current vehicle, and 1 in 4 said they did not believe they received the best financing deal available.
Despite that, only 29% of auto loan holders said they have checked whether they qualify for a lower rate. Only 25% said they have refinanced in the past.
Caribou said borrowers cited several reasons for not refinancing, including concerns about fees or penalties, too much hassle and possible impacts to their credit score.
The survey found that 85% of borrowers said saving $150 a month on their car payment would make life significantly easier. Most said they would use the savings to pay down other debt, build emergency savings or cover everyday expenses such as groceries and gas.
More than half of borrowers surveyed said they are likely to consider refinancing their car loan in the next 12 months. Among borrowers who struggled to make payments in the past year, that number rose to 71%.
The survey was conducted from March 27 to April 1 among 2,000 U.S. respondents who currently have a car loan on their primary vehicle.
Caribou said the findings show many drivers may not realize they have options after accepting financing at the dealership.
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