With new car prices averaging $50,000 and inflation squeezing household budgets, more Americans are holding on to their cars for longer. According to Caribou’s 2026 Car Loan Sentiment Survey of 2,000 U.S. auto loan holders, only 29% of borrowers have ever checked whether they qualify for a lower rate, yet 85% agree that saving $150 a month on their car loan would make life significantly easier.
Why Revisit Original Loans?
The average vehicle on U.S. roads today is approximately 13 years old, a record high according to Bureau of Transportation Statistics data. This is up from nearly 10 years in 2006. Caribou’s survey data tracks closely with what the broader auto market shows, with nearly two-thirds of auto loan holders saying they’ve noticed new car prices rise over the past year.
Among those who noticed price increases, 41% say they’ll keep their current vehicle longer, while 17% plan to buy a used car instead. Older generations are also more likely to hold on to their cars, with 58% of Baby Boomers saying they’ll keep their current car longer. Prime credit borrowers follow a similar pattern, with 52% planning to keep their vehicle longer in response to rising prices.
Financial Implications
For the growing number of drivers keeping their cars longer, the terms of the loan they took out become more consequential over time. Most borrowers didn’t accept their original terms under favorable conditions, with 44% feeling moderately to very pressured during the financing process. High car prices have also led more borrowers to take on longer loan terms to keep monthly payments affordable, with 84-month loans hitting an all-time high in Q2 2026.
Payment strain raises the stakes even further, with nearly 1 in 3 borrowers struggling to make their car payment on time in the past year. And 23% currently owe more than $30,000 on their loan, meaning they’ll be carrying this balance for years. The question is at what rate. Over half of borrowers took out their current loan one to four years ago, during a post-pandemic, high-rate environment.
For a borrower already managing a tight car payment, an unplanned engine, transmission, or brake repair is a genuine financial threat. According to a recent Federal Reserve survey, the single most common unexpected expense Americans reported in the past year was a major vehicle repair or replacement. Drivers should consider other protections designed for extended ownership, such as a vehicle service contract (VSC) or guaranteed asset protection (GAP) coverage.
Car owners may be staying put, but they don’t have to carry their original loan terms all the way through. Yet, only 29% of auto loan holders have ever checked whether they qualify for a lower rate. Among those who have refinanced, 95% succeeded in lowering their payment, their annual percentage rate (APR), or both.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
