‘Affordability is No. 1’ driver of PNC’s auto refinance demand

Consumer budget concerns are driving year-over-year surges in auto refinance applications, Strati Papageorge, senior vice president of product at PNC Financial, tells Auto Finance News in the latest episode of “The Auto Finance Roadmap” podcast.

“Affordability is No. 1, the biggest reason that consumers are coming to us,” to refinance, he said. “It helps with monthly payment.”

PNC reported a 60% YoY jump in auto refinance activity in 2025 and saw similar YoY growth in the first quarter of 2026, Papageorge says.

OpenRoad Lending’s refinance application volume surged 30% YoY in Q1 amid sustained new-vehicle price hikes and heightened consumer focus on affordability pressures. The average transaction price for a new vehicle rose 3.5% YoY to $49,275 in March, according to Kelley Blue Book data published April 9.

“Even with incentives helping, I don’t see transaction prices starting to come down anytime soon,” Papageorge says.

Customers in better financial situations are also refinancing as “they want to pay less interest over the life of the loan and pay out their loan sooner,” he says.

To address affordability, PNC expanded its financing to include older vehicle models and allows 84-month loan terms, he says.

“We always try to balance longer terms with maintaining credit that’s measured and balanced, so … we can help with monthly payments … while at the same time not getting too far out over our skis from a credit standpoint,” Papageorge says.

PNC reported YoY declines across auto delinquencies in Q1, according to an AFN analysis of the lender’s earnings supplement released April 15. Its auto outstandings rose 6.5% YoY to $16.3 billion.

PNC was the 24th-largest auto lender by outstandings at yearend 2024, according to the latest Big Wheels rankings data.

In this episode of “Weekly Wrap,” Auto Finance News Senior Associate Editor Aidan Bush and PNC’s Strati Papageorge discuss increased refinance demand in auto finance and the major affordability pressures driving consumer behaviors.