While the Federal Reserve hasn’t lowered interest rates yet this year, institutions that participate in auto refinancing are upbeat about the volume they could generate in the coming months.

Two examples of the bullish perspective recently came from iLending and PenFed Credit Union.

Via its spring installment of the State of the Auto Refinance Industry, iLending projected continued strength in auto refinance activity through 2025 even with used-vehicle values and global economic indicators remaining uncertain.

According to the report, lenders have remained cautious, continuing to tighten approval criteria as risk profiles fluctuate. However, iLending said competition among refinance lenders is healthy, especially for borrowers with improved credit scores, consistent payment history, or equity in their vehicles.

“We’re seeing tempered optimism from our lender partners,” said Cedric Moore, director of lender relations at iLending. “Loan performance is stabilizing, and many lenders are expanding programs to regain market share.”

An example of a provider looking to gain market share is PenFed Credit Union, which already serves nearly 3 million members worldwide with more than $31 billion in assets.

On Tuesday, the credit union said it is offering a $200 bonus for financing a PenFed auto loan and $150 for using a PenFed checking account to make two months of automatic payments for the full amount due. The offer period ends May 12.

To qualify for the full bonus, members must finance an auto purchase or refinance a current auto loan from an institution outside PenFed with a PenFed auto loan and use a PenFed checking account to make two monthly recurring payments on an auto loan funded at greater than $10,000.

According to a news release, the $200 bonus will be deposited to the primary applicant’s share savings account by Oct. 15, and the $150 checking bonus will be deposited to the member’s PenFed checking or savings account by Oct. 15.

PenFed highlighted that this new initiative is focused on making vehicle ownership more affordable.

“At PenFed, anyone can join, and our members now can drive away with an extra $350. This limited-time offer is designed to help members achieve their goals by providing more affordable auto loan financing,” PenFed chief marketing officer Gaurav Bhatia said in another news release.

So, whether it’s through PenFed, iLending or another institution, current contract holders might have a different lienholder at some point this year.

“Economic headwinds persist, but so does our mission to help families save money through smarter auto loan solutions,” iLending president Nick Goraczkowski said. “Consumers are making more strategic decisions, and refinancing is often the easiest lever to pull for immediate relief.”