Car buying is a huge decision. For many, financing makes ownership affordable. If you are in the market for a Subaru, you are not alone. Subaru has earned the reputation of manufacturing vehicles that are safe, dependable, and all-weather-ready. So how do you get from that test drive to actually owning a Subaru? This guide covers everything you need to know about Subaru finance: what it is, how it works, and how to make it work for you.
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Why Choose Subaru?
Surrounded by a sea of automakers, Subaru stands distinct. The quality, durability, and safety of the brand are its trademarks. It is loved for many things, but mostly for its symmetrical all-wheel drive, which is standard on most models. Whether you are commuting, off-roading, or just picking up groceries, a Subaru is a solid choice.
Let’s face it: nice cars come with a price, which is where Subaru financing comes into play.
What Is Subaru Finance?
Subaru finance refers to the loan and leasing options offered by Subaru Motors Finance (SMF). This program is backed by JPMorgan Chase and is available only through authorized Subaru dealerships across the U.S.
The idea is simple: the full price of the car doesn’t have to be paid upfront. It can be financed for a period of time, giving rise to monthly payments and often an added interest. SMF gives options—buying, leasing, or refinancing a Subaru.
Subaru Financing Options
The choice in financing options comes down to two: buying or leasing. Subaru has made both paths easy to understand and customize.
1. Loan Financing
Loan financing is the best choice if you want to keep your Subaru indefinitely. This is how it works:
- Down Payment: A percentage of the car’s cost is paid as an upfront payment.
- Loan Term: Runs for 36 to 72 months.
- Interest Rates: APR determined by credit score, vehicle choice, and loan period.
- Monthly Payments: Made during the loan period.
Now you keep it free and clear after paying the last installment. So, that means no monthly limits and also no extra fees for excess wear.
2. Lease Financing
If you prefer a new car every few years, consider leasing. Leasing usually features lower monthly payments.
- Lower upfront cost: Often much lower than a down payment on a loan.
- Mileage limitations: Usually between 10,000 and 15,000 miles per year.
- Lease term: Usually between 24-39 months.
- Buyout option: Option to buy the car once the lease is over.
From time to time, you might find lease specials on popular models such as Outback, Forester, and Crosstrek with Subaru.
How to Qualify for Subaru Finance
Approval of Subaru financing depends on your credit score, income, debt, and job history. Here are the points that lenders usually examine:
- Credit Score: 660 and above is good for the better rate.
- Proof of Income: Pay stubs, tax returns, or employment letters.
- Debt-to-Income Ratio: Less debt means better chances.
- Down Payment: Bigger down payments can improve qualification chances.
Even if your score is not perfect, Subaru has programs available for all types of buyers, including students and first-time car buyers.
Special Finance Programs
A number of special financing programs are available through Subaru Motors Finance to help targeted groups of buyers.
1. College Graduate Program
Recent graduates can avail themselves of special financing rates despite their minimal credit history. The requirements include:
- Evidence that you have graduated within the last 24 months
- Proof of employment or a job offer
- Good credit history or a co-signer
2. Military Discount
Military personnel, veterans, and their immediate families enjoy special discounted rates through Subaru’s Military Incentive Program.
3. Certified Pre-Owned Financing
If you are researching a used car, Subaru Certified Pre-Owned (CPO) models are eligible for financing that is not too hard on one’s wallet. Such cars come with extended warranties and have to pass 152-point inspections.
Subaru Financing vs. Bank Financing
Should you finance through Subaru or your bank? Here’s a quick comparison:
| Feature | Subaru Motors Finance | Bank or Credit Union |
|---|---|---|
| Convenience | High (done at dealership) | Moderate (apply separately) |
| Interest Rates | Competitive (with deals) | May be lower with good credit |
| Special Offers | Yes (cash rebates, 0% APR) | Rare |
| Incentives | Loyalty, military, student | None or limited |
Especially when packaged with seasonal sales events, Subaru financing tends to win out in both convenience and promotions.
How to Apply for Subaru Finance
It is very easy to begin the process. Here is a step-by-step guide:
- Choose your car: Know your Subaru model that fits your lifestyle and budget.
- Check your credit: It can affect your approval and rate.
- Walk into a Subaru dealership: Speak with the finance department personnel.
- Fill out a finance application: Provide your personal information, income details, and employment information.
- Get pre-approved: This helps fast-track your purchase and strengthens your buying power.
- Review terms: Understand fully the agreement for your loan or lease.
- Sign and drive: Go after the approval!
Tips for Getting the Best Subaru Financing Deal
- Shop rates: Compare offers from SMF, your bank, and credit unions.
- Time your purchase: End-of-quarter or year-end sales often bring better deals.
- Negotiate price: Secure the lowest possible selling price before discussing finance.
- Boost your credit: Pay down debt and correct errors on your credit report.
- Watch for promos: Look out for 0% APR offers, cashback, and loyalty incentives.
Before you lock in your Subaru financing plan, it helps to understand how borrowing strategies can affect your overall financial health. Read our guide on leverage finance strategies and risks to learn how smart financial planning can support big-ticket purchases like a vehicle.
Subaru Financing and Credit Score Tiers
Your credit score has a significant impact on the nature of financing you will receive:
| Credit Score Range | Financing Outcome |
|---|---|
| 750+ | Excellent rates and approval odds |
| 700–749 | Good rates with flexible terms |
| 640–699 | Moderate rates, possible conditions |
| 580–639 | Higher rates, may need co-signer |
| Below 580 | Subprime loans, limited offers |
It does work with all types of credit but advises customers with poor credit to see if they can qualify under those parameters.
Subaru Finance Offers and Deals
Subaru frequently runs promotional finance offers, especially on new models. These may include:
- 0% APR for 36 months
- No down payment deals
- Cashback incentives
- Loyalty discounts for returning customers
Deals vary by region, season, and vehicle. It’s best to check with your local dealership.
Online Tools and Resources
Subaru’s official website and most dealership pages offer helpful tools:
- Payment Calculator: Estimate monthly payments based on interest and term.
- Trade-In Value Estimator: See how your current vehicle lowers the total cost.
- Pre-Approval Forms: Save time at the dealership.
- Finance FAQs: Clear answers about loans, leases, and qualifications.
These tools help you make informed decisions and speed up the process.
Conclusion
Subaru finance offers flexible, accessible, and competitive solutions for anyone looking to get behind the wheel of a Subaru. Whether you’re buying your first Crosstrek or leasing a new Outback, Subaru Motors Finance makes the process smooth and straightforward.
From low APRs and special programs to helpful online tools and national promotions, Subaru financing is designed to match your lifestyle and budget. So if you’re dreaming of a dependable, versatile vehicle, Subaru and its finance options can make that dream a reality without draining your wallet.
FAQs
1. What is Subaru Motors Finance?
Subaru Motors Finance (SMF) is the official financing program offered by Subaru through JPMorgan Chase. It provides auto loans and lease options for new and certified pre-owned Subaru vehicles at authorized dealerships.
2. Can I finance a Subaru with bad credit?
Yes, Subaru financing is available for buyers with all credit types. While good credit gives you access to better rates, SMF and many dealerships work with subprime lenders to help customers with lower scores.
3. Is leasing a Subaru better than buying?
It depends on your lifestyle. Leasing usually comes with lower monthly payments and lets you upgrade to a new model every few years. Buying is better if you plan to keep the vehicle long-term and want full ownership.
4. Are there any special programs for students or military?
Yes, Subaru offers both a College Graduate Program and a Military Discount. These programs include special rates, reduced down payments, and flexible financing terms.
