Introduction
Buying a Subaru is more than just choosing a car—it’s about making a smart investment in a reliable, safe, and performance-driven vehicle. Whether you’re looking at the sporty Subaru WRX, the family-friendly Outback, or the fuel-efficient Crosstrek, how you finance your Subaru plays a crucial role in your overall experience and long-term satisfaction.
This guide is designed to help you understand all the ins and outs of subaru financing, including what it is, why it matters, the different options available, and how to get the best deal. If you’re thinking about financing a Subaru, this article gives you everything you need—step by step.
What Is Subaru Financing?
Subaru financing refers to the process of borrowing money to buy a Subaru vehicle—either new or certified pre-owned. Instead of paying the full price upfront, you take out a loan and make monthly payments over time. Subaru offers financing through Subaru Motors Finance, which is operated in partnership with Chase Bank.
There are typically two types of financing options for Subaru vehicles:
- Loan Financing: You borrow money to buy the car and pay it back with interest over a set period.
- Lease Financing: You pay to use the car for a certain number of years, then either return it or buy it at a residual value.
Subaru makes it easy for buyers by offering financing solutions directly through dealerships, as well as online pre-approval options.
Why Is Subaru Financing Important?
Subaru vehicles are known for quality, safety, and long-term value—but they’re still a big purchase. Financing allows buyers to:
- Afford a Subaru without paying everything upfront
- Spread payments over time for better budgeting
- Take advantage of special deals and low-interest offers
- Build credit with on-time payments
Financing also opens the door to special promotions such as cash-back incentives, zero-interest offers, or reduced monthly payments, especially for well-qualified buyers.
Benefits of Subaru Financing
Financing a Subaru comes with several key advantages that make the process smoother and more affordable:
1. Competitive Interest Rates
Subaru often offers low or 0% APR deals through Subaru Motors Finance for eligible customers. These rates are usually better than those offered by banks or credit unions.
2. Flexible Terms
Loan terms typically range from 24 to 72 months, allowing you to choose a plan that fits your budget. Longer terms result in lower monthly payments, while shorter terms reduce overall interest.
3. Special Incentives
Subaru frequently runs promotions like college graduate bonuses, military discounts, and loyalty programs. These incentives can lower your purchase price or offer better financing terms.
4. Easy Online Pre-Approval
Through Subaru’s online portal or local dealerships, you can get pre-approved for financing in minutes. This helps you shop with confidence and know your budget ahead of time.
5. Certified Pre-Owned (CPO) Options
If you’re buying a Subaru CPO vehicle, you may also qualify for attractive financing deals similar to new car offers. CPO Subarus come with extended warranties and a multi-point inspection, making them a smart choice for value-conscious buyers.
How to Finance a Subaru – Step-by-Step Guide
Step 1: Check Your Credit Score
Your credit score directly affects the interest rate you’ll get. A higher score typically means better terms. You can check your score for free through many banking apps or credit websites.
Step 2: Set a Budget
Decide how much you can afford to spend monthly on a car payment. Don’t forget to include insurance, maintenance, and registration in your budget.
Step 3: Get Pre-Approved
Apply for Subaru pre-approval online or through your local dealer. Pre-approval gives you an idea of your loan amount, interest rate, and terms.
Step 4: Compare Offers
Even if you’re pre-approved with Subaru Motors Finance, it’s wise to compare rates from banks, credit unions, or online lenders. You might find better terms elsewhere, depending on your credit profile.
Here’s an excellent comparison of auto loan providers by Experian that can help you evaluate your options.
Step 5: Choose Your Subaru
Pick your desired model and trim level based on your needs—AWD, performance, cargo space, or fuel efficiency.
Step 6: Finalize the Deal
Negotiate your price, finalize your trade-in if applicable, and review all financing documents carefully. Be sure to understand the interest rate, total cost, fees, and payment schedule.
Step 7: Drive Away
Once everything is signed, the dealer will hand you the keys and you’re ready to enjoy your Subaru!
Common Mistakes to Avoid
Financing a car can be a smooth process—but many buyers fall into common traps. Here’s what to watch out for:
1. Ignoring Total Loan Cost
A lower monthly payment might seem attractive, but it can lead to paying more over time if the term is too long.
2. Not Checking the Fine Print
Always read the loan agreement carefully. Look for hidden fees, early payoff penalties, or confusing language.
3. Failing to Shop Around
Subaru Motors Finance may offer great deals, but don’t assume it’s your only or best option. Always compare with at least one or two other lenders.
4. Overextending Your Budget
Stick to what you can comfortably afford monthly. Overestimating can lead to financial stress or missed payments.
5. Skipping the Down Payment
Putting money down reduces your loan amount and total interest paid. Aim for at least 10–20% down if possible.
Expert Tips for Better Results
- Use Subaru’s Payment Calculator
Subaru offers a free car payment calculator to help you estimate costs based on model, term, rate, and down payment. - Improve Your Credit First
If your score is below 650, try boosting it before applying. Pay off debts, fix errors on your credit report, and avoid new credit inquiries. - Watch for Special Promotions
Subaru often runs seasonal financing specials—especially at year-end or model clearance events. These can save you thousands. - Consider GAP Insurance
This protects you if your car is totaled and you owe more than it’s worth. Some Subaru dealers include it in the financing package, but compare prices elsewhere too. - Lease if You Prefer Lower Payments
If you plan to switch cars every few years, leasing a Subaru could be more cost-effective than buying—though you won’t own the car at the end.
FAQs – Frequently Asked Questions
Q1: What credit score do I need to finance a Subaru?
Most lenders prefer a credit score of 660 or higher for favorable terms, but you may qualify with a lower score through dealer programs or co-signers.
Q2: Can I finance a used Subaru?
Yes, both used and certified pre-owned (CPO) Subarus can be financed through Subaru Motors Finance or third-party lenders.
Q3: How long does Subaru financing take to get approved?
Online pre-approvals can be received within minutes. Full approval and paperwork usually take 1–2 business days at the dealership.
Q4: Does Subaru offer 0% financing?
Yes, Subaru occasionally offers 0% APR deals on select models for well-qualified buyers during promotional periods.
Q5: Is leasing better than financing a Subaru?
Leasing may be better for those who drive less and want lower monthly payments. Financing is ideal if you want long-term ownership and no mileage restrictions.
Conclusion – Final Thoughts
Subaru financing gives you the flexibility to own one of the most trusted and adventure-ready cars on the market—without breaking the bank. Whether you choose to finance through Subaru Motors Finance or another lender, understanding the process and avoiding common mistakes can save you time, money, and stress.
By setting a budget, comparing offers, and taking advantage of Subaru’s promotions, you’ll be in a strong position to make the right decision. With smart planning and the right loan, you’ll be hitting the road in your dream Subaru in no time.
