How Subaru Finance Makes Owning Your Dream Car Possible

Subaru Finance is known for their rugged, dependable, and safe vehicles that offer great value. When it comes to financing or leasing a new or used Subaru, they aim to provide competitive rates and flexible options to get customers behind the wheel.

Subaru understands that financing can be a major factor for car buyers. They work with lenders to offer enticing interest rates and terms on loans for purchasing or leasing Subaru models. Whether someone has excellent credit or may need special financing, Subaru dealerships have tools to find a monthly payment that fits most budgets.

This guide will provide an overview of the financing options Subaru makes available directly through their dealerships. We’ll cover new and used car loans, lease deals, special offers, and programs for those with poor credit. You’ll get a sense of what to expect when arranging Subaru financing as well as alternatives to explore. With Subaru’s great selection of vehicles and financing offers, it’s possible to find the right deal on the Subaru you want.

New Car Financing

Financing a new Subaru Finance offers several appealing options. When it comes to interest rates, Subaru offers competitive pricing based on your credit and chosen loan term. For well-qualified buyers, interest rates can start as low as 0% APR for certain models. Generally, interest rates range from 0% to 4% for new vehicles.

You’ll also find flexible loan terms available, typically from 24 to 72 months. Opting for a shorter term like 24-36 months will mean higher monthly payments but less interest paid over the life of the loan. Longer terms up to 72 months have lower payments but higher interest costs overall.

Down payment options are also quite flexible when financing a new Subaru Finance. Some buyers can qualify for $0 down offers, especially on shorter loan terms. For others, Subaru recommends a 10-20% down payment if you want the best interest rates and monthly payments. Putting more money down also lowers the amount financed so you pay less interest. Explore down payments that fit your budget – Subaru aims to make financing easy and accessible.

Used Car Financing

Financing a used Subaru through Subaru Financial Services provides several benefits over other lenders. Subaru offers competitive interest rates starting at around 4% for used vehicles. The exact rate will depend on the age of the vehicle, mileage, your credit score and history.

For used Subarus, financing terms up to 72 months may be available depending on the vehicle’s age and mileage. Shorter terms of 24-36 months are also offered. Putting down a larger down payment, typically 10-20% of the vehicle’s price, can help obtain a lower interest rate as well.

When financing a used Subaru, you have flexibility with the down payment. Some options include:

  • Cash down payment – This reduces the amount financed and required monthly payments. A down payment of 10-20% or more of the vehicle’s price is recommended.

  • Trade-in – Trading in your current vehicle can lower the out-of-pocket down payment needed. The trade-in value reduces the sale price.

  • No down payment – Subaru does offer $0 down financing, but this results in higher monthly payments and interest charges overall. A down payment is recommended to get the best rates.

Discuss down payment options with your Subaru dealer to decide what works for your budget. A larger down payment can save substantially on interest fees over the loan term.

Lease Options

Subaru offers leasing options for new vehicles through Subaru Motor Finance (SMF). Leasing allows customers to drive a new Subaru vehicle while making lower monthly payments compared to financing.

At the end of the lease term, typically 24-36 months, the customer simply returns the vehicle to the dealership. They do not have to worry about trade-in value or selling it themselves.

Typical Lease Terms

  • Length of lease: Typically 24-36 months. Shorter and longer lease terms may be available.
  • Down payment: $0-4,000 due at lease signing. Higher down payments lower the monthly payment but increase total cash due upfront.
  • Mileage allowance: 10,000-15,000 miles per year depending on lease term length. Going over the allowance results in mileage fees.
  • Disposition fee: $350 fee due at lease end when returning the vehicle.

Monthly Payments

Monthly lease payments are based on the vehicle’s depreciation over the term length plus rent fees and taxes. Payments are generally lower than financing since you are only paying for the vehicle’s used portion. Down payment, lease length, and mileage allowance also impact monthly costs.


To qualify for a Subaru lease, you’ll need excellent credit, a steady income, and a clean driving record. Specific qualifications may vary by dealer. Multiple lease terms may be available depending on your credit score.

Leasing a new Subaru takes the guesswork out of costs. With low upfront payments, fixed monthly payments, and no hassle at lease end, it provides an easy and flexible option for driving a new Subaru. Check with your local dealer to explore personalized lease offers.

Special Financing Offers

Subaru Finance frequently offers special financing rates and deals to make purchasing or leasing a new Subaru more affordable. These special offers provide an incentive for customers by lowering monthly payments or interest rates.

Current special offers include 0% APR financing for up to 63 months on select new 2022 Subaru models including the Ascent, BRZ, Crosstrek, Forester, Impreza, Legacy, Outback, and WRX. This 0% interest offer applies specifically to new 2022 models purchased and delivered by January 3, 2023.

In addition, Subaru is offering 0.9% APR financing for up to 48 months on certified pre-owned Subaru vehicles. This provides a great opportunity to finance a used Subaru Finance model at a very low rate.

Customers can also take advantage of lease specials on select 2023 Subaru models like the Outback, Forester, and Crosstrek. Current lease deals include $0 down payment and start at $259 per month on a 36-month lease.

It’s important to note lease and finance specials are for well-qualified customers through Subaru Financial Services. They are subject to credit approval and certain terms and conditions. Special offers can change frequently, so customers should check with their local Subaru dealer for the latest promotional financing rates. Acting quickly while deals are available can lead to substantial savings on a new or used Subaru.

Financing Bad Credit

Buying a car can be difficult for those with poor credit histories. Subaru understands that credit does not always reflect someone’s character or ability to repay a loan. They offer special financing programs to help people with bad credit get into a Subaru.

Subaru’s special finance program is designed for people with credit scores below 620. They work with lending partners to secure loans for people who may not qualify through traditional lenders.

While interest rates are higher for buyers with poor credit, Subaru tries to find the best rates possible given each individual’s credit profile. Interest rates typically range from 9-18% for buyers with bad credit.

Loan terms are also shorter for special financing programs, often 24-36 months instead of 60-72 months. Shorter terms help minimize risk for the lender.

To qualify for special financing, buyers need to provide proof of income and residency. Significant down payments are also required, usually 25-30% of the vehicle purchase price.

Having a co-signer with good credit can help improve the terms of a special finance loan. It gives the lender an extra layer of assurance for repayment.

Subaru Finance special finance programs open up options for buyers who may have limited choices. They make owning a Subaru possible, even with less-than-perfect credit. With responsible payments, special financing can also help people rebuild and improve their credit over time.

Online Tools

Subaru offers a variety of online tools to help customers explore financing options before visiting a dealership. This allows customers to get a head start on the financing process.

The Subaru website features finance calculators that allow you to estimate monthly payments. Simply enter details like the vehicle price, down payment amount, trade-in value, loan term, interest rate and more to see projected monthly payments. This gives you an idea of what a loan may cost per month.

Subaru also allows you to get pre-qualified for financing online. This involves entering some basic personal and financial information. You’ll need details like your income, employment, and credit score range. Pre-qualification only takes a few minutes and does not affect your credit score.

Once pre-qualified, you’ll receive an offer detailing estimated loan terms and payments. This gives you added confidence when you visit the dealership, as you’ll already have financing pre-approval. The pre-qualification rates and terms are good for 30 days.

Using Subaru’s online tools helps fast-track the financing process before you even step foot in the dealership. This allows you to explore options on your own time and walk into the dealership better informed and prepared.

Dealership Financing Process

Working with the dealership to get financing can be one of the most important parts of purchasing a new Subaru. Here are some tips for getting the best possible deal when financing through a Subaru dealership:

  • Pre-qualify for financing before visiting the dealership. This will allow you to know your credit score and interest rates you may qualify for. Going in pre-qualified puts you in a stronger negotiating position.

  • Negotiate the price of the vehicle first, separate from financing. Lock in the best purchase price possible before discussing financing options.

  • Be upfront with the dealer about how much you want your monthly payments to be. They can tailor finance offers to meet your budget needs.

  • Compare the dealer’s finance rate to your pre-qualified rate. See if the dealer can beat the rate you have from your bank or lender.

  • Look at the total interest paid over the loan term, not just the monthly payment. A lower monthly payment may mean you pay more interest overall.

  • Don’t be afraid to push back on the dealer’s financing terms. Negotiate for better rates, fewer fees, or extra perks like extended warranties.

  • Read all paperwork carefully before signing. Make sure the terms match what you negotiated and there are no surprise fees.

  • Consider having your bank or credit union finance even after negotiating with the dealer. They may still offer better rates in some cases.

  • Getting pre-approved for financing and being willing to negotiate with the dealership can help you get the best possible price and terms when purchasing and financing a new Subaru Finance.

Alternatives to Subaru Financing

Subaru offers great financing options for new and used vehicles through Subaru Motors Finance. However, you may want to consider financing from other sources as well. Here are some alternatives to explore:

Banks and Credit Unions

Banks and credit unions often offer competitive interest rates on auto loans. They will look at factors like your income, credit score, debt-to-income ratio, and down payment amount when determining loan terms. Many large national banks provide online applications and fast approvals. Local banks and credit unions can also be a good option, especially if you already have an account with them. Make sure to get pre-approved so you know your interest rate and terms before heading to the dealership.

Third-Party Lenders

There are online lenders and private lenders that specialize in auto financing. They cater to a wide range of credit scores and situations. Companies like Capital One, Lightstream, PenFed, and local lenders are possibilities for those who want to finance outside the dealership. These lenders will likely check your credit, income, and current debt obligations. Be sure to compare interest rates and fees across any lenders you consider.

While Subaru financing is convenient, checking rates from banks, credit unions, and other lenders can help you find the best auto loan for your needs. Just be sure to get all the details in writing before signing anything.


Subaru offers a variety of financing options to make purchasing or leasing a new or used Subaru more accessible. When shopping for a Subaru, consumers should first determine if they want to purchase or lease, and if they are interested in a new or used model.

For purchasing a new Subaru, consumers can take advantage of special financing offers from Subaru, which often include low APRs. Those with good credit will qualify for the best rates, but even those with rebuilding credit may be eligible for special financing. Used Subaru models can also be financed directly through Subaru at competitive rates.

Leasing a Subaru Finance is another option to consider. This allows you to drive a new Subaru with lower monthly payments, though you won’t own the vehicle at the end of the lease. Lease terms are usually 2-3 years.

No matter what financing option you select, it’s important to understand all the terms and do your research to get the best deal. Work with the dealership’s finance department and be prepared with information about your credit score and budget. Consider getting pre-approved for financing before visiting the dealership.

The key takeaways are:

  • Subaru offers purchase and lease financing for new and used vehicles
  • Special offers are available, especially on new models
  • Leasing allows lower monthly payments but you won’t own the car
  • Research financing terms and options to get the best deal
  • Getting pre-approved can strengthen your position at the dealership

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