When it comes to purchasing a new or used Subaru, financing is often a key consideration for many buyers. Subaru Finance, the official financing arm of Subaru, offers a range of options to help you get behind the wheel of your dream car. Whether you’re looking to buy a Subaru Outback, Forester, Impreza, or any other model, understanding the financing options available to you can make the process smoother and more affordable.
In this article, we’ll explore everything you need to know about Subaru Finance, including how it works, the benefits, available financing options, and tips for securing the best deal. We’ll also address some frequently asked questions (FAQs) to help you make an informed decision.
What is Subaru Finance?
Subaru Finance is the official financing program offered by Subaru Motors Finance (SMF), a subsidiary of Toyota Financial Services. It provides customers with flexible financing and leasing options for new and used Subaru vehicles. Subaru Finance is designed to make the car-buying process easier by offering competitive interest rates, special promotions, and personalized payment plans.
Subaru Finance is available through authorized Subaru dealerships, and customers can apply for financing online, in person, or over the phone. The program is tailored to meet the needs of a wide range of buyers, whether you’re a first-time car buyer, a seasoned Subaru owner, or someone with less-than-perfect credit.
Benefits of Subaru Finance
- Competitive Interest Rates: Subaru Finance often offers lower interest rates compared to traditional banks or credit unions, especially during promotional periods.
- Flexible Loan Terms: Customers can choose loan terms that suit their budget, typically ranging from 24 to 72 months.
- Special Offers and Incentives: Subaru frequently runs special financing deals, such as 0% APR for qualified buyers or cashback offers.
- Streamlined Application Process: Applying for financing through Subaru is quick and easy, with decisions often made within minutes.
- Leasing Options: Subaru Finance offers leasing options for those who prefer lower monthly payments and the ability to upgrade to a new model every few years.
- Gap Coverage: Subaru Finance includes gap coverage in its leases, which protects you if your car is totalled or stolen and the insurance payout is less than the amount you owe.
- Online Account Management: Subaru Finance customers can manage their accounts online, making it easy to make payments, view statements, and track loan balances.
How Does Subaru Finance Work?
Subaru Finance simplifies the car-buying process by integrating financing directly into the dealership experience. Here’s a step-by-step overview of how it works:
- Choose Your Subaru Vehicle: Visit a Subaru dealership or browse online to select the new or used Subaru vehicle you want to purchase.
- Apply for Financing: You can apply for financing through the dealership, online, or over the phone. You’ll need to provide personal and financial information, such as your income, employment details, and credit history.
- Receive a Financing Decision: Subaru Finance will review your application and provide a decision, often within minutes. If approved, you’ll receive details about your loan terms, including the interest rate, monthly payment, and loan duration.
- Sign the Agreement: Once you agree to the terms, you’ll sign the financing agreement and take ownership of your Subaru.
- Make Monthly Payments: You’ll make monthly payments to Subaru Finance until the loan is paid off. Payments can be made online, by mail, or through automatic deductions.
Subaru Finance Options
Subaru Finance offers several options to suit different financial situations and preferences:
1. Auto Loans
Subaru Finance provides traditional auto loans for new and used Subaru vehicles. These loans have fixed interest rates and monthly payments over a set term, typically 24 to 72 months.
2. Leasing
Leasing is a popular option for those who want lower monthly payments and the flexibility to upgrade to a new vehicle every few years. Subaru Finance offers competitive lease terms, including mileage allowances and gap coverage.
3. Special Financing Offers
Subaru frequently runs special financing promotions, such as 0% APR for qualified buyers, low-interest rates, or cashback incentives. These offers are often available for a limited time and may vary by region.
4. Refinancing
If you already own a Subaru and want to lower your monthly payments or interest rate, Subaru Finance offers refinancing options. This can be a great way to save money on your loan.
5. First-Time Buyer Programs
Subaru Finance offers programs tailored to first-time car buyers who may have limited credit history. These programs often include flexible terms and lower down payment requirements.
Tips for Securing the Best Subaru Finance Deal
- Check Your Credit Score: Your credit score plays a significant role in determining your interest rate. Before applying for financing, check your credit report and address any errors or issues.
- Compare Offers: While Subaru Finance offers competitive rates, it’s always a good idea to compare offers from other lenders, such as banks or credit unions.
- Consider a Larger Down Payment: A larger down payment can reduce your loan amount and lower your monthly payments.
- Choose the Right Loan Term: While longer loan terms result in lower monthly payments, they also mean paying more in interest over time. Choose a term that balances affordability with overall cost.
- Take Advantage of Promotions: Keep an eye out for special financing offers from Subaru, such as 0% APR or cashback deals.
- Negotiate the Price: Before discussing financing, negotiate the price of the vehicle to ensure you’re getting the best deal.
FAQs About Subaru Finance
What credit score is needed for Subaru Finance?
Subaru Finance does not publicly disclose a minimum credit score requirement. However, borrowers with good to excellent credit (typically a score of 670 or higher) are more likely to qualify for the best interest rates and special offers.
Can I finance a used Subaru through Subaru Finance?
Yes, Subaru Finance offers financing options for both new and used Subaru vehicles. However, the terms and interest rates may vary depending on the used vehicle’s age and mileage.
How do I apply for Subaru Finance?
You can apply for Subaru Finance online, at a Subaru dealership, or over the phone. The application process typically requires personal and financial information, such as your Social Security number, income, and employment details.
Does Subaru Finance offer pre-approval?
Yes, Subaru Finance offers pre-approval, which allows you to know your financing terms before visiting the dealership. This can streamline the car-buying process and give you more negotiating power.
What is the difference between financing and leasing?
Financing involves taking out a loan to purchase the vehicle, and you own the car once the loan is paid off. Leasing allows you to drive the vehicle for a set period (typically 2-3 years) with lower monthly payments, but you do not own the car at the end of the lease.
Can I pay off my Subaru Finance loan early?
Yes, you can pay off your Subaru Finance loan early without incurring prepayment penalties. This can save you money on interest.
What happens if I miss a payment?
Subaru Finance may charge a late fee if you miss a payment. It’s essential to contact them as soon as possible to discuss your options and avoid potential damage to your credit score.
Conclusion
Subaru Finance is a convenient and flexible option for financing your next Subaru vehicle. With competitive interest rates, special promotions, and a range of financing and leasing options, it’s designed to meet the needs of a wide variety of buyers. By understanding how Subaru Finance works and following the tips outlined in this article, you can secure the best deal and drive away in the Subaru of your dreams.
Whether you’re a first-time buyer or a loyal Subaru enthusiast, Subaru Finance makes it easy to get behind the wheel of a reliable, high-performance vehicle. Be sure to explore all your options, compare offers, and take advantage of any special deals to make your car-buying experience as smooth and affordable as possible.
