Subaru Finance: Your Complete Guide to Financing a Subaru Vehicle

 Introduction to Subaru Finance

Owning a Subaru—whether it’s the rugged Outback, electric Solterra, or sporty WRX—is an exciting prospect, and Subaru Finance makes it achievable with tailored financing and leasing options. Operated through Subaru Motors Finance (SMF), a partnership with JPMorgan Chase Bank, N.A., Subaru Finance offers competitive auto loans, leases, and special programs like the College Graduate Program to help drivers across the US get behind the wheel. With low APRs, flexible terms, and incentives like the Lease Loyalty Program, SMF served thousands of customers in 2024, backed by Subaru’s reputation for safety and durability.

This comprehensive guide explores everything you need to know about Subaru Finance, including its finance products, application process, benefits, risks, customer experiences, and tips for securing the best deal. Whether you’re in Seattle, Denver, or Houston, this article will help you navigate Subaru Finance to drive away in your dream Subaru.

What is Subaru Finance?

Subaru Finance refers to Subaru Motors Finance (SMF), the captive financing arm of Subaru of America, Inc., partnered with JPMorgan Chase Bank, N.A. SMF provides auto loans and leases for new and certified pre-owned (CPO) Subaru vehicles, available through over 600 US dealerships. Unlike traditional lenders, SMF focuses exclusively on Subaru products, offering promotional rates, loyalty incentives, and specialized programs. In June 2025, SMF features 0% APR financing for 72 months on the 2025 Solterra and lease deals as low as $299/month, reflecting its commitment to affordability.

Why Choose Subaru Finance?

Subaru Finance stands out for:

  • Competitive Rates: Offers as low as 0% APR on select models like the 2025 Solterra and 2.9% APR on the Crosstrek.

  • Flexible Options: Loans (36-72 months), leases (24-36 months), and no-down-payment plans suit diverse budgets.

  • Special Programs: Includes College Graduate, Military Discount, and Lease Loyalty Programs, with benefits like no disposition fees.

  • Convenience: Online preapproval, quick decisions (often within an hour), and account management via www.subarumotorsfinance.com.

  • Incentives: Cash offers, such as the Subaru Executive/Partners VIP Program, enhance savings.

However, drawbacks include high APRs for lower credit scores, limited transparency on credit requirements, and regional offer variations.

Subaru Finance Products

Financing Options

  1. Retail Auto Loans:

    • How It Works: Fixed-rate loans for purchasing new or CPO Subaru vehicles, typically 36-72 months, with APRs based on credit (670+ recommended).

    • Benefits: Ownership at term’s end, no mileage limits, freedom to customize (unlike leases).

    • Drawbacks: Higher monthly payments than leases, significant down payments (average $6,856 in Q4 2024).

    • Example: A $39,915 2025 Solterra with a $5,000 down payment, 0% APR, and 72 months yields ~$486/month.

    • Promotions: 0% APR for 72 months on 2025 Solterra; 3.9% APR for 48 months on 2025 Crosstrek and Forester.

  2. Certified Pre-Owned (CPO) Financing:

    • How It Works: Loans for CPO Subarus (2020-2025 models) with special rates, such as 4.29% APR for most models and 2.49% APR for 2023 Solterra.

    • Benefits: Lower cost than new vehicles, often under warranty, no down payment required.

    • Drawbacks: Limited to CPO inventory, shorter loan terms.

Leasing Options

  1. Standard Leases:

    • How It Works: Pay monthly for 24-36 months, with options to return, buy, or trade in the vehicle at lease end. Includes mileage limits (10,000-12,000 miles/year).

    • Benefits: Lower monthly payments, fewer upfront costs, access to new technology every few years.

    • Drawbacks: No ownership, mileage restrictions, potential fees ($300 disposition, 15 cents/mile overage).

    • Example: Lease a 2025 Solterra for $299/month over 36 months with $299 due at signing (Premium trim, $7,500 incentive).

    • Promotions: $265/month for 2025 Impreza; $299/month for Solterra (36 months, $2,000 due).

  2. Lease Loyalty Program:

    • How It Works: Current SMF lessees qualify for benefits like no disposition fee and up to $550 toward the first payment on a new lease.

    • Benefits: Rewards repeat customers, reduces lease-end costs.

    • Drawbacks: Limited to existing SMF lessees.

Special Programs

  1. College Graduate Program:

    • How It Works: Recent or soon-to-be graduates can finance or lease with no credit score requirement, subject to income verification.

    • Benefits: Accessible for young buyers, stacks with other SMF offers.

    • Drawbacks: Requires proof of graduation, limited to participating dealers.

  2. Military Discount Program:

    • How It Works: Active-duty or retired military personnel receive cash incentives or special rates. Contact 1-877-469-0110 for details.

    • Benefits: Honors service members, reduces costs.

    • Drawbacks: Documentation-heavy process.

  3. Subaru Mobility Assist:

    • How It Works: Offers up to $1,000 reimbursement for vehicle modifications for drivers with disabilities.

    • Benefits: Enhances accessibility, no credit impact.

    • Drawbacks: Limited to eligible modifications.

How to Apply for Subaru Finance

  1. Select a Vehicle: Browse www.subaru.com or visit a dealership (e.g., World Subaru in Tinton Falls, NJ) to choose a model like the Forester or Ascent.

  2. Apply Online: Visit www.subarumotorsfinance.com to:

    • Select model, trim, and dealership.

    • Enter loan/lease amount, down payment, trade-in value, and term.

    • Provide personal details: name, email, phone, address, SSN, income, and employment status.
      A soft credit check is performed, with decisions often within an hour.

  3. Review Offer: Receive a preapproval email (valid 30 days) with APR (0%-4.9% for well-qualified buyers) and terms.

  4. Finalize at Dealership: Submit:

    • Driver’s license

    • Proof of address (e.g., utility bill)

    • Proof of income (e.g., payslips)
      Sign agreements and take delivery.

  5. Manage Account: Use www.subarumotorsfinance.com or call 1-800-662-3325 (loans) or 1-800-644-1941 (leases) for payments.

Note: Early payoff is allowed, but disable autopay to avoid overpayment. Lease extensions or buyouts are available via 1-866-401-9743.

Benefits of Subaru Finance

  • Low APRs: 0% APR on Solterra, 2.9%-3.9% on Crosstrek, Outback, and Forester.

  • Flexible Terms: Loans up to 72 months, leases 24-36 months, no down payment options.

  • Loyalty Incentives: No disposition fee and up to $550 for returning lessees.

  • Special Programs: Supports graduates, military, and drivers with disabilities.

  • Reliable Vehicles: Subaru’s durability ensures long-term value, ideal for financing.

Risks and Considerations

  • Credit Requirements: SMF targets “well-qualified” buyers (670+ credit score), with undisclosed minimums. Lower scores face higher APRs (e.g., 7%+ in some regions).

  • Regional Variations: Offers vary by location (e.g., 2.9% APR in Wilmington, NC, vs. 7% in BC, Canada).

  • Lease Restrictions: Mileage limits (10,000 miles/year), $300 disposition fee, and 15 cents/mile overage charges apply.

  • Upside-Down Loans: High down payments ($6,856 average) reduce risk, but CPO or older models may lead to negative equity.

  • Dealer Dependency: Some deals require in-stock vehicles, and delivery delays are possible.

  • Buy Here, Pay Here Risks: For bad/no credit, dealer financing offers high APRs and older vehicles, potentially predatory.

Compare rates with lenders like Carvana (no minimum credit score) or credit unions to ensure competitiveness.

Customer Experiences with Subaru Finance

Feedback varies, reflecting SMF’s strengths and challenges:

  • Positive:

    • “Got 0% APR on a 2025 Solterra through SMF. Preapproval was fast, and the dealer was transparent.” – LendingTree review.

    • “Leased a 2025 Crosstrek for $299/month. No disposition fee thanks to the Loyalty Program!” – X post by @ParkwayofWilm.

    • “College Graduate Program helped me lease an Impreza with no credit history. Amazing deal.” – Reddit thread.

  • Negative:

    • “7% APR in BC was steep compared to US offers like 0.25%. Felt unfair.” – X user @lise_george.

    • “Application process was smooth, but my 650 credit score got me 5.9% APR, not the advertised 3.9%.” – Google review.

    • “Lease-end fees for mileage overage ($450) caught me off guard. Read the fine print!” – TrueCar comment.

X sentiment is generally positive, praising low APRs, but some users note regional disparities.

Tips for Using Subaru Finance

  1. Compare Lenders: Use LendingTree or credit unions to ensure SMF’s APR (0%-4.9%) is competitive.

  2. Check Promotions: Visit www.subaru.com for deals like 0% APR on Solterra or $299/month leases.

  3. Get Preapproved: Apply online at www.subarumotorsfinance.com to lock in rates before visiting dealers.

  4. Negotiate Incentives: Ask about cash offers (e.g., Military Discount) or waiving lease fees.

  5. Prepare Documents: Have a driver’s license, proof of address, and income ready to streamline approval.

  6. Understand Lease Terms: Budget for mileage limits and end-of-lease fees ($300 disposition, 15 cents/mile overage).

  7. Monitor Payments: Use SMF’s online portal or call 1-800-662-3325 to avoid late fees. Disable autopay before payoff.

  8. Contact Support: Reach SMF at 1-800-662-3325 (loans) or 1-800-644-1941 (leases) for issues.

Frequently Asked Questions About Subaru Finance

1. What financing does Subaru Finance offer?

SMF offers retail loans (36-72 months), CPO financing (2020-2025 models), and leases (24-36 months), plus programs like College Graduate and Lease Loyalty.

2. What credit score is needed for Subaru Finance?

SMF targets “well-qualified” buyers (670+ score), but minimums aren’t disclosed. College Graduate Program waives credit requirements with income proof.

3. Can I pay off my Subaru Finance loan early?

Yes, early payoff is allowed. Disable autopay and request a payoff quote via www.subarumotorsfinance.com.

4. How do I apply for Subaru Finance?

Apply online at www.subarumotorsfinance.com or at a dealership with personal, financial, and vehicle details. Approvals take ~1 hour.

5. Are Subaru Finance deals competitive?

SMF’s 0%-3.9% APRs are strong for well-qualified buyers, but compare with credit unions or Carvana for lower credit scores. Regional variations apply.

Conclusion

Subaru Finance, through Subaru Motors Finance, simplifies owning a Subaru with low APRs (0% on Solterra), flexible leases ($299/month), and special programs for graduates and military personnel. Partnered with JPMorgan Chase, SMF offers convenience, loyalty incentives, and access to Subaru’s reliable lineup, from the Crosstrek to the Ascent. However, credit requirements (670+), lease fees, and regional disparities require caution. By comparing lenders, securing preapproval, and understanding terms, you can maximize savings and drive away confidently.

Ready to finance your Subaru? Visit www.subaru.com or www.subarumotorsfinance.com to explore offers, or contact a local dealer to test drive models like the Outback or Forester today!

Disclaimer: Auto financing involves risks and commitments. Verify terms, compare rates, and consult financial advisors before signing agreements. This article is for informational purposes only and not financial advice.

Comments

Post a Comment