How to finance a Subaru

Out of nearly 60 car brands that sell in Canada, Subaru ranks among the top 15. Just south of the border, USA Today reported that Subaru ranks number three in customer satisfaction among car manufacturers. If you’re interested in buying one of these mid-range cars, you have a few financing options to consider. Though Subaru is pricier than some of the competition, its vehicles come with a solid warranty and you could even score a special rate discount.

How can I finance a Subaru?

You can finance your Subaru a few ways: a car loan, manufacturer financing or a personal loan. A car loan is generally the least expensive option. Not only will you be taking out a secured loan, which typically has lower rates than an unsecured (no collateral) personal loan, but you’ll also cut out the middleman. This means no tacked-on interest to cover the dealership’s costs.

However, getting a car loan may not be your quickest option. To find the best deal, you’ll have to compare rates from different online lenders, banks and credit unions. If you’re pressed for time, you may want to get a loan directly through Subaru Financial Services, which is funded by Toyota Credit Canada Inc. (TCCI). You can apply for financing when you pick out your car, and then drive off the lot the same day — no waiting period is required.

• Financing through Subaru Financial Services

  With a car loan from Subaru, you can enjoy full ownership of your car without worrying about paying for mileage and excess wear and tear as you would with a lease. There is no penalty for paying off your loan early and interest is calculated based on the day you pay, not the day the payment is due. So if you submit your payment a day early, you’re credit a day’s interest. If you pay a day late, your charged a day’s interest.

  All-in-all, Subaru offers a very flexible and customer-friendly finance arrangement. Though rates vary based on where you live and any promotions your local dealer is offering, Subaru offers deals such as a 2.9% APR on a 36-month loan to finance any Certified Pre-Owned Vehicle (subject to credit approval). In March, 2019, Subaru was offering a 0.99% interest rate for any 24-month loans or leases of 2019 Crosstrek models (vehicle valued at $25,799). Cash purchases of the 2019 Crosstrek would receive a $500 rebate.

• Leasing through Subaru Financial Services

  Leasing is a good choice if you want to switch up your car every few years and then either return your car, buy it or lease a new Subaru. You only pay for the amount you drive. Payment terms range from 24-48 months, and you can set up weekly, bi-weekly or monthly payments.Guaranteed Asset Protection (GAP) ensures that if your car is totaled, Subaru will cover the difference between what your insurance covers and the amount still owing on the car so you won’t be left with a huge bill. Payments are both affordable and flexible with Subaru’s range of leasing options, though you still need to provide a down payment.

Compare car loans for financing a Subaru

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Name	Product	Min. Loan Amount	Interest Rate	Loan Term	Min. Credit Score	Requirements
CarsFast Car Loans		$500	4.90% to 29.90%	12 months - 8 years	300	Gross income of $1,800/month, 3+ months employed	Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.	Go to site More Info	Compare	loading Fetching your data...
Loans Canada Car Loans		$500	0% to 29.99%	3-96 months	300	Employed for at least 3 months, min. income of $1,800/month	Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.	Go to site More Info	Compare	loading Fetching your data...
Car Loans Canada		$7,500	3.99% to 29.95%	12-84 months	300	3+ months employed, min. income of $2,000/month	Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.	Go to site More Info	Compare	loading Fetching your data...
Canadian Auto News		$7,500	4.49% to 29.90%	12-84 months	300	3+ months employed, min. income of $2,000/month	Answer a few simple questions to get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.	Go to site	Compare	loading Fetching your data...
Canada Auto Finance		$500	4.90%-29.95%	3-96 months	300	3+ months employed, min. income of $1,500/month	Canada Auto Finance is a broker that connects borrowers with partnered local lenders. Financing for a new or used car is available for borrowers with bad credit, no credit, CERB, EI or bankruptcy.	Go to site More Info	Compare	loading Fetching your data...
Carloans411 Car Loans		$500	1.90% to 19.99%	Up to 72 months	300	Employed for 3+ months, min. income of $1,600/month	Get connected with suitable lenders through CarLoans411. Finance your next car, van or truck with loans available in amounts from $500 to $50,000. Check eligibility for this loan through LoanConnect.	Go to site More Info	Compare	loading Fetching your data...
LoanConnect Car Loans		$500	10.00% to 46.96%	6-60 months	550	No min. income requirement	Get access to 25+ lenders through LoanConnect's brokerage. Receive pre-approval in as fast as 60 seconds and get your funds in as little as 24 hours.	Go to site More Info	Compare	loading Fetching your data...
Fairstone Secured Personal Loan		$5,000	19.99% to 23.99%	3-10 years	560	Have an established credit history and own your home	Fairstone offers secured personal loans up to $35,000.	Go to site More Info	Compare	loading Fetching your data...

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Does Subaru offer special discounts or programs?

Subaru offers a 1% Loyalty Bonus interest rate reduction for returning customers who take advantage of any of the company’s special offers. This discount applies to both financing and leasing agreements. Additionally, customers in the following categories can get a $750 rebate on their vehicle purchases:

• Targa Newfoundland competitors and staff. Targa Newfoundland is an annual 7-day, 2200 km car race that runs across eastern and central parts of Newfoundland. The event began in 2002 and runs in September each year, allowing historic, classic and modern sports cars to drive to their fullest capacity.
• Canadian Association of Rallysport (CARS) members or competitors.
• Participants of any Subaru Canada sponsored Triathlon or running event.
• Participants of any Subaru Canada sponsored GolfFore the Cure event.
• Canadian Ski Instructors’ Alliance member.
• Recent and soon-to-be graduates.
• People who drive with mobility assistive devices. Through the Subaru Mobility Assist program, people who have recognized medical disabilities and need special devices to drive will be reimbursed up to $750 for vehicle modifications or device installations.
  This special offer can but used for both purchased and leased vehicles; adaptations must be completed within 1 year. Only original car owners can cash in on the rebate, and the devices must be used for the vehicle owner or his/her immediate family. Common items include (among other devices):
  • Hand and foot controls
  • Left-hand gear shifters
  • Pedal extensions

  • Servo-assisted controls
  • Steering devices
  • Turn-signal modifications

What will a new Subaru cost me?

Looking at the manufacturer suggested retail prices (MSRPs) of some of the models you’re interested in can give you an idea of how much you’ll need to borrow. However, the actual cost of your new Subaru will depend on your negotiating skills, where you live and any special promotions you qualify for.

Does a new Subaru come with a warranty?

• For 2018 and 2019 models, Subaru offers a New Vehicle Limited Warranty that covers your car for 36 months or 60,000 km — whichever comes first. (Original equipment tires are covered by the manufacturer’s warranty, not by Subaru.

• After the New Vehicle Limited Warranty expires, the Major Component Warranty kicks in. Coverage lasts for the earlier of 60 months or 100,000 km and includes the full cost of parts and labour for any of the following components that need repair due to normal wear and tear:
  • Engine
  • Transmission and Differential
  • Suspension and Axle
  • Brakes

  • Restraint Systems
  • Fuel System
  • Steering

Subaru also offers the following limited warranties:

• Surface Corrosion. 36 months or 60,000 km.
• Anti-Perforation. Corrosion of the sheet metal used for the body parts. 60 months/unlimited-km.
• Emission Control System. 36 months or 60,000 km.
• Emission Performance. To bring vehicles into compliance with provincially or federally legislated emission standards. 36 months or 60,000 km.
• Extended Emissions System. Provides coverage for the following major components after the Emissions Control System Limited Warranty expires: catalytic converter(s), electronic emissions control unit (ECU) / electronic control module (ECM), and on-board emissions diagnostic device(s). 96 months or 130,000 km.
• Parts and Accessories. Covers the cost of installation and labour for replacement parts and accessories installed by an authorized Subaru dealership. 36 months or 60,000 km.

In order to not be charged for these repairs, you need to bring your car to an authorized Subaru retailer in Canada.

Bottom line

Although Subarus can be a bit pricier than the competition, you may qualify for one of the brand’s special buyer programs to help bring the cost down. And if you’re buying a Certified Pre-owned car directly through Subaru, you may be able to find a car that’s still under warranty. Financing directly through Subaru Financial Services may be your fastest option, but you could likely find a more competitive rate by comparing car loans from banks and online lenders first.

Learn more about how they work and compare your options with our guide to car loans.

Frequently asked questions

• Should I buy or lease a Subaru?

  Buying and leasing come with both benefits and drawbacks. Since Subarus are known for their reliability, you may be able to buy your car and drive it for a long time — cutting down on the need to trade in your car every few years with a lease. And while a lease can save money from month to month in terms of maintenance, you won’t end up owning your car in the end. But if you’re interested in all the bells and whistles that come along with new cars, a lease may make it easier for you to afford to drive a nicer model.

• What kind of down payment will I need?

  It depends on your lender and personal financial situation. Most lenders ask you to put down around 10-20% of the car’s value to cut down on the costs of borrowing a loan. In general, the more money you can put down, the better, because this money goes straight to reducing the principal cost of the loan – none of it is eaten up by interest.

• Are Subaru cars good quality and reliable?

  Yes, Subaru has won the Automotive Lease Guide (ALG) 2019 Residual Value Award for 4 years in a row (sports car segment). Reportedly, 97% of Subarus sold in the last 10 years are still on the road today.

  Many models come with the option of having the EyeSight feature, which uses 2 cameras to provide adaptive cruise control, pre-collision braking, pre-collision throttle management, lane departure warnings and sway warnings. The Insurance Institute for Highway Safety has awarded Top Safety Pick status for 2019 to Subaru’s EyeSight-equipped vehicles, which have also been recognized as the 2019 winner for Superior Front Crash Prevention.

  In the U.S., Subaru was named the most trusted car brand by Kelley Blue Book for 4 years running. The company was also named one of America’s most reputable companies by Forbes in 2018.