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How to finance a Subaru

Learn about costs and loan options. Explore Subaru's special car-buyer programs to help you save.

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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.

Your local Subaru dealer may offer its own special promotions, like cashback bonuses or low down payment options. The rates and terms you qualify for will depend on your credit score and personal financial situation.

Compare car loans for financing a Subaru

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.
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.
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.
Canadian Auto News
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.
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.
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.
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.
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.
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Compare up to 4 providers

Representative example: Layla buys a Subaru

Layla, a resident of Saskatchewan, recently graduated with her undergraduate degree and plans to complete a Master’s program at a university an hour away from where she lives. Knowing she’ll have a lengthy commute – sometimes in bad weather – Layla hunts around for a safe and sturdy vehicle, eventually landing on a 2020 Subaru Forester at a nearby dealership. She decides to buy the SUV, priced at $30,800.00, and makes a 20% down payment of $6,160.00.

Layla applies for dealership financing to cover the remaining $24,640.00. Thanks to her solid credit history, she is approved for a loan to cover this amount plus 6% PST. Layla is also charged a mandatory registration and insurance fee of $1,160.00/year (about $100.00/month) by Saskatchewan Government Insurance (SGI). This fee factors in a discount of almost $260.00 due to Layla’s high safety rating, which she earned over 10+ years of being a great driver with no incidents, suspensions or collisions.

Cost of new car$30,800.00
Loan typeAuto loan (term loan)
Loan amount$26,488.00
Interest rate (APR)5.90%
Loan term5 years
Additional fees4.00% origination fee ($1,059.52)
Payment $510.86 monthly or $235.51 biweekly
Total loan cost$30,651.60 with monthly payments or $30,616.30 with biweekly payments

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.

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.

2019 modelStarting MSRPBodyCity/highway MPG
Impreza$19,995Sedan28/38
Crosstrek$23,695SUV27/33
Legacy$24,995Sedan25/34
Forester$27,995SUV26/33
BRZ$27,995Sports coupe24/33
Outback$29,295SUV25/32
WRX$29,995Sedan21/27
Ascent$35,995SUV21/27

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.

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