Financing options for a Subaru include a dealership loan through Subaru Motors Finance or a traditional auto loan from a bank or credit union. While you may enjoy the convenience of a dealership car loan, you’re likely to experience better customer service and better terms with a bank or credit union.

Subaru is associated with consistently delivering long-lasting, all-weather vehicles at an affordable price point. When searching for the best car loan possible, you want comparable quality and value.

If you’re looking to finance a Subaru and you’re not sure where to start, car insurance broker and financing expert Jerry is here to show you how it’s done.

How to get a Subaru car loan

Whether you’re looking to buy a seasoned Crosstrek or an immaculate Impreza, getting a car loan is as easy as 123:

Check your credit
Compare terms and rates from three different lenders at minimum
Apply for preapproval

Check your credit

Check your credit rating before you start shopping for loans because it will impact your terms, including the interest rate. Any score over 660 is generally enough to qualify for an auto loan.

If you have a credit score under 660 you can still apply for a Subaru car loan through the dealership. Subaru Motors Finance takes on applicants who demonstrate financial responsibility with personal references, income documentation, or a co-applicant.

Take a look at the table below to see the average APR and monthly payment for Subaru vehicles based on your credit score:

Credit Rating

Car Make	Average Annual Interest Rate	Average Monthly Payment
Subaru	8.4	$361

MORE: How to get a cosigner for a bad credit car loan

Compare lenders

After determining the sort of loan you’re eligible for, you’ll choose a lender. You can go with a bank, credit union, online auto lender, or a dealership that partners with Subaru Motors Finance.

Before you settle on a lender, compare quotes from at least three. Try to find:

A short loan term: 60 months max
A low APR: 4.93% or less
Manageable monthly payments: 10 to 15% of your monthly income at most

Cost isn’t the only important factor to consider—great customer service goes a long way! It doesn’t matter if a lender has favorable approval odds and offers low interest if they make the process difficult and stressful. Check the company reviews to make sure they’re a good fit.

Get preapproved

Getting preapproved will help you to negotiate a better loan when you go to sign the agreement. It may even help you negotiate a better purchase price on your new vehicle!

Many lenders, including Subaru Motors Finance, make it easy. Just fill out an online preapproval application. You’ll need the following information:

Social Security number
Proof of employment
Photo ID (license, passport, etc.)
Income documents such as pay stubs and tax forms

Key Takeaway The three steps to securing a Subaru car loan are to check your credit, compare at least three quotes from different lenders, and try to get preapproved.

Average loan term for a Subaru car loan

An important step in financing your vehicle is picking your loan term. The most common term in the United States is 72 months, or six years—but that doesn’t mean it’s best for you.

A better loan term is 60 months or less. Shorter repayment terms mean you could pay off your loan quicker, pay less interest, and ultimately pay less for your car in the grand scheme of things.

If you’re getting a loan through the Subaru dealership, its finance department offers loan terms from 24 to 72 months. One of the greatest upsides of getting a Subaru car loan is that there is no prepayment penalty. This allows you to pay off the loan ahead of time without being charged additional fees.

To get an idea of what your monthly payment and interest rate might be based on your loan term, see the table below.

Credit Rating

Loan Terms	Average Annual Interest Rate	Average Monthly Payment
24	11.2	$697
36	8.61	$470
48	8.08	$363
60	8	$300
72	8.32	$262

MORE: Should you get a 72-month car loan?

Finding a Subaru car loan in your state

All auto expenses vary between states, and auto loan payments and interest rates are no exception. Focus on finding a local lender that can offer you the most affordable APR based on your credit rating.

To see what you might pay in your state for a Subaru car loan, check out the table below.

Credit Rating	Average Annual Interest Rate	Average Monthly Payment
Fair	16.25	$412
Good	8.36	$360
Very Good	5.09	$340
Excellent	3.88	$333

MORE: Minimum car insurance required in your state: What you need to know

Subaru car loans: new vs. used

While getting a car loan is a pretty simple process, your offers will look different depending on the age of the car you’re buying. Subaru Motors Finance only extends loans for new and certified pre-owned vehicles under six years old.

If you are planning to buy an older Subaru, it’s best to go straight through a bank or credit union. While you’ll probably notice a higher APR for used cars, the total loan amount will likely be smaller, so a higher interest rate will be more feasible.

Want to know how your car’s age might affect your loan? Here’s how your monthly payment and APR may look based on your Subaru’s model year:

State

Car Year	Average Annual Interest Rate	Average Monthly Payment
2021	7.6	$305
2020	7.97	$308
2019	8.12	$308
2018	7.96	$307
2017	8.15	$308
2016	8.29	$309
2015	8.48	$311
2014	8.45	$379
2013	8.52	$380
2012	9.43	$511
2011	9.43	$511
2010	9.43	$511

MORE: 7 things to look for when buying a used car

How to calculate the costs for a Subaru car loan

Whether you’re financing new or used, Baja or Outback, your monthly payment and APR is determined by your credit score, loan term, loan amount, and geographic location. You can use Jerry’s car loan calculator to get an estimate of what you’d pay for a Subaru car loan:

State

Credit Rating

Loan Terms

Loan Amount

Average Annual Interest Rate	Average Monthly Payment
8.4	$361

Save money on Subaru insurance with Jerry

Whatever direction you take on the road to Subaru financing, Jerry is a car insurance comparison shopping and licensed broker app that will follow you wherever you go.

After downloading the app, simply answer a few questions to get phenomenal quotes from over 50 top insurance companies. If you’re in a hurry, you don’t have to worry—choosing a new rate takes minutes and Jerry will handle the switchover and even cancel your old coverage!

With Jerry, expert advice and unbeatable car insurance savings are at your fingertips. The app is free and can save you an average of $887 a year on car insurance.

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