Updated October 29, 2021

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Cristy S. Lynch

Pros

• Special financing, loyalty programs and discounts for qualified buyers
• Guaranteed Trade-In Program available to Subaru owners
• Accepts co-applicants

Cons

• Works with only one lender, Chase Bank
• Vehicle must be selected before applying
• Only Subaru vehicles qualify for financing

What you need to know about Subaru Motors Finance auto loans

Subaru Motors Finance is a partnership between Subaru of America Inc. and JPMorgan Chase Bank, offering leases as well as loans for new and certified pre-owned autos. Financing is available in Washington, D.C., and all 50 states.

Limited to one lender

Exclusivity can have its downsides. If you were hoping to compare auto loan offers from several lenders at the dealership, you’ll have to do that elsewhere. Chase Bank is your only option at the Subaru dealership.

Loyalty can pay off

Subaru drivers tend to be devoted to the brand. In fact, a 2018 Edmunds Loyalty Report found that 61% of Subaru owners who traded in their cars in 2017 bought another Subaru. For repeat customers, the automaker offers its Guaranteed Trade-In Program, which aims to get them the highest trade-in value for an eligible Subaru to put toward a new Subaru.

Subaru also has a loyalty program for customers who lease with it. If you have an existing lease with Subaru but want to get a new ride, you can get up to $500 toward your first month’s payment on a new Subaru lease with its Lease Loyalty Program. Subaru of America will also cover any disposition fee owed on your current lease. Disposition fees cover the costs for cleaning and reconditioning the vehicle in preparation to sell it.

Special finance programs and discounts

Subaru Motor Finance offers other program discounts and incentives.

• Through its College Graduate Program, Subaru can help make it easier for eligible recent and soon-to-be college graduates to finance or lease a new Subaru.
• Active-duty and reserve members of the military, along with veterans and retirees, may be eligible for an additional $500 off the negotiated new-car price. This discount can be combined with any cash incentives offered at that time in your area.
• Subaru Motors Finance may also offer a 0% APR and low-interest financing for some models, depending on your location and credit.

A closer look at Subaru Motors Finance auto loans

Here’s what else you should know about Subaru Motors Finance.

• You can choose from loan terms ranging from 36 months to 72 months, but this may vary depending on factors like the vehicle model and your location.
• Subaru Motors Finance allows co-applicants.
• Interest rates vary and are determined by the dealership you select.

Is a Subaru Motors Finance auto loan right for you?

If you’re in the market for a Subaru and are planning to buy it at a dealership, Subaru Motors Finance could be a good fit. The special programs and discounts could potentially earn you some savings over other lenders — if you qualify.

Just keep in mind that you’ll need to select the Subaru vehicle you want to buy before applying — and you’re limited to buying from a Subaru dealership. If your heart isn’t set on a Subaru — or you want to shop around at a few dealerships — Subaru Motors Finance may not be the best option for you. 

How to apply for a loan from Subaru Motors Finance

You can apply for preapproval on the Subaru Motors Finance website before heading to the Subaru dealership.

If you apply during normal business hours, you may receive a decision within an hour. If you’re preapproved, your offer is good for 30 days, so you can explore other financing options if you want. You can print your preapproval email and take it with you to the Subaru dealership. Note that preapproval isn’t a guarantee of loan approval, and you may be offered different terms after completing a full application.

If you change your mind while shopping and choose a different car — or information you provided on the preapproval application changes — you may need to reapply.

Not sure if Subaru Motors Finance is right for you? Consider these alternatives.

If you’re not sure Subaru Motors Finance is right for you, here are other lenders to consider.

• Bank of America auto loan: Bank of America could be good if you want the ability to choose the dealership you work with or flexibility in the car make and model you buy.
• Capital One Auto Finance loan: Capital One Auto Finance could be ideal if you want the option to apply for prequalification.

How much your car is worth can impact your wallet and limit your options when you decide you no longer want the vehicle.

Your car’s current market value affects how much you could get for it if you trade it in or sell it. If you finance the car, its value also dictates whether you’re upside down on your auto loan, which could lead to a host of problems, like having negative equity on your car.

Let’s dig deeper into why it’s important to know how much your car is worth, what factors can affect your car’s value and some valuation tools you can use.

• Why do I need to know how much my car is worth?
• What factors affect how much my car is worth?
• How do I find out how much my car is worth?

Why do I need to know how much my car is worth?

Knowledge is power, and knowing that “magic number” (i.e., your car’s fair market value) can help you make more informed decisions about what to do with your car.

If you plan to sell or trade in your car

If you’re planning to sell or trade in your car, getting an idea of your car’s fair market value can help set your expectations for offers from dealers or private buyers and negotiate based on your research.

If you’re upside down on your loan

Knowing your car’s value can also give you a sense of whether you’re upside down on your car loan — also known as having negative equity, it means owing more than your car is worth. This could happen if you have a long loan term or made a small car down payment — or no down payment at all.

If you’re upside down and hoping to sell your car, you may not be able to sell it for enough to cover your loan balance, which can make it more difficult to pay off the loan and sell the car. And if you want to trade in a car with negative equity, you’ll either need to pay off the amount you owe on your loan out of your own pocket or roll your negative equity into your new car loan.

Rolling your loan balance over into your new loan may seem ideal if you don’t have the cash on hand to pay off your existing loan. But doing this makes it more likely you’ll become upside down on your new loan, and a bigger loan amount means you could pay more in total interest.

What factors affect how much my car is worth?

A range of factors, from the car’s condition to whether you plan to sell or trade it in, can affect a vehicle’s fair market value. Here are a few.

Year, make and model

Some car brands simply maintain their resale value much better than others. Check out Kelley Blue Book’s Best Resale Value Awards recipients, which receive top marks for retaining value.

Mileage

Mileage plays a major role in a car’s depreciation. As miles on the odometer add up, your car’s value goes down.

Vehicle condition

Have you kept up with routine maintenance? Has your car been damaged in any way? Is there a lot of wear and tear? The amount of care (or lack thereof) you put into your car can affect how much you can expect to get for it.

Sell or trade-in

Do you plan to sell your vehicle privately or trade it in at a dealership? A car’s private-party value is often higher than its trade-in value. Car dealers aim to make a profit, and they base your trade-in value on how much they would pay if they bought it from the manufacturer — the wholesale value, rather than retail value.

Popularity

When it comes to cars, it pays to be popular. If your car make and model is in demand, a dealer may be willing to give you more than the wholesale price for your trade-in.

How do I find out how much my car is worth?

Free online car-valuation tools, like Kelley Blue Book, Edmunds and NADAguides, can help you estimate the fair market value of your car.

You’ll need to provide the following information about your car to get the estimate:

• Make, model and year
• Options and features
• Mileage

These pricing guides combine this and other information with additional data, like dealer transactions, consumer information, market trends and auction sales to estimate used-car values. Each valuation site uses a different combination of data, so your car’s estimated value may differ slightly across each of these sites. But using these valuation tools can help you can get a general sense of how much you could expect to get if you sell or trade in your car.

NADAguides will show you the lowest and highest prices people in your area have paid for the same make and model, as well as the invoice price and MSRP. The Kelley Blue Book and Edmunds tools will give you estimates of the trade-in value and private-party value ranges for your car.

Bottom line

Even if you’re not planning on selling or trading in your vehicle any time soon, knowing your car’s current market value can help you stay on top of your financial situation and take action if you discover you’re upside down.

If you do plan to sell or trade in your car for a new set of wheels, knowing how much your car is worth can help you set a reasonable asking price and negotiate effectively.

Updated June 17, 2024

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Cristy S. Lynch

Pros

• Application takes just minutes to complete
• Works with 150+ lenders nationwide
• Handles auto refinance process from start to finish

Cons

• Minimum balance to refinance is $10,250
• Offers only refinance and lease buyout loans

What you need to know about RateGenius auto loans

If you’re in the market to refinance your auto loan, RateGenius may be a good place to begin your search. With a network of more than 150 lenders with varying requirements, the loan comparison platform aims to help you compare rates.

Fast online application

The application process is quick — it can take just a few minutes online or over the phone.

Once your application is submitted, RateGenius will try to match you with lenders in its network offering auto refinance loans with the best interest rates you might qualify for. If approved, you’ll get an offer, and may be able to begin the refinancing process in as little as 24 hours.

Unlike dealer-based or other auto-financing options, RateGenius is a platform that aims to show you lenders that may work for your situation. If your application is approved, the company will work with you to complete the entire auto loan refinancing process, from processing paperwork to handling the title transfer.

Large lender network

RateGenius is an online agency, not a lender, and its platform connects applicants to more than 150 lending partners to help determine your refinancing eligibility.

Since RateGenius connects you with different types of lenders, many people might find they have options to consider — even if they’ve struggled with getting financing in the past.

Refinance and buyouts only

Despite RateGenius’ lender pool, the online financing platform offers only auto refinance and lease buyout loans. If you’re looking for a new or used car loan, you’ll have to look elsewhere.

A closer look at RateGenius auto loans

Here’s what else you should know about RateGenius.

• Refinance auto loans are available in all 50 states.
• While RateGenius doesn’t charge a refinance fee, keep in mind that the lender you select or your DMV may charge fees depending on your loan and state. You should be notified if there are any.
• RateGenius also offers vehicle service contracts to cover the cost of maintenance and repairs.
• GAP — or guaranteed asset protection — waivers can be purchased to protect your wallet if your refinanced car is ever totaled and the auto loan amount is higher than the car’s value.

Is a RateGenius auto loan the right fit for you?

If you’re looking to refinance your car loan, RateGenius could be an option for you, especially considering that the lenders it connects you with consider a number of factors in their decisions. So even if you have credit scores on the lower side, you may still find a lender.

How to apply for a loan through RateGenius

You can apply with RateGenius online or speak to a loan specialist. Either way, you can expect to be done with your application in just a few minutes.

Before applying, make sure you have your current loan, vehicle and contact info on hand.

Not sure if a RateGenius auto refinance loan is right for you? Consider these alternatives.

If you’re not sure whether RateGenius is right for you, here are some other options to consider.

• Caribou auto refinance loan: This lender could be a good option for those who want to compare estimated rates from several lenders.
• Autopay auto refinance loan: This could be a good option if you want to explore other types of auto refinancing loans, like cash back refinancing.

Getting approved for a car loan after bankruptcy is difficult, but it’s not impossible. With a little extra work, you may be able to finance a new (or at least new-to-you) set of wheels sooner than you think.

If you’ve filed for bankruptcy or are considering this option, you may find yourself having trouble getting approved for credit, including a car loan.

Let’s take a look at how filing for a Chapter 7 or Chapter 13 bankruptcy could affect your ability to get a car loan, and steps you can take to help increase your chances of loan approval.

• Getting a car loan after Chapter 7 vs. Chapter 13 bankruptcy
• Considerations with a car loan after bankruptcy
• How to get a car loan after bankruptcy

Getting a car loan after Chapter 7 vs. Chapter 13 bankruptcy

There are two kinds of bankruptcy that individuals can file: Chapter 7 and Chapter 13. The type of bankruptcy you file for and the amount of time since you filed could affect your ability to get a car loan.

With a Chapter 7 bankruptcy, some of your possessions and property can be liquidated in order to repay outstanding debts, and certain debts may be discharged. This type of bankruptcy can take about 80 to 130 days to complete, from the initial filing to the discharge of debt, and can stay on your credit reports for up to 10 years from filing.

A Chapter 13 bankruptcy, on the other hand, involves repaying debts and is also known as a wage earner’s plan. With Chapter 13, you create a plan to repay all or part of your debt within three to five years. This plan, which must be court approved, usually involves you paying a fixed amount to a trustee on a regular basis, typically biweekly or monthly. You can expect a Chapter 13 bankruptcy to remain on your credit reports for up to seven years from filing.

While a bankruptcy can be bad news for your credit scores, getting approved for a car loan is still possible. But before you start applying, you’ll want to wait until after your bankruptcy is finalized.

Considerations with a car loan after bankruptcy

Your credit reports are a history of how well you’ve managed your finances. Unsurprisingly, bankruptcy will lower your credit scores.

The effect on your scores depends on your credit before bankruptcy. If you had high credit scores and a good credit history, you’ll likely see a significant drop in your scores. But if your credit wasn’t strong to begin with, the impact to your scores may not be as big. Another factor is the number of accounts included in your bankruptcy — the more accounts included, the bigger the hit to your credit scores.

These changes to your credit can pose some problems as you try to qualify for an auto loan.

Difficulty getting approved

Some lenders may be hesitant to give you an auto loan, but there are financial institutions that specialize in working with people who have subprime credit or a bankruptcy in their past.

If you’re having trouble getting approved for a car loan, you might be tempted to get one through a “guaranteed” or “no credit check” auto lender — these lines of credit are commonly known as “buy-here, pay-here” loans. But beware: If a type of loan sounds too good to be true, it probably is.

These buy-here, pay-here loans are typically offered by dealerships with in-house financing and may not require a credit check. This may seem like a great solution if you’re struggling to get approved elsewhere. But these loans usually come with higher interest rates than those offered by other lenders, and you might end up with a loan for more than the vehicle is worth.

High interest rates

If you’re approved for financing, expect higher interest rates on your car loan than if you hadn’t filed bankruptcy. How high? The average new-car loan interest rate for those with credit scores between 501 and 600 was 10.36% in the third quarter of 2020, according to Experian’s State of the Automotive Finance Market report. In comparison, the average rate for those with credit scores of 781 to 850 was 2.51%.

How to get a car loan after bankruptcy

Before you set foot inside a dealership or apply for financing, here are four things you can do to help improve your chances of getting approved a car loan.

1. Check your credit

Checking your credit reports is a great way to review your financial health. You can request your free credit report from each of the major consumer credit bureaus — Experian, TransUnion and Equifax — once a year on AnnualCreditReport.com. You can also check your VantageScore 3.0 scores from Equifax and TransUnion on Credit Karma for free. But keep in mind that these scores may not be the same scores a lender uses when checking your credit.

The Consumer Financial Protection Bureau recommends checking your credit reports at least once a year, and before a major purchase like a car. Make sure the information on your reports is accurate, and dispute anything that isn’t.

While there’s no universal minimum credit score required to get an auto loan, you’ll likely have difficulty getting approved by some lenders if your credit scores are low.

2. Rebuild your credit

Once you’ve reviewed your credit reports and scores — and if you’re able to wait to buy a car — consider taking time to repair your credit if you need to. This could help you get approved for a car loan at a lower interest rate. A secured credit card, credit-builder loan or becoming an authorized user on a friend or family member’s credit card could all help you begin to rebuild your credit.

3. Save for a down payment

A down payment on an auto loan can increase your chances of getting approved and could reduce your interest rate. There’s no set amount that you should put down for a new car, but the general rule of thumb is that you should put 20% down on a new car.

4. Shop around

When you’re ready to buy, shop around for the best auto loan offer. Compare rates and loan terms from different lenders to help find the best deal for your financial situation.

Getting preapproved for a car loan can also help you get a sense of the loan terms you might be approved for. A preapproval is a conditional offer that typically includes an estimated loan amount, interest rate and loan term. But remember, preapproval doesn’t guarantee that you’ll get the loan — you’ll need to submit a formal application to know if you’re approved and at what terms.

If you’re still unable to get a car loan, you can also consider getting a co-signer with strong credit to increase your odds of being approved for the loan, or to even get a better interest rate.

Bottom line

After filing for bankruptcy, your best bet is to wait to rebuild your credit before applying for a car loan. But if you must buy now, shop around to find an offer that fits your budget and needs, and then focus on making your monthly car loan payments on time to help build your credit.

Once your credit has improved, you may be able to refinance your car loan and get a better interest rate down the road.