Subaru is preparing for a major change in how it handles vehicle financing, announcing plans to build its own captive finance business by 2030. The new operation is expected to provide retail loans, leases, and floor plan financing directly to customers and retailers, while Subaru of America will continue working with Chase during the transition.
Subaru Plans New Captive Finance Business
The move comes as Subaru has experienced strong showroom sales, driven largely by the Forester and Crosstrek. The automaker has historically relied on third-party partners for its financing operations, but Subaru Corp and Subaru of America now plan to establish a direct financial relationship with customers.
Subaru’s new captive finance business is expected to provide retail loans, leases, and floor plan financing. The company has set 2030 as its target launch date for the operation.
Until then, Subaru of America will extend its longstanding partnership with Chase to maintain the current Subaru Motors Finance division. Existing customers will see no changes to their current loans during the transition.
Chase Partnership Will Continue During the Transition
Yoichi Hori, Chairman and CEO of Subaru of America, said entering the captive finance business will support Subaru’s retail network while creating long-term value for stakeholders. Hori described the move as a strategic opportunity for future growth while maintaining the company’s focus on customer loyalty.
Jeff Walters, President and COO, also described the plan as a forward-looking move that will strengthen Subaru’s presence in the U.S. Maintaining Chase as a transitional partner is intended to provide stability while Subaru develops its own financing platform.
The broader goal is to establish a direct relationship with customers throughout the vehicle ownership cycle, from the initial purchase through the final lease return.
Why Subaru Is Taking Financing In-House
The shift gives Subaru greater control over its financing operations at a time when inflation, supply chain challenges and rising vehicle prices have affected affordability. An in-house lender could also allow the automaker to offer more targeted financing programs as market conditions change.
Those programs could include subvented leases and special annual percentage rate offers designed to support vehicle sales when interest rates remain high.
Risks Remain for Subaru
Building a captive finance operation also means Subaru will take on additional exposure to the consumer credit market. The company will need to establish its own risk assessment infrastructure before the planned 2030 launch.
The broader credit market remains volatile, with rising delinquency rates highlighting the risks associated with consumer financing. Subaru’s new finance operation therefore represents both an opportunity for additional revenue and a greater responsibility for managing credit risk.
For now, Subaru plans to maintain its relationship with Chase while building the infrastructure needed for its own captive finance business. The transition is targeted for completion with the new operation’s launch in 2030.
