Subaru is entering the captive finance business as more automakers expand their direct financing capabilities for customers and retailers.
First things first: Subaru CEO Yoichi Hori said the company's new finance arm, Subaru Motor Finance (SMF), will strengthen customer relationships while creating additional value for shareholders, according to a company press release outlining the strategy.
The initiative includes extending Subaru's partnership with longtime financial partner Chase, which will continue providing financial services during the transition to SMF.
Customers with existing Subaru loans and leases will not be affected by the transition.
Subaru plans to offer a full range of financing products—including retail loans, leases and floorplan financing—by 2030.
What they’re saying: "We do see this as a great opportunity to work directly with our retailers and customers on the finance side of the business, but we cannot provide more specific information at this time,” a Subaru spokesperson told CDG News.
Why it matters: A captive finance arm could give Subaru greater control over financing programs, allowing dealers to offer more competitive lending and leasing options while strengthening customer loyalty.
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Between the lines: Subaru's move follows similar efforts by other automakers to expand in-house financial services.
Ford and GM recently received approval from the Federal Deposit Insurance Corporation to establish new banks, Yahoo Finance reported.
Ford Credit Bank and GM Financial Bank are intended to provide consumers with more competitive financing options.
Ford plans to offer digital savings products, while GM aims to diversify and stabilize funding alongside its existing finance business.
What they’re saying: "GM Financial Bank and Ford Credit Bank will strengthen the critical U.S. manufacturing and automotive sectors through their services to customers," Frank Pignanelli, Executive Director of NAIB, said in a statement, per Yahoo Finance.
Bottom line: Subaru's move reflects a broader industry shift toward greater control of the financing experience, underscoring how captive finance operations can help dealers compete with more flexible lending options while supporting long-term customer relationships.
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