Subaru Will Enter the U.S. Captive Finance Business, With a Target Date of 2030
Subaru Corp. and Subaru of America said Aug. 5 that Subaru will finance its own customers and retailers directly, with a target date of 2030 for a full range of options, and that Subaru of America has extended its partnership with Chase to supply financial services for Subaru Motors Finance through the transition.
CAMDEN, N.J. - Subaru Corp. and Subaru of America Inc. (SOA) said on Aug. 5 that Subaru will enter the captive finance business, providing financing directly to Subaru of America customers and retailers, a move the companies said further bolsters Subaru's key U.S. operations. In captive finance, the automaker lends the buyer the money itself instead of a bank. Subaru plans to begin supplying a full range of financing options, including retail loans, leases and floor plan financing, which covers dealer inventory, with a target date of 2030.
SOA also said it has extended its partnership with long-term financial partner Chase to supply financial services for its Subaru Motors Finance division through the transition. The release does not give a term for that extension. Subaru said customers with existing loans and leases will not be affected by the changeover. Yoichi Hori, chairman and chief executive officer of Subaru of America, said the move will "help us support our sales division and our retailers, and strengthen our relationship directly with our customers." Jeff Walters, president and chief operating officer, called it "a forward-looking move that provides Subaru with a stronger foothold in the U.S. market." SOA distributes through a network of about 640 retailers across the United States.
Editorial disclosure: Subaru set a mahogany teller counter with a brass grille across the Drive Observer reception desk and staffed it for five business days with a greeter in a blazer who addressed every arriving employee as a customer, asked each one what they were saving for, and wrote the answer down. The counter is still there and no one has been able to establish whose job it is to remove it. Per our strict ethical policy, we do not let this influence our coverage.