Auto Financing: Frequently Asking Questions


Your Auto Loan & Lease Questions Answered at Redding Subaru

Finance Center Frequently Asked Questions at Redding Subaru

The purchase or leasing of a new car can be a daunting task for many first-time shoppers. While buying a new television or computer may be accomplished with a one-time payment, buying a new car is often not as simple. Many customers do not have thousands of dollars laying around to purchase even a used car, so they turn to financing or leasing to help streamline costs. To better help our guests understand these payment processes, we want to answer our customers most frequently asked questions (FAQs) about our finance center here at Redding Subaru.

You will find our store here on E Cypress Ave in Redding, CA, conveniently less than 15 minutes outside of Shasta Lake, CA.


What are the Differences Between Financing and Leasing?

Financing through an auto loan is a long-term solution where the customers makes regular monthly payments, through a bank or lending institution, until the total balance of the car is paid off. During that time, you may drive the car anywhere you like and make customization's to it. In a lease agreement, you still pay monthly payments, and a down payment, as you would in an auto loan.

However, leasing contracts are temporary, so the monthly payments are typically lower, and the vehicle remains covered under its warranties. Lease contracts usually contain annual mileage limits and restrictions on customization.

What Warranties are on new Subaru Models?

Each new Subaru for sale or lease at Redding Subaru comes backed by a 36-month/36,000-mile Basic Warranty and 60 months/60,000 miles (whichever event occurs first) of powertrain coverage. Subaru warranties also include 60 months/unlimited miles of corrosion perforation protection and 36 months/36,000 miles of roadside assistance.

Is there any Warranty Protection for Used Cars?

All Subaru Certified Pre-Owned (CPO) models come backed by a seven-year/100,000-mile powertrain warranty, with additional coverages available for purchasing. Some of our other like-new used cars may still have some protections left over from their warranties. However, transferrable coverage benefits are not always a guarantee with every brand.

What is GAP Insurance?

Guaranteed asset protection (GAP) insurance is additional protection that covers you're the difference between your vehicle's current value and the amount of money you still owe on a loan/lease. Typically, GAP protection is generally required in lease agreements, since these contracts are temporary and only cover a percentage of the vehicle's value. With GAP insurance, your insurance provider will cover the cost of the vehicle's total worth if the vehicle is totaled in an accident.

GAP protection is also recommended if you end up paying less than a 20 percent down payment on the vehicle or if you end up financing the vehicle for 60 months of longer.

Is the Finance Application Safe?

Yes, our finance application is secure and keeps your personal data encrypted, never in clear-text format. The application also will not negatively affect your credit. However, we advise that you have a clear idea of which car you want to move forward with, as multiple applications submitted to different dealerships can negatively affect your credit.

How do I Buy Online?

To start the buying or leasing process, customers near Red Bluff, CA can fill out our finance application and get pre-approved for an auto loan or lease. If you plan on financing and have an old car to put up for trade, we have a free trade-in appraiser tool. Once we have your application, our sales team will be in touch to give you a few payment options and walk you through the next steps of confirming online payment/vehicle delivery, where applicable.

Will You Approve All Credit?

Our finance center works with all customers of a wide variety of financial backgrounds and credit ratings. Typically, we recommend financing for customers with lower credit or no credit at all. Not only are you more likely to be approved for financing by a lending institution, a loan agreement helps you build equity, which can strengthen your credit score. While we may be able to approve a low-credit lease agreement, you may need to put down a security deposit or purchase additional coverage.


Have Further Questions? Contact us Today!

We hope we have answered all of your FAQs to the best of our ability at Redding Subaru. If you have any further questions, or would like to schedule a test drive, contact our Subaru sales team in Redding, PA via phone or filling out our online contact form. We look forward to meeting you!

  1. Redding Subaru

    481 E Cypress Ave
    Redding, CA 96002

    • Sales: (530) 221-2436
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Get in Touch

  • Contact our Sales Department at: (530) 221-2436
  • Monday07:30am - 06:00pm
  • Tuesday07:30am - 06:00pm
  • Wednesday07:30am - 06:00pm
  • Thursday07:30am - 06:00pm
  • Friday07:30am - 06:00pm
  • Saturday08:30am - 06:00pm
  • SundayClosed