Guaranteed Future Value (GFV)
What is a Subaru Guaranteed Future Value agreement?
A loan with a Guaranteed Future Value2 agreement is like a regular loan with a balloon payment at the end of the term. The key difference is that Subaru Financial Services will guarantee the return value of the vehicle to ensure it covers the balloon repayment. This can result in greater benefits over a standard loan or paying cash for your vehicle.
As long as your vehicle has been well looked after, adheres to Fair Wear and Tear Guide and meets the agreed upon kilometre usage, you’ll know you won’t be out of pocket when trading your vehicle in to pay out the balloon payment. Contact a participating Subaru Financial Services retailer for full terms and conditions.
Key benefits of Guaranteed Future Value
A loan with a Guaranteed Future Value2 agreement has several key benefits:
- You can enjoy driving the latest Subaru with the best safety innovations, technology and driving dynamics – knowing the future value is protected. You can also include Subaru Premier Motor Insurance for a complete Subaru ownership experience!
- Flexible terms and no minimum deposit required (subject to credit criteria). Your agreement can be tailored over 3, 4 or 5 years and include 15,000kms, 20,000kms, 25,000kms or 30,000kms travelling distance annually.
- Payments are tailored to your individual circumstances based upon your personal credit history, any deposit amount that you contribute and the GFV for the model, term and kilometre allowance combination that you nominate.
- No resale hassles, because the minimum buy back amount of your Subaru is guaranteed. Subject to your circumstances at the end of the loan term, you could choose to either upgrade, retain or return your Subaru.
- If you choose to keep your Subaru at the end of the agreement, you only need to pay out the balance of your loan. This is your final payment which you can pay with any funds you have available or talk to us about refinancing.
- Ideal for both personal and business customers and available on all finance agreement types (subject to eligibility).
So how does it work?
The choice is yours every step of the way:
- CHOOSE YOUR SUBARU that you want to drive.
- CHOOSE THE DEPOSIT that you want to pay (if at all).
- CHOOSE THE TERM of your agreement (it can be over 3, 4 or 5 years)
- CHOOSE THE NUMBER OF KILOMETRES that you will drive by the end of the term. This includes any kilometres that the car has already driven.
What happens at the end of your term?
At the end of your term, choose from three great options depending on your lifestyle and circumstances at the time. You can:
- UPGRADE - Use your current car as a trade in and upgrade to a new Subaru (provided you meet the loan approval criteria).
- RETAIN - Pay out the loan and keep your current Subaru. We can help with finance if required.
- RETURN - Simply return your Subaru and have nothing more to pay (provided your car meets the Fair Wear & Trade Guide and agreed kilometres allowance).
Car Finance for Businesses
Subaru Financial Services1 offers personalised options for you and your vehicle requirements if you have an ABN.
Personal Car Finance
Subaru Financial Services1 offers personalised options for you and your vehicle requirements if you are looking to finance your vehicle.
- What is Guaranteed Future Value?
Guaranteed Future Value (GFV) is a safety net in the form of a guaranteed minimum buy-back amount for your Subaru at the end of the loan term, as determined by Subaru Financial Services. When setting up your loan we set your final repayment to be in line with the GFV value. So, put simply the GFV value is either:
- The amount we will pay you as a credit towards your final repayment in exchange for the vehicle at the end of the loan term (subject to the vehicle meeting our Fair Wear & Tear standards and agreed kilometres); or
- The amount you will need to pay us at the end of the loan term, should you elect to retain the vehicle.
- How does Guaranteed Future Value work?
Subaru Financial Services analysts set the GFV based on several factors that influence the car market – such as new models, economic and consumer trends. This GFV also factors in your loan term and agreed End Odometer reading.
- Does the GFV equal the expected market value?
No. The GFV is a value that our team of analysts determine using data from a range of sources to determine values at a set point in time. This is a continuous process which accounts for new trends and economic fluctuations. The GFV amount set is not intended to be a definitive estimate of the market value of the vehicle at the end of the loan term.
The one thing you can control, is to maintain your vehicle well in line with our Fair Wear and Tear guidelines and to not exceed the agreed kilometres, in order to avoid additional fees and charges in the event you want to return or upgrade the vehicle.
- Do I have to keep the car in good condition?
If you intend to return or upgrade your Subaru at the end of the loan term, then yes, you do. But if you’re planning to retain the vehicle at the end of the loan term, then it’s entirely up to you, although, for safety purposes, we obviously always recommend that you keep your vehicle well maintained. We set guidelines to explain what we consider to be good condition in our Fair Wear and Tear booklet.
- What happens if I have a GFV and I damage my car?
If you have chosen to return your vehicle and at the end of the loan term, and it doesn’t meet our Fair Wear and Tear Guidelines, we’ll give you the opportunity have the vehicle repaired at your cost, prior to the returning it to us. We can help you assess the condition of your vehicle so that you can carry out the necessary repairs. Otherwise, you can return the vehicle ‘as is’ and we will invoice you for the cost of repairs required to return the vehicle to a standard that is in line with our Fair Wear and Tear standards.
- What happens if I drive extra kilometres?
If you drive more than your End Odometer, an excess usage charge may apply. We will only invoice you for this if you choose to return your vehicle at the end of the agreement.
- What vehicle can I buy through GFV?
Assuming you are an approved Subaru Financial Services purchaser, GFV may be used to purchase any new Subaru vehicle.
Target Market Determination available here
- Credit criteria, fees, charges and terms and conditions apply. Approved applicants only. Finance is provided by IFSA Pty Ltd ABN 39 651 319 774 trading as Subaru Financial Services, managed by Allied Retail Finance Pty Ltd ABN 31 609 859 985. Australian credit licence 483211. Available at participating Subaru Financial Services retailers only.
- The Guaranteed Future Value (GFV) is the minimum future value of your vehicle as determined by Subaru Financial Services (SFS) and set out in your contract. At the end of the term, you can select from three options: (1) sell or trade-in the vehicle and repay your loan balance; (2) return the vehicle to us; or (3) retain the vehicle by paying the GFV amount, which is a lump sum amount owed to us at the end of the loan term. Total interest payable on the loan will be higher than a fixed rate loan if you select the GFV option. Monthly repayments will be lower compared to a similar loan term with no GFV or equivalent balloon final payment. Available on new and demonstrator Subaru vehicles for selected models only. Vehicle eligibility is subject to change. If you decide to return your car at the end of your term, SFS, or another person or entity with SFS's agreement will purchase the vehicle from you for the GFV, which will be applied to reduce your outstanding loan amount. However, you will need to pay us an additional amount if the vehicle is damaged or you have travelled excess kilometres. Credit criteria, fees, charges and terms and conditions apply. Approved applicants only. Finance is provided by IFSA Pty Ltd ABN 39 651 319 774 trading as Subaru Financial Services, managed by Allied Retail Finance Pty Ltd ABN 31 609 859 985 Australian credit licence 483211.
- *Price is the manufacturer's recommended retail driveaway price (RDP) and includes the vehicle price, 12 months registration, stamp duty, luxury car tax (if applicable), CTP insurance cost estimate (based on private purchaser with good driving record) and a recommended charge for dealer delivery. The quoted RDP is an estimate based on the postcode selected by you. RDP may change based on location. RDP is not applicable to business or government buyers. Final on road costs may vary according to individual circumstances and actual driveaway price may vary between Retailers. Ask your Retailer for confirmation of their driveaway price.
- The information provided on this web page by IFSA Pty Ltd ABN 39 651 319 774 trading as Subaru Financial Services, managed by Allied Retail Finance Pty Ltd ABN 31 609 859 985 Australian Credit Licence 483211 is general in nature and for information only. Nothing on this website constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of the products and services featured on this website, you should consult with your own independent legal, taxation and financial advisors, who can advise you about your personal circumstances.