Auto Dealership Loans
There are several financing options that are well suited for car dealerships. Read more about your choices.
Auto Dealership Loans
Acquisition, Refinancing, and More
Whether you need a $1 million loan to jumpstart your used car dealership, or $25 million to acquire a massive new car dealership, Commercial Real Estate Loans has you covered. We understand that car dealership owners and operators have specific needs, and we have the experience and connections to help.
Auto Dealership Loan Terms
While specific loan terms vary based on the individual customer, in general, our auto dealership loan terms include:
Loan Size:
$500,000 to $25 million for new car dealerships
$1 million+ for used car dealerships (requires good credit, income verification, and significant liquidity)
Loan Purpose: Loan can be used for property acquisition or refinancing, but cannot be used for:
Floor plan financing (inventory)
Factoring (unpaid receivables)
Business only-financing
Loan Term:
3, 5, 7, and 10 fixed-rate terms for new car dealerships
Up to 30 year terms for qualified used car dealerships
Amortization: 15, 20, 25, and 30-year options
Leverage: 55%- 80% LTV allowance
DSCR: 1.40 minimum DSCR
Recourse: Loans are typically full recourse
Credit Score Requirement: 660 minimum
SBA Loans for Auto Dealerships
While many larger car dealerships don't qualify for SBA loans due to income and business size restrictions, some smaller ones do. At Commercial Real Estate Loans, we can determine if your dealership does qualify for SBA financing, and, if so, help you explore loan options. These include the popular SBA 7(a) and SBA 504 loan programs. However, just like other car dealership loans we offer, these cannot be used for floor plan financing. Despite that, SBA 7(a) loans can be used for working capital.
Get a Free Auto Dealership Property Loan Quote Today
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