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Last updated on Feb 1, 2023
2 min read

Auto Dealership Loans

There are several financing options that are well suited for car dealerships. Read more about your choices.

In this article:
  1. Auto Dealership Loans 
  2. Acquisition, Refinancing, and More 
  3. Auto Dealership Loan Terms 
  4. SBA Loans for Auto Dealerships
  5. Get a Free Auto Dealership Property Loan Quote Today
  6. Get Financing
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank at 6.1%$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1.4M offered by a Credit Union at 6.1%Click Here to Get Quotes!

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

    Get a free financing quote from our team. All it requires is 60 seconds of your time in the form below.

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