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. 

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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