Used Car Dealer Business Loans: Features Below.
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How to get a used car dealer business loan
Step 1: Research companies that specialize in used car dealer loans. Decide which programs meet your dealership’s needs for the amount, credit, time in business and what you need the funds for.
Prepare your documents
Step 2: Tip: Prep your information a few days before you need the funding. Amounts over $50,000 need more time to be approved and closed. Car lots selling more than $15,000 per month have a better chance of getting an offer.
Look closely at the cash flow in your bank statements. Explain low sales months, overdrafts, nsf’s and low balance periods upfront when you first apply. This can help get approvals, better offers and help avoid declines.
Settle on Top Companies
Step 3: Contact your preferred companies and ask about their approval criteria.
Tip: Ask if you can be prequalified. Some funders can either prequalify through an online application or a representative by calling in.
Complete your application
Step 4: Apply with the programs the most aggressively solicit used car dealers while matching your needs. Complete an application for funding and provide all supporting documentation needed.
Step 5: After approval, closely look at the terms and closing requirements. Get all of your closing documentation together and submit to complete the transaction.
The lender will usually make a final merchant call to you. They will verify that the owner completed the closing documents and is ready to start the transaction. Confirm this and receive the wired funds into your account.
Loans to used car dealers are considered restricted loans by almost all lenders. We have programs for below 500 credit scores.
F.A.Q. Frequently asked questions
Can our car lot get fast funding the same day or next day?
Same day funding is possible for applications received by noon. After mid day, funding on approvals and closings is possible the next day.
How long does our car lot have to be in business?
Time in business of at least 3 months is needed. The most recent three months business checking account statements are then submitted to pre-qualify.
What types of car dealer loans are available and for how long?
Programs are for dealers that specialize in buy here pay here, new and used cars, specialty, luxury, exotic, and short time in business. There is an option for small lots with low inventory of less than 10 cars. The longest term option is up to 10 years and available in most states. Other programs are short term bridge loans from 3 to 10 months.
How much does bad credit matter?
Low credit scores and bad credit will rarely be declined. Scores can be as low as 400. Having cash flow and positive business checking account balances are the most important approval requirements.
What are the rates?
Rates start in the low teens and depend mainly on cash flow, time in business and credit.
Can we use this financing to buy more cars for inventory?
The working capital can be used for anything such as to buy cars at auction, from wholesalers, customer trade ins, or anywhere your dealership buys.
It can also be used to buy lot space, repairs and improvements.