How to get a used car dealer business loan


Business loan programs especially for used car dealers, small used car dealer loans, exotic car dealer loans and program information.
How to get used car dealer loan:

Find lenders that offer a used car dealer business loan

If your used car lot has more than $15,000 per month in revenues and bank deposits, then your business has an excellent chance to be approved for a used car dealer loan

Select the program and approval requirements that best matches your business profile

Ask the representative what their approval requirements are for that program. If your used car dealership meets those approval requirements, apply for funding

Complete application and provide any additional documentation requested to show business revenues, like bank statements or financial statements

Review approval terms and closing requirements. Submit the items requested. Complete closing and receive funding into your business checking account


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F.A.Q. Frequently asked questions, comments and inquiries on how to get a used car dealer business loan.

What types of car dealer loans are available?

Buy here pay here used car dealer loans,  new car dealer loans , specialty car dealer loans, luxury car dealer loans, exotic car dealer loans and short time in business car dealer loans, and new used car dealer loans.  Newer programs include small car dealer loans, auto sales loans, used car lot loans, and longer term used car dealer loans.

What are the rates for your used car dealer loans?

Rates depend on the time in business, the cash flow and credit. Rates start in the low teens on up

How long does our car lot have to be in business?   We have only been open 5 months.

Your Dealership needs to have at least three months time in business and 3 months business checking account statements to pre-qualify.

My credit is bad.  How much does credit matter?

Credit scores are a minor factor.   Credit scores can be as low as 383.

We are a small used car dealer.   How much can we qualify for?

The amount you can get depends mostly on the average daily deposits.   Most offers are between 35% and 75% of average monthly deposits.
as an example we can calculate the following:
ABC Auto Sales has the following total monthly business checking account Deposits:
July business checking account Deposits =    $30,000
June business checking account Deposits = $20,000
May business checking account Deposits  = $25,000
Based on the mathematical formula first add each months deposits and get a total.
$30,000 + $20,000 + 25,000 = 75,000
So it follows that:
$75,000 % 3 = $2500.

If an offer is 50% of monthly deposits then:
$25000 X .50 = $12500.
Therefore a typical offer with these numbers would usually
be approximately $10000 – $15000.
Because this is the average offer the maximum and minimum expected offers can be calculated.
The maximum expected offer is calculated as $25000 X .65 = $12250.
The minimum expected offer is calculated as
$25000 X .35=$8750.

We sell our used car dealer notes.  Does that matter?

Selling notes does not affect an offer amount because notes are future income.   offers and approvals are calculated using the most recent cash flow.
If the car lot has been selling notes for some time then the recent cash flow already takes that into account.

Our dealership specializes in exotic cars.   Can we still get financing?

Yes.  specialty used car dealers fall into the same used car dealer business loan funding program and are not restricted.

Can we use this financing to buy more cars?

Yes.  The working capital can be used to buy cars at auction or anywhere your dealership wants to buy cars from.   YOu can also use the loan proceeds.  For example, you can use the proceeds to buy cars from wholesalers and customers.

Do you have longer term used car dealer loan programs?

Yes.  One used car dealer loan program offers terms up to 10 years.   This program is only available in certain states. Ask if your state is in the program.

We want to buy a lot for our used car dealership.  Can we use this financing for that?

Yes.   This financing can be used to buy real estate as well as a building, including repairs and improvements.

We hope our “How to get a used car dealer business loan” tips and direction have been helpful.    Contact us with questions.   Fast turn around and quick funding.