We specialize in fast approval funding for used car dealers. Programs include small used car dealers such as buy here pay here car lots. Other programs for larger car dealers and newer dealerships. Apply using the secure Docusign Application below now. Same day and next day funding options.
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How to get a used car dealer business loan
Search for lenders that say they specialize in used car deal loan programs.
If your used car lot has more than $7,500 per month in revenues and bank deposits, then your business has an excellent chance to be approved for a used car dealer loan
Review approval terms and closing requirements. Submit the items requested. Complete closing and receive funding into your business checking account
Loans to used car dealers are considered restricted loans by almost all lenders.
F.A.Q. used car dealer loans
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. Starter lines are available.
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. However, larger amounts may be offered depending on time in business, credit and average balances kept in the account.
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 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.
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 for approval.
We need a loan for our used car dealership fast. Can we get one in a day or two?
Yes, you can get a loan for your used car dealership within one or two business days. Same day funding is possible in some cases. This is also for buy here pay here lots and new car dealerships.
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.