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Car dealership business loans give auto dealers the capital they need to fund vehicle inventory, expand their lots, upgrade service department equipment, manage seasonal cash flow, and grow their operations. Whether you run a franchise new-car dealership, an independent used-car lot, a luxury auto gallery, a buy-here-pay-here (BHPH) operation, or an RV and powersports dealer, Crestmont Capital provides auto dealer financing from $50,000 to $5,000,000 — with approvals as fast as 24 hours and terms structured for the realities of the automotive retail industry.
The automotive retail industry is one of the most capital-intensive small business sectors in the United States. Unlike a restaurant or a service business, a car dealership's primary asset — and its single greatest capital need — is vehicle inventory. Every car, truck, or SUV sitting on the lot represents deployed capital. A used-car dealer with 60 vehicles at an average cost of $18,000 per unit has over $1 million tied up in inventory before paying a single overhead dollar. A franchise new-car dealer may carry $3–$8 million in vehicle floor plan financing at any given time. Managing that capital requirement — while also funding a service department, maintaining facilities, and handling payroll — requires sophisticated access to multiple financing products.
According to the National Automobile Dealers Association (NADA), the U.S. auto dealer industry generates over $1.2 trillion in annual sales across roughly 16,000 franchised new-car dealerships and tens of thousands of independent used-car dealers. The auto retail sector employs more than 1.1 million Americans and represents one of the largest retail segments in the national economy. Forbes consistently ranks automotive retail among the highest-revenue small business categories — making auto dealers significant players in both local economies and the national financing marketplace.
Crestmont Capital has financed automotive businesses across every major U.S. market. We understand the dealer's business model — the floor plan, the front-end vs. back-end gross, the F&I revenue stream, the service and parts department economics, and the seasonal sales cycles that drive inventory and cash flow management. This guide covers everything you need to know about car dealer business loans, from inventory financing and service equipment to qualification criteria, rates, real funding scenarios, and answers to the questions dealers ask us most.
Auto dealers face capital challenges that most other small businesses never encounter. Understanding these challenges is the first step toward matching the right financing product to each need.
The single most important capital need for any car dealership — new or used — is inventory financing. Every vehicle on the lot must be acquired before it can be sold. For new-car franchise dealers, this is handled through manufacturer floor plan lines — revolving credit facilities provided by the OEM's captive finance arm (Ford Motor Credit, GM Financial, Ally, etc.) that allow dealers to stock vehicles and repay the line as each unit sells. For independent used-car dealers, floor plan financing typically comes from independent lenders, banks, or credit unions.
The challenge: floor plan lines from traditional sources often have rigid requirements, slow response times, or are insufficient for a dealer's growth needs. When a dealer wants to expand inventory, take on a larger vehicle class, or stock for a seasonal surge, they often need supplemental capital that their OEM floor plan can't provide quickly enough. Working capital loans, lines of credit, and inventory-specific financing from Crestmont Capital bridge this gap — giving dealers the agility to respond to market opportunities without waiting on institutional bureaucracy.
According to NADA, the average new-car franchise dealership carries $3–$8 million in floor plan debt at any given time. For independent used dealers, floor plan balances typically range from $200,000 to $3,000,000 depending on lot size and inventory mix. This inventory capital intensity makes car dealerships unique among retail businesses — and makes specialized auto dealer financing an essential tool for sustainable growth.
Auto retail is cyclical. Tax season (February–April) is one of the strongest sales periods for used-car dealers, as buyers use refund capital for down payments. Spring and early summer (March–July) drive strong sales across most markets. Late fall and winter — particularly in northern states — often see slower traffic and lower conversion rates. These seasonal patterns create predictable cash flow valleys during which a dealer's fixed overhead (payroll, facility rent, insurance, utilities) continues regardless of sales volume.
Dealers who anticipate these cycles and arrange working capital financing before the slow season hits are best positioned to maintain operations without sacrificing service quality, letting key staff go, or missing vendor payments. A revolving business line of credit is the ideal tool for managing auto dealer seasonality — draw during slow months, repay during peak sales periods, repeat.
A car dealership's physical facility is a critical part of the customer experience — and a significant competitive advantage. A well-maintained lot with clear signage, good lighting, organized inventory display, and a professional showroom attracts more customers and closes more sales than a neglected facility. Lot resurfacing and paving runs $30,000–$150,000 depending on lot size. Canopy or carport installation for inventory protection costs $50,000–$200,000. Showroom renovations — new flooring, modern lighting, updated service write-up areas, customer waiting lounges — can run $75,000–$300,000+ for a full remodel.
Franchise dealers often face manufacturer standards programs (dealer facility image programs) that require specific renovations to maintain franchise status or qualify for manufacturer incentives. Independent dealers face competitive pressure to upgrade facilities to meet customer expectations shaped by luxury dealership experiences. Both scenarios create capital needs that traditional business term loans and SBA financing address well.
The service department is one of the most profitable parts of any dealership — generating consistent, recurring revenue independent of vehicle sales volatility. A full-service auto repair department requires substantial equipment investment: vehicle lifts ($3,000–$15,000 each), tire changing and balancing machines ($5,000–$20,000), alignment systems ($15,000–$50,000), diagnostic scan tools ($2,000–$15,000), brake lathes, oil drains, air compressors, and shop management systems. A fully equipped service bay represents $40,000–$120,000 in investment. Expanding from 4 to 8 service bays can require $200,000–$400,000 in combined equipment and leasehold improvements.
Equipment financing from Crestmont Capital is ideally suited for service department expansion — the equipment itself serves as collateral, terms stretch to 60–84 months to keep payments manageable, and approvals are faster than conventional business loans. Dealers who invest in service capacity consistently see higher customer retention, more F&I product revenue, and a revenue stream that stabilizes cash flow through seasonal vehicle sales downturns.
Beyond inventory, dealers carry significant operational overhead: salesperson payroll and commissions, finance and insurance (F&I) staff salaries, service technician wages, parts department inventory, administrative staff, advertising and marketing budgets (often $20,000–$100,000+ per month for large dealerships), and facility costs. Managing these fixed and variable costs against cyclical vehicle sales revenue requires ongoing working capital management. Access to a business line of credit or working capital loan ensures dealers can meet obligations during slower periods without disrupting operations or growth plans.
Crestmont Capital offers multiple financing programs designed to address the specific capital needs of auto dealers at every stage of growth.
Inventory financing provides the revolving capital needed to acquire and maintain vehicle inventory. Floor plan lines allow dealers to stock vehicles, repay as units sell, and re-draw to replace sold inventory — creating a continuously renewable capital cycle matched to the natural rhythm of vehicle sales. Crestmont Capital's lender network includes specialized auto dealer inventory lenders offering lines from $100,000 to $5,000,000 for qualified dealerships. Independent used-car dealers with limited access to OEM captive floor plan programs benefit most from independent inventory financing sources.
Working capital loans provide fast, flexible capital for operational needs: covering payroll during slow months, funding advertising campaigns, pre-purchasing high-demand vehicles at auction, bridging a floorplan payment cycle, or taking advantage of a fleet acquisition opportunity. Working capital loans from Crestmont Capital fund in 24–48 hours with minimal documentation. Amounts from $50,000 to $500,000 are available for established dealerships.
Equipment financing is purpose-built for service department investments. Vehicle lifts, alignment systems, diagnostic equipment, tire machines, and shop tools qualify for equipment loans where the equipment serves as collateral — enabling faster approvals and more favorable rates than unsecured alternatives. Equipment financing amounts from $25,000 to $2,000,000 are available with terms of 24–84 months. Multiple service bays or a full service department expansion can often be bundled into a single financing package.
Many dealerships lease their facility and eventually pursue the strategic goal of owning their real estate. Lot ownership provides stability, eliminates rent risk, builds equity, and enables the facility improvements that drive long-term competitive advantage. SBA 504 loans and conventional commercial real estate loans from Crestmont Capital's lender network finance dealership real estate purchases with competitive long-term rates and terms up to 25 years. For dealers not yet ready for real estate purchase, long-term business loans finance major lot improvement projects.
A business line of credit is the most flexible financing tool for auto dealers managing predictable seasonal cycles. Draw what you need, repay during peak sales months, and draw again — the line revolves continuously without requiring a new application. Lines of credit from $50,000 to $1,000,000 are available for established dealerships. The revolving structure makes a line of credit superior to a term loan for ongoing cash flow management needs.
SBA 7(a) loans offer the most favorable long-term rates and terms available to car dealerships. SBA programs finance real estate purchases, facility renovations, equipment acquisitions, business acquisitions (buying an existing dealership), and working capital — with amounts up to $5 million, rates near prime + 2.75%–4.75%, and terms up to 25 years for real estate. The SBA's official loan program page details eligibility. Automotive retail businesses are eligible SBA borrowers. Crestmont Capital helps dealers navigate SBA program requirements and access the best SBA lenders for their situation.
| Loan Type | Amount Range | Best For | Rate Range | Term |
|---|---|---|---|---|
| Inventory / Floor Plan Line | $100K–$5M | Vehicle inventory acquisition | 6–15% | Revolving |
| Working Capital Loan | $50K–$500K | Payroll, operations, auctions | 8–28% | 6–24 months |
| Equipment Financing | $25K–$2M | Lifts, alignment, diagnostic tools | 5–18% | 24–84 months |
| Business Line of Credit | $50K–$1M | Seasonal cash flow management | 7–24% | Revolving |
| SBA 7(a) Loan | Up to $5M | Real estate, renovation, acquisition | Prime + 2.75–4.75% | Up to 25 years |
| Long-Term Business Loan | $100K–$3M | Lot expansion, major renovation | 7–20% | 24–120 months |
Crestmont Capital evaluates auto dealer loan applications based on business financial performance, dealer history, credit profile, and operational strength. Here is what lenders typically look for by loan type:
| Requirement | Working Capital / LOC | Equipment Financing | SBA Loan |
|---|---|---|---|
| Time in Business | 6+ months | 6+ months | 2+ years preferred |
| Annual Revenue | $300K+ | $200K+ | $500K+ |
| Personal Credit Score | 620+ | 600+ | 650+ preferred |
| Monthly Bank Deposits | $25,000+ | $16,000+ | $40,000+ |
| Dealer License | Required | Required | Required |
| Business Bank Account | Required | Required | Required |
| Collateral | Often unsecured | Equipment (self-collateralizing) | Business assets + PG |
| Floor Plan Status | Active preferred | Not required | Reviewed |
| Loan Program | Interest Rate Range | Typical Term | Funding Speed |
|---|---|---|---|
| Inventory / Floor Plan Line | 6–15% APR | Revolving (annual review) | 5–21 days |
| Working Capital Loan | 8–28% APR | 6–24 months | 24–48 hours |
| Equipment Financing | 5–18% APR | 24–84 months | 3–7 days |
| Business Line of Credit | 7–24% APR | Revolving / 12 mo renewal | 3–7 days |
| SBA 7(a) Loan | Prime + 2.75–4.75% | Up to 10–25 years | 30–90 days |
| Long-Term Business Loan | 7–20% APR | 24–120 months | 5–14 days |
Rates vary based on creditworthiness, loan amount, term, and collateral. Contact Crestmont Capital for a personalized auto dealer loan quote.
Complete Crestmont Capital's secure online application in approximately 5 minutes. Provide basic dealership information — business name, annual revenue estimate, time in business, loan amount needed, and intended use. No hard credit pull at the inquiry stage. All dealer types are welcome: franchise, independent, BHPH, luxury, RV, and powersports.
Your dedicated Crestmont Capital advisor provides a clear document checklist tailored to your loan type. For working capital and equipment loans: typically 3–6 months of business bank statements, your dealer license, and a government-issued ID. For SBA loans and real estate financing: 3 years of business tax returns, current P&L, balance sheet, floor plan statements, and a business plan or acquisition agreement. No guesswork — we walk you through it step by step.
Our underwriting team — experienced in automotive retail financing — reviews your application and financial profile. Working capital and equipment loans are typically approved in 24–48 hours. SBA loans and real estate financing take 2–8 weeks. You receive a clear term sheet with all loan terms, rates, and fees disclosed upfront — no hidden costs.
Review your loan offer carefully with your Crestmont Capital advisor. Ask questions. Compare if multiple offers are available. Accept when satisfied with the terms. Your advisor works in your interest — the goal is the best available deal for your dealership, not the fastest close at your expense.
Working capital loans deposit directly to your business bank account within 24–48 hours of final approval. Equipment financing funds upon vendor or auction confirmation. SBA loans and real estate loans fund at closing. Your capital is ready — stock more inventory, expand your service department, or grow your lot.
Auto dealer financing needs vary significantly based on the type of dealership. Here's how Crestmont Capital structures financing for each major dealer category:
| Dealer Type | Primary Capital Need | Best Loan Products | Typical Loan Range |
|---|---|---|---|
| New Car Franchise | Facility upgrades, supplemental working capital, service dept. expansion | SBA 7(a), equipment financing, LOC | $200K–$5M |
| Used Car (Independent) | Inventory / floor plan, working capital, lot improvements | Inventory financing, working capital loan, LOC | $50K–$2M |
| Luxury / Exotic | High-value inventory, showroom upgrades, working capital | Inventory financing, LOC, long-term loans | $250K–$5M |
| Buy-Here-Pay-Here (BHPH) | Inventory acquisition, portfolio receivables, working capital | Working capital loan, LOC, inventory financing | $50K–$1.5M |
| RV / Boat / Powersports | Seasonal inventory, large-unit floor plan, storage facility | Inventory financing, equipment financing, SBA loans | $100K–$3M |
Franchise dealers affiliated with major OEMs (Ford, GM, Toyota, Honda, BMW, etc.) typically have access to manufacturer-provided floor plan lines for new vehicle inventory — but they still face capital needs that OEM financing doesn't cover. Manufacturer image program renovations, service department expansions, used vehicle inventory (which is often floored through independent sources), and working capital needs during model changeover periods all require independent financing. SBA 7(a) and 504 loans are excellent for franchise dealer facility projects. Equipment financing handles service bay expansions. A business line of credit manages the working capital gap between franchise requirement payouts and daily dealer operations.
Independent used-car dealers are the most dependent on external inventory financing because they don't have access to OEM captive floor plan programs. The used vehicle market requires fast decision-making — vehicles acquired at auction must be paid for immediately, often before they can be reconditioned and sold. Working capital speed is critical. Crestmont Capital's working capital loans fund in 24–48 hours, giving independent used dealers the agility to capitalize on auction opportunities without delay. Floor plan lines for used-car dealers provide the revolving credit base that scales with inventory growth.
Luxury and exotic dealerships carry significantly higher average vehicle values — a single exotic vehicle can represent $100,000–$500,000 in inventory capital. The economics are compelling: gross profit per unit is dramatically higher than standard used vehicles, and clientele tend to be less price-sensitive and more relationship-driven. But the capital requirements are substantial: a small exotic dealer with 15 units averaging $150,000 each has $2.25 million in inventory at cost. High-value inventory financing and large lines of credit are the primary tools for luxury dealers seeking to grow their inventory position.
BHPH dealers occupy a unique niche: they sell vehicles and self-finance the customer's purchase — carrying the installment note themselves rather than assigning it to a third-party lender. This creates a portfolio of receivables that generates steady monthly income but also requires ongoing capital to purchase replacement inventory as notes pay off. BHPH dealers often benefit from portfolio financing (borrowing against their receivables portfolio) or working capital loans to bridge the gap between note collections and new vehicle acquisitions. Crestmont Capital understands the BHPH model and structures financing that accounts for the dealer's receivables as an asset.
Recreational vehicle, boat, and powersports dealerships face extreme seasonal concentration — in many markets, 60–70% of annual revenue may occur in a 4–6 month window. Managing inventory levels heading into peak season (March–August for most markets) requires significant capital. Floor plan lines for RVs, boats, and powersports units are commonly provided by specialized lenders or manufacturer captives. Storage facility financing, service department equipment, and working capital to carry through the winter slow season are common financing needs. SBA loans serve well for facility and real estate needs; inventory financing addresses seasonal stock-up capital.
Sources: NADA (nada.org), SBA.gov, Forbes, CNBC, Crestmont Capital Research
These examples reflect the types of transactions Crestmont Capital structures for auto dealer clients. Details are illustrative composites representing common dealer financing situations.
A 6-year-old independent used-car dealership in a growing suburban market had been operating with a 45-unit lot averaging $14,000 per vehicle — a $630,000 inventory position financed through a combination of personal capital and a small credit union floor plan. The owner identified an opportunity to expand to a 65-unit lot after a neighboring parcel became available for lease, and wanted to upgrade average vehicle cost to $18,000 to capture more margin. The expanded inventory plan required an $800,000 floor plan line. Crestmont Capital connected the dealer with a specialized auto dealer inventory lender offering a $800,000 revolving floor plan at a competitive rate, structured with per-unit repayment as each vehicle sold. Within 90 days of the new line opening, the dealer's monthly gross was up 38% on the larger, higher-margin inventory position.
A Toyota franchise dealership in a mid-size market needed to complete a manufacturer image program renovation — updated exterior lighting, repaved lot, refreshed showroom, and new service write-up area — to maintain compliance with Toyota's facility standards program. The total project cost was $350,000. The OEM floor plan financed inventory but did not cover facility improvements. Crestmont Capital structured an SBA 7(a) loan at prime + 3% over 10 years, keeping monthly debt service well within the dealership's operating cash flow. The completed renovations qualified the dealer for additional manufacturer incentive programs worth an estimated $180,000 annually in volume-based bonuses — making the loan economics highly favorable.
A high-volume independent used-car dealer with 80+ units in stock had been outsourcing reconditioning and service work to a neighboring independent shop — paying $600–$1,200 per vehicle for reconditioning that could be done in-house at significantly lower cost. The dealer wanted to build out a 4-bay service department with in-house reconditioning, state inspections, and customer pay service. Total equipment cost: $120,000 (four 2-post lifts, tire machine/balancer combo, alignment system, diagnostic tools, air system, and shop setup). Crestmont Capital financed the full $120,000 over 60 months with the equipment as collateral. Within 8 months, in-house reconditioning had reduced per-unit prep costs by $420 on average, generating an annualized savings of $420,000 against a monthly equipment payment of $2,600.
A buy-here-pay-here dealer in the Midwest experienced a predictable seasonal cash flow challenge: note collections (their primary income source) were steady year-round at $95,000/month, but vehicle acquisition from auction accelerated heavily in Q1 as dealers refreshed inventory for tax season buyers. The dealer wanted to acquire 35 units in January–February at an average cost of $7,000 each — a $245,000 acquisition push — before monthly note collections could replenish the capital. A $180,000 working capital loan from Crestmont Capital (approved in 36 hours, funded in 48 hours) provided the bridge capital. The seasonal inventory was acquired, reconditioning was completed, and the Q1 tax season generated the dealer's highest quarterly revenue on record — allowing full repayment of the working capital loan within 90 days.
| Lender Type | Loan Amount | Speed | Dealer Industry Knowledge | Credit Flexibility |
|---|---|---|---|---|
| Crestmont Capital | $50K–$5M | 24 hrs–30 days | High — automotive specialty | Flexible (620+ FICO) |
| Traditional Banks | $100K–$5M | 30–90 days | Low (generic commercial) | Rigid (720+ FICO preferred) |
| OEM Captive Finance | $500K–$10M+ | Variable | Very High (franchise specific) | Franchise-dependent |
| SBA Lenders (via Crestmont) | Up to $5M | 30–90 days | Program-dependent | Moderate (650+ FICO) |
| Independent Floor Plan Lenders | $100K–$5M | 7–21 days | High (inventory focused) | Revenue & inventory based |
| Online Lenders / Fintech | $5K–$500K | Same day–3 days | Low (automated) | Revenue-based, higher rates |
Crestmont Capital is rated the #1 small business lender in the United States. Auto dealers across every state and every dealership type trust Crestmont Capital for their financing needs. Here's what sets us apart:
Floor plan lines, working capital, equipment financing, SBA loans, and lot expansion capital for car dealerships. Apply in 5 minutes. No obligation.
Get Your Dealer Loan Quote →Crestmont Capital finances all types of car dealerships: new-car franchise dealers, independent used-car dealers, luxury and exotic dealers, buy-here-pay-here (BHPH) operations, RV and boat dealers, powersports dealerships, motorcycle dealers, and salvage/auction dealers. Both single-location dealerships and multi-rooftop dealer groups are eligible. As long as your business holds a valid dealer license, has been operating for at least 6 months (preferred), and has verifiable monthly revenue, we have financing products that can work for your dealership.
Car dealership business loans from Crestmont Capital can be used for: vehicle inventory acquisition (floor plan financing), working capital for payroll and operating expenses, service department equipment (lifts, alignment systems, diagnostics), lot paving, resurfacing, or expansion, showroom and facility renovations, advertising and marketing campaigns, buying another dealership, adding a new franchise or brand, financing a used car portfolio (for BHPH dealers), acquiring auction vehicles, managing seasonal cash flow gaps, or any other legitimate dealership business purpose.
Floor plan financing is a revolving credit line specifically designed for vehicle inventory. The lender provides capital to purchase vehicles (from auctions, wholesalers, or trade-in transactions) which are then stocked on your lot. As each vehicle is sold, the floor plan advance for that unit is repaid to the lender — and the credit becomes available again to acquire replacement inventory. The floor plan revolves continuously, matching your capital availability to your inventory turnover cycle. Interest is typically charged only on the outstanding balance (units currently on the floor), not on the full line limit. Floor plan lines are sized based on your lot capacity, average vehicle cost, and monthly sales velocity. Crestmont Capital connects dealers with specialized auto inventory lenders offering floor plan lines from $100,000 to $5,000,000.
Crestmont Capital provides car dealership business loans from $50,000 to $5,000,000. The specific amount available depends on your dealership's annual revenue, monthly bank deposits, time in business, personal credit history, floor plan activity, and the loan program. Floor plan lines are sized to your inventory capacity and turn rate. Working capital loans are typically sized to 50–100% of average monthly revenue. SBA loans can reach $5 million for qualified dealerships. Equipment financing is sized to the equipment cost. Contact Crestmont Capital for a personalized assessment based on your dealership's specific financial profile.
Start-up and newly licensed dealers have more limited financing options than established operations, but several programs are available. Equipment financing (secured by the equipment) is accessible for newer dealers. SBA startup loan programs provide working capital and equipment financing for businesses with a strong business plan and clean personal credit. For inventory financing, most floor plan lenders prefer 12+ months of operating history and verifiable monthly sales volume. Independent dealers acquiring an existing lot with a documented sales history may be able to finance the acquisition and inventory simultaneously. Contact a Crestmont Capital advisor for a specific assessment of your new dealership's financing options.
Most car dealership business loans through Crestmont Capital require a minimum personal credit score of 620. SBA loans typically prefer 650+. Higher scores (680–720+) qualify for the best rates, largest amounts, and most favorable terms. For BHPH dealers or independent used-car operators with lower personal credit scores, strong business revenue and a healthy floor plan history can partially offset credit score limitations. Crestmont Capital works with a broad lender network and evaluates the full picture of your dealership's financial health — not just the credit score in isolation.
Working capital loans and fast business loans from Crestmont Capital fund within 24–48 hours of final approval — critical for dealers who need to move quickly on auction acquisitions or seasonal inventory build-ups. Equipment financing typically funds in 3–7 business days. Business lines of credit are typically established within 3–7 days. SBA loans require 30–90 days for the complete process — but offer the lowest rates and longest terms available. Floor plan lines typically take 7–21 days to establish with a new inventory lender. Your Crestmont Capital advisor will recommend the fastest appropriate product for your specific need.
Yes. Automotive retail dealerships are eligible for SBA 7(a) and SBA 504 loan programs. SBA 7(a) loans finance business acquisitions (buying an existing dealership), facility renovations, equipment, real estate purchases, and working capital — up to $5 million with terms up to 25 years for real estate. SBA 504 loans are specifically designed for fixed-asset purchases (commercial real estate and major equipment) at below-market long-term rates. Auto dealers are common SBA borrowers, particularly for facility construction and acquisition financing. Visit SBA.gov for official eligibility details. Crestmont Capital can help your dealership access SBA programs through our preferred lender network.
Yes. Crestmont Capital provides financing for buy-here-pay-here dealerships, including working capital loans, business lines of credit, and inventory financing. BHPH operations have unique capital dynamics — you're simultaneously a dealer and a finance company, carrying a portfolio of installment receivables. We work with BHPH dealers to structure financing that accounts for both your vehicle inventory needs and your receivables portfolio. Strong note collection history, a clean dealer license, and verifiable monthly deposit volume are the primary approval factors for BHPH dealer financing.
Document requirements vary by loan type and amount. For working capital loans and equipment financing: 3–6 months of business bank statements, your valid dealer license, and a government-issued ID. For larger loans, LOCs, and SBA programs: 3 years of business tax returns, current profit and loss statement, balance sheet, floor plan statements (if applicable), and a description of use of funds. For dealership acquisitions: the acquisition agreement, target dealer's 3-year financial history, and a business plan. Your Crestmont Capital advisor provides a clear, specific checklist for your situation — no guesswork on your part.
Absolutely. Service department equipment financing is one of the most popular car dealership loan products at Crestmont Capital. Vehicle lifts, alignment systems, tire machines, diagnostic tools, brake lathes, air compressors, and complete service bay setups all qualify for equipment financing. The equipment serves as collateral, enabling faster approvals and better rates than unsecured alternatives. Multiple bays or a complete service department expansion can typically be bundled into a single equipment financing package from $25,000 to $500,000+. Terms of 36–84 months keep payments manageable against the service revenue the equipment generates.
Yes. Dealership acquisition financing — buying an existing dealership, adding a second rooftop, or acquiring a competitor's lot — is available through Crestmont Capital. Acquisition financing is typically structured as an SBA 7(a) loan (for the most favorable terms), a conventional business acquisition loan, or a combination of both. The acquired dealership's documented revenue history is a primary underwriting factor. Lenders typically want to see 3 years of the target dealership's financial records including tax returns, P&L, and floor plan history. Crestmont Capital advisors have experience structuring dealership acquisition financing across single and multi-rooftop transactions.
A business line of credit is the ideal tool for managing the predictable seasonal cash flow cycles that all auto dealers experience. During slow months (typically late fall and winter), dealers draw from the line to cover payroll, facility costs, and operating expenses. During peak sales months (spring and early summer, and tax season for used car dealers), higher vehicle revenue allows the dealer to repay the line. The revolving structure means the dealer doesn't need to apply for a new loan each seasonal cycle — the line remains available year-round. Lines of credit from $50,000 to $1,000,000 are available for qualified dealerships, with no interest charged on the undrawn portion.
