Auto Dealership Loans

At Capital Investors Direct, we understand the unique demands of the automotive industry, and we're here to fuel your growth with our specialized Auto Dealership Loans.

Whether you're looking to expand your dealership, upgrade facilities, or streamline operations, our tailored financing solutions are designed to drive your success in the fast-paced world of auto retail.

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About Auto Dealership Loans

Embark on a journey of expansion and prosperity with our Auto Dealership Loans.

Capital Investors Direct brings a wealth of experience in commercial property investment to the automotive sector, providing you with financing options that align with the dynamic nature of the auto dealership business.

Our loans are crafted to suit your specific needs, whether you're a small independent dealer or a large franchise.

Auto Dealership Loans Types

Explore a range of Auto Dealership Loans tailored to cater to the diverse needs of your business:

1. Inventory Financing: Secure funds to stock your dealership with the latest models and increase your inventory turnover. Our Inventory Financing solutions offer flexibility to adapt to changing market demands.

2. Expansion Loans: Fuel the growth of your dealership with Expansion Loans that provide the capital needed for facility upgrades, new showrooms, or additional service bays.

3. Working Capital Loans: Ensure smooth day-to-day operations with Working Capital Loans designed to cover operational expenses, marketing initiatives, and other short-term financial needs.

4. Equipment Financing: Upgrade your dealership with state-of-the-art equipment and technology. Our Equipment Financing options ensure you stay ahead in the competitive automotive market.

Auto Dealership Loans Options

Bridge Loans: Short-term financing facilitating immediate needs, often used to bridge gaps before securing long-term financing or selling assets.

Stated Income Loans: Loans where income verification is less stringent, allowing borrowers to state their income, commonly used for self-employed individuals.

Hard Money Loans: Short-term, asset-based loans with higher interest rates, often used for quick financing when traditional methods are not feasible.

SBA Loans: Small Business Administration-backed loans supporting small businesses with favorable terms, often used for various business purposes, including land acquisition.

Construction Loans: Funds allocated in phases for construction projects, with interest-only payments during the construction phase, converting to a mortgage upon completion.

CMBS Loans (Commercial Mortgage-Backed Securities): Pooled loans sold as securities in the secondary market, providing a source of financing for commercial real estate projects.

Retail Property Loans Terms

Loan terms may vary for each customer, but generally, our auto dealership loan terms encompass the following:

Loan Size:

  • $500,000 to $25 million for new car dealerships
  • $1 million or more for used car dealerships (subject to good credit, income verification, and substantial liquidity)

Loan Purpose: The loan can be utilized 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 Debt Service Coverage Ratio (DSCR)

Recourse: Loans typically have full recourse.

Credit Score Requirement:

  • 660 minimum

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Capital Investors Direct funds different commercial properties across the country. Below are few commercial properties we lend hard money for –

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