Property Type

Auto Dealership Real Estate Loans.

Finance your dealership property acquisition, expansion, or OEM image upgrade. SBA, conventional, and specialized automotive lending for franchise and independent dealers.

90%
Max LTV (SBA)
5.5–9%
Rate Range
$1M–$15M
Loan Amounts
25 yr
Max Term
No credit impact Auto lending specialists Franchise & independent No upfront fees
DEALERSHIP TYPES

What Type of Dealership Are You Financing?

Auto dealership real estate is a specialized CRE category with unique financing requirements tied to franchise agreements and OEM standards.

New Car Franchise Dealership
OEM-backed, image program compliant
Toyota, Ford, Honda, BMW, etc. Large footprint (2–10 acres) with showroom, service bays, parts dept, and lot. OEM image programs may require facility upgrades every 7–10 years. Franchise backing significantly improves lending terms.
Used Car / Independent
Smaller footprint, flexible layout
Buy Here Pay Here, pre-owned lots, and independent dealers. Smaller properties (0.5–2 acres). Lenders evaluate dealer track record and inventory financing separately. SBA is the primary path for property acquisition.
Service Center + Sales
Combined auto service and retail
Multi-bay service operations combined with vehicle sales. Tire shops, transmission specialists, or general repair shops that also sell vehicles. SBA 504 covers both the real estate and service equipment.
FINANCING OPTIONS

Loan Options for Dealership Properties

Dealership real estate financing is separate from floor plan (inventory) lending. Focus here is on the property itself.

SBA 504
Best for buying your dealership property
Rate5.5–7.5% fixed
LTVUp to 90%
Term20–25 years
OEM UpgradesCan be included

Ideal for dealer-operators buying the real estate under their franchise. OEM image program costs and service equipment can be rolled into the total project.

Conventional Bank
Franchise dealers, fastest close
Rate6–8.5%
LTV65–75%
Term5–20 years
Down Payment25–35%

Banks with auto dealership experience offer competitive terms for established franchise dealers. Some have dedicated dealer lending divisions.

SBA 7(a)
Real estate + equipment + working capital
RatePrime + 2.75%
Max Loan$5M
TermUp to 25 years
FlexibilityMulti-purpose

Combine property purchase, lifts, diagnostic equipment, and opening working capital. Good for independent dealers and smaller franchise operations.

DSCR / Investment
Investors owning dealership real estate
Rate7–9.5%
LTV65–70%
Term5–25 years
DocsProperty income only

For investors who own the real estate and lease to a dealer-operator. NNN dealership leases with franchise tenants are highly bankable.

KEY METRICS

What Lenders Evaluate for Dealership Loans

Franchise Agreement
OEM approval required
Manufacturer backing critical for lending
DSCR
1.25x+
Dealership + property combined cash flow
Dealer Financial Statement
3 years preferred
Revenue, unit sales, service income
Property Size
0.5–10 acres typical
Showroom + lot + service bays
Image Compliance
OEM standards
Renovation costs for brand upgrades
Down Payment
10–35%
10% SBA, 25–35% conventional
THE PROCESS

How Dealership Financing Works

01

Share Your Deal

Property address, acreage, building sqft, franchise brand, purchase price, and any OEM image program requirements or renovation plans.

02

Submit to BestLoanUSA

Single application with dealership financials, personal credit, and franchise agreement details. No hard credit pull.

03

Advisor Review with Jason

Jason evaluates your franchise standing, dealership performance, OEM requirements, and property specifics to recommend SBA, conventional, or specialized auto lending.

04

Lender Matching

We submit to lenders with auto dealership experience. You receive competing term sheets.

05

Underwriting & Appraisal

Dealership-specific appraisal including special-purpose valuation. Provide dealer financial statements, franchise agreement, and OEM correspondence.

06

Close & Operate

SBA: 60–90 days. Conventional: 30–45 days. OEM image renovations can begin on a draw schedule post-close.

Ready to Finance Your Dealership Property?

No credit pull. No commitment. See what dealership financing options are available.

FAQ

Frequently Asked Questions

Is dealership real estate financing different from floor plan lending?

Yes, completely separate. Floor plan financing covers vehicle inventory and is provided by captive finance companies or specialized lenders. Real estate financing covers the property itself — the land, showroom, service bays, and lot. Most dealers have both but from different sources.

How do OEM image programs affect financing?

OEMs (Toyota, Ford, BMW, etc.) periodically require franchise dealers to renovate facilities to meet updated brand standards. These image program costs can range from $500K to $5M+. SBA 504 can include these costs in the total project financing. Some OEMs provide financial incentives to offset image program costs.

Can I buy a dealership and the real estate together?

Yes. SBA 7(a) can combine the business acquisition (goodwill, franchise rights, inventory) with the real estate purchase up to $5M. For larger deals, separate financing for the business and real estate may be structured. Your advisor will recommend the optimal structure.

Do independent (non-franchise) dealers qualify?

Yes, but financing terms are stricter. Without OEM backing, lenders require stronger personal credit (680+), higher down payment (25–30%), and longer operating history (3+ years). SBA remains available for independents with proven performance.

What makes dealership properties special-purpose?

Dealership properties have showrooms, service bays, parts departments, and large paved lots designed specifically for auto retail. Converting to other uses is costly, which affects appraisal methodology. Lenders use income-based valuation (business earnings) rather than pure real estate comparables.

What if I just want to own the real estate and lease to a dealer?

Investor-owned dealership real estate with NNN leases to franchise dealers is a strong investment. DSCR and conventional loans work well here. National franchise tenants provide stable, creditworthy lease income. Cap rates typically range 5.5–8% depending on the brand and market.