How to Get a Used Car Dealer Business Loan

Used Car Dealer Business Loans

Used car dealer loans are difficult to get. Traditional lenders such as banks are not a good option. Get money for your pre-owned vehicle lot, specialty car dealer business or any car lot

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Call 919-771-4177 for more info.

Programs for:

1. Buy Here Pay Here Used Car Dealer.
2. Start Up Used Car Lots.
3. Small and Low inventory Lots.
4. Low Monthly Sales 
5. Bad Credit Owner down to below a 500 bureau.
6. Exotic and Specialty Pre-owned Vehicle Lots.
7. Author Biography: Will Sanio

Call us at Tel:  1-919-771-4177, or Question? 

How to get a used car dealer business loan

Preparation

Step 1:  Research companies that specialize in used car dealer loans. Decide which programs meet your dealership’s needs for the amount, credit, time since opening and what you need the money for.

Prepare your documents

Step 2: Tip: Prep your information a few days before you need money.   Amounts over $50,000 need more time to be approved and funded.  Lots selling more than $15,000 per month have a better chance of getting an offer.

Look at the cash flow in your bank statements. Explain low sales months, overdrafts, nsf’s and low balance periods upfront when you first apply. This can help get approvals, better offers and help avoid declines.

Settle on Top Companies

Step 3:  Contact your preferred companies and ask about their approval criteria.
Tip: Ask if you can be prequalified. Some funders can either prequalify through an online application or a representative by calling in.

Complete your application

Step 4: Apply with the programs the most aggressively solicit used car dealers while matching your needs. Complete an application for capital and provide all supporting documentation needed.

Review Approvals

Step 5:  After approval, review the terms and closing requirements. Get all of your closing documentation together and submit to complete the transaction.

The lender will usually make a final merchant call to you. They will verify that the owner completed the closing documents and is ready to start the transaction. Confirm this and receive the money into your account.

Loans to used car dealers are considered restricted loans by almost all lenders.   We have programs for below 500 credit scores.

F.A.Q. Frequently asked questions

Can our pre-owned vehicle lot get fast funding the same day or next day?

Same day funding is possible for applications received by noon. After mid day, funding on approvals and closings is possible the next day.

How long does our used car lot have to be in business?

At least 3 months is needed. The most recent three months business checking account statements are then submitted to pre-qualify.

What types of used car dealer loans are available and for how long?

Programs are for dealers that specialize in buy here pay here, new and used cars, specialty, luxury, exotic, and short time since opening.

There is an option for small lots with low inventory of less than 10 cars. The longest term option is up to 10 years and available in most states. Other programs are short term bridge loans from 3 to 10 months.

How much does bad credit matter?

Low credit scores and bad credit will rarely be declined. Scores can be as low as 400.  Cash flow and strong account balances are the most important approval requirements.

What are the rates?

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

Can we use this financing to buy more cars for inventory?

The working capital can be used to buy cars at auction or anywhere your dealership buys.

It can also be used to buy lot space, repairs and improvements.