Auto Dealership Financing Guide
Auto dealerships are one of the most capital-intensive businesses in the country. You need money to stock inventory before you sell a single car, money to keep the lights on between floor plan curtailments, and real estate or facility financing before you open the doors.
At eBoost Partners, we work with both franchise and independent dealers – and the financing stack is almost always more complex than clients expect going in.
This guide covers the core financing categories that dealers actually use. Whether you’re acquiring a dealership, expanding to a second rooftop, or just trying to get better floor plan terms, these articles will walk you through how lenders think and what they want to see.
Jacob Shimon is a professional finance writer at eBoost Partners with over seven years of experience in the commercial lending industry. A graduate of the University of Florida’s Warrington College of Business with a degree in Finance, he specializes in breaking down complex business lending topics to help entrepreneurs make smart, informed decisions.
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This article covers the full picture of dealership lending – acquisition financing, working capital, floor plan basics, and the specific numbers lenders look at when underwriting a car dealer.
If you’re new to dealership finance or need a foundation before applying, start here. We cover franchise dealers, independent lots, and the very different underwriting standards that apply to buy-here-pay-here operations.
Floor plan financing
Floor plan lending is what makes a dealership run. A lender fronts the cost of your inventory, you pay interest while vehicles sit on the lot, and the line gets paid down as cars sell.
Getting the right floor plan terms – rate, curtailment period, advance rate – can meaningfully affect your monthly cash position.
We’ll cover the major floor plan lenders, what dealers pay, and how to negotiate better terms as your volume grows.
Used car dealer financing
Independent used car dealers face a harder financing road than their franchise counterparts. Floor plan rates are higher, advance rates are lower, and most traditional banks don’t touch the segment at all. Buy-here-pay-here dealers have their own separate underwriting world.
This article covers the realistic options for independent dealers – what lenders want, what to expect in terms of rates, and how to position your lot for better approval odds.
Ready to talk through your dealership financing?
We work with dealers across acquisition, floor plan, real estate, and working capital. Every situation is a little different – inventory type, location, existing lender relationships, ownership structure.
Apply now and we’ll take a look at where you stand and what your best options are.
Disclaimer: The information in this article is for educational and informational purposes only and does not constitute financial advice. All funding products, rates, and terms are provided by eBoost Partners and are subject to application, credit approval, and our current underwriting criteria. Rates and terms are subject to change without notice.