$9 Million Auto Dealership Acquisition

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $9 million auto dealership acquisition is in the sweet spot of SBA 504 owner-operator financing combined with specialty dealer real estate bank execution. Most $9M dealership acquisitions are franchised single-rooftop transactions with established operating histories. The capital stack typically combines SBA 504 for real estate, SBA 7(a) or specialty dealer bank for operating business, and dealer floor plan financing (separate from real estate) for inventory.

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What a $9M Auto Dealership Acquisition Capital Stack Looks Like

$9M auto dealership acquisitions typically combine multiple financing sources: SBA for real estate and equipment, specialty dealer bank for operating financing, and dealer floor plan for vehicle inventory.

Capital Source Rate / Cost Size / LTV Notes
SBA 504 (real estate) Bank 1st 7.00% / CDC 5.85% fixed $6M / 80% LTC (special-purpose 20% down) Real estate financing only
SBA 7(a) (operating) Prime + 2.50 to 3.00% (10.00 to 10.50%) $2M to $3M FF&E, working capital, inventory, brand transition
Specialty dealer real estate bank 7.50 to 9.00% $9M / 70 to 80% LTV Alternative to SBA on real estate
Dealer floor plan Prime + 1.50 to 2.50% Inventory-secured (separate) Vehicle inventory financing

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $9M Auto Dealership Acquisition Deal

Typical $9M dealership acquisition sponsors are existing dealers expanding to a second or third rooftop, or experienced general managers transitioning to ownership. Sponsor industry experience is essential. Personal balance sheet and relationship with the OEM brand drive lender appetite.

A Real $9M Example

On a $9.4M acquisition of a single-rooftop Honda dealership in a Sun Belt secondary market, the buyer was an existing dealer with one Toyota rooftop expanding to a second franchise. SBA 504 at 80 percent LTC financed real estate at $6.8M structured as a 50 percent bank first at 7.15 percent fixed and a 30 percent CDC second at 5.85 percent fixed 25-year. SBA 7(a) at $1.8M financed equipment, working capital, and Honda brand transition. Floor plan financing for inventory was provided separately by Honda Motor Credit. The deal closed in 95 days. Year-one dealership performance hit 105 percent of pro forma.

Anonymized. All deal references protect borrower and lender identity.

$9M Auto Dealership Acquisition FAQ

Yes. SBA 504 for real estate at 80 percent LTC (special-purpose 20 percent down). SBA 7(a) for FF&E, working capital, and goodwill up to $5M. Most dealership acquisitions combine both programs.
Dealer floor plan is separate inventory-secured financing for new and used vehicle inventory. Floor plan lenders include OEM-affiliated lenders (Honda Motor Credit, Toyota Motor Credit, Ford Credit, GM Financial), specialty dealer floor plan lenders, and bank floor plan programs.
Yes. Auto dealerships are classified as special-purpose under SBA 504 rules due to OEM brand-specific facility requirements and limited adaptive reuse value. The classification requires 20 percent down.
OEM image programs require periodic renovations every 5 to 10 years at $1M to $10M+ per cycle depending on brand. Sponsors plan image program timing into financial models.

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