Buying a Honest1 Auto Care franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Honest1 Auto Care (classified mostly as General Automotive Repair), totaling $2.4M. The median loan was $442,000, 31% lower than the $645,250 median for all SBA-financed acquisitions.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Honest1 Auto Care resale loans landed between $311,500 and $700,000.
- Lender experience exists. Wells Fargo Bank National Association alone has financed 2 Honest1 Auto Care resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Honest1 Auto Care resale
The median SBA 7(a) loan for a Honest1 Auto Care resale was $442,000 across 5 loans (FY2018 to FY2026). Wells Fargo Bank National Association, Live Oak Banking Company and Manufacturers and Traders Trust Company have financed the most Honest1 Auto Care resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Honest1 Auto Care acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $900K | $450,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 2 | $1.1M | $571,000 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $312K | $311,500 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Honest1 Auto Care acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
The purchase agreement decides what you bought, not the loan approval.
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Lenders financing Honest1 Auto Care resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 2 | 40.0% | $1.1M | |
| 2 | Live Oak Banking Company | 1 | 20.0% | $700K | |
| 3 | Manufacturers and Traders Trust Company | 1 | 20.0% | $312K | |
| 4 | Pinnacle Bank | 1 | 20.0% | $200K |
States where Honest1 Auto Care units are bought
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Questions buyers ask
How much do buyers borrow to buy a Honest1 Auto Care franchise?
The median SBA 7(a) loan for a Honest1 Auto Care resale was $442,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $311,500 to $700,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Honest1 Auto Care acquisitions?
Wells Fargo Bank National Association has made the most SBA acquisition loans for Honest1 Auto Care (2, 40% of the total). Live Oak Banking Company, Manufacturers and Traders Trust Company, Pinnacle Bank follow.
What interest rate and term do Honest1 Auto Care acquisition loans carry?
The average initial rate at approval was 7.04% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Honest1 Auto Care resale riskier than other SBA-financed acquisitions?
Too few Honest1 Auto Care acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Honest1 Auto Care units being bought with SBA loans?
Minnesota (2), Texas (1), Virginia (1), Tennessee (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
The purchase agreement decides what you bought, not the loan approval.
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Related
- All General Automotive Repair acquisitions
- Minnesota acquisitions
- Texas acquisitions
- Virginia acquisitions
- Wells Fargo Bank National Association
- Live Oak Banking Company
- Manufacturers and Traders Trust Company
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Honest1 Auto Care (aka Honest - 1 Auto Care)" (franchise code S0819). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.