Buying a Tuffy Tire & Auto Service franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 8 7(a) loans to buy an existing Tuffy Tire & Auto Service (classified mostly as General Automotive Repair), totaling $6.5M. The median loan was $859,750, 33% higher than the $645,250 median for all SBA-financed acquisitions. 1 of these loans were approved in the last two fiscal years.
The purchase agreement decides what you bought, not the loan approval.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Tuffy Tire & Auto Service resale loans landed between $518,750 and $1,181,250.
- Lender experience exists. Live Oak Banking Company alone has financed 7 Tuffy Tire & Auto Service resales.
- Guaranty. The SBA guaranteed 78% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Tuffy Tire & Auto Service resale
The median SBA 7(a) loan for a Tuffy Tire & Auto Service resale was $859,750 across 8 loans (FY2018 to FY2026). Live Oak Banking Company and Customers Bank have financed the most Tuffy Tire & Auto Service 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%.
Tuffy Tire & Auto Service acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 1 | $751K | $750,500 | |
| FY2021 | 2 | $2.2M | $1,089,200 | |
| FY2022 | 2 | $1.8M | $887,500 | |
| FY2023 | 2 | $583K | $291,500 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $1.2M | $1,175,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Tuffy Tire & Auto Service 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.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing Tuffy Tire & Auto Service resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 7 | 87.5% | $5.7M | |
| 2 | Customers Bank | 1 | 12.5% | $751K |
States where Tuffy Tire & Auto Service units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Michigan | 4 | 50.0% | $4.6M | |
| 2 | Florida | 1 | 12.5% | $751K | |
| 3 | North Carolina | 1 | 12.5% | $575K | |
| 4 | Arizona | 1 | 12.5% | $350K | |
| 5 | Ohio | 1 | 12.5% | $233K |
That draft favors the seller. We review it for the buyer, line by line.
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How lenders classify Tuffy Tire & Auto Service
Lenders code each loan to a NAICS industry. For Tuffy Tire & Auto Service the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | General Automotive Repair | 7 | 87.5% | $5.3M | |
| 2 | All Other Automotive Repair and Maintenance | 1 | 12.5% | $1.2M |
Questions buyers ask
How much do buyers borrow to buy a Tuffy Tire & Auto Service franchise?
The median SBA 7(a) loan for a Tuffy Tire & Auto Service resale was $859,750 across 8 loans (FY2018 to FY2026). The middle half of loans ran from $518,750 to $1,181,250. 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 Tuffy Tire & Auto Service acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Tuffy Tire & Auto Service (7, 88% of the total). Customers Bank follow.
What interest rate and term do Tuffy Tire & Auto Service acquisition loans carry?
The average initial rate at approval was 7.03% (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 Tuffy Tire & Auto Service resale riskier than other SBA-financed acquisitions?
Too few Tuffy Tire & Auto Service 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 Tuffy Tire & Auto Service units being bought with SBA loans?
Michigan (4), Florida (1), North Carolina (1), Arizona (1), Ohio (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.
Terms signed in the LOI shape the purchase agreement that follows.
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Related
- All General Automotive Repair acquisitions
- Michigan acquisitions
- Florida acquisitions
- North Carolina acquisitions
- Live Oak Banking Company
- Customers Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Tuffy Tire & Auto Service" (franchise code S2711). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.