Used Car Dealers: SBA business acquisition loan data
53 SBA 7(a) loans since FY2018 financed the purchase of an existing business classified as Used Car Dealers (NAICS 441120), totaling $74.2M. Median loan $924,200, 43% higher than the all-acquisition median.
Terms signed in the LOI shape the purchase agreement that follows.
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Reading this industry's numbers
- Deal size. The loan excludes the buyer's equity and any seller note and may include working capital. A loan request far above $2,270,000 would be in the top quarter of SBA acquisition loans in this industry.
- Share of all acquisitions. This industry is 0.1% of all SBA-financed business purchases, ranking #159 of 300 industries tracked.
- Geography. Texas leads with 5 loans; the top five states account for 40% of the industry's acquisitions.
- Jobs. Lenders reported 518 jobs supported across these loans, about 9.8 per acquisition, a rough proxy for the size of business changing hands.
Used Car Dealers acquisitions by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $9.3M | $575,850 | |
| FY2019 | 6 | $4.3M | $466,250 | |
| FY2020 | 5 | $4.3M | $642,600 | |
| FY2021 | 7 | $6.9M | $1,048,500 | |
| FY2022 | 6 | $5.4M | $625,000 | |
| FY2023 | 3 | $5.6M | $1,550,000 | |
| FY2024 | 4 | $8.3M | $1,965,000 | |
| FY2025 | 8 | $23.5M | $3,155,000 | |
| FY2026 | 8 | $6.6M | $651,350 |
How often do these acquisition loans fail?
Of the 24 Used Car Dealers acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 12.5% by loan count and 9.6% by dollars. 11 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Used Car Dealers is 255% higher than the acquisition-loan average. 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Top states
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 5 | 9.4% | $12M | |
| 2 | Illinois | 5 | 9.4% | $9.1M | |
| 3 | Florida | 4 | 7.5% | $9M | |
| 4 | Wisconsin | 4 | 7.5% | $4.5M | |
| 5 | North Carolina | 3 | 5.7% | $3.9M | |
| 6 | Minnesota | 3 | 5.7% | $3.2M | |
| 7 | New Hampshire | 3 | 5.7% | $1.9M | |
| 8 | Pennsylvania | 2 | 3.8% | $5M | |
| 9 | Oregon | 2 | 3.8% | $3.7M | |
| 10 | Montana | 2 | 3.8% | $2.8M |
Most active lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | BMO Bank National Association | 3 | 5.7% | $5.5M | |
| 2 | Columbia Bank | 3 | 5.7% | $3.1M | |
| 3 | Beacon Bank and Trust | 2 | 3.8% | $5.3M | |
| 4 | Celtic Bank Corporation | 2 | 3.8% | $4.3M | |
| 5 | Live Oak Banking Company | 2 | 3.8% | $2.5M | |
| 6 | Fortifi Bank | 2 | 3.8% | $1.8M | |
| 7 | Wilmington Savings Fund Society FSB | 2 | 3.8% | $1.2M | |
| 8 | Locus Bank Inc | 2 | 3.8% | $958K | |
| 9 | First Citizens Bank | 2 | 3.8% | $300K | |
| 10 | Bangor Savings Bank | 2 | 3.8% | $100K |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
Franchise brands in Used Car Dealers
2% of acquisition loans in this industry involved a franchised unit. Brands with the most SBA-financed resales:
| # | Brand | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ford Motor Company | 1 | 100.0% | $3.8M |
Questions buyers ask
How much is a typical SBA loan to buy a business in Used Car Dealers?
Median $924,200 across 53 acquisition loans (FY2018 to FY2026); the middle half ran $250,000 to $2,270,000. That is 43% higher than the $645,250 median for all SBA-financed acquisitions.
Which lenders finance the most Used Car Dealers acquisitions?
BMO Bank National Association (3), Columbia Bank (3), Beacon Bank and Trust (2), Celtic Bank Corporation (2), Live Oak Banking Company (2).
Are businesses in Used Car Dealers often franchised?
Rarely. Only 2% of acquisition loans in this industry involved a franchised business; most are independent operators.
How risky are SBA loans for buying a business in Used Car Dealers?
Of 24 seasoned loans (FY2018 to FY2021), 12.5% charged off, 255% higher than the 3.5% benchmark for all SBA acquisition loans.
What loan terms are common for Used Car Dealers acquisitions?
Median term 10 years, average initial rate 7.60% at approval (blended across years and fixed/variable structures). Terms longer than 10 years usually indicate real estate was included in the purchase.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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