Automotive Property Loans
Flexible financing to purchase, expand, or refinance auto-related commercial properties.
What is an automotive property loan?
An automotive property loan is a type of commercial real estate mortgage secured by an auto-related business property. Lenders evaluate the property’s revenue potential, location, business model, tenant strength, and physical condition. These loans are used to finance property purchases, refinancing, expansions, cash-out loan requests, or construction projects for auto-related facilities such as dealerships, repair shops, car washes, and service centers.
What borrowers typically qualify for
Typical LTVs
65%–80% LTV for stabilized automotive properties (varies based on property type, business performance, and sponsor strength).
DSCR requirements
Target a DSCR of 1.20–1.35. Lower DSCR may be accepted with additional reserves, cross-collateral, or strong operating history.
Credit guidelines
A FICO score above 600 is preferred, borrowers with lower credit may qualify with stronger cash flow or a higher down payment.
Borrower qualifications
We consider business performance, industry experience, consistent revenue, realistic projections, and well-managed operations.
What makes automotive properties unique to Rize
Business-dependent income
We check service revenue, customer traffic, and efficiency to judge a business’s stability and demand.
Specialized layouts & equipment
Assets like repair bays, wash tunnels, and lifts affect a business’s value and financing strategy.
Environmental & compliance review
Auto shops and car washes may involve chemicals, water recycling systems, or EPA considerations.
Location sensitivity
Visibility, access, frontage, zoning, and proximity to residential or commercial areas play a major role in underwriting.
Documents required for an Automotive Property Loan
Executive summary and loan request overview
Purchase contract (for acquisitions) or construction plan & budget
Business financials and revenue statements (2–3 years)
Current rent roll (if tenant-occupied) and copies of major leases
Last 2–3 years of property operating statements (if applicable)
Market analysis, revenue projections, and comparable performance data
Property survey and environmental reports (Phase I or Phase II when required)
Appraisal or lender-ordered appraisal
Personal and business tax returns (2–3 years)
Borrower entity documents (LLC, operating agreements, K-1s)
Insurance documentation and property condition reports
What loan terms can borrowers expect?
Interest rates
Rates vary by market and business performance. We find the best financing options for your needs.
Amortization
Automotive mortgages usually have 20 to 30-year terms, with refinance and owner loans going up to 30 years.
Term length
Most loan terms range from 5 to 10+ years. SBA and conventional options are available for owners and investors.
Recourse vs. non-recourse
Rize Mortgage offers partial or full non-recourse loans depending on asset type and leverage.
Prepayment
Fixed-rate loans may have yield-maintenance or prepayment penalties, while shorter terms offer more flexibility.
Closing timeline
Purchase or refinance loans close in 30–60 days, while construction or specialty deals may take 60–90+ days.
Eligible vs ineligible properties
Auto dealerships (franchise or independent)
Auto repair shops & service centers
Car wash facilities (express, tunnel, self-serve)
Tire shops and automotive service bays
Properties with major unresolved environmental contamination
Facilities lacking proper zoning or compliance for automotive use
Buildings with significant structural issues, obsolete layouts, or failing systems
Sites with title complications that cannot be cleared
Simple step-by-step loan process
FAQ (Frequently Asked Questions)
How much down payment do I need for an automotive property?
Down payments typically range from 20%–35%, depending on the loan program, property type, and business strength.
Can I get financing for a new or expanding auto repair shop?
Yes. Lenders review business history, projections, and market demand. Construction and expansion loans are available for qualified borrowers.
Do automotive loans require a personal guarantee?
Many lenders require guarantees, especially for owner-occupied or business-dependent properties. Non-recourse options may be available for strong assets.
Can I finance equipment or improvements?
Some programs allow for financing of lifts, wash systems, service bays, and mechanical upgrades as part of the overall project.
How long does underwriting take?
Most underwriting processes take 30–60 days for standard purchases or refinances. Construction or high-complexity deals may take longer.
Ready to start your automotive property loan?
Speak with a Rize commercial loan officer who understands automotive real estate. We’ll evaluate your deal, recommend the right programs, and help you secure a competitive term sheet.