Car Dealership Business Loans

From forecourt stock to workshop equipment, fund your dealership with confidence. Explore business funding through Fundably. Eligibility criteria apply.

Typical Range

£20k – £2m

Average Loan

£200k

for car dealership

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Minimum 12 months trading history as a registered motor trader
Trade plates or motor trade insurance in place
Evidence of a consistent stock turn, typically via management accounts or sales records
Personal guarantee usually required from directors for stocking and secured facilities

Loan types available

Stocking Finance (Floorplan)

Rate: 4.9% – 12.9% APR on stock value
Term: Revolving facility, typically 90 – 180 days per vehicle
Security: Vehicles held in stock (floorplan security)
Best for: Funding forecourt stock without tying up cash in vehicles that may take weeks to sell

Secured Business Loan

Rate: 4.9% – 15.9% APR
Term: 1 – 20 years
Security: Commercial property or personal property
Best for: Buying or extending a forecourt and showroom, or acquiring another dealership

Asset Finance

Rate: 5.4% – 13.9% APR
Term: 1 – 7 years
Security: The asset being financed
Best for: Workshop equipment, ramps, diagnostic tools, and courtesy or delivery vehicles

Representative example

Borrow £200,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£6,444. Rates depend on your circumstances and the type of loan.

Common challenges

Vehicle stock depreciates quickly and its value as security can fall if a car sits unsold for longer than expected
Dealerships that offer consumer finance to customers when selling vehicles are separately regulated for that activity, which adds a compliance layer
Forecourt space and showroom premises represent a significant fixed cost, particularly in higher-footfall locations
Used vehicle values can move quickly with wider market conditions, affecting both stock value and resale margins

Bad credit?

Some specialist lenders consider car dealership businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

What is stocking finance and how does it work for a dealership?

Stocking finance, also called floorplan finance, lets you fund forecourt vehicles without paying for them outright from cash reserves. The lender advances funds against each vehicle, using it as security, and the facility revolves as cars sell and new stock comes in. You typically pay interest on the outstanding balance rather than the full facility limit, and repay each vehicle's portion when it sells.

Can I get finance to open a second dealership site?

Yes, a secured business loan is the usual route for buying or fitting out a second forecourt and showroom, since the amounts involved are typically larger than stocking finance covers. Lenders will want to see that your existing site is trading profitably, along with a clear plan for stock levels and staffing at the new location. Lenders will also want to see a realistic stock and staffing plan for the new location.

Do I need finance for workshop equipment separately from forecourt stock?

Usually yes. Stocking finance is specifically designed for vehicles held for resale, while workshop equipment such as ramps, diagnostic tools and tyre machines is typically funded through asset finance instead. Keeping the two separate also means a slow-moving vehicle does not affect your ability to invest in servicing and workshop capability. Lendus can help you set up both facilities so your servicing capability is never held back by stock finance being tied up.

How does falling used car value risk affect my dealership finance?

Lenders offering stocking finance factor vehicle depreciation into how much they will advance against each car, and most facilities require ageing stock to be reviewed or refinanced after a set period. Keeping stock turning quickly and pricing in line with the current market both help maintain the value of your security and keep your facility working efficiently. Regularly reviewing pricing against current market data is one of the most effective ways to manage this.

Equipment finance for car dealership businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items car dealership businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
EPOS System	£600 to £40k	EPOS System finance
CCTV System	£2k to £80k	CCTV System finance
Adas Calibration	£10k to £45k	Adas Calibration finance
Air Conditioning Service Unit	£2k to £14k	Air Conditioning Service Unit finance
Alignment Lift	£6k to £30k	Alignment Lift finance
Brake Tester	£8k to £25k	Brake Tester finance
Emissions Analyser	£3k to £12k	Emissions Analyser finance
Engine Crane	£300 to £4k	Engine Crane finance
Exhaust Extraction	£600 to £25k	Exhaust Extraction finance
Four Post Lift	£3k to £25k	Four Post Lift finance
Headlamp Aligner	£700 to £4k	Headlamp Aligner finance
Nitrogen Generator	£2k to £9k	Nitrogen Generator finance

Browse all equipment finance pages

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.