Financing for automotive
Dealers, repair shops and body shops invest in lifts, diagnostic tools and inventory.
Key points
- Dealers, repair shops and body shops invest heavily in equipment and inventory.
- Shop equipment like lifts and diagnostics holds its value well.
- Many automotive businesses benefit from owning their property.
- Lenders look at repair volumes and parts margins.
How financing works in automotive
Automotive businesses combine skilled labour with expensive equipment and inventory. A repair shop needs lifts, diagnostic tools and parts on hand. A dealer carries vehicle inventory. A body shop invests in paint booths and frame equipment.
Financing helps you equip the shop, carry the inventory and, for many, buy the building you work from.
Common financing needs
Here’s how businesses in this industry typically match their needs to the right kind of financing.
| What you need | Usually the best fit | Why |
|---|---|---|
| Lifts, diagnostics and shop equipment | Equipment financing | Specialised equipment financed over its working life |
| Parts and vehicle inventory | Lines of credit | Revolving credit for stock that turns over |
| Buy your shop or lot | Commercial real estate | Own the property instead of renting it |
| Buy another shop | Business acquisition | Expand by acquiring an established location |
How NorthMerit can help
Apply once and we’ll connect you with one financing partner who works with businesses like yours. It’s free, and there’s no obligation.
What lenders look at
Lenders look at your repair and service volumes, your parts and labour margins, your equipment list and how long you’ve operated. For property, they’ll look at zoning and any environmental history, which matters for automotive sites.
Steady fleet or insurance work can strengthen an application by showing reliable revenue.
Other things partners commonly ask about: shop equipment and diagnostic tools; parts and vehicle inventory; owning the property you operate from.
Buying the shop
A repair shop that has rented for ten years buys its building for $900,000 with 70% financing.
How to prepare
Have your financial statements, an equipment list, monthly service volumes and, for property, the purchase agreement and any environmental reports ready.
Common questions
Is NorthMerit a lender?
Does it cost anything to apply?
Who will contact me?
Other industries
The right financing, from the right partner.
Apply once. One financing partner who knows businesses like yours. Free, with no obligation.
