Loans for Auto Repair Shops

Auto repair is a steady business: cars always need fixing. Lenders like that, but they also look carefully at environmental issues and equipment.

What shops finance

• Lifts, alignment machines, diagnostic scanners, tire machines, paint booths.
• Buying an existing shop with its customer base.
• Buying the building, often the biggest step for a shop owner.
• Working capital for parts inventory.

Best-fit options

Need	Options
Equipment	Equipment financing, SBA 7(a)
Buying a shop	SBA 7(a); see buying a business
Buying the building	SBA 504 or 7(a)
Parts and slow months	Line of credit

Environmental reviews

Lenders treat auto repair, body shops and gas stations as “environmentally sensitive” properties. When real estate is involved, expect an environmental review, and sometimes a more detailed study, because of oils, solvents and old underground tanks. Plan for the time and cost. Ask the seller for any past environmental reports.

What lenders look for

1. Certifications (such as ASE) and years of experience.
2. Repair order history from your shop software: car count, average repair order.
3. Customer mix: retail, fleet accounts, insurance work for body shops.
4. Proper disposal records for oil, tires and hazardous waste.
5. Clean books with all income reported.

Find lenders active in personal and repair services in our lender finder, and estimate equipment payments in our calculator.

Frequently asked questions

Why do lenders want an environmental review for auto shops?

Oils, solvents and old underground tanks can contaminate the property, so lenders check before financing real estate.

What is the best way to finance shop equipment?

Equipment financing or an SBA 7(a) loan for lifts, alignment machines and diagnostic tools.

Can I buy my shop's building with an SBA loan?

Yes, with an SBA 504 or 7(a), plus an environmental review.