How a first-time car dealer becomes an owner

Under a highly leveraged government-guaranteed loan program facilitated by the U.S. Small Business Administration, the bank initially financed only the veterinary industry, but about four years ago it expanded to about 35 companies, including dealers, according to Duncan. expanded into the industry.

The pandemic coincided with an increase in loans to live oak dealer buyers.

“2020 was probably one of the first high-profile years in terms of dealer financing,” Duncan said. “It was $25 million or $30 million.”

Spending will increase to $70 million in 2021 and $90 million in 2022, he said.

Duncan estimates that Live Oak has backed about 19 initial dealer purchases (including Boyd), with eight in 2021 and seven in 2022. He expects more people to be backed by banks in 2023.

Other consulting and financing programs have emerged in recent years aimed at helping aspiring novice dealers. His DCG Capital Ownership Accelerator Program for Dave Cantin Group, launched in 2021, is one example.

“DCG Capital works closely with the general manager or operator of a non-proprietary car dealership on how to properly prepare for the purchase of their first store, from a financing perspective to a credibility perspective, a professional approach. It’s a formal aspect of what manufacturers are looking for in every aspect, from down to down,” said CEO Dave Cantin. “It’s basically giving them all the tools, resources and knowledge. And it must be properly prepared to be approved by the manufacturer and approved by the financing institution. ”

The program will also work with financial institutions, private equity groups and even family offices to help prospective store buyers secure financing such as mortgages, floor plan financing and working capital loans, Cantin said. says Mr.

The program has an initial cost, Cantin said. Attendees don’t have to use his DCG Acquisitions, another Dave Cantin Group company, when purchasing the store, he added.

According to Cantin, his program worked with dozens of people to buy dealerships, many of them buying first or second stores.

“This program was really built on the general managers who work at dealerships who are about to retire. There is no one else to take over that platform. I’m just asking for help on how to buy their store,” he said.

“And we’ll be right there to help them.”