Buying a car showroom?

Usually a multiple of maintainable earnings, with the vehicle stock priced separately at trade or clean values. The biggest influences are stock turn, gross margin per unit, and how much of the profit comes from aftersales, parts and finance arrangements rather than metal alone. A showroom with a steady trading record and a lease a buyer can rely on is worth materially more — and is far easier to finance — than one whose results depend on a couple of exceptional months.

Stock is normally valued separately from the business on an agreed basis — clean prices or trade values — with aged vehicles written down and anything on consignment or already sold excluded. Just as important is how the stock is funded: floor plan or funded-on-the-floor arrangements usually have to be settled or replaced at completion, so we make sure the funding covers the vehicles you actually need on the forecourt on day one, not just the goodwill.

Not automatically. Most dealer agreements need the manufacturer's or franchisor's consent, and many run their own approval process covering your premises, staff, systems and business plan. That takes time, so we suggest opening the conversation early and making your offer conditional on approval — discovering it afterwards is an expensive surprise.

More than most buyers expect. Sales staff often hold the customer relationships, the manufacturer accreditations and the motor finance knowledge, so their contracts, commission arrangements and willingness to stay form part of the valuation. Evidence of a second tier of leadership — and processes written down rather than held in one person's head — strengthens both the deal and the funding application.

It's normal to keep part of the price back until you know the customer base has stuck — deferred consideration or an earn-out tied to retention protects you if service bookings, parts custom or repeat buyers drift away. Lenders are familiar with these structures and will build them into the funding package, so you're not borrowing against income that walks out of the forecourt.

Most car showroom acquisitions are funded with a deposit of around 20% to 30% of the purchase price, though this varies with the strength of the trading figures, whether the deal includes freehold property, and your own experience. Where there is property security or a particularly strong trading history, lenders can sometimes go further.

Yes. Specialist acquisition lenders will lend against goodwill where the trading history supports it, which is essential for leasehold deals with no bricks-and-mortar security. The application has to be presented so the underwriter can see the sustainable, transferable earnings behind that goodwill.

Indicative terms are usually available within 48 hours of your enquiry. A full offer typically follows within two to four weeks, with completion driven mainly by valuation and the pace of the legal work on both sides.

iLendi Capital is an acquisition finance and loans broker, not a direct lender. We work with buyers across the UK to prepare their funding applications, introduce them to the lenders most likely to approve them, and manage the deal through to completion. We also specialise in government-backed facilities, helping you secure up to £2m toward your purchase.