By Mark J. Kane | Founder & CEO, Sunwise Capital | Forbes Finance Council Member 18+ years in business financing · 86,000+ businesses trust us · Boca Raton, FL Key Takeaways Equipment financing for auto dealerships covers service lifts, diagnostic tools, loaner fleets, detailing equipment, and showroom technology. Sunwise Capital offers equipment financing up to $5 million — often with no down payment required and approval in as little as 24 hours. The equipment itself serves as collateral, making qualification easier than unsecured loans for the same amount. Mark J. Kane’s team at Sunwise Capital has structured equipment deals for dealerships across new car, used car, RV, powersports, and specialty verticals. Ideal candidates have 5+ years in business, $750K+ annual revenue, and a 680+ credit score — though options exist across a range. Running a successful auto dealership requires capital on two fronts: inventory floor planning on one side, and service department equipment on the other. Most dealers focus almost entirely on floor plan financing — and leave significant efficiency gains on the table by deferring service equipment upgrades. Equipment financing for auto dealerships solves this without touching your working capital or floor plan line. Whether you’re adding alignment racks, upgrading diagnostic software, refreshing your loaner fleet, or expanding your service bay capacity, the right financing structure lets you deploy the equipment now and pay for it out of the revenue it generates. This guide covers how it works, what qualifies, and how to get funded fast through Sunwise Capital’s equipment financing program. Table of Contents Toggle What Equipment Can Auto Dealerships Finance?Service Department EquipmentDiagnostic and Technology SystemsLoaner and Courtesy Fleet VehiclesDetailing and Reconditioning EquipmentShowroom and Customer Experience UpgradesHow Equipment Financing for Auto Dealerships WorksFind out what your dealership qualifies for.Qualifying for Equipment Financing as an Auto DealershipCredit ScoreTime in BusinessAnnual RevenueEquipment DocumentationEquipment Financing vs. Floor Plan Financing for DealershipsFrequently Asked QuestionsWhat equipment can auto dealerships finance through Sunwise Capital?Do I need a down payment for dealership equipment financing?How long does dealership equipment financing take to close?Can I finance used dealership equipment?Is equipment financing better than leasing for auto dealerships?Can I bundle multiple equipment purchases into one loan?What interest rates should I expect for auto dealership equipment financing?The Bottom LineYour dealership qualified for equipment financing. Find out how much.About the Author What Equipment Can Auto Dealerships Finance? Equipment financing covers a broader range than most dealership owners expect. It’s not limited to service lifts and diagnostic tools. Mark J. Kane works with dealership clients on financing across the full operational footprint of a modern auto retail business. Service Department Equipment Two-post and four-post lifts, alignment racks, tire changers, wheel balancers, brake lathes, oil drain systems, and fluid exchange equipment are all financeable. So are emission testing stations and state-required inspection equipment. Diagnostic and Technology Systems OEM scan tools, oscilloscopes, ADAS calibration targets, and DMS (dealer management system) hardware qualify as equipment. Software subscriptions tied to equipment may also be included in certain structures. Loaner and Courtesy Fleet Vehicles A fleet of loaner vehicles is both a customer retention tool and a depreciating asset. Financing separates this cost from your floor plan and keeps your working capital available for inventory turns. Detailing and Reconditioning Equipment Steam cleaners, paint correction systems, ceramic coating equipment, and spray booths qualify. Reconditioning throughput directly affects used car gross margins — equipment here pays for itself quickly. Showroom and Customer Experience Upgrades Digital display systems, kiosk hardware, EV charging stations, and facility renovation tied to equipment installation may qualify under certain structures. “Equipment is one of the smartest ways to deploy borrowed capital because the asset itself generates the revenue to repay the loan. We can structure equipment deals up to $5 million for companies across construction, healthcare, and transportation — often with no down payment required.” How Equipment Financing for Auto Dealerships Works Equipment financing is a secured loan where the equipment serves as collateral. You make fixed monthly payments over a set term — typically 24 to 84 months — and own the equipment outright at payoff. This is distinct from an equipment lease, where ownership stays with the lessor. The secured nature of equipment financing means approval criteria are more flexible than unsecured working capital loans. Lenders are primarily concerned with the useful life and resale value of the equipment, the borrower’s cash flow, and basic credit health. According to Federal Reserve financial accounts data, equipment financing is one of the most widely used forms of small business credit — and for good reason. It aligns the financing cost with the asset’s productive life. Sunwise Capital Find out what your dealership qualifies for. No commitment. No impact to your credit score until you accept an offer. See My Funding Options → Soft check only · 2 minutes · No obligation Qualifying for Equipment Financing as an Auto Dealership Equipment financing qualification is primarily asset-driven. Here’s what Sunwise Capital evaluates and what dealership owners should prepare. Credit Score A 680+ personal credit score is the ideal starting point. Lower scores may still qualify, particularly for well-established dealerships with strong cash flow. The asset as collateral reduces lender risk compared to unsecured lending. Time in Business Two years minimum for most programs. Dealerships with 5+ years of operating history have access to the full range of Sunwise Capital equipment financing structures, including larger ticket sizes and longer terms. Annual Revenue Sunwise Capital’s sweet spot for dealership clients is $750K+ in annual revenue. The Census Bureau’s Annual Business Survey confirms that auto dealers at this revenue tier have strong access to commercial credit when working with the right lender. Equipment Documentation A quote or invoice from the equipment vendor, a description of the equipment’s use and expected productive life, and confirmation that the equipment is new or certified used are standard requirements. Equipment Type Typical Cost Range Typical Term Collateral Two-post lift $3,000–$10,000 24–60 months Lift itself Alignment rack system $20,000–$80,000 36–72 months System OEM diagnostic package $10,000–$50,000 24–48 months Equipment Loaner fleet (5 vehicles) $100,000–$250,000 36–60 months Vehicles Full service bay package $200,000–$1M+ 60–84 months Equipment Equipment Financing vs. Floor Plan Financing for Dealerships These are two entirely different financing products that serve different operational needs. Floor plan financing is a revolving line of credit tied to vehicle inventory — it turns over as vehicles sell. Equipment financing is a term loan tied to a specific asset with a defined useful life. The critical point: using your floor plan or working capital to fund equipment purchases is a misallocation. Equipment financing keeps that capital available for inventory turns, which is where dealership revenue is generated. Mark J. Kane structures equipment deals specifically to avoid this capital dilution. For dealerships considering both, Sunwise Capital’s team can help design a combined capital structure that keeps floor plan availability intact while funding service department and operational equipment separately through our broader lending programs. Frequently Asked Questions What equipment can auto dealerships finance through Sunwise Capital? Virtually any equipment used in the operation of a dealership — service lifts, diagnostic tools, alignment systems, loaner vehicles, detailing equipment, EV chargers, and showroom technology. Sunwise Capital finances equipment up to $5 million per transaction. Do I need a down payment for dealership equipment financing? Not on most deals. Sunwise Capital structures many equipment deals with no down payment required, particularly for established dealerships with strong cash flow. Larger transactions or lower credit profiles may require a 10–20% down payment. How long does dealership equipment financing take to close? Most transactions close in 1–5 business days. Sunwise Capital’s approval decisions come in minutes. Funding typically happens within 24–48 hours of approval for standard equipment transactions. Can I finance used dealership equipment? Yes — certified used equipment qualifies for financing. The equipment must be in good working condition, typically under 10 years old, and include documentation of condition and value. Is equipment financing better than leasing for auto dealerships? For most established dealerships, financing is preferable to leasing because you build equity in the asset and own it at payoff. Leasing makes more sense when technology obsolescence is a concern (e.g., rapidly evolving diagnostic software systems). Your Sunwise Capital advisor can help you compare structures. Can I bundle multiple equipment purchases into one loan? Yes. Sunwise Capital can structure a single equipment financing facility that covers multiple purchases — for example, three service lifts, an alignment rack, and a diagnostic package — under one payment. This simplifies cash flow management and often results in better overall terms. What interest rates should I expect for auto dealership equipment financing? Rates depend on credit profile, equipment type, loan amount, and term length. Sunwise Capital offers a Rate Match Guarantee — if you find a better rate on equivalent terms elsewhere, we’ll match it. Starting rates for well-qualified dealerships typically range from 6–12% effective annual rate. The Bottom Line Equipment financing for auto dealerships is one of the clearest cases where borrowed capital pays for itself. A new alignment rack increases throughput. Better diagnostic tools reduce cycle time. A loaner fleet improves customer retention and drives CSI scores. Each of these investments generates measurable ROI — and financing them properly means your working capital stays available for the inventory turns that drive your gross. Since 2010, over 86,000 businesses have trusted Sunwise Capital for financing that moves fast and structures correctly. Mark J. Kane and the Sunwise team serve dealerships — new car, used car, RV, powersports, and specialty — across 700+ industries nationwide. Equipment financing up to $5 million, approval decisions in minutes, and funding in as little as 24 hours. See your equipment financing options in 2 minutes — no commitment, no hard credit pull. What business owners say about Sunwise Capital Trustpilot Find. Fund. Fuel. Your dealership qualified for equipment financing.Find out how much. See your funding options in 2 minutes. No commitment. No impact to your credit until you accept an offer. Since 2010, over 86,000 businesses have trusted Sunwise Capital. See My Funding Options → ⭐ 4.9/5 Trustpilot · Forbes Finance Council Member · NEFA & AACFB Member · Funding in as little as 4 hours About the Author Mark J. Kane is the Founder and CEO of Sunwise Capital, a small business lending company based in Boca Raton, Florida. With more than 30 years of experience in business finance and executive leadership, Mark has helped business owners access the capital they need to grow, adapt, and compete. Before founding Sunwise Capital, Mark held senior leadership roles across capital markets, securities, healthcare, and internet finance. His background includes building high-growth financial platforms, expanding investment banking operations nationwide, training thousands of sales professionals, and scaling ventures from startup stage to multimillion-dollar revenue. Mark holds a B.S. in Psychology from the University of Massachusetts Amherst and a Master’s Degree from the University of Chicago. Through Sunwise Capital, Mark and his team have helped more than 86,000 businesses pursue funding solutions designed to support growth, cash flow, equipment purchases, and long-term success. Ready to apply? See your funding options in minutes at Sunwise Capital.
