Unlock Capital from Your Real Estate

Tap Into the Value of Your Dealership’s Real Estate

If you own your dealership real estate, you may be sitting on untapped capital. A sale-leaseback allows you to unlock that equity—without moving or disrupting your business.

At Legacy Automotive Capital, we work with successful operators like you to turn owned property into a source of growth. Whether you’re looking to expand, pay down debt, or increase liquidity, we can structure a seamless transaction that supports your goals.

✅ Keep control of your location
✅ Unlock immediate capital
✅ Preserve your operating flexibility

Let’s explore how your property can work harder for your business – 610-304-9347 or austin@legacyautocapital.com.

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Use Cases for our Capital: Refinance Alternative

Use Cases for our Capital: Refinance Alternative

Dealers may stay in their real estate for generations, but their loans do not. The average commercial property loan is 5-7 years. Every 5-7 years a car dealer is facing current interest rates and LTV’s.

Example Scenario:

  • Dealer has 3% property loan expiring at an underappraised $20 Mil valuation.
  • Dealer is facing a refinance at 70% LTV with a 7.5% interest rate.
  • Dealer has $6 Mil + in trapped equity and a significantly higher mortgage cost.

Solution:

  • Legacy acquires the real estate at or above $20 Mil valuation
  • Dealer has zero trapped equity and can gain proceeds at Settlement
  • Dealer converts the mortgage to rent and lowers their monthly cost

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Succession Planning

Succession Planning

Succession planning is crucial for car dealers, but accessing capital without disrupting operations can be challenging. A sale leaseback strategy unlocks real estate equity, providing liquidity to fund ownership transitions while retaining control of the dealership.

This approach ensures a smooth succession, preserves working capital, and offers financial flexibility without restrictive covenants. In today’s high-cost market, leveraging real estate assets can be a game-changer for securing your dealership’s future.

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Tesla’s Use of SLB Capital

Tesla's Use of SLB Capital

Tesla has the fastest growing retail footprint among automotive retails nationwide with 237 stores and showrooms nationwide, 192 of which are stand alone service centers.

Tesla’s growth has been fueled by a focus on where they see the highest return on capital: operating an automotive business, not owning real estate.

Tesla’s continue embrace of the sale-leaseback and preferred developer program for their real estate has allowed them to accelerate their growth while maintaining a higher cash balance.

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Benefits of Sale Leaseback Strategy

Benefits of Sale Leaseback Strategy

Franchised new car dealers prioritize business operations but overlook the importance of a dealership real estate strategy. In today’s high-cost buy/sell market, Sale Leaseback Strategies offer a smart way to boost financial flexibility and fuel growth.

  • 100% + Financing
  • $0 Equity Required
  • Rates competitive or lower than market interest rates

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5 Reasons Why Dealer Real Estate Valuations are Flawed

5 Reasons Why Dealer Real Estate Valuations are Flawed

Dealers can unlock trapped equity with Legacy Automotive Capital’s specialty financing programs, providing them access to funds to use for growth, renovation, or expansion.

Differing valuation perspectives by their Appraisers

1) Income Approach vs. Owner-Occupant Valuation:

  • Appraisers focus on property use value, de-emphasizing rental income
  • LAC values properties based on rental income and return on investment

2) Appraisers Incorrectly Compare Property Types:

  • Ex: Appraisers often compare Toyota properties to Nissan, Used Car, Carvana properties
  • LAC values properties appropriate

3) New Car Volume

  • Appraisers Ignore New Car Volume
  • LAC Highly Values new car volume

4) Brand Value

  • Appraisers do not understand brand value
  • LAC takes into account brand ranking/status

5) Image Compliance

  • Appraisers rarely understand if a property is newly imaged or in need of image redevelopment
  • LAC values image status appropriately

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