🏁 What Is Owner Financing — and How Common Is It in the Auto Shop World?

Selling an automotive business doesn’t always mean a buyer walks in with a check for the full price. In fact, owner financing (also called seller financing) is becoming more common in today’s auto repair industry — especially in Texas.

Owner financing means the seller acts as the lender, allowing the buyer to pay a portion of the purchase price over time, usually with interest. The buyer makes a down payment, then makes monthly payments until a balloon payment or payoff is reached.

It’s often used as a bridge between cash and traditional bank financing. For example, a deal might be structured like this:

• 60% bank-financed (SBA loan)

• 25% owner-financed note

• 15% cash down

This setup helps buyers close faster and allows sellers to earn interest income while deferring some taxes. For shop owners, it can be the difference between a deal closing or sitting on the market.

At RPM Shop Sales, we see owner financing in roughly one out of every three transactions, depending on the deal size and the strength of the buyer.

If you’re a seller, it’s not about taking on risk — it’s about staying in control. You get to choose the terms, approve the buyer, and secure your loan with either the business assets or property. Done right, it’s a powerful tool to get your shop sold faster and profitably.

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