Most independent dealers offer financing through outside lenders. The dealer writes a retail installment sale contract with the buyer, sends the credit application to one or more lenders, and sells (assigns) the approved contract to the lender, which pays the dealer and collects the payments. A few lenders specialize in independent dealers. New dealers usually have to apply to each lender separately, and approval depends on the lender.
Educational information only. This article is not legal or financial advice, and no lender named here is endorsed by California Dealer Academy.
In this article
- Why financing matters for a new dealer
- How dealer-arranged financing works
- Lenders that work with independent dealers
- Lending portals
- Other options: credit unions and buy here pay here
- California rules to know
- Frequently asked questions
Why financing matters for a new dealer
From experience (Garrett Eddings, professional opinion): Most people think they're going to run a cash-only business, and that couldn't be further from the case. I've seen people trying to finance cars under $5,000, especially in this market and this economy. Brand-new dealers will find it a little harder to set up financing, but you want to be the solution for the customer, not another problem.
How dealer-arranged financing works
- The buyer applies at your dealership. You collect the credit application and the buyer's documents.
- You submit it to lenders, directly through a lender's portal or through a multi-lender network such as RouteOne or Dealertrack.
- The lender approves terms: amount, rate, term and any conditions, such as proof of income.
- You and the buyer sign a retail installment sale contract. In California this contract is governed by the Automobile Sales Finance Act (the Rees-Levering Act, Civil Code §2981 and following).
- You assign the contract to the lender and send the funding package.
- The lender funds you and services the loan from then on.
Lenders that work with independent dealers
This list comes from each lender's own website and from the 2025 SubPrime Auto Finance News lender directory. It's a starting point for your own research. These are not endorsements, and terms, credit tiers and the states served change. Contact each lender for its current dealer requirements.
| Lender | What it says about independent dealers | How to start |
|---|---|---|
| Westlake Financial (Opens in new window) | Works with "both independent and franchise dealers" | Call 888-893-7937 |
| Lobel Financial (Opens in new window) | Offers "loan approvals for borrowers of all tiers." Accepts applications through Dealertrack, RouteOne or its own DealWRITER platform | Online dealer application |
| Veros Credit (Opens in new window) | Works with "franchise and independent automobile dealers." Lends under a California Finance Lenders Law license | New dealer checklist on its site |
| Credit Acceptance (Opens in new window) | Serves "franchise and independent dealers" | Dealer section of its site |
| Exeter Finance (Opens in new window) | "We work with franchise and independent dealers" | Call 1-855-4EXETER or request a dealer packet |
| AFS Acceptance (Opens in new window) | Listed in the 2025 directory as working with franchise and independent dealers, including in California | Contact through its site |
| Flagship Credit Acceptance (Opens in new window) | Listed in the 2025 directory as working with franchise and "well-established" independent dealers | Contact through its site |
From experience (Garrett Eddings, professional opinion): There are companies like Westlake Financial and Lobel. Those aren't endorsements; they're just lenders that exist. Who you go to first takes your own independent research, and approval varies depending on the lender, much like getting your customer financed.
Lending portals
Portals aren't lenders. They let you send one credit application to several lenders at once.
| Portal | What it does |
|---|---|
| RouteOne (Opens in new window) | Multi-lender credit application and contracting platform |
| Dealertrack (Opens in new window) | Multi-lender credit application, contracting and DMS tools |
Each lender on a portal still has to approve your dealership before you can send it deals.
Other options: credit unions and buy here pay here
- Credit unions: CUDL (Opens in new window), run by Origence, connects dealers to a network of credit unions through one platform. Rates can be lower for buyers with good credit.
- Buy here pay here: the dealership finances the sale itself and collects payments. That ties up your own cash and adds collection and compliance work. See What does buy here pay here mean?
California rules to know
- The contract: retail installment sale contracts must meet the Automobile Sales Finance Act's disclosure and form rules (Civil Code §2981 and following). Use contract forms built for California.
- Federal disclosures: the Truth in Lending Act requires the finance charge and APR to be disclosed.
- Compliance basics for dealers: dealer compliance guide · CARS Act (SB 766) changes
Frequently asked questions
Can a new independent dealer offer financing?
Yes, but it takes time. Each lender reviews your dealership before approving you to send deals, and requirements vary by lender.
What lenders work with independent used car dealers?
Lenders that say they work with independent dealers include Westlake Financial, Lobel Financial, Veros Credit, Credit Acceptance and Exeter Finance. Credit union networks such as CUDL are another route. None of these is an endorsement; research each one.
What's the difference between a lender and a portal like RouteOne?
A lender funds the loan. A portal like RouteOne or Dealertrack lets you send one application to several lenders that have already approved your dealership.
Do I need a special license to offer financing as a dealer?
Dealers write retail installment sale contracts under California's Automobile Sales Finance Act and assign them to lenders. If you plan to finance and service loans yourself, talk to an attorney about which licenses and rules apply.
Related questions
- Is a dealer license worth it?
- What does buy here pay here mean?
- How do used car dealers finance their inventory?
- Back to the California Dealer License FAQ
Next step: Start the 6-hour DMV-approved course for $99
Resources
- California Civil Code §2981 and following, Automobile Sales Finance Act (Opens in new window)
- Consumer Financial Protection Bureau: auto loans (Opens in new window)
- SubPrime Auto Finance News 2025 lender directory (PDF opens in new window)
Sources: each lender's website (linked in the table; checked Oct 16, 2026) · SubPrime Auto Finance News 2025 Finance Company Directory (PDF opens in new window). Verified 2026-10-16.
This article is for educational purposes only and is not legal or financial advice. California Dealer Academy doesn't endorse, recommend or have a business relationship with any lender listed, and the list isn't complete. Lender programs change; confirm current terms directly with each lender. The instructor notes reflect one instructor's professional experience and opinion.