Oklahoma Used Vehicle Dealerships & In-House Finance Operation

$14.2M

Revenue

$2.7M

SDE

7.4x

Multiple

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Full Editorial Writeup

This is a two-location used vehicle dealership operation in Oklahoma paired with an in-house consumer lending book, generating roughly $14.2M in 2025 revenue and $2.7M in pre-tax earnings with zero personal owner add-backs claimed. The dealerships focus on the value-oriented segment, pricing inventory below the tier where independents fight head-to-head with new-car franchises. The operating engine leans on data-driven vehicle sourcing, in-house reconditioning, digital customer acquisition, and broad financing access, all run by a 13-person team with minimal day-to-day owner involvement.

The complementary finance arm carries roughly $4.5M of outstanding loan principal, throwing off recurring interest income while serving as an additional financing channel that converts more dealership shoppers into buyers. At acquisition, the platform also holds about $1.15M of vehicle inventory at cost. Combined, that is roughly $5.65M of tangible working assets sitting inside a $19.995M ask, which materially reframes the effective multiple on the operating earnings.

Management frames strong momentum: first-half 2026 results imply an annualized run rate near $16.5M in revenue and $4.0M in pre-tax earnings. That trajectory is the crux of the deal. If it holds, the 7.41x EBITDA headline compresses toward roughly 5x on run-rate earnings. If it does not, a buyer is paying a full price for a leased, thin-margin used-car business with a subprime-flavored loan book.

Why we like it

Earnings quality is unusually clean for a used-car shop: the seller claims $2.7M in 2025 pre-tax earnings with zero personal add-backs, which removes the usual games around inflated owner perks. If that holds up in diligence, the reported number is closer to true buyer economics than most listings at this size.
The vertically integrated model, sourcing, reconditioning, retail, and captive finance, is a real structural advantage. The $4.5M loan book generates recurring interest income and lets the dealership close buyers who cannot get bank financing, capturing margin at both the sale and the note.
This is a genuinely manager-run business with 13 employees and minimal owner involvement, which is rare at this earnings level. A strategic buyer or PE sponsor inherits a functioning team and centralized processes rather than a seller-dependent lifestyle business masquerading as a platform.
The tangible asset backing is meaningful: roughly $4.5M in seasoned loan principal plus $1.15M of inventory at cost sits inside the price. That $5.65M of collateralized working capital provides downside protection and reframes the effective operating multiple below the 7.41x headline.

How to improve it

Pressure-test and then productize the 1H 2026 run rate. If revenue and earnings are genuinely tracking to $16.5M and $4.0M, formalize the reporting, hold the discipline, and use the momentum to negotiate an earnout that protects you if the acceleration was cyclical rather than structural.
Grow the finance book deliberately with tighter underwriting analytics. The $4.5M portfolio is the highest-margin asset here, so systematizing collections, loss reserves, and re-lending recovered principal can lift blended returns without adding a single car to the lot.
Replicate the model in adjacent Oklahoma and neighboring-state markets using the existing centralized sourcing and reconditioning playbook. The listing already flags geographic expansion, and cloning a proven unit is far cheaper than the roll-up premiums you would pay to buy independents.
Add or expand a service and reconditioning revenue line to existing customers. In-house reconditioning capability already exists, so opening bays to retail service work converts a cost center into a recurring, higher-margin income stream that also drives repeat customer contact.
Rebuild the digital acquisition funnel with tracked cost-per-sale metrics by channel. A data-driven dealer should be able to shift spend toward the cheapest converting sources, and small improvements in acquisition cost drop straight through on a thin used-car gross.
Negotiate to purchase or secure long-term control of the two leased locations. Both sites are leased, which is a continuity risk at renewal, and locking in favorable lease terms or buying the dirt protects the operating platform you just paid $20M for.
Build a formal reserve and stress model for the loan portfolio against a downturn scenario. Subprime auto paper defaults rise fast in a recession, so instituting conservative reserving now protects reported earnings from being wiped by charge-offs later.

Diligence notes

Scrutinize the loan portfolio quality above everything else. Demand a loan-tape with vintage, delinquency buckets, charge-off history, and recovery rates, because $4.5M of value stated at principal is worthless if the paper is deeply subprime and under-reserved.
Verify the 1H 2026 acceleration is real and repeatable, not a timing or accounting artifact. The entire valuation logic rests on the run-rate story, so tie the interim numbers to bank statements, unit sales logs, and gross-per-unit trends month by month.
Confirm the $2.7M pre-tax earnings and the zero-add-back claim against tax returns and general ledgers. A used-car operation with a captive finance arm has complex revenue recognition, so reconcile how interest income, gross-on-sale, and reconditioning costs flow into that figure.
Examine both facility leases for term, renewal options, rent escalators, and change-of-control clauses. With no real estate included, lease continuity is a core operating risk that could force relocation or a rent spike right after close.
Assess regulatory and licensing exposure on the lending side. In-house auto financing triggers state consumer-lending, usury, and dealer-licensing requirements, and a buyer must confirm the operation is fully compliant before assuming the note book.
Test how much of the earnings and customer acquisition depends on the current 13-person team and specific financing relationships. Confirm key employees will stay, and evaluate whether the third-party lender relationships transfer or need re-approval under new ownership.

Source

Originally listed on BizBuySell. View original listing →