Noting significant progress in discussions, America’s Car-Mart and its lenders have agreed on a second extension to possibly avoid default on its October 2025 loan.
The new extension announced Friday in a filing with the U.S. Securities and Exchange Commission is through Friday, June 19.
Driving the news: America’s Car-Mart, one of the nation’s largest subprime buy-here, pay-here dealers based out of Arkansas, was previously granted an extension until June 12 from Silver Point Finance and other lenders.
In October 2025, Car-Mart took out a $300 million loan from Silver Point. The five-year term included an offer for Silver Point to buy 10% of its shares.
According to its third-quarter financial statement, Car-Mart’s total debt was $892 million. Car-Mart made significant structural changes in the last year.
For example, Car-Mart consolidated 18 stores in late 2025.
It also announced the closure of 42 stores in April.
Additionally, the BHPH dealer hired the global investment bank Houlihan Lokey Capital, Inc., as its financial advisor to explore financing options.
What they’re saying: “The Company reports that discussions with the Agent and the Lenders remain active, constructive, and productive,” Car-Mart noted in its filing. “The Company believes the parties have made significant progress and are nearing an amendment to the Credit Agreement that will resolve, at least on an interim basis, concerns related to anticipated or actual defaults under the Credit Agreement.”
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What it means: A possible default could have ripple effects through the subprime market, which is seeing delinquencies rise. In fact, S&P Global data presented at the Non-Prime Auto Finance Conference in Irving in June pointed out that the subprime market is seeing 30-day delinquencies at 15.2%
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