Real-world advice that dealers can act on today and all year
CARMEL, Ind. – February 12, 2024 – If the chaos of the last four years has taught us anything, it’s that predicting the future comes with uncertainty. Still, there’s plenty of data to suggest that 2024 will bring stable wage and credit conditions that keep demand strong.
Cox Automotive expects small gains in the used-vehicle market, despite limited availability. These top tips can help independent dealers seize the opportunities those trends may create.
“Our goal is to provide dealers with advice and solutions that help them thrive in any environment,” said NextGear Capital President Scott Maybee. “Our team members work alongside independent dealers every day, providing expert insights to help them make more informed decisions and drive profitability for their business. These tips reflect the knowledge, expertise, and value they bring to every client relationship.”
- Share your services. Let buyers browsing your online offerings learn as much as possible from your vehicle photos. For example, do you buy cars off the street and not require the seller to buy a car? Do you provide extra services? Adding text with images ensures the viewer gets all of your messages.
- Respond to your Google reviews. If they’re good, thank the reviewer. If they’re not so good, address the concern and show empathy. You are being evaluated just the same as you assess your customers.
- Maintain financial records and don’t overextend yourself. Be aware of how much credit you have — especially if you have multiple floorplan lenders — and stay away from hard money lenders who drain a dealer’s cash flow daily. Also, ensure you understand where adjustments need to be made to offset rising costs.
- Use the Lienholder Loan Payoff program. NextGear Capital can help you close more deals and accept more trades while maintaining your cash reserves and keeping your focus on selling cars.
- Put urgency into selling. Time is money, so treat your first renewal as a “payoff due” to keep from getting stuck holding units that aren’t a good fit. Price vehicles based on market value and not how much you have in the unit. All deals may not be winners — if you don’t move metal quickly you can’t win at all.
- Stay informed about software options for managing your floorplan. These tools are constantly evolving. Look for solutions like the NextGear Capital mobile app that help you be efficient and enable you to easily stay on top of your commitments. Features that give you a clear view of due dates or that can help with audits and reconciliation save you time and money.
- Word of mouth is a gold mine. Invest in a strong CRM to stay connected and drive sales. At the sale, be transparent and create a great customer experience that will help drive repeat business. Remember, this is likely the second largest purchase of their life.
- Build a strong team culture and invest in your employees. The team is the backbone of the dealership; you can’t grow without the right staff. Find ways to invest in your team – new benefits don’t always have to have huge costs.
- Stay on top of industry insights. Keep your finger on the pulse of the automotive world, using the myriad of resources available online, including dealer groups you can join.
About NextGear Capital
NextGear Capital is the automotive industry’s largest independent inventory finance company, providing flexible lines of credit for dealers to purchase new and used inventory at over 1,000 auto and specialty auctions and other inventory sources throughout the United States. The company’s products and services allow dealers to floor plan nearly any type of remarketed unit, including retail, wholesale, salvage, and specialty. With a customer base of more than 18,000 dealers, NextGear Capital also provides a robust array of services and support that allow dealers to acquire and sell more inventory, including state-of-the-art online and mobile account management tools, title services, records management, and collateral protection. Headquartered in Carmel, Indiana, NextGear Capital is a Cox Automotive™ brand. For more information, visit www.nextgearcapital.com.
About Cox Automotive
Cox Automotive is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, auto manufacturers, dealers, lenders and fleets. The company has 29,000+ employees on five continents and a portfolio of industry-leading brands that include Autotrader®, Kelley Blue Book®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch® and FleetNet America®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn.