How to Safely Sell Vehicles During COVID-19

independent car dealer checking out a floor planned vehicle

independent car dealer checking out a floor planned vehicleIndependent dealers have seen business interrupted by COVID-19’s economic impact since as early as March. While customers are no longer spending a lot of time looking at different vehicle models on dealership lots, there are still plenty of people who are in the market to purchase a used vehicle. By taking time for some careful preparation, you can still effectively sell vehicles while keeping your customers as safe as possible. Here are some tips and best practices to help keep everyone healthy during the car buying process:

List Your Inventory Online – It’s important that your customers spend as little time as needed physically at the dealership, so having a digital retail plan in place is key. Make sure you have all of your inventory listed online and keep it updated. Provide as much detailed information as possible on the vehicles you have listed and take multiple pictures of each car so that customers are able to view both the interior and exterior from different angles.

Create a Virtual Buying Process – Once customers know what type of vehicle they want, make sure they’re able to do things like check their credit or get preapproved while maintaining social distancing. You should also answer any questions they have beforehand either through email or over the phone. Ideally, you should have a customer complete some of the paperwork electronically. Emailing paperwork makes the process as hands free as possible. You should also consider offering them the option of delivering their vehicle to their home once the sale is complete.

Take Precautionary Measures – Once customers are ready to make a purchase, take all possible precautionary steps to ensure you’re implementing social distancing. Schedule private appointments with customers so that you’re able to limit the number of people who’re in the dealership at once. If they still want to come in and test drive the vehicle before signing on the dotted line, make sure that you thoroughly disinfect the vehicle before and after they are in it. Keep your dealership stocked with hand sanitizer and plenty of disposable masks and gloves. And don’t be afraid to ask customers to bring in their own pens to the dealership if they need to fill out paperwork, helping to minimize the risk of exposure.

Continue to Make Adjustments to Procedures as Needed – As things change, continue monitoring your processes to ensure you’re creating a seamless buying process for your customers, while still keeping everyone as safe as possible. Even if things start to return back to normal, you may want to consider continuing to use some of the new processes you’ve put into place. Now is a good time to evaluate if the changes you’ve made have created solutions to existing problems or helped streamline your sales process.

It’s hard to know what’s going to happen over the next few months, but both customers and dealers alike can rest assured knowing that by taking time to do some careful planning and preparation, they can still sell and purchase a vehicle as safely as possible.

 

Cox Foundation Donates to Gleaners Food Bank

CARMEL, Ind. (May 1, 2020) – Cox Communications and Cox Automotive are working together to help feed families in Carmel through Gleaners Food Bank of Central Indiana with a $25,000 donation from The James M. Cox Foundation. The grant will support local families in need during the COVID-19 pandemic.

The James M. Cox Foundation is the charitable arm of Cox Enterprises and the parent company of Cox Communications and Cox Automotive. In response to the growing strain on feeding the community, the foundation announced a $25,000 donation to support people in need where Cox employees live and work.

“We are proud to support Gleaners,” said Scott Maybee, president of NextGear Capital. “It provides sevices to over 21 counties in central Indiana, including over 15,000 boxed meals weekly to children and families who face hunger in our region. As school and workplace closures make access to nutritious food even more challenging, these children and working families need our help now, more than ever.”

For more information on how to receive meals from Gleaners Food Bank, visit https://www.gleaners.org/.

 

About Cox Automotive

Cox Automotive Inc. makes buying, selling, owning and using cars easier for everyone. The global company’s 34,000-plus team members and family of brands, including Autotrader®, Clutch Technologies, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with revenues of $21 billion. www.coxautoinc.com

About Cox Communications

Cox Communications is committed to creating meaningful moments of human connection through broadband applications and services. The largest private telecom company in America, we proudly serve six million homes and businesses across 18 states. We’re dedicated to empowering others to build a better future and celebrate diverse products, people, suppliers, communities and the characteristics that makes each one unique. Cox Communications is the largest division of Cox Enterprises, a family-owned business founded in1898 by Governor James M. Cox.

About the James M. Cox Foundation 

The James M. Cox Foundation is named in honor of Cox Enterprises’ founder and provides funding for capital campaigns and special projects in communities where the company operates. James M. Cox was Ohio’s first three-term governor and the 1920 Democratic nominee for president of the United States. The Foundation concentrates its community support in several areas including: conservation and environment; early childhood education; empowering families and individuals for success; and health.

Marketing Resources to Support your Dealership

Trying to run your dealership during this challenging time can seem like an uphill battle, not only are you trying to figure out how to safely sell vehicles to your customers but you’re also looking for ways to save money. Fortunately, there are several free or low-cost marketing tools that are currently available and easy to use. Here are some resources and tips on supporting your marketing needs during the current economic climate:

Optimize your Website – If you already have a website, now is the time to ensure you’re using it to its full capacity. Keep any inventory you’re listing online updated and make sure you’re including several high-quality photos since customers will want to minimize the time spent at your dealership. You can use free photo editing tools available on your mobile device or download apps like Adobe Photoshop Express to make sure your photos look as good as possible. You should also consider having a dedicated COVID-19 page or section on your website that links to any social media channels you’re using, contains updates to your business and includes information on actions you’re taking to help keep your staff and customers safe. If you don’t have a website, you should consider using a Google My Business account to list and verify all of your dealership information including store hours, addresses and contact information.

Embrace Social Media Channels – If you’ve been hesitant to use social media before, now is the time. Not only can you provide real-time updates and quickly communicate to your customers, but you can also use social media to help sell your inventory by using hashtags to help customers search specific makes and models. Facebook ads while not free, can also be used to help you target the right customers for your business based on demographics like geographic location and personal interests. You can also boost posts for a minimal fee to reach a larger audience.

Become a Designer – You don’t need a degree in graphic design to create simple flyers and digital marketing materials. Graphic editing software like Canva are not only free but allow independent dealers to create anything from images that can be used in social media posts, to illustrations that can be used in posters or flyers. If you’re simply looking for a quick way to help your dealership stand out, logo making websites like Wix allow you to create a new logo for your dealership in under 30 minutes.

Create Your Own Videos – Thanks to modern technology, it’s easy to shoot a video from your mobile device that can be uploaded to your social media channels or posted on YouTube. If you do, make sure that you also include a link in the description that will direct your viewers back to your website. You can also use video services like Biteable to quickly create a commercial for as little as $15 a month.

Stay Connected – Sending emails to your customers to keep them informed on upcoming promotions or business changes is a great idea.  Tools like MailChimp provide you with templates to create emails, then allows you to distribute those emails to 2,000 unique email addresses for free.

Get Feedback – Even though your customers aren’t going to be able to come into the dealership as frequently, you can still get their feedback through surveys. SurveyMonkey is a free tool which allows you to create online surveys so you can ask questions that will help you get a better pulse on what your customers’ current needs are. Then, you can use that feedback to become more effective in making decisions to support your business and customer’s needs.

Even though these are uncertain times, there are several marketing tools and resources available to help you to continue to run your business and make adjustments quickly even if you’re on a shoestring budget.

Relief Package Extension & Resource Hub Launch

Next Gear Capital in Carmel Indiana.

Next Gear Capital in Carmel Indiana.CARMEL, Ind. (April 24, 2020) – As part of its ongoing response to the COVID-19 pandemic, NextGear Capital, the automotive industry’s largest floor plan provider for independent dealers, announced it’s continuing to support dealers during this crisis by extending the most impactful aspect of its initial dealer relief program.

We heard what truly mattered to our customers and responded by continuing to defer curtailment and extension payments for eligible floorplan advances, for all NextGear Capital dealers in good standing, through May 31, 2020. To put it in perspective, within the first 30 days of NextGear Capital’s original relief package, NextGear Capital deferred more than 160,000 payments, providing assistance to more than16,000 dealers when it was needed most.

“After discussions with our dealers, we decided to continue the relief terms that were the most important, beneficial and meaningful to them and their businesses,” Scott Maybee, president of NextGear Capital, said. “Our hope is that, between the relief package, our incredible staff and the resources we’ve put together online, we can help our dealers make it out on the other side of this unprecedented economic crisis. Sticking together is the only way our industry will get through this still intact, and we want all of our dealers to know we are here to support them however we can.”

In addition, earlier this month, to show NextGear Capital’s commitment to supporting its customers, NextGear Capital advised dealers that the assistance provided in the initial package would be extended to the end of April.

NextGear Capital also launched a COVID-19 Resource Hub so dealers can easily access important, up to date information in one place. The hub aggregates information from Cox businesses and outside experts like the CDC, providing valuable resources in one spot to help dealers navigate this uncertain time. NextGear Capital will continue to monitor this crisis and is committed to supporting its clients through this time.

Sourcing Inventory in a Digital Marketplace

image of aged used inventory vehicles on dealership lot

image of aged used inventory vehicles on dealership lotDigital buying has long been an option but in today’s current COVID-19 pandemic, it’s become a necessity. Thanks to modern technology, it has never been easier to source inventory from the comfort of your home or office. According to data provided by Manheim, over half of their vehicle sales are sold through a digital transaction. Here are some tips designed to help you successfully source inventory in the expanding digital marketplace:

Make Informed Decisions – Thanks to an abundance of information available online, it’s easy to find out anything you want to know about a vehicle before purchasing it. Tools like vAuto allow you to see the wholesale value of any car you’re looking at, along with its current market value. Tools like these can help you feel confident when a customer wants to negotiate on the cost of a vehicle. 

Benefit from Enhanced Transparency – Gone are the days when dealers were wary of purchasing vehicles online because they couldn’t see or touch them. Thankfully, most auctions have been selling their inventory digitally long enough that they’ve near perfected the experience for buyers. While you can’t physically ‘kick the tires’ on a vehicle virtually, you can access tools that show you in-depth condition reports, 360-degree vehicle imaging and detailed inspection reports without having to leave your home or dealership.

Increase Your Inventory Options – When you are on the hunt for a certain type of vehicle, there’s no easier way to track down the make or model you’re looking for than by going online. Instead of spending hours traveling from auction-to-auction in search of the vehicle you’re looking for, tools like OVE save you time by providing access to the largest online wholesale marketplace in the industry and a one-stop shop to the inventory you’re looking for.

Streamline Your Buying Process – Besides having more access to a variety of inventory options, you can also purchase vehicles online. Tools like Manheim Express allow dealers to bid on and buy vehicles from the convenience of their mobile device. If you use your NextGear Capital floor plan to purchase your inventory, you can benefit from other products and services. Account Portal for example allows you to see credit availability, clear audits, request title information and pay off your floored units through your desktop or mobile device.

Sourcing your inventory digitally has become an essential part of remaining competitive in the ever-changing automotive industry. By using convenient tools that allow you to search for and purchase vehicles without having to travel anywhere, you’ll have more time to spend on other areas of your business which will help to make you more profitable.

Follow Us on Social Media for Real-Time Updates

In times like these, it’s more important than ever to connect with your vendors and business partners on social media. Social media provides real-time updates and messaging from some of the biggest names in our industry, including NextGear Capital. In fact, every day we are posting, sharing and interacting with clients through our social media accounts. While social media is often used for entertainment, our channels provide information that could be beneficial to your business. You can find NextGear Capital on Facebook , Twitter and LinkedIn. 

 

https://www.facebook.com/nextgearcapital/
@NextGearCapital
https://www.linkedin.com/company/nextgear-capital/

Real-Time Updates & Information

By following us on social media, you’ll get access to real-time updates and information from the company. Some of these posts may contain essential information to your business, like our COVID-19 Relief Package. We also share any urgent changes to our business operations across our channels, such as delays in title shipments or changes in business hours. In some cases, social media is one of the first places important information is posted.

All COVID-19 messaging has been posted to our social media accounts as soon as it’s made available. We will continue to use social media to circulate all COVID-19 company information. It’s safe to say that social media will be one of the first places important information is shared from all major brands. NextGear Capital will share any important information related to the industry in addition to updates from Cox Automotive and other sources that provide relevant content for our dealers.

In addition to updates and news, we regularly produce and post original content. We share blogs, videos, testimonies and even highlight clients and their businesses. With such a variety of content, our feeds are far from repetitive and monotonous.

Direct Line of Communication

Social media is one of the many ways our clients can communicate with us. We monitor all comments posted on our channels and are quick to respond to direct messages. We love seeing our clients interact with our posts!

If you have a question about something we’ve posted, sending us a direct message on Facebook is a great way to get your question answered. While Messenger is a great resource, for questions or concerns regarding specific account details, we recommend reaching out to your Portfolio Manager or calling our Customer Service team at 888.969.3721.

Easy to Navigate

Social media channels are great for archiving and organizing information. Scouring through old emails may not be the most efficient way to find NextGear Capital updates and information. On our social media channels, our content can be easily viewed in one place and archived by the date it was posted. Additionally, we pin the most important information and updates to the top of our profile, making it hard to miss.

Most of our posts have a visual component, making it even easier to quickly sort through our feed. If you’re looking for a NextGear Capital video, head over to our YouTube channel!

Supporting Independent Dealers During COVID-19

At NextGear Capital, we’re committed to supporting our customers during the COVID-19 pandemic. We know there is a lot of uncertainty right now, but rest assured that we are focused on making sure that our dealers have the support necessary to continue successfully running their dealerships during this time. We’d like to provide you with a list of resources that can be used to help promote the health of your business and your families over the next few weeks:

  • NextGear Capital President Scott Maybee sent out a letter offering dealers a relief package which includes a base rate reduction of 50 basis points, deferred curtailment and extension payments for eligible floor plan advances and no late fees. Please reach out to your Portfolio Manager for more information or for answers to any questions you have.
  • While most of our 1,000 team members are currently working from home to help prevent the spread of this virus, we’re still committed to providing a high level of support to our customers and we encourage you to reach out to our client services team with any questions or issues you experience.
  • As part of the Cox Automotive family, NextGear Capital along with our other business units are posting real-time updates from our business leaders to the Cox Automotive website including information on how we’re all working together to best support our customers during this time.
  • The government has announced that it is offering low-interest business loans to small businesses that qualify. More information is available here.
  • We’re also concerned about the safety and wellness of our customers and their families and we want to encourage you visit the CDC’s site with helpful information on how you can keep your family and loved ones as healthy as possible.

We will continue to monitor the situation and make changes as necessary to best support our dealers. We recognize this is a challenging time for all, and we remain deeply committed to protecting our customers, partners and communities.

Thank you for your continued trust and partnership, and for caring about each other. We’ll get through this together.

Used Car Dealer Floor Plans: The Utility You Need

Depending on how long you’ve been in the automotive industry, you have probably heard about used car dealer floor plans. They are designed to give independent auto dealers flexible financing options. With a floor plan line of credit, dealers are able to cover inventory expenses and keep cash in hand.  

To put it simply, used car dealer floor plans work almost like a credit card made solely for purchasing inventory. Like a credit card, a floor plan company extends a line of credit to a car dealer. Dealers can then use their floor plan line of credit to purchase inventory from auctions and other inventory sources. If a dealer purchases a car on a floor plan, takes it back to their lot and it doesn’t sell within a contractually determined number of days, dealers are charged a small fee. As a dealer sells their inventory, they pay back the original loan. 

Floor plan companies can offer guidance, resources, and services. If you feel loyalty to your current lender, ask yourself if they are dedicated to your dealership’s success. Do they know the ins and outs of inventory financing? Financing inventory for dealers is the sole focus of a floor plan company. Beyond just a consistent record of providing funds to car dealers over the years, floor plan providers offer a partnership steeped in years of experience in the industry.   

When you take a hard look at your current level of service and compare it to what’s available through a floor plan, the difference should be clear. Loyalty has its place but it isn’t in your bottom line.  

It’s no secret that dealers have varying views on used car dealer floor plans. You may have even heard stories about lenders lying to clients or that floor plan companies charge unnecessary fees. We understand if you believe there’s validity to these claims, but we urge you to hear from dealers that utilize floor plans. Former cash-only dealer Chris Tingler used to believe these misconceptions, but now uses a floor plan to grow his business.   

Consider this: if used car dealer floor plans are so bad, why do more than 20,000 dealers choose NextGear Capital as their lender of choice? Despite any misconceptions, NextGear Capital doesn’t go against the grain in the industry – we’ve simply found a better way to do things. We offer competitive pricing, transparent fees, expert assistance, cutting-edge technology and services. 

Above all, we are dedicated to your dealership’s success. Floor planning services offered by banks and local lenders aren’t always consistently offered, with several financial institutions dipping in and out of the floor planning business. At NextGear Capital, we aren’t going anywhere soon. Backed by the power of Cox Automotive, we are dedicated to serving the financial needs of independent dealers.   

Getting started with a floor plan isn’t hard, and floor plan companies offer tools and support to make it easy. To get started with a NextGear Capital floor plan contact us or apply online! 

Executive Leadership Team Changes

Next Gear Capital in Carmel Indiana.

CARMEL, Ind.  – NextGear Capital, the automotive industry’s largest floor plan provider for independent dealers, has promoted Lisa Mackie to vice president of portfolio management and Thad Sykes to associate vice president of sales.

Mackie joined NextGear Capital’s executive leadership team in 2017 as vice president of sales and brings with her 25 years of leadership experience in the automotive industry. Before joining NextGear Capital, she worked for Capital One Commercial Dealer Services, Hyundai Capital America, JP Morgan Chase and Ford Motor Credit Company.

Sykes joins the executive leadership team as associate vice president of sales. Sykes has been at NextGear Capital since 2007, most recently serving as a division vice president. He brings more than 25 years of management and customer service experience from his previous roles at American Home Mortgages, Bank of America and Wells Fargo Financial.

“Both Lisa and Thad know NextGear Capital inside out, and their collective experience brings valuable insights, perspectives and leadership to our executive team,” said Scott Maybee, president of NextGear Capital. “Our leadership team is the best in the business, and we all share the common mission of helping our customers fully realize their business goals.”

These changes come after Maybee announced his plans to evolve the way the company works together to enhance the client experience. Part of this strategy includes strengthening the relationship between sales and operations to increase clarity throughout the organization.

A Partnership with a Floor Plan Company

dealer floor planning

Floor plan companies can help you stay focused and reach your goals. When you open a line of credit, you should feel like you gain a partnership. A floor plan company can provide you with many helpful products and services that can ease the stress associated with running a dealership. 

A True Partner 
The pressure to manage all aspects of your business can be overwhelming to you and your dealership. A floor plan company will partner with you to alleviate this pressure and provide dealer solutions to keep your business running.  

Some companies offer a consultative approach, which means they won’t stand in your way of working independently. When you need help, you will be able to count on a team of experts to help manage business. A company dedicated to clients will often offer dealer resources and regular appointments to touch base to see how they can help your business. It is important that you find a floor planning partner that can offer market insights specific to your dealership and work with you to overcome obstacles in your way. 

Save Time 
A floor plan company should go above and beyond offering a line of credit. Look for a company that offers floor plan products and services designed to save you time. Your time is valuable, and these services can prove extremely beneficial to you and your business.  Title management and release, expedited funding, and account management are all services that man floor plan finance companies offer that can save you time. A title management service that keeps your documentation safe, secure and easily accessible in a cloud-based environment will keep your business organized and running efficiently. In some cases, complimentary vehicle valuations may be offered to help you save time on making sourcing decisions. 

 All these dealer tools and solutions should be easily accessible, so you don’t waste time searching for them. By taking advantage of all the resources a floor plan company offers, you’re positioned for profit and reducing time spent on administrative tasks.  

Cash Stays on Hand 
One of the most common reasons dealers choose to partner with a lender is for the floor plan financing. A floor plan complements your cash buying strategy, making cash available when and where it’s needed, and not completely tied up in inventory.  

When a dealer floors a vehicle, they have no personal investment in the vehicle until the first payment is due, which is typically only a small fraction of the original vehicle value. Depending on a dealer’s contracted terms, that could potentially be 30 days after acquiring the vehicle. Floor planning dealers aiming to turn inventory approximately every 60 days will have very little of their own cash tied up in a vehicle, especially if it sells within that time frame. For example, if there is an opportunity to expand your lot, you can answer with immediate access to funding instead of it being tied up in inventory. This is also extremely beneficial when emergencies or unforeseen expenditures arise. 

At NextGear Capital, we capture what it truly means to be a partner and offer all of the resources listed above. We are dedicated to saving you time and keeping cash in your pocket. Partner with us today!