Powering You With More Flexibility

Whether you’re just starting out or you’ve been in the business for a long time, having more flexibility with your cash flow never gets old. That’s why our lines of credit are specific to the automotive industry, tailored to the unique needs of independent dealers and can be used to floor plan nearly any type of remarketed vehicle in automotive retail, wholesale, salvage, or specialty.*

For new dealers who’ve been in business for 6 months or less, First Gear gives you access to a line of credit that allows you to get your floor plan up and running fast.**

With Flex Pricing, you can defer payments on Manheim purchases. And on non-Manheim units, you’ll have a .01% principal reduction per period. Plus, you’ll save more with fewer fees on every vehicle no matter where it’s purchased.***

Competitively priced with flexible terms, NextGear Capital’s floor plans provide over 23,000 dealers the customized inventory finance solutions and additional buying power they need to be successful.

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Terms and Conditions:

*Certain conditions apply. All rights reserved. Subject to the terms of Dealer’s Demand Promissory Note and Loan and Security Agreement with NextGear

Capital, Inc. All Advances made in California by NextGear Capital are made pursuant to NextGear Capital’s California Finance Lender License, #603G505.

**Restrictions apply. First Gear is available only for dealers who have been in the automotive business for 6 consecutive calendar months or less. Click

“First Gear” above for eligibility and more details. ***Restrictions apply. Not available in NY or SD. Click “Flex Pricing” above for eligibility and more details.

NextGear Capital, Manheim, and vAuto Help Independent Dealers Gain Advantages

ATLANTA, Ga. (June 21, 2022) – To continue delivering on its commitment to independent dealer success, NextGear Capital along with Manheim and vAuto are investing in programs and tools to help these dealers gain advantages and make it easier to do business. The following added benefits offer clients ways to save time and run their businesses more efficiently and successfully despite market challenges. 

  • NextGear Capital Dealer Advisory Board Drives Enhancements: Launched one year ago, the board allows NextGear Capital to gain firsthand perspectives from clients and better serve independent dealers, create solutions that drive greater efficiencies and enhance the client experience. To date, more than 20 enhancements have been identified, ranging from changes to title visibility in Account Portal and improvements to client communications to facilitating access to services both inside and outside of Cox Automotive. Insight also revealed that clients are hungry for data on the market and the industry, resulting in a new quarterly insights report produced by Cox Automotive’s industry intelligence team. The inaugural edition saw a 50% engagement rate for clients who took action to access the report in Account Portal.  
  • Applying for Credit Just Got Easier: With more dealers preferring to do business online, clients can apply for credit quickly and securely via the electronic credit application (ECA) which is accessible on the NextGear Capital website. Since ECA was launched, over 4,000 electronic applications have been completed and adoption of this option is growing. Future enhancements to the application are planned. 
  • Welcome Guide and Dealer Orientation: To help new dealers become familiar with their local auction team and services, Manheim created a Welcome Guide that provides information for both buyers and sellers about its marketplace options and how to get started. In-person dealer orientations are also hosted at select Manheim locations for clients who are new to the auction process.  These orientations include an operations tour and the opportunity to learn about products and services such as titles and payment, condition reports, assurance and reconditioning services. Dates for upcoming orientations can be found here.
  • Upgrade to NextGear Capital’s line modification process: In a move to help clients save time and have quicker access to more credit, self-service tools are now available through Account Portal to give them greater opportunities to request credit line modifications. As a result, dealers have applied for roughly 1,900 modifications to their credit lines since late 2021. Account Portal also allows dealers to make and manage payments, view credit availability, request title releases and more.  
  • Redefining the NextGear Capital Brand: This month, NextGear Capital launched a refreshed brand campaign to help better define the company in the market and how it supports clients. “Post-pandemic, our business strategy evolved, and we have accomplished a lot around our client experience,” explained Jessica Lanier, vice president of marketing for both Manheim and NextGear Capital. “Every time we review market research, we hear clients talk about our people, our solutions, our flexibility and how easy we are to do business with. Those are our differentiators. This brand refresh tells a story that emphasizes our strengths and defines why NextGear Capital is the clear leader in the floor planning industry in the years to come.”
  • Stocking Inventory Just Got Easier: Cox Automotive knows that one of the biggest challenges independent dealers face right now is finding the right inventory to stock. That’s why NextGear Capital and vAuto teamed up to give NextGear Capital clients Stockwave at 50% off the regular subscription price for the first four months when they sign up to Stockwave as new customers by September 30, 2022. Update: now to give NextGear Capital clients more time to save, sign up to Stockwave as new customers by December 31, 2022. Stockwave gives dealers access to vehicles from 300+ marketplaces alongside the most complete set of wholesale and retail data, so dealers can find the vehicles they need and make more informed purchase decisions.  NextGear Capital clients should contact NextGear Capital for complete details.

“While credit lines may be our profession, working with independent dealers and helping them succeed is our passion,” explained Scott Maybee, president of NextGear Capital. “These resources reflect our ongoing commitment to invest in providing choices that meet their diverse goals and needs.

Introducing Upside Direct!*

You’ve never seen a source of inventory like this before. Low first bids. Every listing always sells. Guaranteed CRs. And buyer-friendly policies. Plus, NextGear Capital clients get a $150 flooring credit on your first Upside Direct purchase. You can floor plan your transportation costs as well.

Stay up-to-date on all sale times by clicking below!

Visit UpsideDirect.com

*Manheim policies apply

5 easy ways to go green

Go Green! It’s Good for the Environment & Your Bottom Line 

These small environmentally friendly changes can add up to big savings for your dealership. 

In partnership with Cox Automotive, we want to help you take steps to living more environmentally friendly. You don’t need to make big changes overnight, small changes can make a big impact. Follow these 5 steps to get started: 

  1. Evaluate Your Office Supplies
  2. Reduce Use of Paper in the Office
  3. Increase Your Recycling Practices
  4. Look for Energy and Water Savings
  5. Check Your Office Equipment

To make it even easier, we’ve broken down each step into actionable strategies and tips for you in the guide below. 

NextGear Capital Creates Dedicated Group for Independent Auctions

Auction Services takes a holistic approach to delivering a better experience for its auction partners

To strengthen its business relationships with the auction partners who support the inventory needs of its independent dealer clients, NextGear Capital has created an Auction Services department. Tapped to lead the group is Sandy Moon, the company’s AVP of Auction and Floor Plan Services. 

Planning for Auction Services began in 2021. The work included reimagining and, in turn, realigning the company’s flooring and funding departments to create collaborative consulting teams. The goal is to build in-depth relationships with auctions to better understand their unique needs and harness the collective resources of NextGear Capital to provide customized solutions.

“Our focus for creating a dedicated Auction Services team was to broaden our support and expertise to better meet the needs of our valued auction partners,” explained John Wick, SVP of Lending for NextGear Capital. “Bringing our best-in-industry knowledge and exceptionally skilled team members to the table allowed us to take a fresh approach to how we interact with our auction partners and become a collaborative, trusted resource to help both organizations drive growth.”

A 17-year member of the NextGear Capital team, Moon brings experience in operations management and team building to her new position. In addition, she has hired Danny McNelis as the team’s auction director. Previously serving as a senior client solutions executive for NextGear Capital, he brings strong relationship-building skills to this new role.

About NextGear Capital

NextGear Capital is the largest independent inventory finance company in North America, providing flexible lines of credit for dealers to purchase 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 in automotive retail, wholesale, or salvage. With a customer base of more than 19,000 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 Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company’s more than 27,000 team members and family of brands, including Autotrader®, Dealer.com®, Dealertrack®, Dickinson Fleet Services, 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 annual revenues of nearly $20 billion. www.coxautoinc.com

Top 5 Tips for Independent Dealers in 2022

Independent dealers have unique needs so finding the right tools and support is an essential component of running a successful car lot. Whether you’re new to the independent dealer space or have been around for several years, it doesn’t hurt to take a step back and evaluate how your business is running. Here are some tips to consider if you’re thinking about making changes to the way you run your independent dealership this year.

  1. Determine Your Current Needs – Do you need to hire additional staff or does your lot need resurfacing? Once your dealership has been in operation for a while, it’s a good idea to take some time to determine any improvements or changes you want to make and prioritize what you’d like to do first before putting a list together.
  2. Examine Your Cash Flow – There are a lot of dealer financing programs available but finding the right one for your dealership can help you take your business to the next level. Floor plan providers like NextGear Capital provide additional funding for independent dealers so they have more flexibility with their cash flow. They also have customized floor plan options available for dealers new to the industry or who specialize in carrying lower priced inventory.
  3. Identify Any Inefficiencies – Do you spend hours on audits or are you having trouble keeping track of all your paperwork? There are many tools available to assist independent dealers in creating more efficient processes to help streamline their daily workflow. NextGear Capital’s Account Portal provides independent dealers with everything from title management to audit reconciliation so they can save both time and money.
  4. Don’t Be Afraid to Ask for Help – Whether it’s accessing data on the types of vehicles in demand in your local market or reaching out to an expert in the industry, finding the right resources can help you become more profitable and grow your business. Even if you’ve been an independent dealer for several years, technology and trends are always changing and having the most up-to-date tools and research can give you a competitive advantage.  
  5. Look to the Future – Do you dream of opening a second location someday or adding a service department? You can start putting those dreams into motion by exploring additional dealer funding options like a floor plan from NextGear Capital. As the top floor plan provider in the industry, NextGear Capital helps independent dealers reach their goals by providing them with additional capital and industry expertise.

Being an independent dealer is hard work but when you have the right floor plan provider by your side, you’ll have more flexibility and a support system that will provide you with solutions to create more streamlined business processes so you can breathe a little easier. 

Dealer Spotlight: Irene Whitesides Making All the Right Moves

When Irene Whitesides started working at a car dealership in 1998, she said that she was the only woman on the sales floor. “The car business used to be a man’s world,” she said. “It was hard because I was a single mother with two kids at the time but I decided that I was going to make it work so I could provide for them. It wasn’t long before I became the top salesperson at the dealership every month and made more money than I ever had before. After a few years, I met my future husband, David Whitesides Sr. and we opened Destiny’s Auto Sales in 2003.”

As soon as the Columbus, OH area dealership was up and running, she knew she wanted to get a floor plan. “When we opened the new dealership, we were basically just starting out with faith, so I needed a floor plan to purchase inventory with,” she said. She started out with a modest $25,000 floor plan through Dealer Services Corporation (DSC) who she had worked with previously at a different dealership.

Irene and David Whitesides

When DSC was acquired by NextGear Capital, Whitesides says that it was a little bit of an adjustment at first but she felt supported by her NextGear Capital representatives. “My Portfolio Manager comes by regularly and he is the best,” she laughs. “In fact, I would steal him if I could! A little over a year ago I was struggling with aging units on my lot. So, I had to find some new solutions to help move my inventory and my Portfolio Manager told me about OVE and reached out to Manheim for me. Now when my inventory gets to a certain number of days on my floor plan, I put them on OVE and that has helped me move them a lot sooner. I also started doing both retail and wholesale sourcing which has also kept my inventory moving.”

Whitesides says that she purchases inventory both in-person at auctions and online. “It’s hard to get inventory right now. We used to have between 60 to 100 vehicles on our lot but we’ve struggled to maintain that amount. I’ve never seen anything like this before.” She says that one thing that hasn’t been a struggle is managing her floor plan through Account Portal. “It’s very user-friendly and it’s very helpful to use for things like reconciling my audits.”

Inventory isn’t the only challenge Whitesides says she’s facing. “You can’t get inventory and you can’t keep staff right now. It’s a whole different world out there right now. Before the pandemic started, I would have between 12 to 14 people on my staff and right now I only have four including me. My husband runs the service department and we used to have a detail shop but it’s not open right now because I haven’t been able to find the staff to keep it going so I’ve been using a mobile detail service instead.”

Despite this, she says that she’s never been one to back down from a challenge. “When I went to my first auction to purchase vehicles, it was very intimidating because I was the only woman there. But after a few months I got some guidance from a supportive auctioneer, and I started to feel more confident buying cars and learned how to make good inventory choices. Now when I go to auctions it’s totally different. The same dealers who used to try to bid me up because they underestimated me, now respect me because not only did I survive, I thrived.”

After her longevity as an independent dealer, she says that anyone looking to enter the industry should start small. “You have to crawl before you run. A lot of the new dealers take on too much too quickly and are out of business before they know it. There’s a joke among independent dealers that floor plan companies are loan sharks. But if I didn’t have a floor plan, I wouldn’t be able to get the inventory I need. I think NextGear Capital is different because they look at each independent dealer individually so they can find the best floor plan to meet their needs.”

When thinking about the future, she says that she just wants to keep going. “Our company is strong! We’ve been here for almost 20 years and even with all the changes over the years, we’ve kept growing and I now have a $475,000 floor plan. There’s a small number of independent dealers that have been in business as long as I have and I really think that’s because we don’t bite off more than we can chew and we make the right moves at the right time.”

What is Floor Planning?

You may have heard of floor planning before but might not be sure what it means. Floor planning is simply a revolving line of credit that independent dealers can use for inventory financing to purchase vehicles and free up cash flow for anything from enhancements to the business, to improvements to their car lot. Here are some reasons why you should consider getting a floor plan.

Additional Funding – If you rely on cash to purchase inventory instead of floor plan financing, you won’t have a lot of flexibility when you’re faced with unexpected expenses or fluctuations in inventory prices and market demands. Floor plans provide you with the additional capital you need for any unexpected challenges that arise and give you more breathing room with your cash flow.

Inventory Financing for Independent Dealers – Unlike traditional loans from local lenders or financial institutions, floor plan financing for car dealers is designed to support the unique needs of independent dealers. Whether you’re looking for more cash flexibility or are new to the independent dealer space, floor plan providers like NextGear Capital have you covered with transparent floor plans that are easy to understand. With NextGear Capital, your representative will help you figure out which floor plan will be the best fit for your business and future goals.

floor planning

Access to Tools and Additional Support – Besides providing dealer funding, NextGear Capital provides independent dealers with account management tools and industry expertise so they can run their dealership more effectively. NextGear Capital’s Account Portal provides independent dealers with real-time information on their floor plan while also giving them access to title management, vehicle valuations, payment information, audit reconciliation and more! NextGear Capital clients will also have access to a dedicated Portfolio Manager who can provide them with valuable market information and insights based on their dealership’s activity to help them grow their business.

Floor plans provide you with additional funding to increase your buying power while also giving you access to account management tools and enhancements to streamline your business processes. Finding the right floor plan provider will help you to increase your efficiency while providing you with the insights to become more competitive in your local market.

How to Optimize the Audit Process

Have you ever had a vehicle on its way to an auction when an unplanned audit review occurred? When it comes to running a dealership, most independent dealers will probably say that audits are not their favorite part of the job. From unexpected visits from auditors, to having to track down inventory that’s offsite, it can seem cumbersome at times. But what you might not realize is that audits can help you save money while creating a more efficient business workflow. Here are some ways you can utilize the audit process to help streamline your floor plan process:

  • Keep Tabs on Your Inventory – Do you have multiple lots that you move inventory between or only put some of your vehicles on your floor plan? There’s nothing worse than realizing that you could have paid off a vehicle sooner if you would’ve been informed about a sale that happened earlier in the day by one of your staff members. The audit process can help you take control of your inventory by keeping you updated on the status and location of your floored vehicles, so they don’t get lost in the sales funnel.
  • Invest in Time-Saving Tools – Depending on the number of vehicles you keep on your lot, the audit process can take up to several hours to complete if you don’t have the right tools at your disposal. NextGear Capital has recognized this pain point and created a designated Audits tab inside its Account Portal tool that allows dealers to do everything from Self Reconciliation to vehicle payoff in a few easy clicks. To clear your audits, simply take pictures of your inventory in real-time on your mobile device and upload them to Account Portal without having to leave the Audits tab. You can also delegate your audit reconciliation to someone else at your dealership saving you even more time. 
  • Reduce and Prevent Additional Fees – Audit reconciliation can help you save money by keeping you aware of upcoming fees and compounding interest on your floored units. You can use that information to help support your sales strategy by focusing on moving those units sooner, so you can keep more money in your wallet.  
audit process

Audits will always be a necessary component of managing a floor plan. So, while you may not be able to stop them from happening, you can take control of the audit process by investing in the right tools and technology to help you handle them more efficiently.

Cox Automotive Products and How They Can Help Independent Dealers

Check out the video above to learn about products from Cox Automotive that can positively impact independent dealers and grow their business.

Here are some of the Cox Automotive products that are beneficial to independent dealers:

 

  • Inventory Acquisition – Whether you’re purchasing inventory in-lane or through your mobile device, when you purchase from Manheim your floor plan will be updated automatically so you can view your inventory and available cash flow in real-time.  Additionally, you don’t have to worry about keepings tabs on your titles as they will be available for you to view inside of Account Portal, making for a streamlined process.

 

 

  • Inventory Insights – It’s difficult to keep up with the pace of market trends such as consumer preferences and pricing. That’s where vAuto helps. By providing you with the most up-to-date market data you’ll be able to avoid inventory mistakes and increase your profits. One of their newest tools, Stockwave, provides in-depth insights into the wholesale market so you know which vehicles to purchase, where to find them, and how to price them. These data-driven insights empower you to make informed decisions about the vehicles you’re putting on your floor plan.

 

 

  • Streamlined Solutions – Are you looking to streamline your current business strategy so you can spend more time focusing on the client experience? Dealertrack’s digital management solutions can help you take your independent dealership to the next level by creating a personal buying experience that works for your needs. It also ensures your tools and technology are working together to create a more efficient sales process.

 

 

  • A Digital Advantage – Selling inventory online is a must, so have you asked yourself if your current website is meeting all your needs? Dealer.com provides a personalized car shopping experience while connecting you with in-market buyers across the country. You can also take advantage of its digital marketing services including social and reputation management, as well as search engine optimization. With Dealer.com you’ll stand out from the competition.

 

 

  • Transportation Solutions – When you’re unable to find the inventory you need locally, you need a logistics supplier that makes it easy to get your purchases to your lot quickly and conveniently. Fortunately, when you use Ready Logistics to transport your inventory, not only will you have the industry’s best on your side, you’ll be able to use your NextGear Capital floor plan for your transportation fees.