The Distinction of a NextGear Capital Floor Plan

Dealer using First Gear

Every dealership is unique, with its own needs, priorities and goals. So when it comes time to seek inventory financing, you need a floor plan provider that understands your dealership’s goals and can create a flexible plan right for you. At NextGear Capital, we know that being able to procure vehicles from multiple sources, at your convenience, is crucial to your dealership’s success. With a NextGear Capital floor plan, your line of credit is accepted at over 1,000 live and online auctions, in addition to inventory sources such as trade-ins, off-street purchases and loan payoffs. And to make sure you have the buying power you need right at your fingertips, NextGear Capital offers 24/7 account access, through our mobile platform myNextGear. With myNextGear, dealers can floor units, make payments and view titles all from their hand-held device.

Flexible Terms to Help Increase Your Buying Power

Inventory Financing, often referred to as floor planning, provides you with the necessary cash flow to run your business without stretching to cover operational expenses. A NextGear Capital floor plan gives you the buying power you need for added inventory on your lot, increasing revenue while keeping cash on hand for other business expenses.

NextGear Capital is equipped to offer flexible terms and competitive pricing along with solutions tailored to your unique business needs. While the avenue in which you source your vehicles may change, your inventory finance company should be your rock. Not only should your inventory finance provider understand the nature of your business and the flexibility you need, but it should mirror that flexibility in its relationship with you. This includes providing insight on potential market opportunities for your business, improving income opportunities and counseling you on the latest and greatest industry tools. NextGear Capital’s local representatives are in the field every day doing just that.


Industry Expertise that Benefits Your Business

NextGear Capital’s leadership team, boasting over 100 combined years of auto financing experience, has positioned the our company as one of the foremost thought leaders in the industry. A NextGear Capital floor plan is more than a flexible finance solution, it is also backed by local representatives and a knowledgeable support staff, all dedicated to your dealership’s growth and success. NextGear Capital is committed to going above and beyond what you would expect from a financial provider. Darren Vivolo, Owner of Bayshore Automotive, put it best saying, “NextGear Capital is like having another staff of employees.” The support team at NextGear Capital makes time to understand what is driving your dealership’s business and what matters most to you.


Cutting-edge Technology to Simplify Buying and Selling Inventory

NextGear Capital’s unparalleled speed of service and real-time technology offers dealer account access from virtually anywhere – online, on the go and on the phone. Advances in technology – such as the use of mobile devices – have made floor planning an easier to use and more powerful tool for dealers by saving time and simplifying the process of buying and selling inventory. With this rise in technology, you now have the ability to browse and purchase inventory from the comfort of your desk or home, meaning you can conduct business on your own terms.


Access to the Industry’s Leading Network of Brands

As a Cox Automotive brand, NextGear Capital is part of the strongest portfolio in the industry, made up of more than 20 brands that together provide end-to-end solutions for dealers like you. Cox Automotive is a leading provider of products and services spanning the automotive ecosystem worldwide. With more than 40,000 clients, Cox Automotive strives to better understand clients’ needs in order to create efficiencies and alleviate challenges, providing a wealth of resources to its customers. When you choose a NextGear Capital floor plan, you gain access to the industry’s leading network of brands, a power backing which can give your dealership a valuable, unique advantage.

Top 5 Components of Customer Service

Customer service team in a row
Customer service plays an integral part in the success of any organization. According to a recent NewVoiceMedia Study, U.S. companies lose $41 billion a year due to poor customer service. At NextGear Capital, we understand the importance of and place a high value on providing customers with the best customer service.

Here are the top five components that make up great customer service.

1. Overall Customer Experience
Individuals have one main purpose for contacting a customer service center: to resolve an issue. No matter what that issue is – from making a payment to disputing a late fee – it’s imperative that the customer receives an experience that promotes trust and a feeling that the person on the other line truly cares about the issue at hand.

2. Top-tier knowledge
When a customer calls in to a customer service center, they want to speak to someone that is knowledgeable about their industry. What’s more, customers want someone that understands the actual needs of their specific business, as no two customers are the same. Two ways that NextGear Capital accomplishes this is through extensive training of our employees on the ins and outs of the industry. Additionally, our technology solutions allow our representatives to pull up information quickly so to speak accurately to the account.

3. Friendliness
Mother Teresa is quoted as saying “Kind words can be short and easy to speak, but their echoes are truly endless.” For customer service employees, it’s important to maintain a friendly and calm attitude, no matter the temperature of the customer. One way to accomplish this is through positive language. Phrases such as “Happy to help” or “Great question, let me find that out for you” promote a friendly, caring attitude, which can go a long way in creating real customer engagement.

4. Promptness
We live in a day and age where fast and speedy service are what separate the top companies from the rest. In the automotive remarketing industry, timely service is essential for dealers who are constantly moving inventory. To-date this year, 90 percent of NextGear Capital customers have had their calls answered in 30 seconds or less – a testament to our understanding of the need for prompt service.

5. First-call resolution
According to the SQM Group, a 1% improvement in first-call response equates to $276,000 in annual operational savings for the average call center. This shows that first-call resolution is critical for companies when it comes to retaining current customers. Beyond increased customer satisfaction, first call resolution also aids organization’s by reducing operating costs through decreasing the number of customers that need to call back.

Top 5 Floor Planning Mistakes by Dealers

When it comes down to it, floor planning in its essence is a very basic process: you open a line of credit, purchase inventory with said credit, sell inventory and pay back the loan. Intertwined amongst the basics are a lot of moving parts that at times can cause complications. While there are many variables out of the dealer’s control, from the economy to auction prices, there are a few that are essential in driving success. Regarding tangibles that dealers can control around floor planning, it’s important to understand the most common mistakes made.

Here are the top five mistakes dealers make when it comes to floor planning.

1. Mismanaging cash flow
There’s an old saying that goes “cash is king.” That’s true whether you’re running a deli or buying and selling in the automotive industry. Cash flow is the number one key to a successful business. It can positively and negatively affect everything from advertising and staffing to acquiring business tools such as vAuto’s Auction Genius. And what’s more, it certainly can impact your relationship with creditors.

One of the benefits of floor planning is it frees up cash for other expenses and business investments. However, a common mistake is not taking into account that many of these bills mature at the same time. Improper cash management may cause dealers to get into a borrowing cycle that provides little wiggle room and thus creates a shell game of money cash from one debt to another constantly.

2. Over-extending
The automotive industry is full of companies that provide lines of credit for purchasing inventory; in fact, there are nearly 200 in the U.S. currently. It’s important to manage your line of credit so that you can grow your business responsibly. One scenario that happens far too often is dealers over-extending themselves when it comes to inventory. When you purchase more inventory than you can sell, you put yourself at risk if you can’t make the payments.

Moral of the story: Just because you are approved for a $250,000 line of credit doesn’t mean you have to go out and spend it all at the next auction. Buy in proportion to your sales figures.

3. Communicate Inadequately with Floor Plan Provider
No business likes surprises, especially finance companies. You should strive to keep your floor plan provider abreast of any changes, updates or issues regarding your business. Have a payment you won’t be able to make on time? If you have a payment that you know in advance you won’t be able to make, let them know as soon as possible. By being proactive and honest, you stand a better chance of your floor plan provider working with you to help resolve issues.

4. Raise Red Flags
Most floor plan providers keep an eagle eye on all accounts in search of red flags that alert them to issues with dealers. There are three specific red flags that your floor plan company is watching for: NSF’s, Collateral Audits and Turn-times.

NSFs
Insufficient funds (or NSFs) are directly correlated to points #1 and #2 above. When you can’t make your payments on time, or your checks/ACH’s bounce, rest assured that your floor plan provider is now watching your account closely. This is one of the biggest indicators that there is an issue with how you’re managing your account and ultimately how the creditor views their chances of being repaid. This puts the floor plan provider at risk as they advanced funds on a certain piece of collateral.

Collateral Audits
Your floor plan company is a collateral-based lender. And that collateral is the physical inventory – not the title of the vehicle. As with any lender, it’s important that the collateral can be physically verified based on the agreed terms, usually monthly. When your floor plan provider can’t verify inventory, another flag is raised. If you need to move inventory to another location for a big tent sale or to an auction, let your floor plan provider know.

Turn Times
The NIADA and NADA have done extensive studies that show used vehicles should be turned every 45 days, as your ability to make money on aged inventory goes down over time. This may not fit all dealer’s business models; however, your floor plan company is going to get nervous if they see a vehicle on your lot for an extended period. Many times dealers hold inventory “looking for the right buyer” instead of cutting their loss and moving the unit at an auction. This allows them to acquire fresh inventory to market to customers.

5. Improperly Manage Account
When you open an account with a floor plan provider, it’s imperative that you understand the exact expectations the company will be holding you to. Find out when payments are due and what different tools are at your disposal. By taking advantage of these resources, such as valuation tools or payment schedules, you can make it easier on yourself when it comes to running your business.

Another great source is your floor plan or auction representative. These individuals meet regularly with other businesses and sister companies, so they are abreast on what’s happening in the industry and can provide some great insight.

NextGear Capital Expanding in Carmel

Next Gear Capital in Carmel Indiana.CARMEL, Ind. (Aug. 19, 2015) – NextGear Capital, an automotive financial services provider for auto dealers, announced plans today to add up to 200 new jobs by 2018.

The company plans to make substantial investments exceeding $50.88 million to lease and renovate its corporate offices in Carmel to support its growing customer service and technology divisions. Additionally, NextGear Capital plans to upgrade its technology infrastructure and software to better serve its more than 20,000 customers.

“Indiana stands out as a regional leader for job growth, and companies like NextGear Capital repeatedly choose Indiana as a home for their expansions because of our pro-growth policies and low-regulation business environment,” said Governor Pence. “One of our greatest strengths is in our workforce, and after meeting with the hardworking Hoosiers who make NextGear Capital’s success possible back in March of 2013, I’m excited to announce today this additional expansion here in the Hoosier State.”

Today’s announcement marks the company’s second expansion in recent years. In 2013, Pence joined NextGear Capital to announce the company’s headquarters expansion in Carmel, creating up to 169 new Hoosier jobs. The company has since exceeded those plans, now employing more than 430 Indiana- based associates. NextGear Capital is currently hiring customer service and technology associates. Interested applicants may apply at http://jobs.manheim.com/careers/nextgear-capital-jobs.

“NextGear Capital’s success can be attributed to our talented workforce, both here and across the country, who work diligently every day to ensure our customers’ needs are met and embody the work ethic and family values that Indiana is known for,” said Brian Geitner, president of NextGear Capital.

NextGear Capital serves more than 20,000 automotive dealers with inventory financing services across the United States, Canada and the United Kingdom. The company is a part of Cox Automotive, which includes industry-leading brands Autotrader, Kelley Blue Book and Manheim. Originating more than $13 billion in dealer inventory financing last year, NextGear Capital has become the global leader in inventory finance for independent auto dealers. Recently, the company’s chief technology officer Bryan Everly was named CTO of the Year for Private Companies with over $100 Million Revenue by the Indianapolis Business Journal and TechPoint.

The Indiana Economic Development Corporation offered NextGear Capital Inc. up to $1,600,000 in conditional tax credits and up to $85,000 in training grants based on the company’s job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Carmel supports the project.

“We were thrilled last year when NextGear Capital moved into its new corporate headquarters in Carmel, which we took as a reflection of the strong high-tech business community we enjoy,” said Carmel Mayor Jim Brainard. “NextGear Capital has been one of Indiana’s true technology success stories and today’s news of another expansion in its workforce is great news for Carmel and all of central Indiana.”

Growing companies like NextGear Capital continue to select Hamilton County for their job creation plans. Earlier this summer, nonprofit computer coding school Eleven Fifty Academy and corporate coding firm Eleven Fifty Consulting announced plans to grow their operations, committing to create a combined 92 new jobs in the coming years.

Floor Planning 101


The automotive industry is very unique in that it is one of the few industries where commercial loans are abundant and relatively easy to qualify for. Whether you are just starting out or looking to grow your business, it is likely you will be able to find the capital needed to stock your dealership. Yet while there is a good chance you will be able to acquire a floor plan line of credit, the size of that line of credit will vary depending on your business needs and overall portfolio snapshot.

Floor Plan 101: The Basics
First and foremost, to qualify for a floor plan, you need to have credit. Specifically, you should have a history of utilizing and repaying debt. Bad credit and hiccups on credit history aren’t always deal-breakers, but they will likely reduce the amount for which you qualify. Additionally, there is a good chance that credit issues will have a negative impact on pricing structure. The good news is that over time, with good performance and the adherence to the terms and conditions, it is possible to eventually overcome these setbacks.

It is also important that you are not over-extended. If your credit cards are all maxed out, that is a potential red flag even if you have not paid late. Handling your available credit responsibly is essential, so be sure to maintain a substantial amount of available credit.

How to Use Your Floor Plan
It is relatively easy to use your floor plan line of credit. Not only do NAAA-affiliated auctions accept most floor plan companies, but the lender handles much of the back-door operations, leaving you to just worry about one thing: purchasing inventory.

On auction day, after checking in at the auction, you will want to go to the appropriate department at the auction to check your credit availability with your floor plan lender(s). Once you are done bidding for the day, take your blocked tickets to the auction check-out, where you will notify the auction which purchased units you wish to floor plan. From there, your floor plan company will take care of the rest.

Growing Your Business
If you are looking to grow your business through the addition of a floor plan line of credit, there are several other items that will play into the lending decision above and beyond your personal credit history. Trade references, business credit, equity, cash and the overall health of your business all come into the picture and become increasingly more important in your effort to acquire more floor planning dollars.

The same principals apply if you are looking to increase your existing floor plan credit limit. However, there is another component that could either be in your favor or held against you: performance. You can rest assured that commercial lenders have learned a lot about managing and mitigating risk, especially over the last several years. It is crucial that you closely adhere to your lender’s terms and conditions. NSF’s, late curtailments, slow payoffs and bad audits will inevitably prevent you from gaining the additional buying power you need to grow your business. Stay on top of managing your accounts and you will improve your chances of increasing credit limits.

“Trade references, business credit, equity, cash and the overall health of your business all come into the picture and become increasingly more important in your effort to acquire more floor planning dollars.”

Pitfalls to Avoid
Floor plan companies are discretionary lenders, and it should be understood that your account is constantly being underwritten. Changes in your performance or credit profile will not go unnoticed. Commercial lenders have learned a lot about managing and mitigating risk, especially over the course of the last five years. It is crucial that you closely adhere to your lender’s terms and conditions. NSF’s, late curtailments, slow payoffs, and bad audits will inevitably prevent you from gaining the additional buying power you need to grow your business. Stay on top of managing your account, be honest and communicative, and you shouldn’t have any problems.

In Conclusion
All of this ties into the overall viability of your operation. A thriving business should be building equity while reducing debt. As a thriving dealer principal you should be building net worth, not acquiring debt to keep your business above water. If your business isn’t building and growing, then you probably shouldn’t be seeking more floor plan dollars. More flooring won’t turn around a failing business model. You would just be adding more fuel to the fire. Instead, focus on perfecting your operation. However, if your business is building equity and turning a profit, having some additional buying power can surely help you shift into the next gear

Tiered Pricing

Top 5 Reasons to Work for NextGear Capital

It’s not just dealers who rave about NextGear Capital. Our employees love working here as well! Below are the top five reasons NextGear Capital continually draws the top talent in the industry!

1. Work Hard Play Hard Atmosphere

IMG_4710Our employees put in the sweat to help our dealers be successful. But that doesn’t mean it’s all work and no play. We want our employees to look forward to coming to work every day, which is why we hold different events and contests. From our annual Mini 500 each May to costume contests at Halloween to our Christmas luncheon, our employees experience the benefits of a fun work atmosphere.

 

2. Community Involvement 

IMG_0337 At NextGear Capital, we believe it’s our corporate responsibility to give back to the places where we live, work and play. As a result, we encourage our employees to volunteer as much as they can! Our employees embrace this philosophy wholeheartedly by volunteering with multiple organizations, including Special Olympics, Ronald McDonald House and many more! To date, we’ve supported 43 organizations in 2015.

 

Additionally, we partner with our fellow Cox Automotive companies to participate in three nationwide community relations initiatives throughout the year: No Excuses (March), St. Jude Walk and Movember!

3. Promote from Within – Across All Cox Automotive

Next Gear Capital in Carmel Indiana.Many companies claim they like to promote from within. At NextGear Capital, that phrase has a whole other meaning to it. As a part of Cox Automotive, you have unlimited potential to grow your career at any of the 20+ brands that make up this amazing group. From Autotrader to Kelley Blue Book to Manheim, NextGear Capital employees are already viewed as internal candidates, giving them an edge over the competition to help advance their careers.


4. Brand new facility

Next Gear Capital in Carmel Indiana.In 2014, we moved into a newly renovated corporate headquarters in Carmel, Ind. Our facility was designed to promote an inviting, collaborative environment, from our working spaces to the multiple meeting rooms throughout. Additionally, our corporate office includes some perks for our employees, including a basketball court, fitness center with locker rooms and employee café. We’re like the smaller version of Google (without the slide).


5. Benefits

Next Gear Capital in Carmel Indiana.At NextGear Capital, we view our coworkers as family. And just like any family, we want to ensure that we have the best resources available when it comes to their health and future. All full-time NextGear Capital employees are entitled to our amazing benefits package, which includes health, dental, vision and a 401k. However, what sets us apart is our pension program, available to employees after their first five years of service!

 

NextGear Capital is a continually growing company and we have many job opportunities available! Check them out on our Careers page!