Top 5 Reasons to Floor Plan with NextGear Capital

Image of phone with myNextGear floor planning software in foreground

We label ourselves as an inventory finance company. But truth is, we are more than that. We’re flexible, personable, technological, resourceful and backed by the power of Cox Automotive. Here are the top 5 reasons you should floor plan with NextGear Capital!

1. More Flexibility
We know that no two dealers are the same. That’s why we offer customized lines of credit for each of our customers. Whether you routinely floor 20 cars or 100 cars on your lot, we’ll work together to make sure your inventory finance floor plan meets your needs.

2. More Personal
Unlike other companies, we don’t want our relationship with you to be just a once-a-month thing. Our CMD-certified local representatives not only come directly to you – at your lot or in the lanes – but want to partner with you to help you be successful. That means getting to know who you are, who your employees are and ultimately, what matters most to you.

3. More Technology
Since we opened our doors, we’ve understood that having superior technology solutions is paramount for our customers. With myNextGear and myNextGear mobile, you have the ability to make and schedule payments, view and request titles, access MMR and Kelley Blue Book values and more! We provide you with real-time information 24/7 from virtually anywhere.

4. More Resources
As previously mentioned, we do more than just loan money. From title and records management to collateral protection and remarketing services, we offer you multiple resources to do what you do best: sell cars.

5. More Power with Cox Automotive
When you floor with NextGear Capital, you gain access to the strongest portfolio in the automotive industry: Cox Automotive. These solutions, which include industry leaders Autotrader, Manheim, Kelley Blue Book and vAuto, provide end-to-end solutions for the entire remarketing cycle.

So what are you waiting for? Fill out a credit application today!

NextGear Capital’s Committed to Community

committed to community

Patty.TurnerBy Patty Turner, Director of Events and Community Relations

At NextGear Capital, we understand the importance of building relationships with different organizations in our community and that volunteering can have a positive impact on an employee’s everyday life. Through our community relations efforts, we are striving to help make a difference in the places where we work, live and play.

Even though we are only at the halfway point of 2015, our community relations numbers to-date are mind-boggling:

  • 1,900 hours volunteered by employees, friends and family
  • 227 employees have volunteered at least 1 hour in 2015
  • 41 organizations helped

NextGear Capital has also taken part in some amazing community relations campaigns with our other Cox Automotive business units. In March, we participated in No Excuses, an annual campaign that encourages employees, their teams and their families to get out and volunteer at least one hour during the month.

Some highlights from this campaign include:

Polar Plunge for Special Olympics
10 employees took the plunge to promote awareness for Special Olympics of Central Indiana. In the process, this group raised $2,335 in just one week!

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Stop Hunger Now
109 employees helped pack 10,000 meals for people in developing countries.

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25 employees made 30 no-sew blankets for the American Cancer Society and Project Linus to benefit cancer patients and ill children.

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Most recently, NextGear Capital took part in the Cox Automotive Drive Away Hunger campaign. Teaming up with Feeding America’s nationwide network, all Cox Automotive business units spent June 15-25 collecting canned goods and other most-needed items. On June 25, 15 teams competed in a large CANstruction build of their donated items, with team CANtastic NextGear being declared NextGear Capital’s champion. Including our two international offices, NextGear Capital employees donated over 7,000 pounds of food!

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We’re excited with how our employees have immersed themselves in being “committed to their community” and look forward to even more involvement throughout the rest of 2015!

Attain More Inventory Options With Floor Planning

Wholesale estimates continue to be good for used car dealers, with the average wholesale price hovering around $10,000 through June. This is due to a rich mixture of off-lease volume and dealer trade-ins. Strong volumes in these two areas should continue to transfer to greater inventory options, resulting in more retail sales.

The tax season push in the market hit a little later than normal this year but ended up producing a positive trend in the lanes. This aligns with analysts’ predictions that auction volumes will continue to increase over the next few years. As a result, there should be plenty of inventory to supply your demand, no matter your target market or business model.

With this surplus of inventory, even with minimal price decline, it’s important that you take advantage of the different tools and resources available to help you find the freshest and best inventory. In today’s world, that means having the ability to be in multiple places at once. Most used car dealers are accustomed to wearing several different hats already. Yet whether you’re looking to stock your lot through an online avenue like OVE.com or attending a physical auction in-person or virtually, the one consistent piece to your puzzle should be your inventory finance provider.

While the avenue in which you source your vehicles may change, your inventory finance company should be your rock. You should feel confident that your inventory finance provider understands the nature of your business and the flexibility you need, and its relationship with you should mirror that flexibility. This includes providing insight on potential market opportunities for your business, improving income opportunities and counseling you on the latest and greatest industry tools.

Purchasing the right inventory for your target market is paramount to your success. Whether you’re taking advantage of the influx of off-lease units or increasing trends of dealer trade-ins, purchasing inventory that you can sell and sell quickly is key to maximizing the current economic climate. More and more used car dealers are understanding the need to be agile and flexible in their operations, and your inventory finance provider should assist in bringing solutions to the table.

To fully maximize your options in the market, you need to ask yourself the following question: “Do I have a financial partner that completes the final piece of my business model?”

Be Efficient with Inventory During Summer

image of aged used inventory vehicles on dealership lot

image of aged used inventory vehicles on dealership lotSummer can be a challenging time of the year for used car dealers. For many, remarketing volumes become stagnant and retail sales passive between June and September. Young Bobby wants to go to summer camp, while mom and dad want to put a new fence in the back yard. As a result, car sales dwindle in the summer.

After the highs of tax season, the summer blues can be a difficult transition. Remarketing institutions plan for a slowdown and dealers should too. It’s important for dealers to be flexible in their buying and selling so that they can be both competitive and profitable in the market.

In the auto remarketing industry, there are three universal truths when it comes to efficiently managing inventory: use your working capital efficiently, buy smart and take advantage of resources that provide information on wholesale industry trends. By following these tips below, you will be better prepared to deal with the slowdown of summer.

1) Be more efficient with the use of your working capital
Floor planning is a great way to balance credit and working capital to maximize your cash flow. This balancing act is oftentimes the lifeblood of a dealer’s business and the fuel for growth. However, ineffective use of working capital and under-capitalization, among other factors, can contribute to a dealer going out of business because they can’t keep up with their working capital. Simply put, the more cars you buy and sell, the greater the need to manage your cash flow.

For years, floor planning has been a resource to help loosen up working capital for used car dealers. What would you do with increased working capital? Would you advertise more? Hire a new sales person? Repave your lot? The list goes on, as the benefits of having working capital for any small business will only keep you from experiencing failure. Simply put, floor planning provides you the ability to keep your lot full…full of cars and customers.

2) Buy smart
It might be tempting to buy that snazzy sports car because it looks nice, but is it a good price and does it make a potential profitable addition to your inventory? Going to auction with a plan of how much you are willing to spend can help save you from those “impulse buys” that may turn into buyer’s remorse down the road.

Different cars sell better in different seasons. In the summer, you are going to get more business for convertibles, recreational vehicles and motorcycles than for trucks and SUVs. Make sure you’re buying vehicles that will sell well and won’t be sitting on your lot for months and months.

3) Watch wholesale industry trends
There are some valuable resources available to used car dealers to stay current on the latest industry trends and happenings. The NIADA publishes a Used Car Industry Report every June that provides analysis and an overview of the used car dealer and used car marketplace.

Additionally, Manheim publishes its own Used Car Market Report annually as well as a monthly Industry Brief. Both of these sources have a wealth of knowledge provided by the largest auction house in the world. Many trade publications and online resources, such as Automotive Digest’s monthly Used Car Market Report, also provide dealers with knowledgeable information to help them understand pricing and other developments in the industry.

Increasing Inventory During Tough Summer Months

Knowing your market is key to stocking the right inventoryThe end of tax season also marks the end to one of the busiest times of the year in the auction business. It is widely expected that as temperatures begin to rise, auction volumes soften due to lower supply of new dealer trades. The dealers who were flooding your auction lanes just months ago know that retail sales decline in the summer due to weather, family vacations, kids’ summer camps and home projects, to name a few.

Marketing promotions and event sales are one way to overcome the stagnancy of summer and ensure you stay on pace towards your overall yearly goals. While there is no one true course to go when planning your promotions, there are some steps you can take to help set yourself up for success and draw dealers to your lanes.

1) Have a pre-set marketing calendar for the year
Identify historically low sale weeks and build a pre-set marketing calendar for the year that focuses on increasing traffic at otherwise slower times. What were some of the challenges last year? What are your expectations as it pertains to increasing volume? Knowing the obstacles you dealt with in the past will allow you to identify time frames that need additional attention. Additionally, mapping it out provides you with ample time to saturate dealers with information regarding your promotions and event sales, ensuring that your event is a success.

2) Get others involved
Contact floor plan companies, vendors and your top buyers/sellers to participate in the event. This is an opportunity for many to get involved to offer dealers additional incentives for attending. It will also boost your marketing footprint as they contact their customer base to promote the shared offering.

3) Be aware of market conflicts
It is important to be knowledgeable about area events that may take away from an auction’s promotional event, whether it be an IADA meeting or a competitor’s sale. Being aware of what your competition is doing allows you to be proactive in your approach in attracting dealers to your lanes. However, there are always some unknowns and with a well-planned marketing execution, an auction should move forth with the dates that will benefit its sales regardless of outside forces.

4) Be imaginative and creative
The most important components of all….get your employees engaged and have fun! Just because you’re doing business doesn’t mean you can’t have a little enjoyment and entertainment with your promo/event sales. Some auctions hold fun events such as hot dog roasts & sales with specific themes while others tie-in a special promotion to celebrate the auction’s anniversary. Having your event reflect your auction’s personality will be a huge hit to your dealers and can be key in helping to increase your volumes in slower weeks.

NextGear Capital Wins TechPoint Mira Award for Innovation

NextGear Capital employees pose with their recently won Mira Award
NextGear Capital employees pose with their recently won Mira Award

CARMEL, Ind. – TechPoint, Indiana’s technology growth initiative, recognized NextGear Capital as one of the state’s technology success stories during its annual Mira Awards gala on May 2. Now in its 16th year, the Mira Awards celebrate the most innovative and successful technology companies in Indiana, as well as entrepreneurs and educators.

NextGear Capital took home the IT Services for Business Award for its development and implementation of a proprietary ERP/CRM/mobile platform. The creation of this platform, upon which NextGear Capital runs its business, directly contributed to the Cox Automotive company doubling its revenue last year.

“It’s an incredible honor to receive this award, which is a testament to the quality of people we have at NextGear Capital and Cox Automotive,” said Bryan Everly, CTO of NextGear Capital and recently-named TechPoint board member. “A company like this could not be successful without the individuals throughout our state’s tech industry that really want to make companies successful.”

The judges also recognized the company’s dedication to growing its Indiana workforce. In 2014, NextGear Capital added 85 employees to its technology team, with plans to add an additional 30 this year.

“The Mira Awards amplify success stories of some of the very best Indiana startups, scale-ups and established tech companies, which helps them win new customers, attract investment capital and acquire skilled talent,” said Mike Langellier, president and CEO of TechPoint. “The Miras are a large, annual part of our mission to accelerate tech growth in Indiana.”

Forty-three independent, volunteer judges spent more than 700 collective hours reviewing and ranking the applications, interviewing the nominees and selecting the winners. Judges included 15 company founders, eight CEOs and presidents, four CIOs, six vice presidents and a variety of other subject matter experts.

This March There’s #NoExcuses

committed to community

Welcome to NextGear Capital’s No Excuses campaign! This annual Community Relations effort began 10 years ago with AutoTrader.com encouraging employees, their teams and their families to get out and volunteer.

NextGear Capital is excited to be a part of this initiative. We understand the importance of building relationships with different organizations in our community and the positive impact that volunteering can make when it’s a part of everyday life. That’s why we’ve committed a 75% employee participation rate for No Excuses. These employees will be volunteering at least one hour in the month of March. Because at the end of the day, every minute matters and every hour counts.

On Friday, February 27th, a Volunteer Fair was held at our Corporate office. We had a great turnout at this event, as our ‘Champions’, along with individuals from several partner organizations, spent time discussing ways our employees and their families can get involved. Those interested in volunteering had the opportunity to sign up and receive a NextGear Capital ‘Committed to Community’ t-shirt. At the end of the day, we had 356 signees for 18 different charities!

In the month of March, NextGear Capital is partnering with the following organizations to give back as a part of our #NoExcuses campaign:

  • American Cancer Society
  • American Diabetes Association
  • Best Buddies
  • Big Brothers Big Sisters
  • Boys & Girls Club of Noblesville
  • Girls Inc.
  • Gleaners
  • Humane Society of Hamilton County
  • Junior Achievement
  • Knitting for Homeless
  • Project Linus
  • Red Cross
  • Ronald McDonald House
  • Special Olympics
  • Stop Hunger Now
  • Wheeler Mission

NextGear Capital, EffectiveUI Honored for Web and Mobile Apps

Image of myNextGear floor plan software on phone
Image of myNextGear floor plan software on phone
Account access 24/7

CARMEL, Ind. – NextGear Capital and EffectiveUI were recently honored with a silver award at the W3 Awards Program for their collaborative work on NextGear Capital’s Online Account Management for both the web and mobile app. These awards honor creative excellence on the web and recognize the creative and marketing professionals behind award-winning sites, videos and marketing programs. NextGear Capital and EffectiveUI received their award in the Mobile Application – Finance category.

“At NextGear Capital, we strive to put the right tools in the hands of our customers that allow them to drive their businesses more effectively and efficiently,” said Bryan Everly, chief technology officer at NextGear Capital. “I believe that the best technology is the one that fits your needs so well you almost don’t notice it’s there. We’re truly honored to be the recipient of this award as we continue to push the envelope on behalf of our customers and partners.”

NextGear Capital and EffectiveUI have been business partners since January 2013, when both companies partnered to design and implement NextGear Capital’s web and mobile applications. The success of this project has provided opportunities for NextGear Capital and EffectiveUI to partner on a number of other fronts, including:

  • A walkthrough video demo of the new applications and their capabilities.
  • An updated user experience and design for NextGear Capital’s corporate intranet.
  • Localizing the web and mobile applications to support NextGear Capital’s expansion into new markets.
  • A research study to better understand customer behavior related to the Online Account Management for both the web and mobile apps.
  • Multiple web and mobile application usability studies.

“This is an important honor that we’re excited to share with NextGear Capital, since the W3 Awards recognize creativity in digital applications,” said Eddie Geddes, senior engagement manager at EffectiveUI. “We’re very proud of the work we’ve done together on the Online Account Management and believe this is a great example of a complex application that meets users’ needs while matching NextGear Capital’s business goals.”

 

NextGear Capital Donates to NAAA Scholarship Fund

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CARMEL, Ind. 2014 – During the recent 2014 National Auto Auction Association (NAAA) Convention in Boston, MA, NextGear Capital presented a $10,000 check to the NAAA Warren Young, Sr. Scholastic Foundation. The company, a member of the Cox Automotive Group, also made a significant contribution during the event’s Pedal Car charity auction, purchasing seven pedal cars to display around their corporate office. All proceeds from the auction went towards the scholarship foundation.

“As a company, we believe that our children are tomorrow’s leaders and we want to do our part in helping them achieve success,” said Brian Geitner, president of NextGear Capital. “We applaud the NAAA’s efforts to help provide educational opportunities for current and future generations and are proud to unite with them in this effort.”

The NAAA Warren Young Sr. Scholastic Foundation assists NAAA auction full-time employees, their children, stepchildren and grandchildren who plan to continue education in college or a vocational school. Up to three awards totaling $10,000 are awarded per year throughout the four NAAA Chapter office locations.

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NAAA Pedal Car Auction Pushes Beyond Half-Million Dollar Mark

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FREDERICK, MD.—Pedal cars attracted very adult-sized donations at the National Auto Auction Association’s Black Book Pedal Car Auction, raising more than a half-million dollars to benefit the organization’s nonprofit NAAA Warren Young, Sr. Scholastic Foundation, Inc. The auction was held during the 2014 NAAA Annual Convention in Boston.

Among the 14 candy-colored and fully accessorized, pedal-powered entrants, a Jump Truck custom-built by State Line Auto Auction of Waverly, NY — complete with jumper cables, compressed air system, push bumper, beacon lights, trash receptacle, fire extinguisher and first aid kit — claimed the “Best In Show” title with a winning bid of $102,000. The team of John Williams, Chris Waters and Ed Garrity under the supervision of Rob Bennett invested almost 130 hours in the project, according to State Line President Jeff Barber.

The charity event’s entry fees, vehicle sales, award sponsorships and additional contributions collected a grand total of $576,300 for the association’s annual merit scholarship program.

Continue reading “NAAA Pedal Car Auction Pushes Beyond Half-Million Dollar Mark” →