Simplified Title Management Process

Focus on What Matters Most to You

Managing your titles with a NextGear Capital floor plan provides:

  • Title management at any time through our Title Release Program
  • On-Demand color copies of received titles
  • Free FedEx waybills within Account Portal for overnight shipping
  • Storage in our Title Vault, ensuring all titles are kept safe a secure

Up-to-date title management information available inside Account Portal includes:

title management
  • Due Dates
  • Tracking information
  • Title location
  • Title status
  • Title releases available
  • Days the vehicle has been floored
  • Payoff Amount
  • Titles Outstanding

Let NextGear Capital handle the processing, managing and storing of your titles so you can focus on moving more metal.

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Talking Titles with Dustin, Brandy, and Danny

Listen to our subject matter experts Dustin Wilkinson, Brandy Hunt, and Danny McNelis discuss all the title features available to NextGear Capital. Also in this video you’ll get a glimpse behind the curtain and hear Brandy talk about how NextGear Capital processes your titles!

NextGear Capital, Inc. Renews $1.1 Billion Financing Securitization, Closes $500M Bond Offering

Renewed credit facility and securitized term note reinforces NextGear Capital as a strong lending partner for independent dealers

NextGear Capital, a Cox Automotive brand, has completed the renewal of its $1.1B financing facility on August 31, 2021. In addition, the company recently closed its latest $500M bond offering in July. 

NextGear Capital’s renewed $1.1B line of credit with industry-leading banks provides a variable funding mechanism to support the seasonal and growth needs of its dealer clients. The bond offering is NextGear Capital’s 13th asset-backed security (ABS) issuance since its initial offering in 2014. Together, they make NextGear Capital one of the most stable financing sources in the marketplace for independent dealers.

“These recent transactions preserve our operating flexibility while allowing us to continue serving the floor plan financing needs of independent dealers,” said Dave Horan, chief financial officer at NextGear Capital. “Our 20,000-plus dealer clients can gain greater confidence that their lender is well established in the capital markets and has a reliable source of capital to fund their inventory needs today and in the future.” 

This $500M bond offering was the first for NextGear Capital since March 2020 and represents the first floor plan ABS transaction issued in 2021 YTD. MUFG Securities Americas Inc. served as administrative agent on the bank conduit facility, and RBC Capital Markets was the lead structuring agent and underwriter for the securitized term note offering.

Finding The Way Forward in September

Loving the Hustle

Jon Lang is an entrepreneur at heart. He started his own mobile detailing company when he was just 19. After he talked to some of his customers who worked at local used car lots, he realized he could make more money running his own dealership so he spent the next summer flipping a house so he could use the funds he made to open Mountain Top Motor Company at the age of 25.

The dealership was small and only averaged about five vehicles in inventory, but he said he was hesitant to get a floor plan. “I was anti-floor plan at first but then I talked to one of my dealer friends and he convinced me that the only way I was going to grow was by getting a floor plan,” he said. “I started with a competitor of NextGear Capital’s and then decided to give NextGear a try because they offered better terms and I thought Account Portal was a great platform and easy to use.”

Lang is now 11 years and and has seen a lot in that time. He says that he’s been lucky through the pandemic. While his business saw a dip in sales at first, he’s been doing well since. “It really just takes hard work to thrive during this time,” he said. “I always get to the auction early on sale day so I can do my research and feel confident in the vehicles I’m purchasing.”

He’s planning on expanding by opening a new shop and hiring six mechanics so he can get his inventory ready to sell sooner. All the while, he has continued to floor plan with NextGear Capital to drive his growth. “I could not have achieved what I’ve done without my NextGear Capital floor plan,” he said. “It’s been a great partnership.”

A Small Town Success Story

You might not expect to find a flourishing dealership in the small town of Muscatine, Iowa, during a pandemic but that’s the case at Uptown Motor Sales. Owner David Rood joined the company in 1995 and purchased the dealership two years ago after his partner decided to retire. “I ended up using a lot of the capital I had on hand when I bought my partner out and that impacted my ability to acquire inventory,” he said. “So, when I was at my local Manheim auction buying inventory, I saw an advertisement for NextGear Capital and decided to fill out an application. I was immediately contacted by a NextGear Capital representative who told me I was approved for a $250,000 line of credit and I just couldn’t believe how easy the entire process was.”

Once he had his floor plan, Rood said he was able to quickly increase the amount of inventory he carries. He averages between 55 to 60 vehicles on his lot which is impressive in a town of only about 17,000 people. “The pandemic was incredibly hard on everybody, and it was difficult on us too,” he said. “We’re really well known in the local area and get a lot of repeat customers, so once people started feeling comfortable coming into the dealership again, the demand was there. Being able to use my floor plan has really helped me keep my inventory levels up and I’ve been able to turn my inventory almost as quickly as I acquire it. I’ve also been able to purchase more popular vehicles like trucks, which are always in high demand with my customers.”

Even though Rood says his floor plan has been a huge contributor to his dealership’s success, he didn’t always feel that way and was afraid that it might come with too many strings. He was wary that it would be like having another partner and he’d feel tied down but said it’s been a very freeing feeling. “I have every single penny of my floor plan tied up in inventory and I’m able to keep my own capital to do with what I want,” he said. “I’ve also always had a wonderful experience with NextGear Capital. Everyone I’ve interacted with has provided me with exceptional customer service and my Portfolio Manager really understands the used car business and has been a huge asset to me. I really don’t think anyone will be disappointed with a NextGear Capital floor plan.” 

In-Person Volunteering is Back!

NextGear Capital volunteers

NextGear Capital was able to start volunteering again in-person after over a year of volunteering virtually. One of the most recent events they participated in was in support of Gleaners Food Bank’s Mobile CARE event. Volunteers spent two hours loading vehicles with food items for families in need. “As we continue to ride the wave of uncertainty created by the pandemic, organizations like Gleaners are critical to ensuring that individuals and families receive the additional support they need to prevent them from going hungry,” said Associate Marketing Manager Natalia Wolting. “I’m glad I was able to participate in the CARE Mobile event not only so that I could give back to the local community but also spend time with some of my NextGear Capital team members in-person again,” she said.

Top 5 Ways to Optimize Title Management

As an independent dealer, managing your titles is yet another task when you already have your plate full of the day-to-day responsibilities that come with running your dealership. What you might not realize is that an effective title management system can help you oversee your inventory and streamline some of your procedures. Here are the top 5 ways you can utilize a title management process to the benefit of your dealership:

  • Keep Track of Inventory – When you use a title management system like NextGear Capital’s Account Portal, you’ll be able to quickly view the status of your titles. You can also see how much you have left on your floor plan so you can make informed decisions on future purchases.
  • Reduce Turn Times – When you visit the titles page on Account Portal, you’ll see a column with the number of days your vehicles have been on your floor plan, which allows you to easily identify the units that need to be moved. This information will help you avoid additional fees from inventory sitting on your lot for too long.
  • Get Paid Quickly – While floor plans are designed to keep more money in your pocket, there are ways to optimize them to access additional cash flow sooner. An industry first, NextGear Capital’s Title Release Program allows dealers to get access to titles prior to payoff, in order to complete the sale quickly. With the sale complete, you have the flexibility to get the vehicles you need.
  • Increase Efficiency – You don’t have to worry about wasting time trying to locate a title when you can simply use your title management system. Rather than spending hours on the phone trying to track down titles, investing in a good system that does the heavy lifting for you will save you valuable time.
  • Strategically Diversify Your Inventory – If you want to make changes to your inventory, checking your titles can help you figure out which units are staying on your floor plan the longest, so you can be more strategic with future purchases.

Processing titles can seem like busy work, but with some savvy know-how and the right title management system, you can utilize them to effectively manage and grow your business. By helping you keep track of your inventory so you can focus on closing sales, you’ll have more cash flow to improve your dealership.

Dealer Spotlight Tariq Dmanhouori: A Floor Plan With FLEX

Tariq Dmanhouori

Tariq Dmanhouori, owner of NY Auto Sales in Omaha, Nebraska, didn’t have a background in the automotive industry when he started selling vehicles on the side. So, he started watching videos and reading articles online about selling used cars to help expand his knowledge. It wasn’t long before he experienced a sudden increase in sales. “I had never worked at a car lot before, but I spent over a year educating myself and realized that owning my own dealership was the next step,” said Dmanhouori.

Originally, he wasn’t interested in getting a floor plan. He had heard about them from other dealers but thought it was easier to just use the cash he had on hand. That changed when he was hit with several unexpected costs that caused a setback to his business just a few months after opening his dealership. When a friend mentioned NextGear Capital he once again did his research and decided it was time to sign up.

He wasn’t sure about using a floor plan because he had heard some negative things from other dealers, but he now realizes that’s because they didn’t know how to manage their floor plan. He said he’s never had an issue since day one and is glad he listened to his friend. He likes the additional cash flow and flexibility it provides and its helped him “take his dealership to the next level.”

Dmanhouori said getting started with NextGear Capital was a quick and easy process and exceeded his expectations. “Some floor plan companies will require you to be in business for several years before approving you for a floor plan, but I didn’t have that issue with NextGear Capital,” he said. “When I told my wife that the dealership had been approved for a $50,000 line of credit, she was really happy because she knew we could do a lot with the additional cash.”

Before signing up with NextGear Capital, Dmanhouori had around 20 vehicles in inventory and has doubled that number since getting his floor plan. He said keeping more vehicles on the lot attracts more buyers, which improves his turn times and frees up more cash so he can buy more inventory and find better deals. He said his floor plan makes it easier to get the vehicles he needs so he’s able to source better quality vehicles and turn his inventory quicker.

Dmanhouori also loves Account Portal and uses it to check, track and release his titles and also to view his inventory. He said it’s easy to use and keeps him updated in real-time on the status of his vehicles and available credit. “You can view all your inventory in one spot, you can view all of your titles in one spot, it’s just a very easy platform to work with,” he said.

Like other dealers, COVID took a toll on his business. He was forced to reduce his workforce and inventory at the beginning of the pandemic but he’s grateful that NextGear Capital deferred his curtailments and some fees in the beginning. In October 2020 business picked back up and sales were strong to carry him through the remainder of the year. He prefers to go to the physical auctions like Manheim in person and is also glad he’s able to do that again. Despite all the changes and challenges over the past year, he’s proud to say his business has done well.

One of the things he’s learned from the pandemic is how to handle uncertainty. He says that one of NextGear Capital’s newest pricing programs, Flex Pricing, has helped him to feel more comfortable purchasing inventory in a volatile market. “Flex Pricing provides me the additional cash flow I need to purchase inventory when I need it,” he said. “The smaller payments give me some breathing room so I can be more agile with my inventory instead of having to worry about making large payments until I sell a vehicle. It removes so much pressure and I give it five stars.”

Using the cash his floor plan frees up, his future plans include adding a service department so NY Auto Sales can be a one-stop shop for his customers. He is also considering opening a second location. He has a big vision for his business including adding variety to his inventory so his customers have more options while also improving the customer experience by creating a low-pressure sales environment.

Dmanhouori said his advice to new dealers is simply to get a floor plan and ignore the misinformation regarding fees that might keep a new dealer from getting one. However, he encourages dealers to ensure the fees are reasonable and easy to understand. “If you need help getting on your feet or want the ability to grow your business, then you have to sign up with NextGear Capital,” he said. “My floor plan has become part of my day-to-day business strategy and has helped my dealership thrive.”

The Top 10 Floor Planned Vehicles During First Half of the Year

Independent dealers are facing more competition for less inventory in today’s post-pandemic wholesale marketplace. Then, when they find vehicles that meet their acquisition strategy, they are costing more than before. 

The cash flow from NextGear Capital’s floor plan financing is helping independent dealers stay competitive and act quickly to acquire the right inventory. As a result, dealer clients are securing some of the most sought-after vehicles on the market. Six of the top 10 vehicles floor planned with NextGear Capital in Q1 and Q2 2021 represent the two most popular vehicles in America: The Ford F-150 and the Chevrolet Silverado. Midsize sedans, including the Nissan Altima and Toyota Camry, ranked high, as well.

“Sourcing inventory in a tight market requires independent dealers to have a plan in place to make smart buying and pricing decisions,” said Scott Maybee, president of NextGear Capital. “Using a flexible floor planning strategy can make a dealer’s inventory work for them and stay competitive in any environment.”

The top 10 vehicles floor planned with NextGear Capital in the first half of 2021 were: 

  1. 2013 Ford F150
  2. 2014 Chevrolet Silverado 1500
  3. 2018 Ford F150
  4. 2014 Ford F150
  5. 2014 Ram 1500
  6. 2015 Chevrolet Silverado 1500
  7. 2015 Nissan Altima
  8. 2015 Chrysler 200
  9. 2016 Ford F150
  10. 2018 Toyota Camry

“The pandemic has caused consumers to reevaluate their needs when it comes to purchasing used vehicles,” said Shane Pyne, NextGear Capital industry intelligence manager. “Trucks and mid-sized sedans are dominating the list which tells us that customers are factoring in both lifestyle and budget when shopping for used vehicles.”

Shane Pyne, Intelligence Manager

The Keys to a No Fuss Title Management Process

When sourcing inventory, you need to focus on getting the best price possible and securing the vehicles your customers are looking for. While a necessary component, acquiring the titles to accompany them is often an afterthought. Title management can be a time-consuming and frustrating process for dealers, but it can be streamlined and stress free with a NextGear Capital floor plan. Here some ways your floor plan can improve your title management process:

  • Reduced Headaches – Tracking down titles after an auction sale can be a hassle, especially when you’ve purchased multiple vehicles on the same day. Fortunately, with a NextGear Capital floor plan the heavy lifting can be done for you by keeping tabs on the status and location of your titles, so you can focus on getting your inventory ready to sell.
  • Increased Security – When titles are being handled by multiple people, they can get misplaced or even end up in the wrong hands. When you have a NextGear Capital floor plan, your titles are kept securely in our title vault until they’re ready to go to their new owner so you don’t have to worry about them getting lost or mishandled.
  • Streamlined Process for Non-Auction Vehicles – In the past, it was not uncommon for dealers to have to wait days before their titles were processed and the received funding for their non-auction inventory. NextGear Capital has expedited this process by providing dealers with a prepaid FedEx Waybill inside of Account Portal so they can ship them overnight and have their funding request approved by the next day.
  • Detailed Title Information – Tracking the status of a title is one of the most time-consuming aspects of purchasing a vehicle. The newly enhanced Title page inside of Account Portal gives dealers greater visibility into the status of a title including its due date, the number of titles eligible for release, tracking information and title location so they’re always in sync with their titles.
  • Less Overhead – If you carry a large amount of inventory on your lot, you know that tracking down titles can be a full-time job and require additional staff to help oversee the process. If you have a floor plan that offers title management, you can quickly access information about your titles and release them when you’ve completed a sale from your mobile device or desktop. This saves you the expense that goes along with hiring a title clerk.

A vehicle can’t be sold without a title, so finding the right system to keep your titles organized is crucial. Fortunately, when you select a floor plan provider like NextGear Capital you have the resources available to help you manage your titles so you can focus on moving more metal.

Financing Options for Your Dealership

Operating strictly with cash can be limiting and local banks and traditional financial institutions don’t have additional resources available to help you run your business. NextGear Capital specializes in helping independent dealers succeed with floor plans that include dedicated support, tools and resources to help you run the most efficient and profitable dealership possible. Here are some things you’re missing out on without a floor plan:

Flexibility

When your cash isn’t tied up in inventory you can use your funds to:

  • Experiment with different types of vehicles to grow your client base.
  • Invest in technology such as digital retailing or market insight tools to drive more online shoppers and ensure your lot has the vehicles they want.
  • Make needed improvements to your dealership.
  • Expand your staff.
  • Cover overhead costs.
  • And much more!

Account Management

You won’t get tools to help manage your daily operations from traditional financial institutions. NextGear Capital’s Account Portal provides real-time account overviews that offer vital information such as:

  • Analytics
  • Transparent auditing details
  • Title management
  • Payment history
  • Vehicle valuations
  • Reporting
  • And much more!
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Finding The Way Forward in July

Relationships Matter

Independent dealer Edwin Smith opened Blue Sky Auto in 2014 and has been a NextGear Capital client since 2015. He started out with a modest line of credit of $25,000 and has steadily grown to $350,000.

While he says his business model hasn’t changed much over the years, his relationship with NextGear Capital and his business partner has helped him remain successful no matter what has come his way. “I had previously worked with a different floor plan company but as soon as the rep from NextGear Capital walked into my door, I immediately liked him and decided to switch to NextGear,” Smith said. “I really think that my relationships with NextGear Capital and my business partner, along with the support of my staff, have been the key to my dealership’s success over the years.”

These relationships have been especially important for Smith in 2021. Despite the economic factors all dealers have faced, as well as a personal health challenge he has had to overcome, he has leaned on both NextGear Capital and his business partner to remain successful. Whether it’s finding ways to keep from overpaying due to high inventory prices, making sure the units on his lot are the right mix for his client base or just talking through the big decisions, it all adds up to a steadily profitable and successful track record.

Stronger Together

After spending 30 years in the automotive industry, Mark Weida, owner of Street Smart Auto Brokers in Colorado Springs, Colorado, said the pandemic was unlike anything he’d ever seen. “Since we weren’t considered an essential business, we were shut down for two months which was really difficult,” he said. “When we were finally allowed to reopen, I went to great lengths to make sure my customers and staff were safe by increasing our sanitization protocols.”

Weida says that he also decided it was time to make other adjustments to his dealership. “I made some changes to my staff and hired a new service and general manager who were willing to adapt to our changing business model,” he said. “I’ve also hired more mechanics so I can get the vehicles ready to sell as quickly as possible. My goal is to have each vehicle sold within 45 days of purchase and if they don’t sell by the 60-day mark, I turn around and sell them to another dealer.”

The biggest change Weida says he’s made is to his buying strategy. His dealership specializes in mid-sized used vehicles between 2 and 10 years old. While he uses some online buying platforms, for the most part he prefers to buy his inventory in person even though it takes more effort. He takes a team of buyers out so they can work multiple auctions over a few days. Recently, he had four buyers spread out at eight auctions over three days and purchased 38 vehicles. In comparison, he used to be able to buy the same number of vehicles in one day after only attending two auctions by himself.  “I’ve never seen a market this volatile,” he said. “First, inventory prices started to creep up, then the semiconductor chip shortage happened. Suddenly we were competing with new car dealerships because they didn’t want empty lots, so they started purchasing used vehicles which further added to our inventory challenges. I’ve talked to other dealers around the country who’re paying the same price for 2016 model vehicles that they were paying for 2018 model vehicles just a year ago.”

Despite all the challenges, Weida says that things are starting to look up. His dealership recently had the best week in terms of vehicles we sold since COVID. While he used to average between 80 to 100 vehicles on his lot, he now averages about 120 so he’s still been able to increase his inventory during this time. He is also currently the President of the Colorado Independent Automobile Dealers Association (CIADA) and a member of a NIADA board and committee. “It’s nice because I get to talk to other dealers, share ideas and help each other figure out solutions to problems,” he said. “I don’t remember a time in the industry it’s been this precarious, but I think dealers who’ve been able to adapt have been able to be successful. We don’t know what tomorrow’s going to bring but we know we’re stronger together.”

NextGear Capital Team Members Embrace Inclusion Virtually

Employees finding the way forward in July

Even though most NextGear Capital team members continue to work from home, they were recently able to participate in virtual events to celebrate PRIDE and Juneteenth. The PRIDE Employee Resource Group (ERG) board members recently distributed items to members’ homes. “Knowing that PRIDE would be a virtual experience this year, we wanted to ensure that we kept the energy, excitement and inclusiveness that comes with PRIDE month,” said PRIDE co-chair Erin Kahre. “This allowed us to get creative and we decided that we would assemble and deliver PRIDE-themed swag bags for our team members at home to enjoy! We had about 120 team members sign up to receive the bags.”

After distributing the items, the ERG held a selfie contest for team members to post pictures in their PRIDE shirt. The ERG plans to be back to the Indianapolis PRIDE parade in 2022, but was so pleased that they were able to do something to show LGBTQIA+ team members that they’re important and supported.

NextGear Capital team members also celebrated Juneteenth by participating in a virtual Cox Automotive discussion, “Why Investing in Diversity & Inclusion Pays Off” with Cox Automotive’s Inventory Solutions President, Grace Huang, and Mercedes Benz USA’s Chief HR Officer, Lars Minns. They shared their experiences and the benefits they’ve seen when automotive organizations focus on being more diverse and inclusive.