Utilizing A Floor Plan for All Your Business Needs

When you think about floor plan lenders, it’s natural to think of them as just another financial institution such as a local bank that offers additional funding. But did you know that when you select the right floor plan provider, you have access to additional tools and resources to help run your dealership more efficiently? NextGear Capital knows that independent dealers need more than additional cash flow to help optimize the success of their dealership. Here are some ways utilizing a floor plan to help streamline daily business tasks:

Account Portal – There are so many different aspects to running a dealership and that’s where Account Portal can help. This online account management platform gives you the most current information on everything from upcoming payments to the location of your titles. You can also access additional resources such as reporting, analytics, promotions and how-to videos.

Tailored Pricing Programs – Whether you’re new to the independent dealer space, specialize in lower-priced inventory or simply want more flexibility when it comes to your cash flow, NextGear Capital has a floor plan that’s right for you. From Flex Pricing to First Gear, we’ve designed different pricing programs to meet our dealer’s unique and individual needs.

Customer Centric Support – With other financial institutions, after you’re approved for a line of credit you’re probably not going to hear from them again unless there’s a problem. That’s not the case with NextGear Capital. You’ll have a dedicated Portfolio Manager who can help you strategize and find solutions to problems. You’ll also have access to our client experience team who can assist you with everything from processing your funding requests to answering questions about reporting available inside of Account Portal.

Easy Audit Reconciliation – Located inside of Account Portal on the audits page,Self Reconciliation efficiently clears audits so you don’t have to spend hours reconciling unverified units. Simply take pictures on your mobile device and clear audits in real-time. You can free up even more time by assigning the reconciliation to one of your associates with our delegation feature. 

MORE Resources – From our Collateral Protection Program which provides you with extra assurance on your inventory, to blogs, videos and industry insights on our dealer resources page, we’re constantly investing in providing you with the tools and information you need to help your dealership boom.

When you’re shopping floor plan lenders, remember to select one that’s going to be able to support all your business needs. From tools like Account Portal to flexible and customizable financing options, NextGear Capital prides itself on providing its dealers with a one-stop financing solution to help them overcome challenges and stand apart from the competition. Start utilizing a floor plan today by applying here.

NextGear Capital Unveils First Gear For New Dealers

Dealer using First Gear

“First Gear” helps meet the challenges of getting a used car dealership up and running

Getting a used car dealership off the ground can be challenging, especially in the current automotive retail and wholesale environment. In response, NextGear Capital has launched the first floor plan product in the industry designed specifically for new independent dealers, called First Gear.*

First Gear is a floor plan option that provides early access to capital that is vital to jump starting a new dealership. Independent dealers who’ve been in business for six months or less can get approved for up to a $100,000 line of credit without immediately submitting bank statements. This gives them the cash flow to purchase inventory and the flexibility to choose where to source from, while freeing up finances to grow their business. Following an introductory period, as more information is submitted, the line of credit is evaluated and adjusted, as needed.

first gear for dealers

In addition to being expensive, starting a new dealership comes with a lot of unknowns. First Gear dealers also benefit from NextGear Capital’s commitment to helping independent auto dealers thrive. Supported by the resources of Cox Automotive, a designated portfolio manager provides business analytics that can help new dealers identify inefficiencies, and gives them the information and tools they can use to make necessary adjustments, stay ahead of the curve and focus on profit and growth.

“NextGear Capital understands how hard it can be for independent dealers to secure lines of credit from traditional financing sources,” said President Scott Maybee. “As our company’s primary focus is to invest in the success of independent dealers, we are committed to delivering new solutions that help them and our industry grow even stronger.”

To learn more about NextGear Capital’s First Gear dealers floor plan program, go to www.nextgearcapital.com/floor-plan-products/first-gear

*Certain conditions apply. All rights reserved. Not available in New York or South Dakota. Advances are subject to Terms and Conditions of Dealer’s Demand Promissory Note and Loan and Security Agreement and other agreements with NextGear Capital. Advances made in California by NextGear Capital, Inc. are made pursuant to NextGear Capital’s California Finance Lender License #603G505.

Finding The Way Forward in May

How Daniel Delgadillo’s Adaptability Helped Him Thrive During COVID

Daniel Delgadillo, owner of Bacliff Auto, got his start in the automotive industry in 2008 working for a franchise dealership. He spent a few years in different roles then started selling cars on the side until he decided it was time for change. He got his dealer’s license and a short time later, was contacted by NextGear Capital about getting signed up for a floor plan which was the final push he needed to make his side job his main one.

It turned out to be a fortuitous decision because when the pandemic started, Delgadillo says he was glad he had the cash flow to immediately start stocking up his inventory. “By utilizing my floor plan, I was able to ramp up my inventory by purchasing non-auction units before prices skyrocketed. It gave me some breathing room because I hadn’t purchased a lot of inventory online before, so I had time to get acclimated. I’ve always been an old school, kick the tires guy, but I like being able to get other work done while I bid and buy from online auctions and still feel confident in my purchase after reading up on the units in the condition reports.”

Unlike a lot of other dealers, he says that his business has done well during COVID. “My service center grew because it was considered an essential business during the pandemic. One of my future goals is to expand on the service center by creating a “quick lane” type service center so I can increase my customer base by offering services like oil changes and selling tires on cars that weren’t purchased at the dealership. I also started making my inventory available to out-of-state buyers and shipping my vehicles across the country.”

Delgadillo says that the combination of his relationship with NextGear Capital and his attitude of no risk, no reward is what has helped him to prosper. “You can’t be afraid of change, and you have to take opportunities when they’re presented to you otherwise, you’ll never know what might’ve been.”

Kathy Ward – Supporting Troops During COVID

Kathy Ward, owner of Ward Motor Company, has always been passionate about supporting the military ever since her son joined the Army several years ago. However, she said that when the pandemic started, she felt it was more needed than ever. “COVID has made a lot of people feel isolated so reaching out with letters and care packages can make a huge difference. These kids come from all walks of life and sometimes they don’t have family who can send them letters. The first two weeks of basic training they have to spend in quarantine now, so it makes it even harder. It humbles you when you realize that you can be a light in the darkness by simply taking the time to provide words of encouragement and support.”

Ward says she’s also seen an increase in demand for her care packages. “In the past two years, I’ve helped organize over 20,000 care packages to our troops overseas for all branches of the military with the help of other military moms across the country. The packages are made up of everything from toothbrushes to energy bars. We’ve gotten some local donations for the packages but for the most part, we use our own financial resources to assemble and ship the packages. It’s worth it though because we’ve gotten so much feedback about the difference it makes when they receive a care package or handwritten letter in the mail. It helps them feel connected and cared for during such an uncertain time.”

Sales Team Members Support Dealers During Texas Winter Storm

When Texas got hit with an unprecedented winter storm that caused rolling blackouts in February, the NextGear Capital sales team had to quickly figure out how to continue to provide support for their clients. This proved especially challenging for team members like Portfolio Manager, Sandra Gonzalez who also lives in Texas and was without electricity and water for days. Despite this, the sales team came together to find solutions like extending audits to ensure their clients felt supported and needs were still being met. No matter what the circumstances, the sales team always finds a way to support our dealers and we thank them for their unwavering dedication.

Dealer Spotlight Ryan Martin: Taking Charge of His Future

Ryan Martin dealership, Koncept Motor Sales

When Ryan Martin began working in the automotive industry, he was only 20 years old but already full of ambition. “I started working for a franchise dealer and just slowly worked my way up until I realized how much money I could be making if I owned my own dealership. So, in 2017, I took the leap and that’s how Strawberry Road Auto Sales got its start. We specialize in sports cars which I both enjoy and excel at selling.”

Martin said getting a floor plan was never a question because he had worked with floor plan companies in the past, but NextGear Capital set the bar higher. “My first impression of NextGear Capital exceeded my expectations. I love my Portfolio Manager; he feels more like a friend than a business ally. When the dealership was being run by the previous owner, it only averaged about 20 to 30 units on the lot. As soon as I took over and started using my floor plan, I was quickly able to increase the inventory to about 95 vehicles a month. I started 2021 off strong by selling 170 vehicles during the month of January. I always say that If you want to sell cars, you need the cash flow to acquire new ones, and that’s why you should get a floor plan.”

Another major selling point for Martin was the ease and accessibility that Account Portal provides him. “Having the right tools and technology to support my business was one of my top priorities when it came to selecting a floor plan. After I saw a demo of Account Portal, it was a done deal for me. Running a dealership is very time consuming and there is nothing worse than having to call someone else when I want to floor my inventory, or to access information about my account. I love being able to manage my own floor plan and Account Portal gives me the freedom to view all of my account information in just a few easy clicks.”

Alex Balk is another dealer who loves Account Portal. Hear his testimony in this video:

Unlike some dealers, Martin says that he enjoys the audit process because Self Reconciliation is easy to use and he can clear his audits quickly. “I actually like the audits because they prompt me to check in on my inventory and keep track of what I have which helps me sleep better at night. I also like the aging reports I can generate inside of Account Portal because they help me keep track of what is on the floor and what needs to get turned quickly”

Besides NextGear Capital, Martin says that he uses a wide variety of other Cox Automotive products as well. “I use vAuto, VinSolutions, Dealer.com, Dealertrack, Autotrader, Kelly Blue Book and Ready Logistics all on a regular basis. There is just no comparison for VAuto in the industry and VinSolutions has the best CRM’s. I also love Autotrader’s scarcity report because it helps me know which vehicles I should be sourcing. The nice thing about all of these products being under the Cox Automotive umbrella is that they all integrate well together.”

Martin says that once the pandemic started, he initially didn’t have to make a lot of changes because he was already setup for selling his vehicles online. “Fortunately, we’ve always sold our inventory online, so we were already prepared for that shift. We have also experienced an uptick in cars that we ship out-of-state from about 5% to 20%, which has been an unexpected area that’s generated more revenue for us.”

While he was prepared for selling his inventory online, he did have to make some other adjustments. “Before COVID-19 I used to purchase most of my inventory in-person at auctions. Now, I source 100% of my inventory online. It’s been a little challenging to source inventory because the vehicles that have the highest demand in my area are scarce. So, I began to look outside of Texas to find the types of vehicles my customers wanted. I used to source only about 10% of my inventory out-of-state and now about 40% of my inventory comes from outside of Texas. It was still a relatively easy transition to make and there are definitely benefits to it like having more time to spend at the dealership, but I do miss the camaraderie and being able to see who I’m bidding against at the auctions.”

While he doesn’t want to share details yet, Martin said that he hopes to expand his dealership in the future and has a plan on how he is going to get there. One thing that he doesn’t mind sharing, is his advice to new dealers. “You should make sure you know how to manage your expenses correctly, so they don’t get out of hand. I also encourage dealers to research the market they’re in to ensure they’re purchasing the right inventory. Otherwise, vehicles are going to sit on a floor plan for an extended amount of time.”

Maximize Your Non-Auction Purchases

Kathy Ward sourcing non-auction purchases
Kathy Ward sourcing non-auction purchases

COVID-19 has forced many independent dealers to work smarter when it comes to sourcing inventory. With used vehicle prices increasing, profit margins thinning and no reprieve in sight, independent dealers are turning to non-traditional sourcing options. Expanding your inventory search outside the auctions can help ensure you aren’t leaving any money on the table. Download our infographic to learn more about non-auction purchases.

Sourcing Non-Auction Purchases

Autotrader

When it comes to reaching a large audience quickly, sites like AutoTrader™ are a good place for dealers to turn to when they need to FIND THE INVENTORY THEIR CUSTOMERS ARE LOOKING FOR QUICKLY.

Marketplace

Social media sites like Facebook Marketplace™ are a CONVENIENT WAY FOR USERS TO POST THEIR VEHICLES FOR SALE and they’re also a good place for dealers to find reasonably priced inventory.

Craigslist

Classified ads posted on Craigslist™ have long offered simple used-car advertisements. Designed to make the selling and buying process as easy as possible. The sheer volume of inventory available on Craigslist™ makes it ONE OF THE BEST SOLUTIONS WHEN SOURCING NON-AUCTION PURCHASES.

Maximize Your Floor Plan

Trade-ins

When customers are looking to trade in their vehicle for a new one, dealers can use the negotiation process to help secure a good price on the vehicle they’re trading in. FLOORING A TRADE-IN SAVES YOU NOT ONLY TIME BUT MONEY by letting NextGear Capital help you handle the consumer loan.

Download the Infographic here.