The Top 5 Reasons Car Dealers Should Attend CAE

Cox Auto ExperienceFor its inaugural year, the Cox Automotive Experience has been designed to provide dealers with a plethora of useful and timely information so that they can start 2021 strong. The two-week event begins on January 25 and is jammed packed with presenters covering a variety of topics. Here are the top five things you can expect to learn if you attend the Cox Automotive Experience:

  1. Meet New Cox Automotive President Steve Rawley – Rawley is going to be kicking off CAE with the Cox Automotive Town Hall. This will be a great opportunity to hear from the new president including what his goals and outlook for the industry are. Chief Product Officer Marianne Johnson will also be discussing key milestones from a product perspective and what dealers have to look forward to in 2021.
  2. 2021 Market Outlook – Dealers will hear from Chief Economist Jonathon Smoke about his projections and predictions on what to expect from the market this year.
  3. Learn How to Create a Personalized Experience – If you’re looking for ways to improve the car buying process at your dealership, then you’ll want to join Jessica Stafford, Senior Vice President of Consumer Solutions as she walks dealers through best practices on creating the ultimate client-centric car shopping experience.
  4. Client Resilience Panel – If you want to hear how other dealers survived the past year then you should check out the client resilience panel. Independent dealers will be able to engage with other dealers during this interactive panel as they share what challenges they experienced in the past year, as well as what changes they plan on carrying through into 2021.
  5. Create a Winning Wholesale Strategy – No matter how large or small your dealership, inventory challenges were top of mind for everyone over the past year. During this session, dealers will be presented with tips for better understanding market data and the tools available to make better purchasing decisions in an increasingly competitive wholesale market.

Don’t miss this opportunity to gain insights from some of the top experts in the automotive industry so you can chart a course to a successful 2021 . To register for the no-cost event, sign up here. You can also sign up for a NextGear Capital product demo here.

The Cox Automotive Experience: A Preview

Thad Sykes, Associate Vice President of Sales at NextGear Capital, sat down with Pete Grupposo, Vice President of Dealer Sales at Manheim to preview The Cox Automotive Experience. The Cox Automotive Experience is a 10-day virtual event featuring industry insights, inspiring discussion, and the Cox Automotive solutions to help your business find a new way forward for automotive. This free event begins on January 25th and concludes on February 5th. Don’t miss it!  Register for the event here.

This Dealer Knows Good Customer Experience

Jordan Baker’s first job was hardly what he would call glamorous. “My career began in the car business when I was 12-years-old. My family owned dealerships in Grand Rapids, MI and I would do odd jobs like pulling weeds and washing cars, so I basically started from the bottom and then slowly worked my way up.”

After spending several years learning the ropes at various car lots, Baker decided it was time to take the plunge and in 2018 opened his own dealership Comodo Motors. “We started out small and grew with a swift force averaging 50 vehicles on our lot. At first I only used my own cash, but it quickly became apparent that our growth and goals of expansion would not be viable based on a cash-only system that was tied up in payroll and reconditioning. That’s when I decided to use a floor plan. Now we average just over 100 cars on the lot at any given time.”

When it was time to pick a floor plan provider, a previous encounter made the decision easy. “I made the choice to work with NextGear Capital because they were very professional and organized. My Portfolio Manger, Jacob Clemons, is extraordinary. He always goes above and beyond working with us and is exceptionally responsive which is greatly appreciated in such a busy industry. I’ve also found that they have some of the lowest fees in the industry and will do everything from flooring a car to holding  titles. NextGear Capital makes me feel like a true partner instead of just another number.”

Another thing that’s impressed Baker about working with NextGear Capital is the Account Portal tool. “Our Comodo team is made up of 10 people and everyone loves Account Portal. It’s so simple to use and has everything we need in one place. The ease of access to account information aids in being able to plan for payments, purchases and early vehicle payoffs, which helps properly direct company cash-flow.”

Baker says that he’s also an avid user of several other Cox Automotive brands. “I work with Manheim and appreciate how accessible information regarding past, present and future transactions is to find on their website. In addition, both AutoTrader and Kelley Blue Book help our sales team and customers have a better understanding of the true market price for our vehicles. All of these products along with NextGear Capital help us to enhance the Comodo Experience.”

Unlike a lot of other dealerships, Comodo was surprisingly prepared when the pandemic hit. “I’ve been an advocate for digital retailing from the beginning, so when COVID started we were already in ‘pandemic mode’. We designed our website so that customers are able to complete most of the sales journey online. They can get pre-approved, see their trade-in value, do a full video walk-around of each vehicle available on our lot and reserve the car they’re interested in purchasing all before coming in to finalize their paperwork. We’ve always offered local at-home deliveries but have modified them to be completely contactless making for a convenient, customer-centric experience.”

Part of creating that experience for Baker includes putting customers in both an efficient and aesthetically pleasing environment. “My wife started painting out of our house about 5 years ago when we lived down in Florida. When we moved back to Michigan her business was going really well, and we were selling a lot of her paintings from our house. So, when I opened my dealership, we decided to use some of the showroom space to display her artwork and that’s when we officially opened Copper Corners Art Gallery. Having artwork on the walls makes for a very relaxing environment and our customers certainly appreciate it. It’s also been really cool, to work with my wife every day.”

Now that Baker’s been successfully running his business for a few years, when asked what advice he has for other dealers getting started, he said not to be afraid of change. “The biggest thing that you can take from all of this is you have to be okay with new things happening. Being in the business for a long time, we’ve seen that there are a lot of people in the automotive industry that don’t really want to change, and you have to be flexible. If this past year has taught us anything, it’s that this industry changes so quick. Look at what’s happened with inventory and we’re seeing what’s happening with online retailing. If you’re not open to it, you aren’t bringing anything to the table and you’re going to fall behind. A big part of this is adapting to what the customer wants. If the customer wants a more digital and visual experience, then you have to give it to them. Honestly, its made things so much more efficient for my business. On the floor plan side, I’m obviously an advocate for NextGear Capital because of their transparency when it comes to things like audits, titles and fees. I’ve seen multiple floor plan companies and this one is by far the best. So if there’s a dealer out there looking for a floor plan company, he needs to partner with NextGear Capital.”

When thinking about the future, Baker says he’s very optimistic. “Five years from now I anticipate significant expansion at our location, growing into a large-scale family owned and operated dealership unlike any other. Floor planning with NextGear Capital has given me a secure way to increase inventory and flourish as a business. The culture we’ve built at Comodo is honesty, transparency and a comfort level that makes you feel like you’re at home. That’s another way my business aligns with NextGear Capital and that’s what the Comodo Experience is all about.”

Get Ready for the Cox Automotive Experience

Cox Automotive Experience graphicIn 2021, dealers will be able to attend the first-ever Cox Automotive Experience (CAE). This free 10-day virtual event will provide dealers with industry insights and solutions to help keep business moving forward in the new year. Unlike in-person events, dealers will be able to have one-on-one interactions with subject matter experts from some of the top brands in the automotive industry in a low-pressure environment.

Events will include a Cox Automotive Town Hall lead by Steve Rowley and Marianne Johnson, panels on topics like Client Resilience lead by Rich Contu, Creating a Personalized Buying Experience lead by Courtney Clark and the 2021 Market Outlook featuring Jonathan Smoke. Many brands will also be unveiling their latest solutions and tech, like NextGear Capital’s FirstGear program. Dealers will also have the opportunity to participate in demos from companies like Manheim, Kelly Blue Book, Autotrader and more!

If you’ve never had the opportunity to attend an in-person tradeshow or conference before, this is the perfect opportunity to test drive all the benefits a convention has to offer in a virtual environment. Make time to create connections with participating brands to ensure you have access to the support you need to make the most of 2021. Another unique benefit of registering for CAE is post-event access to all the content presented which will be available through the end of February.

Independent dealers can schedule their pre-set demo with a NextGear Capital sales team member here.

Virtual Auctions: No Longer a Thing of the Future

While some independent dealers were buying online pre-pandemic, the bulk of inventory acquisition was done in-lane. The pandemic pushed the marketplace online and it looks as if it’s there to stay. In a time of ever-thinning profit margins and inventory shortages, if leveraged correctly, online auctions can provide an efficient, profitable enhancement to a dealership’s operation model.

Low Inventory Levels Affect 53% of Independent Dealers

Adding online auctions to your purchasing strategy can help ensure you’re offering consumers the widest array of vehicles possible.

To read more, download our Infographic here.

 

5 Tips for Conquering Online Auctions

As more independent dealers gravitate towards buying online, it’s important to understand that you can maximize success by knowing how to best leverage virtual auctions in your inventory strategy. Whether you’re buying or selling for wholesale or retail, the online auction process works for just about any inventory type. Here are 5 tips for setting yourself up for success in a virtual auction environment: 

  1. Educate Yourself – Even if you’ve purchased inventory online before, it never hurts to take the time to make sure you know all the intricacies associated with online buying and selling. Each platform works differently, so you want to make sure you have a thorough understanding of the one you’re using before sale day. Some like Manheim, offer tutorials on their website that walk you through step-by-step so that you can confidently buy and sell inventory.
  2. Increase Your Inventory Exposure – One of the advantages that comes with both buying and selling your inventory online is the amount of reach you’ll have. You’ll attract buyers from several miles away, while also having quick access to view inventory in the next state over, making it easier to find the vehicles your customers are looking for.
  3. Know the Basics – Do you know what a green light vehicle means? Do you know the difference between a condition report and a vehicle detail page? While you might think you’re already an expert when it comes to auctions, you may be surprised that you have a few things to learn when it comes to virtual ones. It doesn’t hurt to take some time to brush up on the basics so that you don’t suddenly feel out of your element during a sale.
  4. Take Advantage of Real-Time Information – Online auctions provide the most up-to-date data from buyers and sellers bidding on vehicles, which empowers dealers to quickly optimize their strategy to meet market demand. Use filters to narrow your search and quickly find the inventory you’re looking for and sign up for notifications when those vehicles hit the auction block. You can also search for inventory by categories such as mileage, location, year, make and model creating for an efficient process.
  5. Anonymity – One of the top perks of online auctions is how easy it is to outmaneuver your competition. Instead of worrying about hiding your bids from a neighboring dealership who might try to drive up the price on a vehicle, you can bid anonymously helping you secure the best price on your inventory.

Online auctions offer more than connivence and as they continue to evolve and technology improves, it’s a good idea to try to stay on top of any new enhancements that become available. Remember that the more prepared you are, the better your chances will be for securing the inventory you need which can help you to stand out among other independent dealerships!

Thad Sykes and Brad Burns Discuss Online Auctions

Thad Sykes, Associate Vice President of Sales at NextGear Capital, sat down with Brad Burns, General Manager at Manheim St. Pete. In the video, they discuss the shift to online auctions and the steps they are taking to accommodate dealers during the pandemic.

When in-person auctions started to close down during the pandemic, many independent dealers found themselves having to quickly adjust to buying and selling their inventory online. Since many dealers had not been big online buyers prior to the pandemic, they didn’t realize how they could enhance their current inventory offerings through these platforms. Not only are online auctions convenient and efficient, but if you know how to leverage them correctly, they can help give you the upper hand whether you’re buying or selling inventory. Check out this blog for tips on mastering virtual auctions.

Dealer Home Services: Providing Your Clients a Safe, Hassle-Free Car Buying Experience

While uncertainty in the market continues to disrupt the traditional car buying experience, dealers have embraced new ‘buying alternatives’ for their consumers. Working to accommodate car buyers’ concerns, dealers across the nation are expanding business outside their physical location. 88% of Cox Automotive clients, both franchise and independent dealers, provide services beyond their brick and mortar locations.¹ These services are referred to as Dealer Home Services. Dealer Home Services, historically known as white-glove services, include contactless amenities such as video walkarounds, virtual consultations, at-home test drives, local home delivery and much more.

Download the infographic here to read more.

Using an Automotive Floor Plan at Online Auctions

Due to the COVID-19 pandemic, online auctions are increasing in popularity. With some in-lane auctions suspended, independent dealers are now having to buy inventory online or through Simulcast. There are many differences between online and physical auctions, but both allow dealers to purchase vehicles on an automotive floor plan. 

 One of the key advantages floor plan financing offers is the ability to pay for inventory across both physical and digital auction sources. As more dealers purchase inventory digitally, the ability to floor plan vehicles from these online auctions becomes more and more apparent.  

Find an Online Auction 

 Before you make any online auction purchases, make sure you are on a reputable auction website. Some notable online auctions are OVE.com, Manheim Express and ACV. These auctions make it easy to view and sort through inventory. 

When you use your floor plan at any of those auctions, NextGear Capital will send the money for the vehicle directly to the auction. If you find a vehicle you’d like to buy that is not at an auction, like on Craigslist for example, you can still put it on your automotive floor plan. NextGear Capital dealers are able to floor plan non-auction purchases, but doing so incurs a small fee.   

Floor Plan Check-out Process 

Once you find a vehicle you’d like to buy at auction, the process is simple. Before you make a bid, make sure you know the max amount you’re willing to spend. Once you have that in mind, all you need to do is make a bid and win!  

 When you win a bid for a vehicle, you’ll begin the check-out process. Though every digital auction check–out will vary, a few key options remain the same. You’ll have the opportunity to select a method to pay for your vehicle purchase, and a floor plan will often be one of those options. 

By using a floor plan as your method of payment at online auctions, you are streamlining the digital buying process. Many online auctions, like Manheim Express, have integrated floor plan options, helping dealers get gate passed and on their way. 

 Transportation 

After purchasing a vehicle from a digital auction, transporting it to your lot becomes a new challenge. Integrating transportation services into your purchasing strategy can further streamline the digital buying process. Many digital auctions have integrated transportation options. Dealers are able to select a provider and move vehicles directly to your lot. Depending on the floor plan provider and the transportation you select, you may be able to floor plan your transportation charges. 

NextGear Capital has partnered with Ready Logistics, Central Dispatch, and Manheim Express deliver a wholesale buying, transportation and financing solution. By combining four Cox Automotive brands, shared clients in the U.S. can easily add transportation costs to their floor plans with just a few clicks on the Manheim Express app. 

Not a NextGear Capital dealer? Learn more about our automotive floor plans by contacting us or applying today! 

Finding Your Way Forward: December 2020

Helping Others During the Holidays

Marcos Esquivel of Esquivel Auto Depot in Rialto, California has been working at his family’s dealership since he was just a young boy and knows firsthand that the car business can be a roller coaster. Despite this, for the past 10-years, he’s sponsored an annual Christmas event at his dealership to give back to underprivileged families in his local area. Previous events featured a free meal and toys for over 300 families, pictures with Santa Claus and stations for face painting. Unfortunately, like just about everything else, Esquivel had to cancel this year’s event due to COVID. However, he still plans on working with local schools to sponsor three families who’re currently going through a financial hardship so that their Christmas is a little brighter. Esquivel is hopeful that he can resume the event next year, even if means scaling it back to keep everyone safe. “We will hopefully be able to host the event again next year. I like the way everyone gets together and has a good time celebrating with food and family, but we want to make sure that everyone is safe as well.”

Embracing Online Auctions During COVID

Annette Williams at Champ FinancialWhen Annette Williams and her family contracted COVID in May, she had to make some quick business decisions to keep her dealership Champion Financial up and running. “We were already taking precautions to keep ourselves from contracting COVID. I was working remotely from home, handling all the paperwork for the dealership, and my husband was conducting in person business by appointment only. He was the one who started showing symptoms, and we think that it was contracted at the lot. Later, both myself and daughter caught it. Luckily, the symptoms were mild and manageable, and we were very fortunate that we could quarantine at home without having to go to the hospital.”

One of the first changes Williams made was buying inventory exclusively online, “We had already started testing the waters before the pandemic, but we became full-fledged once it started.” She says her husband handles most of the inventory buying for their dealership located in Dolton, IL. “There’s been some challenges with transportation. Before COVID we would usually get the vehicles here within 3 to 4 days but now we have to wait almost 15 days sometimes. I’m guessing it has to do with a lot of other dealers buying online too. But despite the delay, it’s really nice being able to get cars from out of state. Especially with the colder months approaching, it’s convenient and allows us to have more flexibility with our inventory.”

While she’s glad that her dealership is still thriving, she says the biggest lesson she learned during this ordeal is the importance of keeping everyone safe. “Protect yourself, your family and customers. I’ve hired a minority owned business who comes into the dealership two times a week to sanitize. You can’t live off fear, but you need to take the necessary precautions to protect your inner circle and keep your customers safe.”

Community Relations Keeps the Holiday Spirit Going at NextGear Capital

While there will be no Holiday Party at NextGear Capital this year, NextGear Capital’s Community Relations team has come up with some ideas to keep the holiday spirit alive for its team members. Earlier this week, they hosted a virtual holiday card party where participants connected on Teams and listened to holiday music while creating cards for local assisted-living and nursing home residents who’ve been isolated during the pandemic from family and friends. Lauren McNabb, Events and Community Relations Coordinator at NextGear Capital says, “Although it was a virtual event, we hope that by participating, team members felt they were still able to bring holiday joy to those who need it most in our community and also enjoyed chatting with each other while listening to festive music.”

There will also be an opportunity for team members to participate in a Virtual Trivia Night in December where they will have the opportunity to win prizes and are encouraged to wear their ugly holiday sweaters. This is a fundraising event so each team’s entry fees will be donated to Gleaner’s Food Bank.