NextGear Capital and Manheim Offerings Compel Clients to Maximize Floor Plan Purchasing Power
Savvy dealers tracking seasonal wholesale prices and readying for buyers who use their tax returns to purchase vehicles are stocking up on inventory now. To do so, many are turning to NextGear Capital and Manheim to maximize their floor plan purchasing power.
According to Cox Automotive Chief Economist Tom Webb, the Manheim Index — which tracks monthly wholesale prices back to 1997 — reveals a “seasonal pattern with low points in October and November and price increases in January before peaking in April.”
Dealers utilizing a NextGear Capital line of credit can purchase inventory and take advantage of the extended terms. The flexible repayment period enables clients to make vehicle payments later, maintain cash reserves and purchase stock before seasonal price increases occur.
To ease dealers’ concerns about buying too early, Joe Lescota, director of dealer development, National Independent Automobile Dealers Association, suggests, “Dealers can take advantage of floor plan services, such as NextGear Capital, to prepare for the busier time of the year, as well as seek alliances with those who can help them make better buying decisions.”
Lescota, drawing on his 25+ years of industry experience, encourages dealers to learn about pricing in their individual markets before purchasing vehicles, in anticipation of tax season or any time of the year. “Resources — such as vAuto, Polk Reports and Autotrader – can identify which units turn in the shortest period of time in their area, as well as which flooring units have the highest gross earning potential.”
Manheim also provides acquisition resources to help dealers improve vehicle procurement and identify optimal stock to offer on their lots. Its team of professional buyers enable clients to maximize value during every step of the car buying process – from development of a tailored purchasing plan to vehicle acquisition to management of back-end processes after stock is obtained. These services enhance dealers’ productivity and free up their time to concentrate on customer-facing activities, while reducing risk and costs associated with in-house acquisitions, such as travel and staffing.