When dealers begin utilizing a floor plan to finance their purchases, initial concerns surrounding immediate access to vehicle titles may arise. Floorplan companies hold on to titles for the same reason salespeople will ride along with customers during a test drive: asset security. A consumer isn’t supposed to drive a vehicle off the lot without paying for it in the same way a dealer can’t have full possession of a title until the floored vehicle is paid off.
With this in mind, there are a few key reasons why having a floor plan company handle titles can be extremely beneficial for a dealership.
Reduces overhead for dealers
Dealerships need to have a system in place to effectively handle and process titles. Handling titles is part of daily life for all dealers, and ensuring they are managed effectively is paramount to keeping the car buying process seamless for consumers. However, by allowing a floor plan company to hold titles, the potential for overhead reduction presents itself due to not requiring as many on-site title clerks.
Reduces risk for dealer
In addition to creating an opportunity for reduced overhead, allowing a floor plan company to hold titles could reduce risk for dealers as well. A vehicle cannot be sold without a title, so it’s imperative titles are kept in a safe, secure location to ensure they are never lost or stolen.
Most floorplan companies have extreme measures in place to ensure titles are kept safe and secure. At NextGear Capital, all titles are held in a secure, fire-resistant vault with cameras running 24/7. Additionally, NextGear Capital implemented an innovative solution that tracks the location of each and every title in their possession.
Still not comfortable with the idea of floorplan companies holding your titles?
Dealers working with NextGear Capital have an average call wait time of only 10 seconds before they’re connected with a customer service representative. The responsiveness doesn’t stop there! If a title is requested by 5 p.m., the requested title will arrive to the dealership by the next business day.
Though titles for floor planned vehicles might not be immediately available to dealers, they’re available for viewing through the myNextGear platform at any time. With titles arriving next day at the dealership—often from states away—having a floor plan company manage your titles just might be the best option for your dealership!