Tips for the new year from NextGear Capital’s VP of Sales, Lisa Mackie
At NextGear Capital, we pride ourselves on being more than just a lender. Our top priority is giving you the capital and resources you need to maintain your dealership’s success. As we start 2019, we want to thank you for choosing us as your floor plan partner and share a few reminders on a few ways you can succeed in the new year.
1. Dash to Digital: Look for ways to use new digital tools to make your life easier and your business more efficient. Options such as Account Portal enable you to conduct business 24/7, day or night, on mobile devices or computers. Take advantage of them!
2. Insist on Faster Funding: Time is money and liquidity is critical. You shouldn’t be waiting days to get funding on trade-ins or dealer-to-dealer purchases. This year, we were thrilled to see dealers embrace our new Rapid Pay feature for non-auction purchases. As the new year approaches, evaluate your needs regarding your trade-ins and inventory acquisition strategy so you can buy more cars that your customers want and need.
3. Maximize Cash Flow: Tying up your dealership savings to buy vehicles restricts your cash flow. Consider using your dealership savings to invest in operations, and secure a line of credit from your lending partner to keep your funds from being tied up in depreciating inventory.
4. Stick to 60 Days or Less: Speaking of speed, inventory turn should also be a top priority. We know it can be tempting to hold onto a vehicle in search of a better deal, but costs can mount too. A good rule of thumb is to move your inventory within 60 days.
5. Look at the Total Value: It’s easy to concentrate on interest rates when looking at different financing options, and lose focus on the total value of your lending options. What additional fees are involved? What are the terms? What kind of service does the lender provide? That low rate might not be such a good deal when it comes to lackluster support and restrictions on the type and general condition of inventory you’re able to purchase.
6. Choose Partners, not Vendors: Partners, not vendors, are invested in your long-term success. Reflect on which partners not only deliver exceptional products and services, but also provide education, training and strategic advice. Ask for expert insights from your lenders to help improve your bottom-line.
Considering these reminders can help your business thrive in the new year. And, as always, we’ll be there every step of the way to help guide your business to peak performance.