dealer Spotlight Tariq Dmanhouori: A Floor Plan With Flex

Back to News
Tariq Dmanhouori

Tariq Dmanhouori, owner of NY Auto Sales in Omaha, Nebraska, didn’t have a background in the automotive industry when he started selling vehicles on the side. So, he started watching videos and reading articles online about selling used cars to help expand his knowledge. It wasn’t long before he experienced a sudden increase in sales. “I had never worked at a car lot before, but I spent over a year educating myself and realized that owning my own dealership was the next step,” said Dmanhouori.

Originally, he wasn’t interested in getting a floor plan. He had heard about them from other dealers but thought it was easier to just use the cash he had on hand. That changed when he was hit with several unexpected costs that caused a setback to his business just a few months after opening his dealership. When a friend mentioned NextGear Capital he once again did his research and decided it was time to sign up.

He wasn’t sure about using a floor plan because he had heard some negative things from other dealers, but he now realizes that’s because they didn’t know how to manage their floor plan. He said he’s never had an issue since day one and is glad he listened to his friend. He likes the additional cash flow and flexibility it provides and its helped him “take his dealership to the next level.”

Dmanhouori said getting started with NextGear Capital was a quick and easy process and exceeded his expectations. “Some floor plan companies will require you to be in business for several years before approving you for a floor plan, but I didn’t have that issue with NextGear Capital,” he said. “When I told my wife that the dealership had been approved for a $50,000 line of credit, she was really happy because she knew we could do a lot with the additional cash.”

Before signing up with NextGear Capital, Dmanhouori had around 20 vehicles in inventory and has doubled that number since getting his floor plan. He said keeping more vehicles on the lot attracts more buyers, which improves his turn times and frees up more cash so he can buy more inventory and find better deals. He said his floor plan makes it easier to get the vehicles he needs so he’s able to source better quality vehicles and turn his inventory quicker.

Dmanhouori also loves Account Portal and uses it to check, track and release his titles and also to view his inventory. He said it’s easy to use and keeps him updated in real-time on the status of his vehicles and available credit. “You can view all your inventory in one spot, you can view all of your titles in one spot, it’s just a very easy platform to work with,” he said.

Like other dealers, COVID took a toll on his business. He was forced to reduce his workforce and inventory at the beginning of the pandemic but he’s grateful that NextGear Capital deferred his curtailments and some fees in the beginning. In October 2020 business picked back up and sales were strong to carry him through the remainder of the year. He prefers to go to the physical auctions like Manheim in person and is also glad he’s able to do that again. Despite all the changes and challenges over the past year, he’s proud to say his business has done well.

One of the things he’s learned from the pandemic is how to handle uncertainty. He says that one of NextGear Capital’s newest pricing programs, Flex Pricing, has helped him to feel more comfortable purchasing inventory in a volatile market. “Flex Pricing provides me the additional cash flow I need to purchase inventory when I need it,” he said. “The smaller payments give me some breathing room so I can be more agile with my inventory instead of having to worry about making large payments until I sell a vehicle. It removes so much pressure and I give it five stars.”

Using the cash his floor plan frees up, his future plans include adding a service department so NY Auto Sales can be a one-stop shop for his customers. He is also considering opening a second location. He has a big vision for his business including adding variety to his inventory so his customers have more options while also improving the customer experience by creating a low-pressure sales environment.

Dmanhouori said his advice to new dealers is simply to get a floor plan and ignore the misinformation regarding fees that might keep a new dealer from getting one. However, he encourages dealers to ensure the fees are reasonable and easy to understand. “If you need help getting on your feet or want the ability to grow your business, then you have to sign up with NextGear Capital,” he said. “My floor plan has become part of my day-to-day business strategy and has helped my dealership thrive.”