Although using your floor plan financing is relatively simple, it can be an unfamiliar process if you’re new to auto floor planning. If you do not have a floor plan, you may want to start by learning about the application process.
How to Use Your Floor Plan
Once you complete the full application process, and complete all necessary paperwork, you can begin using your floor plan. You will be able to purchase inventory from most physical or online auctions. Not only do NAAA-affiliated auctions accept most auto floor planning companies, but the lender handles much of the back-door operations, leaving you to just worry about one thing: purchasing inventory. You can search for auctions using our Auction Finder tool.
On auction day, after checking in at the auction, you will want to check your credit availability with your floor plan lender. Once you are done bidding for the day, take your blocked tickets to the auction check-out, where you will notify the auction which purchased units you wish to floor. From there, your floor plan company will take care of the rest.
If you’re a NextGear Capital dealer, you are able to use your line of credit for non-auction purchases. We understand the unit you’re after may be in an auction lane or on a neighboring lot, which is why we offer additional inventory acquisition opportunities. Maximize your floor plan with convenient sourcing options such as consumer loan payoffs, trade-ins, off-street purchases, rollovers from other lenders and dealer-to-dealer purchases. Rapid Pay is a tool in Account Portal that simplifies and expedites the non-auction purchase process.
Once you receive a line of credit, it can be tempting to take full advantage of it. At NextGear Capital, we urge our dealers to resist using their full line of credit. We recommend a dealer’s budget for stocking inventory to be a mix between cash and floor plan. A good rule of thumb is flooring 70 percent of your inventory and the other 30 percent should be cash.
We also offer multiple formulas to help dealers. Not sure how many vehicles to stock or how many sales you should be making based on stock? Check out these auto floor planning formulas.
Get Familiar with the Technology
Most auto floor planning companies have a technology component. For NextGear Capital dealers, this is Account Portal.
Account Portal was built with our busiest dealers in mind. From an optimized mobile experience to the ability to clear audits with just a few clicks, Account Portal is your one stop shop to managing your floor plan.
We now offer a series of Account Portal tutorials so you can get the most out of our tools and technology!
Stay In Touch
A floor plan company will want to know about the health and wellbeing of a dealer’s business. Not communicating potential issues to your dealer floor planning provider can make it harder to remedy potentially preventable issues. Not able to make a payment on time? If so, you should get in touch with your floor plan financing company. If you are proactive and honest, your provider will be more likely to work with you to resolve any issues or problems that you encounter. Dealer floor plan providers also appreciate hearing what’s going right as well as any trouble you may be having with their auto floor plan.
It is also beneficial to follow your floor plan provider on social media to stay up to date on what’s going on. Most floor plan providers offer special promotions from time to time. NextGear Capital tends to run promotions seasonally and share information about the promotions on social media. Promotions can offer great terms, making it even more affordable to floor plan. In addition, helpful information and industry news are shared on social media. Follow NextGear Capital on Twitter and Facebook.
If you’re considering NextGear Capital as a dealer floor planning partner please apply, or contact us with any additional questions.