Asset security is a concern for both dealers and floor plan finance companies alike. If a customer takes a vehicle for a test drive, a dealer will put measures in place to make sure the vehicle returns to the lot safe and sound. In the same way, floor plan finance companies will conduct an audit to make sure the credit given to a dealer is correctly invested into vehicles for retail.
The point of an audit is for a floor plan finance company to account for all vehicles currently floored. Dealers that keep bills of sale, repair shop receipts, in addition to up-to-date records on the status of their floored vehicles will experience an easier time throughout the audit process, as compared to a dealer who doesn’t have well-kept records. Individual dealers will need to figure out a system and process that works best for their particular dealership.
Dealers are busy people. They have a business to run, customers to attend to, and most likely a waiting pile of paperwork that needs attention. When a NextGear Capital auditor shows up at a dealership it can sometimes be inconvenient. However, taking the time to sit down with a NextGear Capital auditor can save a dealer time and, as a result, money in the long run if they are willing to work with the NextGear Capital auditor.
In any business relationship it’s important to know what contracts contain and what expectations are for both businesses. Taking the time to peruse the dealership contract with NextGear Capital can make a dealership’s audit process easier.
Audits are in place to make sure NextGear Capital’s dealership investment is used properly. Though an audit might be inconvenient at times, a bit of planning and preparation can help to make the audit process a better experience for dealerships.