Since launching a first-of-its-kind automated transportation financing solution earlier this year, NextGear Capital has processed more than 14,500 transactions from independent dealers enrolled in the program. The program, available anywhere NextGear Capital is an accepted payment method and where Ready Logistics services, enables dealers to simplify their business operations by buying, paying for and moving vehicles in one seamless transaction, as well as free up cash flow by deferring payment on transportation costs until the vehicle is sold.
“Even more important than streamlining independent dealers’ ability to purchase, floor and transport vehicles, the transportation costs we financed was money they didn’t have to pay upfront—extending their working capital,” said Randy Dohse, NextGear Capital senior vice president of operations. “This put our clients in a better position to acquire the right inventory and reinvest in their businesses.”
With this program, dealers who buy vehicles in-lane and online at auction locations where NextGear Capital and Ready Logistics serve nationwide have more time and money to fuel their business. The transportation cost is added to the dealer’s floorplan for that vehicle, so they only have one company to pay, can cut out paperwork and improve cash flow.
Han Nguyen, president of Autos Only, has used the joint NextGear Capital and Ready Logistics program since it started in June. He reports being impressed with the seamless process and significant impact on his business.
“We increased cash flow by $100,000 by adding transportation costs to our floorplan for the 120+ vehicles we move per month,” said Nguyen. “This program helped me grow my business so much that I’m opening a fourth store in 2018.”