NextGear Capital, Manheim, and vAuto Help Independent Dealers Gain Advantages

ATLANTA, Ga. (June 21, 2022) – To continue delivering on its commitment to independent dealer success, NextGear Capital along with Manheim and vAuto are investing in programs and tools to help these dealers gain advantages and make it easier to do business. The following added benefits offer clients ways to save time and run their businesses more efficiently and successfully despite market challenges. 

  • NextGear Capital Dealer Advisory Board Drives Enhancements: Launched one year ago, the board allows NextGear Capital to gain firsthand perspectives from clients and better serve independent dealers, create solutions that drive greater efficiencies and enhance the client experience. To date, more than 20 enhancements have been identified, ranging from changes to title visibility in Account Portal and improvements to client communications to facilitating access to services both inside and outside of Cox Automotive. Insight also revealed that clients are hungry for data on the market and the industry, resulting in a new quarterly insights report produced by Cox Automotive’s industry intelligence team. The inaugural edition saw a 50% engagement rate for clients who took action to access the report in Account Portal.  
  • Applying for Credit Just Got Easier: With more dealers preferring to do business online, clients can apply for credit quickly and securely via the electronic credit application (ECA) which is accessible on the NextGear Capital website. Since ECA was launched, over 4,000 electronic applications have been completed and adoption of this option is growing. Future enhancements to the application are planned. 
  • Welcome Guide and Dealer Orientation: To help new dealers become familiar with their local auction team and services, Manheim created a Welcome Guide that provides information for both buyers and sellers about its marketplace options and how to get started. In-person dealer orientations are also hosted at select Manheim locations for clients who are new to the auction process.  These orientations include an operations tour and the opportunity to learn about products and services such as titles and payment, condition reports, assurance and reconditioning services. Dates for upcoming orientations can be found here.
  • Upgrade to NextGear Capital’s line modification process: In a move to help clients save time and have quicker access to more credit, self-service tools are now available through Account Portal to give them greater opportunities to request credit line modifications. As a result, dealers have applied for roughly 1,900 modifications to their credit lines since late 2021. Account Portal also allows dealers to make and manage payments, view credit availability, request title releases and more.  
  • Redefining the NextGear Capital Brand: This month, NextGear Capital launched a refreshed brand campaign to help better define the company in the market and how it supports clients. “Post-pandemic, our business strategy evolved, and we have accomplished a lot around our client experience,” explained Jessica Lanier, vice president of marketing for both Manheim and NextGear Capital. “Every time we review market research, we hear clients talk about our people, our solutions, our flexibility and how easy we are to do business with. Those are our differentiators. This brand refresh tells a story that emphasizes our strengths and defines why NextGear Capital is the clear leader in the floor planning industry in the years to come.”
  • Stocking Inventory Just Got Easier: Cox Automotive knows that one of the biggest challenges independent dealers face right now is finding the right inventory to stock. That’s why NextGear Capital and vAuto teamed up to give NextGear Capital clients Stockwave at 50% off the regular subscription price for the first four months when they sign up to Stockwave as new customers by September 30, 2022. Update: now to give NextGear Capital clients more time to save, sign up to Stockwave as new customers by December 31, 2022. Stockwave gives dealers access to vehicles from 300+ marketplaces alongside the most complete set of wholesale and retail data, so dealers can find the vehicles they need and make more informed purchase decisions.  NextGear Capital clients should contact NextGear Capital for complete details.

“While credit lines may be our profession, working with independent dealers and helping them succeed is our passion,” explained Scott Maybee, president of NextGear Capital. “These resources reflect our ongoing commitment to invest in providing choices that meet their diverse goals and needs.

Introducing Upside Direct!*

A new digital auction NextGear Capital clients don’t want to miss!

You’ve never seen a source of inventory like this before. Low first bids. Every listing always sells. Guaranteed CRs. And buyer-friendly policies. Plus, NextGear Capital clients get a $150 flooring credit on your first Upside Direct purchase. You can floor plan your transportation costs as well.

Stay up-to-date on all sale times by clicking below!

Visit UpsideDirect.com

*Manheim policies apply

5 easy ways to go green

Go Green! It’s Good for the Environment & Your Bottom Line 

These small environmentally friendly changes can add up to big savings for your dealership. 

In partnership with Cox Automotive, we want to help you take steps to living more environmentally friendly. You don’t need to make big changes overnight, small changes can make a big impact. Follow these 5 steps to get started: 

  1. Evaluate Your Office Supplies
  2. Reduce Use of Paper in the Office
  3. Increase Your Recycling Practices
  4. Look for Energy and Water Savings
  5. Check Your Office Equipment

To make it even easier, we’ve broken down each step into actionable strategies and tips for you in the guide below. 

NextGear Capital Creates Dedicated Group for Independent Auctions

Auction Services takes a holistic approach to delivering a better experience for its auction partners

To strengthen its business relationships with the auction partners who support the inventory needs of its independent dealer clients, NextGear Capital has created an Auction Services department. Tapped to lead the group is Sandy Moon, the company’s AVP of Auction and Floor Plan Services. 

Planning for Auction Services began in 2021. The work included reimagining and, in turn, realigning the company’s flooring and funding departments to create collaborative consulting teams. The goal is to build in-depth relationships with auctions to better understand their unique needs and harness the collective resources of NextGear Capital to provide customized solutions.

“Our focus for creating a dedicated Auction Services team was to broaden our support and expertise to better meet the needs of our valued auction partners,” explained John Wick, SVP of Lending for NextGear Capital. “Bringing our best-in-industry knowledge and exceptionally skilled team members to the table allowed us to take a fresh approach to how we interact with our auction partners and become a collaborative, trusted resource to help both organizations drive growth.”

A 17-year member of the NextGear Capital team, Moon brings experience in operations management and team building to her new position. In addition, she has hired Danny McNelis as the team’s auction director. Previously serving as a senior client solutions executive for NextGear Capital, he brings strong relationship-building skills to this new role.

About NextGear Capital

NextGear Capital is the largest independent inventory finance company in North America, providing flexible lines of credit for dealers to purchase used inventory at over 1,000 auto and specialty auctions and other inventory sources throughout the United States. The company’s products and services allow dealers to floor plan nearly any type of remarketed unit in automotive retail, wholesale, or salvage. With a customer base of more than 19,000 dealers, NextGear Capital also provides a robust array of services and support that allow dealers to acquire and sell more inventory, including state-of-the-art online and mobile account management tools, title services, records management and collateral protection. Headquartered in Carmel, Indiana, NextGear Capital is a Cox Automotive™ brand. For more information, visit www.nextgearcapital.com. 

About Cox Automotive

Cox Automotive Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company’s more than 27,000 team members and family of brands, including Autotrader®, Dealer.com®, Dealertrack®, Dickinson Fleet Services, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion. www.coxautoinc.com

Dealer Spotlight: Irene Whitesides Making All the Right Moves

When Irene Whitesides started working at a car dealership in 1998, she said that she was the only woman on the sales floor. “The car business used to be a man’s world,” she said. “It was hard because I was a single mother with two kids at the time but I decided that I was going to make it work so I could provide for them. It wasn’t long before I became the top salesperson at the dealership every month and made more money than I ever had before. After a few years, I met my future husband, David Whitesides Sr. and we opened Destiny’s Auto Sales in 2003.”

As soon as the Columbus, OH area dealership was up and running, she knew she wanted to get a floor plan. “When we opened the new dealership, we were basically just starting out with faith, so I needed a floor plan to purchase inventory with,” she said. She started out with a modest $25,000 floor plan through Dealer Services Corporation (DSC) who she had worked with previously at a different dealership.

Irene and David Whitesides

When DSC was acquired by NextGear Capital, Whitesides says that it was a little bit of an adjustment at first but she felt supported by her NextGear Capital representatives. “My Portfolio Manager comes by regularly and he is the best,” she laughs. “In fact, I would steal him if I could! A little over a year ago I was struggling with aging units on my lot. So, I had to find some new solutions to help move my inventory and my Portfolio Manager told me about OVE and reached out to Manheim for me. Now when my inventory gets to a certain number of days on my floor plan, I put them on OVE and that has helped me move them a lot sooner. I also started doing both retail and wholesale sourcing which has also kept my inventory moving.”

Whitesides says that she purchases inventory both in-person at auctions and online. “It’s hard to get inventory right now. We used to have between 60 to 100 vehicles on our lot but we’ve struggled to maintain that amount. I’ve never seen anything like this before.” She says that one thing that hasn’t been a struggle is managing her floor plan through Account Portal. “It’s very user-friendly and it’s very helpful to use for things like reconciling my audits.”

Inventory isn’t the only challenge Whitesides says she’s facing. “You can’t get inventory and you can’t keep staff right now. It’s a whole different world out there right now. Before the pandemic started, I would have between 12 to 14 people on my staff and right now I only have four including me. My husband runs the service department and we used to have a detail shop but it’s not open right now because I haven’t been able to find the staff to keep it going so I’ve been using a mobile detail service instead.”

Despite this, she says that she’s never been one to back down from a challenge. “When I went to my first auction to purchase vehicles, it was very intimidating because I was the only woman there. But after a few months I got some guidance from a supportive auctioneer, and I started to feel more confident buying cars and learned how to make good inventory choices. Now when I go to auctions it’s totally different. The same dealers who used to try to bid me up because they underestimated me, now respect me because not only did I survive, I thrived.”

After her longevity as an independent dealer, she says that anyone looking to enter the industry should start small. “You have to crawl before you run. A lot of the new dealers take on too much too quickly and are out of business before they know it. There’s a joke among independent dealers that floor plan companies are loan sharks. But if I didn’t have a floor plan, I wouldn’t be able to get the inventory I need. I think NextGear Capital is different because they look at each independent dealer individually so they can find the best floor plan to meet their needs.”

When thinking about the future, she says that she just wants to keep going. “Our company is strong! We’ve been here for almost 20 years and even with all the changes over the years, we’ve kept growing and I now have a $475,000 floor plan. There’s a small number of independent dealers that have been in business as long as I have and I really think that’s because we don’t bite off more than we can chew and we make the right moves at the right time.”

What is Floor Planning?

You may have heard of floor planning before but might not be sure what it means. Floor planning is simply a revolving line of credit that independent dealers can use for inventory financing to purchase vehicles and free up cash flow for anything from enhancements to the business, to improvements to their car lot. Here are some reasons why you should consider getting a floor plan.

Additional Funding – If you rely on cash to purchase inventory instead of floor plan financing, you won’t have a lot of flexibility when you’re faced with unexpected expenses or fluctuations in inventory prices and market demands. Floor plans provide you with the additional capital you need for any unexpected challenges that arise and give you more breathing room with your cash flow.

Inventory Financing for Independent Dealers – Unlike traditional loans from local lenders or financial institutions, floor plan financing for car dealers is designed to support the unique needs of independent dealers. Whether you’re looking for more cash flexibility or are new to the independent dealer space, floor plan providers like NextGear Capital have you covered with transparent floor plans that are easy to understand. With NextGear Capital, your representative will help you figure out which floor plan will be the best fit for your business and future goals.

floor planning

Access to Tools and Additional Support – Besides providing dealer funding, NextGear Capital provides independent dealers with account management tools and industry expertise so they can run their dealership more effectively. NextGear Capital’s Account Portal provides independent dealers with real-time information on their floor plan while also giving them access to title management, vehicle valuations, payment information, audit reconciliation and more! NextGear Capital clients will also have access to a dedicated Portfolio Manager who can provide them with valuable market information and insights based on their dealership’s activity to help them grow their business.

Floor plans provide you with additional funding to increase your buying power while also giving you access to account management tools and enhancements to streamline your business processes. Finding the right floor plan provider will help you to increase your efficiency while providing you with the insights to become more competitive in your local market.

Cox Automotive Products and How They Can Help Independent Dealers

Check out the video above to learn about products from Cox Automotive that can positively impact independent dealers and grow their business.

Here are some of the Cox Automotive products that are beneficial to independent dealers:

  • Inventory Acquisition – Whether you’re purchasing inventory in-lane or through your mobile device, when you purchase from Manheim your floor plan will be updated automatically so you can view your inventory and available cash flow in real-time.  Additionally, you don’t have to worry about keepings tabs on your titles as they will be available for you to view inside of Account Portal, making for a streamlined process.

  • Inventory Insights – It’s difficult to keep up with the pace of market trends such as consumer preferences and pricing. That’s where vAuto helps. By providing you with the most up-to-date market data you’ll be able to avoid inventory mistakes and increase your profits. One of their newest tools, Stockwave, provides in-depth insights into the wholesale market so you know which vehicles to purchase, where to find them, and how to price them. These data-driven insights empower you to make informed decisions about the vehicles you’re putting on your floor plan.

  • Streamlined Solutions – Are you looking to streamline your current business strategy so you can spend more time focusing on the client experience? Dealertrack’s digital management solutions can help you take your independent dealership to the next level by creating a personal buying experience that works for your needs. It also ensures your tools and technology are working together to create a more efficient sales process.

  • A Digital Advantage – Selling inventory online is a must, so have you asked yourself if your current website is meeting all your needs? Dealer.com provides a personalized car shopping experience while connecting you with in-market buyers across the country. You can also take advantage of its digital marketing services including social and reputation management, as well as search engine optimization. With Dealer.com you’ll stand out from the competition.

  • Transportation Solutions – When you’re unable to find the inventory you need locally, you need a logistics supplier that makes it easy to get your purchases to your lot quickly and conveniently. Fortunately, when you use Ready Logistics to transport your inventory, not only will you have the industry’s best on your side, you’ll be able to use your NextGear Capital floor plan for your transportation fees.

Dealer Spotlight: Bruce Justice Anything but Mediocre

Bruce Justice was working as a technology sales representative when he decided that he wanted to make some additional money on the side by selling a few vehicles. “In the state of West Virginia, you can sell up to four vehicles a year without a dealer’s license, so that’s how I got my start,” Justice said.

It didn’t take long before Justice decided that he wanted to continue to supplement his income by selling more vehicles, so he decided to get his dealers license and purchase a trailer to set up an office where he could interact with his customers. He was still working full-time at his other job when an opportunity to purchase a dealership presented itself. “I found out that the owners of a dealership in Louisa, KY were looking to downsize during the beginning of the pandemic,” he said. “I decided that I was ready to take the leap and leave my current job instead of staying mediocre, and that’s how Justice Automotive got its start.” 

While he was a little hesitant to get a floor plan in the beginning, what he really found challenging was finding a company that would approve him for a floor plan since he was new to the independent dealer space. “I reached out to a few companies but none of them would work with me,” he said. “When I contacted NextGear Capital they immediately helped me through the approval process and I got my floor plan in a couple of days. Even though I have other options now that I’ve been in business for a while, I’ve decided to stay loyal to NextGear Capital because they’ve been there for me since the beginning.” 

Justice Automotive

Now that he’s had his floor plan for over a year, he says that getting one was the right decision. “It’s really simple, the more vehicles I have the more I can sell. I like Account Portal and think it’s more user-friendly than other online account management systems. I also really like my Portfolio Manager, we work really well together and it’s been a good relationship.” 

While he took all the precautions necessary to keep his customers safe during the pandemic, he didn’t make any changes to his business model or sales strategy. “I just tried to get on with business as usual and ignore the pandemic,” he said. “I list my inventory on Facebook Marketplace and my sales never declined because I was consistent about advertising my inventory and keeping it updated.”

Justice says that his biggest challenge recently has been finding quality vehicles to buy. “Despite the higher prices, sourcing inventory hasn’t been an issue yet but I’m finding that I have to do more maintenance on the vehicles I’m purchasing. I’ve also found that my customers aren’t concerned about the increased price on my inventory as long as they can make the monthly payments, so I work with them on the financing.”

He currently sources his inventory primarily from local auctions but recently signed up with Manheim. While he currently doesn’t use any other Cox Automotive products, he says he would be open to doing so in the future. “I still have a smaller sized car lot but as we grow, I could see using more Cox Automotive products like Dealertrack to help manage my inventory.”

His future goals include growing into his current location which can hold about 65 vehicles, he currently averages around 25 sales a month. “I also want to open a service department and eventually open another location,” he says. “I’ve talked to one of my friends about buying his dealership in a few years when he’s ready to sell it so that’s an opportunity I’m looking forward to.”

When it comes to providing advice to new dealers, he says to just pace yourself, “Start out slow and put the work in. You’ll eventually figure out how much inventory you should be carrying on your car lot and by having a floor plan, you’ll be able to grow your business off that pace.” 

6 Ways To Enhance Your Dealership Today

Whether you carry 10 or 200 vehicles on your lot, running an independent dealership takes a lot of planning and hard work. From sourcing inventory and marketing your vehicles to answering customer questions and processing paperwork – it can feel like the workday is never-ending. That’s why it’s crucial to use the right tools to help you run your business efficiently. Here are some ways you can use the suite of Cox Automotive Products to streamline your business:

  1. Streamline Inventory Acquisition– Independent dealers know how crucial it is to have the inventory their customers are looking for on their car lot. Manheim has the largest network of used car auctions in the country and offers both in-lane and online sales to independent dealers. You’ll also be able to easily finance your purchases with your NextGear Capital floor plan.
  • Enhance Vehicle Management – Making sure you’re managing your inventory correctly is vital for any successful dealership and vAuto can help. By accessing up-to-date market insights through Stockwave or harnessing data to drive profits with Provision, you’ll know which types of vehicles to purchase based on your inventory needs and more accurately price and appraise them.
  • Create a Personal Buying Experience – As more and more car buyers shift to starting the car shopping process online, having a website that’s easy to navigate will set you apart from the competition. Dealer.com provides you with the tools you need to create a personalized sales experience for car shoppers in your area. You’ll also have access to advertising and marketing resources so you can put your best foot forward.  
  • Reach a Larger Audience – Getting your vehicles exposed to a larger group of car shoppers is one of the fastest ways to move them off your lot. Autotrader’s online inventory platform ensures your inventory is seen by a large audience. It also offers independent dealers digital retailing support at a price that won’t break the bank.
  • Enhance Day-to-Day Support – Are you drowning in administrative tasks? Do you feel your technology is out of date and slowing down your business? Dealertrack is a dealer management system that helps simplify your business processes so you can run your dealership more efficiently. It provides support for everything from building and submitting credit applications to digital contracting, so you don’t have to do all the heavy lifting.
  • Get Transportation Assistance – With all the challenges that come from sourcing vehicles these days, if you need help transporting your inventory from out-of-state, Ready Logistics has got you covered. It also provides you with the option of putting your transportation costs on your NextGear Capital floor plan.

Make running your dealership easier, more efficient and more profitable by equipping yourself with the top tools and resources in the industry through the Cox Automotive network. Not only will you have access to industry-leading insights, but you can also integrate them with your NextGear Capital floor plan giving you a leg up on the competition.

Inventory Financing Provides Solutions During Market Changes

With market fluctuations causing vehicle shortages and high prices, independent dealers have found themselves looking for new ways to keep high-demand inventory on their lots. Floor plans provide car dealers with financing that can be used to help secure inventory and more. Here are some ways the cash-flow provided by inventory financing can help when dealers need it most:

  • Inventory Flexibility – If certain makes or models on your car lot aren’t moving due to sudden shifts in your customers’ preferences, you need to react quickly. With inventory financing through a floor plan, your additional capital allows you to pivot so you can make the needed changes to your inventory line up. The additional funding gives you peace of mind knowing you can acquire the vehicles car buyers are looking for and move more metal off your car lot.
  • Increased Buying Power – When vehicle prices are on the rise, a cash-only strategy may cause some concern with your available cash flow. Not having access to inventory financing can really take a toll on your business. By having access to additional funding through a floor plan line of credit, you’ll have the breathing room you need to cover any sudden price increases.
  • More Sourcing Options –If you’ve typically relied on getting your inventory from a known and trusted source but vehicle shortages and higher prices are causing you to consider looking at other sources, you can rest assured that your NextGear Capital floor plan has you covered. Your floor plan provides you with the flexibility to floor both auction purchases from over 1,000 live and online auctions, as well as non-auction purchases from dealer-to-dealer purchases, trade-ins and more. With a NextGear Capital floor plan, you can cover nearly any type of remarketed unit. This ensures you not only secure the vehicle you need, but that you do so at the most competitive price.
  • Supplemental Services –In addition to extra cash flow, a NextGear Capital floor plan gives you access to a dedicated account manager who can provide critical advice and resources like market data, title services, access to Account Portal, and exclusive programs like NextGear Capital’s Consumer Loan Payoff Program. These additional tools can be used to help you streamline your business, so you have more time to focus on running and growing your business.  
Dealer using inventory financing

While you may not be able to control the market, you can take charge of and overcome sudden changes or shifts by having access to inventory financing. Having the right resources by your side will help you navigate through any inventory challenges so you can keep your lot stocked with the vehicles your customers are looking for.