Dealer Spotlight Ryan Martin: Taking Charge of His Future

Ryan Martin dealership, Koncept Motor Sales

When Ryan Martin began working in the automotive industry, he was only 20 years old but already full of ambition. “I started working for a franchise dealer and just slowly worked my way up until I realized how much money I could be making if I owned my own dealership. So, in 2017, I took the leap and that’s how Strawberry Road Auto Sales got its start. We specialize in sports cars which I both enjoy and excel at selling.”

Martin said getting a floor plan was never a question because he had worked with floor plan companies in the past, but NextGear Capital set the bar higher. “My first impression of NextGear Capital exceeded my expectations. I love my Portfolio Manager; he feels more like a friend than a business ally. When the dealership was being run by the previous owner, it only averaged about 20 to 30 units on the lot. As soon as I took over and started using my floor plan, I was quickly able to increase the inventory to about 95 vehicles a month. I started 2021 off strong by selling 170 vehicles during the month of January. I always say that If you want to sell cars, you need the cash flow to acquire new ones, and that’s why you should get a floor plan.”

Another major selling point for Martin was the ease and accessibility that Account Portal provides him. “Having the right tools and technology to support my business was one of my top priorities when it came to selecting a floor plan. After I saw a demo of Account Portal, it was a done deal for me. Running a dealership is very time consuming and there is nothing worse than having to call someone else when I want to floor my inventory, or to access information about my account. I love being able to manage my own floor plan and Account Portal gives me the freedom to view all of my account information in just a few easy clicks.”

Alex Balk is another dealer who loves Account Portal. Hear his testimony in this video:

Unlike some dealers, Martin says that he enjoys the audit process because Self Reconciliation is easy to use and he can clear his audits quickly. “I actually like the audits because they prompt me to check in on my inventory and keep track of what I have which helps me sleep better at night. I also like the aging reports I can generate inside of Account Portal because they help me keep track of what is on the floor and what needs to get turned quickly”

Besides NextGear Capital, Martin says that he uses a wide variety of other Cox Automotive products as well. “I use vAuto, VinSolutions, Dealer.com, Dealertrack, Autotrader, Kelly Blue Book and Ready Logistics all on a regular basis. There is just no comparison for VAuto in the industry and VinSolutions has the best CRM’s. I also love Autotrader’s scarcity report because it helps me know which vehicles I should be sourcing. The nice thing about all of these products being under the Cox Automotive umbrella is that they all integrate well together.”

Martin says that once the pandemic started, he initially didn’t have to make a lot of changes because he was already setup for selling his vehicles online. “Fortunately, we’ve always sold our inventory online, so we were already prepared for that shift. We have also experienced an uptick in cars that we ship out-of-state from about 5% to 20%, which has been an unexpected area that’s generated more revenue for us.”

While he was prepared for selling his inventory online, he did have to make some other adjustments. “Before COVID-19 I used to purchase most of my inventory in-person at auctions. Now, I source 100% of my inventory online. It’s been a little challenging to source inventory because the vehicles that have the highest demand in my area are scarce. So, I began to look outside of Texas to find the types of vehicles my customers wanted. I used to source only about 10% of my inventory out-of-state and now about 40% of my inventory comes from outside of Texas. It was still a relatively easy transition to make and there are definitely benefits to it like having more time to spend at the dealership, but I do miss the camaraderie and being able to see who I’m bidding against at the auctions.”

While he doesn’t want to share details yet, Martin said that he hopes to expand his dealership in the future and has a plan on how he is going to get there. One thing that he doesn’t mind sharing, is his advice to new dealers. “You should make sure you know how to manage your expenses correctly, so they don’t get out of hand. I also encourage dealers to research the market they’re in to ensure they’re purchasing the right inventory. Otherwise, vehicles are going to sit on a floor plan for an extended amount of time.”

Introducing Industry-Leading Floor Plan Program

flex pricing floor plan program bannerCARMEL, Ind. (April 8, 2021) – In an industry-leading move to improve cash flow for independent dealers, NextGear Capital has introduced a new program for its floor plan financing. The new Flex Pricing program reduces the principal paydown rate to .01% per period – one of the lowest in the industry – and simplifies the payment process by eliminating certain fees. 

“Like most small businesses, cash flow concerns are a common challenge for independent dealers,” explained Scott Maybee, president of NextGear Capital. “We listened to our dealers and appreciate that this is a pain point for them and went to work designing a flexible option that gives dealers greater cash flow to invest back into their business.”  

NextGear Capital’s Flex Pricing program offers significantly lower payments and fewer fees when compared to standard pricing plans. Consider a $10,000 auction purchase. A standard term plan with a customary 10% principal paydown rate would require a $1,000 payment when the vehicle’s first principal reduction comes due. With Flex Pricing, the principal paydown rate of .01% produces major savings, resulting in principal reduction payments of only $1. Additionally, the Flex Pricing program eliminates the standard plan’s records charge and primary monthly audit fee.  

NextGear Capital provides full-service floor plan financing to more than 22,000 independent dealers nationwide. “Our goal is to be a resource for these entrepreneurial-minded dealers and a partner in driving their business success,” added Maybee. “Flex Pricing joins the full range of products, programs and floor plans we offer, all designed to give our dealers choices that work best for their diverse goals and needs.”  Ready to get started with NextGear Capital? Contact us or apply for a floor plan.

Our experts discuss specific source strategies

Jordan Cox, Director of Regional Client Solutions, and Ashley Stockmann, Director of Portfolio Management, sat down to discuss specific source strategies. NextGear Capital clients have the opportunity to floor plan non-auction purchases. They take a deep dive into how to use this feature in Account Portal and the benefits it can have to your business.

Dealer Spotlight: How a Thesis Paper Made a Savvy Dealer

Gabi Furdyna is anything but your typical independent dealer. “I’m originally from Wroclaw, Poland. I used to be a professional tennis player and I came to the United States after I received an athletic scholarship from the University of Maryland. After I received my bachelor’s degree, I received a full academic scholarship to get my master’s degree. When I needed to purchase my first car, I met my now ex-husband who owned the dealership I went to. He had about 20 to 30 vehicles in inventory, after we had been dating for awhile, I started to see ways he could make improvements to his dealership. I mentioned this to one of my professors and he encouraged me to build my master’s thesis on improving the performance of a car dealership and that’s how I got my start in the automotive industry.”

Furdyna says her thesis proved to be valuable in expanding the dealership. “As soon as we implemented the recommendations I made, we doubled our volume which was incredible because that was back in 2008 during the Great Recession. We then opened a second location in Ellicott City, Maryland and I started running that location by myself. I quickly started selling an average of 100 cars a month. Unfortunately, we were renting that property and the landlord unexpectedly gave us only 90 days to vacate the property. I was also pregnant with my first child at this time and I wanted to find a property that was closer to home so it would be easier to care for my child. We eventually found a dealership that fit the bill and was also in a busy location near a mall, but we had to rent again, and I really wanted to find a dealership we could own so we wouldn’t be in the same situation again. I saw a story on news about how the city of Waldorf, Maryland was the fastest growing area for car dealerships in the country, so I drove up there right away and found a dealership that was for sale with 20 acres. So, we opened our third dealership and that’s the location I operate out of right now.”

After Furdyna separated from her husband, despite having several years’ experience running dealerships, she was treated like a new dealer whenever she applied for a loan because the previous dealerships had been in her husband’s name. “When I separated from my husband and reached out to lenders that I had worked with for years, I kept running into dead ends when trying to secure financing. As part of our divorce settlement, I had to give my ex-husband all of the vehicles I had at the Waldorf dealership. I then started purchasing some inventory using my own capital. I have 12 employees and they’re all wonderful and stuck by me, but I was also paying their wages out of my own pocket too.”

It was at this point when she knew that it was time to look for other financing options. “I decided to reach out to NextGear Capital last October. I spoke to Samantha Houston and she helped me immediately apply for financing and I was approved for a $900,000 line of credit in just a few days. I was so grateful and used the entire line in less than a week. I then spoke to my Portfolio Manager, Bruce Paxton, and he asked me to submit some more paperwork so he could do a deep dive into my financials. After a little more time, I was approved for a $2 million line of credit. Since receiving that increase, I’ve been able to floor over 200 units with an average turn time of about 45 days. Whenever I talk to Bruce, I always tell him that I’m ready to take on more inventory because we’re booming.”

Gabi Furdyna
Gabi Furdyna

Furdyna said that another reason she likes NextGear Capital is because she gets so much more with her floor plan than just funding. “I use Account Portal every day and love it. The audit process is so much easier than what I experienced with a different finance company. I just take a picture on my phone and submit it in the portal. It also gives me a complete overview of how many cars I have and how many I’ve paid off and all I have to do to make a payment is click on a button no matter where I’m at. It’s very intuitive and easy to use.”

She’s also a fan of some other Cox Automotive products. “I get most of my inventory from Manheim. They do a good job of giving a thorough overview of their vehicles in a virtual environment, so I feel comfortable buying inventory online. I use Dealertrack DMS to help streamline all of our accounting and I’m also looking into using Dealertrack Compliance to help protect the dealership against identify theft. That’s one of the biggest challenges we’ve faced during the pandemic since so much paperwork is submitted electronically and we have to make sure we’re extra cautious to protect the dealership from fraud.”

Despite being prosperous during COVID, Furdyna says that she’s had to make some adjustments. “Our customers are looking to spend less money and are more concerned about their payments. My ex-husband and I used to specialize in selling luxury cars because that’s what our customers wanted but now the average vehicle I sell is about $11,000. I still sell some higher end cars, but I’ve increased the number of vehicles that I carry on my lot that are $10,000 or less. I also offer contactless delivery and make sure the vehicles are sanitized thoroughly before they’re delivered. And of course, I continue to discuss the importance of following protocols and procedures with my staff to ensure that we’re keeping both ourselves and our customers safe.”

Despite all of the ups and downs she’s experienced recently, Furdyna says she still has big plans for the future. “My ultimate goal is to open a Tesla dealership on the property I currently own while continuing to run my current dealership. I support innovative technology because I think that’s our future. I just turned 35 and this is the fifth dealership I’ve had a part in opening and I really enjoy what I’m doing. I love to help people. I have clients that have been coming to me for the last 12 years, some of whom have purchased up to 10 cars from one of my dealerships because they feel comfortable working with me. I want to build something bigger so I can provide a good life to my children and our two cats that I adopted during the pandemic.”

Now that she’s a seasoned dealer, she said if a new dealer is looking for suggestions on how to get started it’s to keep things simple. “My advice for new dealers is to start small and to keep costs down as much as possible. It’s also important to find the right lender who will best support your dealership needs and goals. For me that’s NextGear Capital, their floor plan allows me to purchase the cars I need and provides me with additional resources that help me to run my dealership more efficiently. I love NextGear Capital! They’ve been a great partner during a challenging time in my life and have provided me with the support I need to rebuild my business.”

To get started with a NextGear Capital floor plan, contact us or apply today.

The Cox Auto Experience: What to Expect

Cox Automotive Experience graphicLeading up to the annual NADA Convention & Expo, Cox Automotive is hosting a virtual event unlike any other you’ve seen before. Catch a front row seat on January 25 for the first ever Cox Automotive Experience – a free, 10-day virtual event featuring the solutions and insights that will define a new way forward for the automotive industry. An experience packed with thought leaders, industry insights, panel discussions and more, NextGear Capital hopes to see you there!

Download the Infographic here or visit NextGear Capital’s Cox Automotive Experience page. 

The Top 5 Reasons Car Dealers Should Attend CAE

Cox Auto ExperienceFor its inaugural year, the Cox Automotive Experience has been designed to provide dealers with a plethora of useful and timely information so that they can start 2021 strong. The two-week event begins on January 25 and is jammed packed with presenters covering a variety of topics. Here are the top five things you can expect to learn if you attend the Cox Automotive Experience:

  1. Meet New Cox Automotive President Steve Rawley – Rawley is going to be kicking off CAE with the Cox Automotive Town Hall. This will be a great opportunity to hear from the new president including what his goals and outlook for the industry are. Chief Product Officer Marianne Johnson will also be discussing key milestones from a product perspective and what dealers have to look forward to in 2021.
  2. 2021 Market Outlook – Dealers will hear from Chief Economist Jonathon Smoke about his projections and predictions on what to expect from the market this year.
  3. Learn How to Create a Personalized Experience – If you’re looking for ways to improve the car buying process at your dealership, then you’ll want to join Jessica Stafford, Senior Vice President of Consumer Solutions as she walks dealers through best practices on creating the ultimate client-centric car shopping experience.
  4. Client Resilience Panel – If you want to hear how other dealers survived the past year then you should check out the client resilience panel. Independent dealers will be able to engage with other dealers during this interactive panel as they share what challenges they experienced in the past year, as well as what changes they plan on carrying through into 2021.
  5. Create a Winning Wholesale Strategy – No matter how large or small your dealership, inventory challenges were top of mind for everyone over the past year. During this session, dealers will be presented with tips for better understanding market data and the tools available to make better purchasing decisions in an increasingly competitive wholesale market.

Don’t miss this opportunity to gain insights from some of the top experts in the automotive industry so you can chart a course to a successful 2021 . To register for the no-cost event, sign up here. You can also sign up for a NextGear Capital product demo here.

The Cox Automotive Experience: A Preview

Thad Sykes, Associate Vice President of Sales at NextGear Capital, sat down with Pete Grupposo, Vice President of Dealer Sales at Manheim to preview The Cox Automotive Experience. The Cox Automotive Experience is a 10-day virtual event featuring industry insights, inspiring discussion, and the Cox Automotive solutions to help your business find a new way forward for automotive. This free event begins on January 25th and concludes on February 5th. Don’t miss it!  Register for the event here.

This Dealer Knows Good Customer Experience

Jordan Baker’s first job was hardly what he would call glamorous. “My career began in the car business when I was 12-years-old. My family owned dealerships in Grand Rapids, MI and I would do odd jobs like pulling weeds and washing cars, so I basically started from the bottom and then slowly worked my way up.”

After spending several years learning the ropes at various car lots, Baker decided it was time to take the plunge and in 2018 opened his own dealership Comodo Motors. “We started out small and grew with a swift force averaging 50 vehicles on our lot. At first I only used my own cash, but it quickly became apparent that our growth and goals of expansion would not be viable based on a cash-only system that was tied up in payroll and reconditioning. That’s when I decided to use a floor plan. Now we average just over 100 cars on the lot at any given time.”

When it was time to pick a floor plan provider, a previous encounter made the decision easy. “I made the choice to work with NextGear Capital because they were very professional and organized. My Portfolio Manger, Jacob Clemons, is extraordinary. He always goes above and beyond working with us and is exceptionally responsive which is greatly appreciated in such a busy industry. I’ve also found that they have some of the lowest fees in the industry and will do everything from flooring a car to holding  titles. NextGear Capital makes me feel like a true partner instead of just another number.”

Another thing that’s impressed Baker about working with NextGear Capital is the Account Portal tool. “Our Comodo team is made up of 10 people and everyone loves Account Portal. It’s so simple to use and has everything we need in one place. The ease of access to account information aids in being able to plan for payments, purchases and early vehicle payoffs, which helps properly direct company cash-flow.”

Baker says that he’s also an avid user of several other Cox Automotive brands. “I work with Manheim and appreciate how accessible information regarding past, present and future transactions is to find on their website. In addition, both AutoTrader and Kelley Blue Book help our sales team and customers have a better understanding of the true market price for our vehicles. All of these products along with NextGear Capital help us to enhance the Comodo Experience.”

Unlike a lot of other dealerships, Comodo was surprisingly prepared when the pandemic hit. “I’ve been an advocate for digital retailing from the beginning, so when COVID started we were already in ‘pandemic mode’. We designed our website so that customers are able to complete most of the sales journey online. They can get pre-approved, see their trade-in value, do a full video walk-around of each vehicle available on our lot and reserve the car they’re interested in purchasing all before coming in to finalize their paperwork. We’ve always offered local at-home deliveries but have modified them to be completely contactless making for a convenient, customer-centric experience.”

Part of creating that experience for Baker includes putting customers in both an efficient and aesthetically pleasing environment. “My wife started painting out of our house about 5 years ago when we lived down in Florida. When we moved back to Michigan her business was going really well, and we were selling a lot of her paintings from our house. So, when I opened my dealership, we decided to use some of the showroom space to display her artwork and that’s when we officially opened Copper Corners Art Gallery. Having artwork on the walls makes for a very relaxing environment and our customers certainly appreciate it. It’s also been really cool, to work with my wife every day.”

Now that Baker’s been successfully running his business for a few years, when asked what advice he has for other dealers getting started, he said not to be afraid of change. “The biggest thing that you can take from all of this is you have to be okay with new things happening. Being in the business for a long time, we’ve seen that there are a lot of people in the automotive industry that don’t really want to change, and you have to be flexible. If this past year has taught us anything, it’s that this industry changes so quick. Look at what’s happened with inventory and we’re seeing what’s happening with online retailing. If you’re not open to it, you aren’t bringing anything to the table and you’re going to fall behind. A big part of this is adapting to what the customer wants. If the customer wants a more digital and visual experience, then you have to give it to them. Honestly, its made things so much more efficient for my business. On the floor plan side, I’m obviously an advocate for NextGear Capital because of their transparency when it comes to things like audits, titles and fees. I’ve seen multiple floor plan companies and this one is by far the best. So if there’s a dealer out there looking for a floor plan company, he needs to partner with NextGear Capital.”

When thinking about the future, Baker says he’s very optimistic. “Five years from now I anticipate significant expansion at our location, growing into a large-scale family owned and operated dealership unlike any other. Floor planning with NextGear Capital has given me a secure way to increase inventory and flourish as a business. The culture we’ve built at Comodo is honesty, transparency and a comfort level that makes you feel like you’re at home. That’s another way my business aligns with NextGear Capital and that’s what the Comodo Experience is all about.”