9:57 am, December 7, 2022
It’s no secret that the used car market is in a volatile state.
Global vehicle production shortages continue to impact on used car supply and inflate prices, while consumer expenditure is becoming increasingly unpredictable.
We can’t predict what the future holds for our industry, so the best we can do is prepare for the now while creating strong foundations for the future.
Agility in today’s climate is vital for dealers.
Being able to find where the best used stock is, and be able to buy it, not only helps you tackle supply issues but also gives you more options to reduce the likelihood of overpaying for the vehicles you need.
I believe that for most dealers, having a flexible non-captive funding line, such as the likes provided by NextGear Capital, is the key to unlocking your business’s potential in 2023.
Wholesale funding can help your business grow
Wholesale funding can be an essential part of a dealer’s toolkit by encouraging growth.
Fundamentally, it gives you the ability to buy more stock without dipping into your own resources, and we often see dealers who partner with us quickly start selling 10/20/30 per cent more vehicles than before.
If you choose to, your own cash is free to be invested in other ways, be it facilities, marketing or people. This can have a transformational effect for some dealers.
Of course, not every business is looking to grow at such a rate and in those cases those cash reserves can provide reassurance during uncertain economic times.
Choose where and how you buy
Non-captive funding sources such as NextGear Capital have the added benefit of allowing you to buy from a much larger number of stock sources.
We partner with 70+ auctions and vehicle wholesalers where the full hammer price plus delivery and buyer’s fees can be settled directly.
If buying from another source, including part-exchanges or a private sale, 100 per cent of CAP Clean or invoice price can be funded.
With stock supply as it is today, it’s important to be agile so you can buy decisively when the opportunity arises. In a fast-moving market and when prices are high, this can be a form of competitive advantage.
But inevitably there will be times where you’re not looking to buy as many vehicles, and wholesale funding gives you that freedom.
With a Stocking Plan, you only incur costs when you fund a vehicle, and only for the duration of you having that vehicle on your forecourt.
You settle the outstanding sum plus the fee when you sell – that’s it. And you can do this as many times as you like, and with as many vehicles as your Stocking Plan facility will allow.
Trusted by 1,700+ dealers
NextGear Capital is proud to have supported is 1,700-plus dealer customers since 2014, and to date we have funded more than 690,000 vehicles in the UK and Ireland, equating to more than £5bn.
NextGear Capital Stocking Plans are tailored for the specific needs of dealers.
We take our responsibility very seriously and have an experienced team who’ll work with you to understand your business and determine a facility that’s appropriate.
Plus, we stay very close to you and adjust your plan as your need evolves.
Talk to our team today. Simply book an appointment here or call 0343 50 60 600.
