How does the Stocking Plan work?

In addition to the cost of the vehicle when sold (known as the 'hammer price') most auction houses charge fees on top - such as buyer fees, inspection charges, transport, and VAT on services. We refer to these costs as 'disbursements'. When NextGear Capital pays an auction house for a vehicle you have bought on our behalf, the full invoice amount is paid. This covers 100% of the hammer price and any disbursements. 

We take these disbursements from your bank account by Direct Debit, once the vehicle is settled off your Stocking Plan. As part of the BACS submitter rules, payments should not be amalgamated and must allow the customer to identify each vehicle the payment relates to separately. 

This means that if you purchase several vehicles on a single sale day, you will only see the disbursement Direct Debits for each vehicle listed on your bank account once each vehicle has been settled. For example, four vehicles each with three disbursement amounts will generate 12 separate Direct Debits, one for each disbursement amount, but these will only be debited once each vehicle has been settled off your Stocking Plan. 

We appreciate that seeing a number of Direct Debits due to these rules can be a surprise at first, but it is something NextGear Capital is required to do, and we are working on ways to streamline this going forward. If you have any queries about the Direct Debits being taken from your bank account, please call our Customer Service Team on 0343 50 60 600. 

NextGear Capital operates on a fee-paying basis, so because you’re not borrowing money in the same way as a traditional loan, there is no APR. You become an authorised buyer for us and we retain title to the vehicle while you sell it. You simply pay to use the service and you can calculate in advance how much it will cost to stock a vehicle for a period of time. 

• Dealers become approved buyers with a rolling Stocking Plan limit and buy stock on behalf of NextGear Capital who retain title of the vehicle 
• Dealers can select vehicles to buy at partner auctions or online just as they do now 
• Partner auctions or wholesalers invoice NextGear Capital for eligible dealer purchases when dealers elect to acquire vehicles on their NextGear Capital Stocking Plan 
• NextGear Capital will fund the vehicle hammer price and eligible fees such as delivery and indemnity fees 
• Make sales easier and faster - you'll receive payment within three working days 
• This guaranteed payment from NextGear Capital helps improve cash flow for auction houses or wholesalers and their customers 

It’s simple! 

• You become an approved buyer and buy stock on behalf of NextGear Capital who retain title of the vehicle 
• You have a rolling stock plan limit set at an agreed amount above £30,000 for private and trade purchases 
• You can select vehicles at partner auctions or online, just as you do now. These are Auction Source purchases 
• You can also add trade purchases and part exchange vehicles. These are Trade Source purchases 
• A vehicle can be held in stock for up to 150 days* 
• Interim payments will be required after 45 days, 75 days and 105 days 
• A daily holding charge applies throughout the holding period 
• Fixed fees are payable at the start of the holding period and on the interim payment dates 
• Fixed fees are paid at the end of each period or on the sale of the vehicle 
• The plan could release your cashflow and provides a speedy, efficient, end to end process
• Gives you greater buying/selling power 
• What this really means is that you can buy more of the kind of vehicles that you know will sell well, upgrade the models you’re selling to include some more expensive/newer vehicles, or if you’re keen to expand your market to include LCVs, this could be a great opportunity too. 

 *Franchised dealer plan only. Independent dealer plan maximum stocking time is 120 days.