NextGear Capital Launches Innovative New Used Vehicle Stocking Plan
- New Stocking Plan helps used dealers stock and sell more vehicles
- Dealers can manage Stock online via their PC or tablet
- Set up of the UK business represents an investment of £3m in first 12 months
- £60m initial funding line dedicated to forecourt vehicle stocking
NextGear Capital UK’s innovative new vehicle Stocking Plan has gone live today (15 April 2014), with used car and van dealers able to apply online at www.nextgearcapital.co.uk
The new plan aims to revolutionise used vehicle stocking for UK dealers and is part of a £3m first year investment in people, premises and systems for the Chester based company.
NextGear Capital expects to fund 100,000 used vehicles through its innovative approach in 2015 and has the capability of bringing more funding into the market based on demand.
The Plan improves cash flow for dealers, drives sales and enables them to ‘stock more and sell more’ used vehicles, which should help improve the balance sheets of hundreds of independent used car businesses around the country.
Once a dealer has been approved for a NextGear Capital Stocking Plan they can buy cars or vans up to an agreed limit from the network of auction or vehicle wholesale partners signed up to the programme. Partners will start being announced later in April.
The partner auction automatically transfers the purchased vehicle onto the individual dealer’s Stocking Plan and NextGear Capital manages any relevant administration, including payment for the car.
As NextGear Capital buy the vehicle they retain the vehicle’s title and dealers will be charged fees based on how long it has been in their stock. This will immediately improve a dealer’s cash flow giving them the ability to stock and sell more cars.
NextGear Capital, with the partner auction, manages all vehicle sale administration on the dealer’s behalf, but if it doesn’t sell it can be entered back into a partner auction sale without settlement being requested up front.
The entire buying and selling process is paper free and extremely fast thanks to a significant IT investment. The systems give dealers the ability to view and manage their Stocking Plan online via PC or tablet which assists with budgeting and profitability.
“Our system revolutionises dealer stocking in the UK at a time when the second hand market is very buoyant,” explained David Mercer, NextGear Capital UK’s Managing Director.
“It will help used dealers buy and sell more used vehicles thus improving their cashflow and profitability. Physical and online auctions will see more vehicles being purchased as dealers can bid with the confidence of having enhanced purchasing power and asset owners are likely to sell more vehicles faster”.
“This is the most inspiring initiative the vehicle remarketing industry has seen in the past 20 years,” he added.
For further information call Steve Carman on 01628 526208 or email email@example.com
Note to editors:
NextGear Capital UK is a subsidiary of NextGear Capital Inc which became part of the US based Manheim group in February 2013.
Currently NextGear Capital handles the daily sale and purchase of thousands of used vehicles through its dealer stocking plan for more than 17,000 dealers and 1,000 auction houses across North America and Canada.
NextGear Capital UK is based in Chester where it will employ over 40 colleagues by the end of 2014.
Managing director David Mercer joined NextGear Capital UK after nine years working for Manheim where he most recently held the roles of group business services director and commercial director, continental Europe.