How to make empty forecourt spaces a thing of the past
No dealership is happy to see empty spaces on their forecourts – particularly when consumer demand is the highest it has been for years.
To take advantage of current retail opportunities, it is important dealers are equipped with the financial means they need to keep forecourts and website listings populated.
Can you keep up with a fast-moving used market?
Despite the market being under considerable pressure right now – new and used vehicles are thin on the ground, meaning retail demand is strong and the wholesale market is struggling to keep pace – there are still plenty of profit opportunities for those agile and flexible enough to take advantage.
In this highly competitive fight for stock, it is crucial that dealers can turn to a wide variety of funding sources so they can always acquire the stock they need when they need it, wherever they find it, eliminating empty spaces in the short and long term.
Flexibility and agility are key. Dealerships that have access to funds that complement where they choose to buy and are not restricted to a single source can maximise every available opportunity.
How do you expand on your funding options?
Firstly, there’s no one-size-fits-all solution for funding. With multiple options available to dealers, it pays to look around, collect as much information as possible, and understand your own individual needs and business model. For example, traditional loans are widely understood and cheap, but may not be best for fluctuating business needs. Furthermore, some wholesale funding comes with an expectation of reciprocal retail finance or may restrict your stock sources.
To locate the most appropriate and flexible funding options, it is important to question what percentage of a vehicle will be funded, the duration of the funding agreement (and therefore the repayment terms), whether funding covers stock alone or associated fees, and where the funding agreement allows you to source vehicles from.
Can NextGear Capital help?
We are not in the habit of instructing dealers to only source funding from us. Not only would that be unethical, but it would also be less than helpful for your dealership. However, we are certain that we have created a funding model that provides freedom and flexibility, with the potential to banish empty forecourt spaces forever.
Unlike other finance providers, we deliver 100% of funding regardless of stock, so you can acquire vehicles at auction, online, from fellow dealers, or the public; anywhere you like. We’re also integrated into more than 70 auctions and specialist vehicle wholesalers with whom we cover the full hammer price and delivery, meaning you can settle your fees directly.
For part-exchange and private sales, our Stocking Plan covers 100% of the invoice or CAP clean price, whichever is the lower.
The automotive market has never been more sophisticated; stock has never been harder to source, and prices have never been higher. Fortunately, despite this perfect storm of market forces, opportunities exist for dealers to make money – and our job is to help you do just that!