NextGear Capital funds over £40m of used vehicles in just six months - NextGear Capital Ireland
- Used dealers buy more than 6,000 vehicles using NextGear Capital Stocking Plan
- Auction partner network has grown to 36 locations
- Average purchase price of funded vehicles is over £6,000
NextGear Capital is celebrating six months of trading since launching its used vehicle Stocking Plan into the UK market, and in that time, has funded over 6,000 vehicles worth £40m for more than 250 dealers.
NextGear Capital set out to modernise the UK used vehicle funding market when it launched in May and is well on course to achieving this aim.
Managing Director of NextGear Capital UK, David Mercer, said: "The response has been extremely positive from used dealers who are using our Plan to stock more and sell more vehicles.
Our auction partner network, which transfers a purchased vehicle onto an individual dealer's Stocking Plan, has also been very receptive and now stands at 36 locations with more due to be added before the end of 2014. Dealers can also use our Trade Source facility which allows them to add vehicles bought from other sources and part exchange to their Plan.
We are well on the way to funding £60m of vehicles by the end of 2014, which is in line with our expectations" he added.
So far 50% of vehicles have come from purchases made through NextGear Capital's auction partners and the remaining 50% via Trade Source, where a dealer can transfer the remainder of its used stock onto the Plan.
The current average vehicle value of over £6,000 is much higher than the initial prediction of £3,750 and is mainly down to dealers upgrading stock due to the improved cash flow that the NextGear Capital Stocking Plan has given them.
The most expensive vehicle funded to date has been a Porsche 91 Carrera 4 at £67,900 and the cheapest a Vauxhall Zafira at £350. The most popular three brands are Ford, Vauxhall and Volkswagen (which has overtaken BMW), and currently 88% of vehicles are cars and 12% commercials.
Feedback from the dealers and partner auctions is extremely positive as the comments below indicate:
- "Payment to us is guaranteed and fast, which means any dealer using NextGear Capital is welcome to buy at FLAG!" - Andrew Walker, The Fleet Auction Group.
- "I've found the Stocking Plan has helped to increase my stock volume, improve the age and quality of the vehicles and therefore the profit per vehicle" - Chris O'Sullivan, Cars Direct.
- "You'd be mad not to take advantage of a reasonably priced, flexible stocking plan" - Dale Hodgkinson, Strongford Garage.
"Dealers are using their extra funds to stock more vehicles and better quality vehicles. Dealer feedback confirms they are enjoying the transparency the Plan brings; enabling them to grow their businesses at a time when the general used vehicle market is buoyant. We're looking forward to the next few months and have some ambitious plans for 2015" said David Mercer.