Stay agile with wholesale stock funding
Darren Mornin, Managing Director for NextGear capital, explains how wholesale stock funding can help dealers to stay agile in an unpredictable market.
When you consider the headwinds the sector faces today, it’s no surprise there are a number of questions surrounding the future of the automotive market.
While we cannot predict what the future holds, in times of uncertainty it’s vital for businesses to remain agile and build strong foundations. Being able to find where the best used stock is, and be able to buy it, regardless of the source, not only helps you tackle supply issues but also gives you more options to reduce the likelihood of overpaying for the vehicles you need.
For this reason, I believe for most dealers having a flexible non-captive funding line, such as the likes provided by NextGear Capital, is key.
Free up cashflow
Wholesale funding can be an essential part of a dealer’s toolkit by freeing up vital cash in your business to be saved or invested elsewhere. Fundamentally, it gives you the ability to buy more stock without dipping into your own resources, freeing up money to invest in other ways such as your facilities, people, or marketing. This can have a transformational effect for some dealers.
We often see dealers who partner with us quickly start selling 10/20/30% more vehicles than before.
Of course, not every business is looking to grow at such a rate and in those cases those cash reserves can provide stability during uncertain economic times.
Choose where to buy and how
Stock funding sources like NextGear Capital have the added benefit of enabling you to buy from a 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% 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. Meaning you settle the outstanding sum 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 Stocking Plans are tailored for the specific needs of dealers. We take our responsibility 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 needs evolve.
Want to learn more? Book an appointment with one of our Account Managers.
*100% of the hammer price plus auction and delivery fees (auction purchases), or lower of CAP clean/invoice price (trade vehicles) + VAT funded on LCVs and qualifying vehicles up to the value of £45,000. Stocking Plus can only be used for trade sourced vehicles.