Zero to £8m of Used Vehicle Purchases in just 3 Months - NextGear Capital Ireland
- Total Stocking Plan use since launch stands at over £8m
- Dealers report improvements in cash flow and profitability
- Auction partner network continues to expand
NextGear Capital UK Ltd has celebrated its first three months of trading by purchasing more than £8 million worth of vehicles on behalf of dealers via its used Stocking Plan.
That equates to more than 1,000 cars with Ford, Vauxhall and BMW the most popular three used marques.
The first car purchased was an Audi TT and the first van a Fiat Doblo Cargo.
Once a dealer has been approved for a NextGear Capital Stocking Plan they can buy vehicles up to an agreed limit. So far 60% of vehicles have been funded through purchases from NextGear Capital's auction partners and the remaining 40% though Trade Source, where a dealer can load used stock from other sources onto the Plan.
Feedback from our dealers confims that the process really is quick, simple and flexible. Payment to partner auctions is paper free and completed in seconds as the vehicle is automatically transferred onto the Stocking Plan.
NextGear Capital's Managing Director, David Mercer, said: "Launching a start-up company into an established marketplace is a huge challenge, but progress since we launched three months ago has been outstanding. We're pleased to report that using the NextGear Capital Stocking Plan is becoming a day to day business practice for auction houses and used vehicle dealers across the UK."
NextGear Capital has seen some significant milestones since receiving the first Stocking Plan application on 10 April:
- 7 May - NextGear Capital opened for business, launching at Manheim Auctions Leeds, where the first vehicle put onto the Stocking Plan was an Audi TT
- 14 May - First online purchase
- 22 May - First independent auction launch at Shoreham Vehicle Auctions
- 28 May - First LCV purchase of a Fiat Doblo Cargo SX 1.3 JTD
- 2 June - Trade Source facility launched
- 11 June - First £1m of Auction Source business
- 25 June - First £1m of Trade Source business
- 14 July - First £5m of vehicles funded
- 17 July - First 1,000 vehicles funded
- 21 July - Summer Stock Builder offer launched to drive Trade Source in August
- 31 July - Total Stocking Plan use since 7 May at over £8m
- Approximate split of 60% Auction Source and 40% Trade Source business
- Top three marques for vehicles on Plan are Ford, Vauxhall and BMW
David Mercer continued "Our network of partner auctions continues to expand across the UK and the ability to use our Trade Source facility to release funds for vehicles bought elsewhere means we expect to see demand increase further over the coming months.
Feedback from our dealers confirms they are enjoying the transparency the system brings and we are already hearing reports of both profitabilty and cash flow improvements too, demonstrating that our product helps dealers to stock more and sell more."