ACV said Monday it has launched a self-service portal for dealer customers using ACV Capital’s floor plan services.
Dealer customers will be able to access a seamless post-auction financing solution through the floor plan program in the portal, which is now available.
The self-service portal, which is located in the top navigation bar on the ACV website, allows dealers to view data such as total credit line limits, used credit across open invoices and available credit for new purchases, along with payment information and invoice information.
“ACV is a digitally native company committed to offering transparency, and ACV Capital’s new portal aligns perfectly with our commitment to leveraging digital solutions that provide easy-to-use solutions and transparency to our dealer partners,” ACV Capital general manager Shayan Khawja said in a news release.
“We always look to our dealers for feedback, and when they ask, we listen. This is just the beginning. We will continue to evolve the capabilities of this product as we gain additional dealer feedback,” Khawja said.
“Our goal is to make the vehicle financing process intuitive and easy to engage with. As a high tech, high touch company, ACV remains committed to delivering a new level of self service and dealer engagement, however our people are always available to our customers whenever needed.”
A new department several months in the making now is a part of NextGear Capital.
To strengthen its business relationships with the auction partners that support the inventory needs of its independent dealer clients, NextGear announced on Wednesday that has created an auction services department.
The company explained through a news release that planning for the auction services began last year. NextGear indicated that the work included reimagining and realigning the company’s flooring and funding departments to create collaborative consulting teams.
Executives said the goal is to build in-depth relationships with auctions to better understand their unique needs and harness the collective resources of NextGear Capital to provide customized solutions.
“Our focus for creating a dedicated Auction Services team was to broaden our support and expertise to better meet the needs of our valued auction partners,” NextGear senior vice president of lending John Wick said in the news release.
“Bringing our best-in-industry knowledge and exceptionally skilled team members to the table allowed us to take a fresh approach to how we interact with our auction partners and become a collaborative, trusted resource to help both organizations drive growth,” Wick continued.
NextGear also said that chosen to lead this new group is Sandy Moon, the company’s associate vice president of auction and floor plan services.
A 17-year member of the NextGear team, the company highlighted Moon brings experience in operations management and team building to her new position.
In addition, Moon has hired Danny McNelis as the team’s auction director.
Previously serving as a senior client solutions executive for NextGear, the company said McNelis brings strong relationship-building skills to this new role.
Floor plan financing tends to be a necessary cost of doing business for dealers in acquiring the inventory they need.
But which vehicles dominate floor plan financing?
New data from NextGear Capital, a Cox Automotive company, shows various trends, but one in particular stands out: Trucks and sedans remain extremely popular.
“Our dealer clients clearly see these as attractive options for their customers,” said Shane Pyne, who is industry intelligence manager for NextGear, in an emailed Q&A.
Crossover utility vehicles and SUVs gained a larger share of the new-car market in 2018. But in the used-vehicle market, trucks and sedans continued to show their value.
“The used-car market continues to see robust demand, driven in part by consumers looking for affordable options in the face of rising new-car prices,” Zo Rahim, manager of economics and industry insights for Cox Automotive, said via email in addressing NextGear Capital’s recent listing of top 10 floor planned vehicles of 2018. “Within the used-car market, compact and midsize sedans have posted the highest gains in wholesale values.”
One reason for that: the millennial factor. Demand for CUVs and SUVs in the new-vehicle market is on the rise, but Pyne notes that some might be surprised to see enough consumer demand that six sedans made the top 10 floor planned vehicles list.
“The demand for sedans in the used-vehicle market is supported by millennial car shoppers, who are attracted to the affordability of a used sedan,” Pyne said.
In a press release from NextGear, Pyne noted that millennials are among the biggest used-vehicle consumers. Vehicle price is often a major factor in their purchasing decisions, he added.
“At the moment, used sedans are generally more affordable, making them an attractive choice for budget-minded car shoppers,” Pyne stated.
Trucks and sedans: Practical, affordable
Those are some of the trends to come out of NextGear’s top 10 floor planned vehicles of 2018 list. The Ford F150 came out on top of the list for 2018, followed by the Chevrolet Silverado and the Nissan Altima.
In listing the top 10 floor planned vehicles, NextGear Capital noted that every dealer approaches inventory selection differently. However, a look at the company’s floor planning data from last year showed common vehicles that dealers “found most appropriate to add to their lots,” NextGear noted.
Trucks and sedans are often considered practical and affordable options for buyers, according to NextGear, and those vehicles made up the bulk of the list of NextGear Capital’s Top 10 Floor Planned Vehicles of 2018.
NextGear noted that its list of top floor planned vehicles falls in line with data from fellow Cox Automotive company Manheim, and that data shows that although midsize sedans and compact cars are losing share in the new-car market, those vehicles’ value gains outperformed the wholesale used vehicle market last year. That trend has continued through the beginning of 2019, according to Manheim.
“Automakers have cut the production of compact and midsize sedans, which has decreased supply in both the new and used markets,” Rahim said. “Demand, though, remains high for used vehicles in these segments, because they provide an attractive option for budget-conscious car shoppers.”
That decreased supply and strong demand has led to wholesale value gains for compact and mid-size sedans, Rahim added.
A deeper dig into the data shows a trend toward mid-size sedans. NextGear noted that the Ford Fusion has jumped nine spots on the top list of floor planned vehicles since 2017 and 20 spots since its redesign in 2013.
“I expect the Fusion’s volume will continue to grow in the used market,” Pyne said, adding that the Fusion could challenge the Accord and Camry next year in terms of volume.
Sales volume, interest rates and other factors
NextGear Capital compiled the top floor planned vehicles list based on an analysis of data from more than 20,000 independent dealers. Pyne noted that independent dealers floor plan a wide range of model years. To make NextGear’s list, models should have consistently high sales volumes in the new-vehicle market over a long period.
That explains the Ford F-150 and Chevy Silverado’s position at the top of the list, Pyne said.
“Also, models that sell well into both the consumer and fleet markets will make their way on this list,” he added.
Interest rates are another factor that might have an impact on dealers and their floor plan situations. Recent news that the Federal Reserve might hold interest rates steady for much of 2019 “should help keep consumer auto loan rates stable as well as floor plan rates, which is favorable for our dealer base,” Pyne said.
Looking to the future in the area of floor planned vehicles, Pyne noted that as the supply of used vehicles begins to shift in the direction of CUVs and SUVs, dealers will floor plan more of those vehicles.
“But I think we’re still a few years out before they start displacing some of the models on this list,” Pyne said.
The Top 10 Floor Planned Vehicles of 2018 were:
1. Ford F150
2. Chevrolet Silverado
3. Nissan Altima
4. Toyota Camry
5. Honda Accord
6. Ford Fusion
7. Honda Civic
8. Toyota Corolla
9. Jeep Wrangler
10. GMC Sierra
Data’s evolving role in floor planning
In an Auto Remarketing Podcast, NextGear senior vice president Randy Dohse talked about how NextGear is using data as a tool more than ever.
“We now can get quick glimpses, really understand that client better than we ever have, which has allowed us to be more nimble, to do things for them much differently than we had in the past,” Dohse said. Ten years ago, Dohse added, a floor planner might describe floor planning data as “one-size-fits all.”
“However, technology has allowed us to take this data and understand that client and really start to customize solutions for them in particular,” he said.
