Dealerships are leveraging NextGear Capital for more than just inventory they want running down the auction lanes.
The Cox Automotive company recently highlighted that it has financed more than $1 billion through the first three quarters of the year for non-auction purchases via its funding feature, Rapid Pay.
NextGear Capital insisted the adoption of this feature reflects dealers’ growing use of digital technology to maintain cash flow and enhance business operations.
NextGear Capital introduced Rapid Pay two years ago to streamline the flooring process for vehicles purchased outside the auction, such as customer trade-ins and owned inventory. Since then, the company stressed that it has proven to be the simplest way for clients to secure funds quickly.
“Rapid Pay enhances dealers’ ability to assemble inventory desired by customers without holding costs eating into their profits,” said Sarah Lutey, director of corporate strategy for NextGear Capital. “This online process is just one more way we can help our clients manage and grow their operations.”
In addition to Rapid Pay’s 2018 milestone level of inventory financing, NextGear Capital data revealed more than 70 percent of its clients used the feature at least once, while 58 percent used it to floor half or more of their non-auction purchases.
In fact, the company added that the feature has proved so easy to use that 39 percent of NextGear Capital dealers used it to floor all of their vehicles purchased outside of the auction.
The company reiterated the main capabilities of Rapid Pay, including:
— Faster funding for non-auction purchases: Prioritized Rapid Pay and expedited funding requests can enable dealers to accelerate the non-auction flooring process. Requests are independently initiated through a dealer’s account portal, accessible via computer or mobile device, and don’t require a representative to complete. Once approved, funds are promptly deposited through ACH into a dealer’s account.
— Simple title management: A pre-paid FedEx waybill (provided by NextGear Capital at no cost) to submit title for a non-auction purchases floored through Rapid Pay.
— Additional visibility: A client can immediately view the status of a non-auction vehicle funding request after it is submitted through Rapid Pay.
“The adage ‘time is money’ is more relevant than ever for dealers,” Lutey added.
For more information about Rapid Pay, go to this website.