It already might be Valentine’s Day, but we’re not yet finished with top 10 lists recapping 2022.
NextGear Capital recently highlighted the Top 10 vehicles on its floor plan in 2022. Executives pointed out that eight of the top 10 vehicles floor planned with NextGear Capital last year represent the top three used vehicles sold that year, based on data from Cox Automotive.
The top 10 vehicles floor planned with NextGear Capital in 2022 included:
1. 2013 Ford F-150
2. 2018 Ford F-150
3. 2014 Chevrolet Silverado 1500
4. 2014 Ford F-150
5. 2014 Ram 1500
6. 2016 Ford F-150
7. 2015 Chevrolet Silverado 1500
8. 2015 Nissan Altima
9. 2015 Chrysler 200
10. 2015 Ford F-150
“Trucks — especially different years of the F-150 0151 dominate the list, which tell us that lifestyle is still a driving factor for customers when shopping for used vehicles,” said Shane Pyne, NextGear Capital senior manager of industry intelligence, who compiled the list based on a data analysis floor planning activity from more than 21,000 independent dealers.
NextGear Capital reiterated that cash flow from floor plan financing can help independent dealers stay competitive and act quickly to acquire the right inventory — like what’s on this list.
“Sourcing inventory in a tight market requires independent dealers to have a plan in place to make smart buying and pricing decisions,” NextGear Capital president Scott Maybee said. “Using a flexible floor planning strategy can make a dealer’s inventory work for them and stay competitive in any environment.”
This week, Kinetic Advantage announced more than a half dozen enhancements to its proprietary dealer management portal, Kinetic 360.
The independent floorplan provider highlighted the new Kinetic 360 showcases a sleek and responsive design with functionality that can allow users to navigate the portal and manage their account easily.
After conducting an extensive study, utilizing both quantitative and qualitative methods, to understand the needs of the dealers, Kinetic Advantage said it used the results of that study to not only design a new portal that would meet those desires, but exceed them as well
Kinetic Advantage chief information officer and chief customer officer Chris Brady said the new features are expected to delight dealers and improve efficiencies in their day-to-day floorplan management.
“The biggest updates dealers will notice in the new Kinetic 360 portal are the fresh look and feel, the intuitive navigation and the added capability to click-through to access more details,” Brady said. “The new Kinetic 360 portal was designed to be a self-service tool with the dealer experience top of mind.
“We wanted to showcase, front-and-center, the most important information for the dealer, and we believe that is reflected in this latest release,” Brady continued.
In addition to an updated design and the ability to access additional information, a few of the highlights dealers can expect to see in the new portal include:
• A comprehensive dashboard providing an “at a glance” view of pending tasks requiring action, a summary of aging inventory and summary of floorplan counts, including their status
• The ability to view and release unapplied funds
• A submission form for trade-in floorplan requests
• For a given payment, the breakdown of principal, interest, and itemized fees due
• The ability to request a FedEx shipping label
• The ability to manage users’ K360 access
• The ability to download reports in multiple file formats
Independent dealers across the country have used Kinetic 360 to gain 24/7 access to titles, due dates and payment amounts, too.
“We expect these new features to provide even more benefits to make our dealers’ inventory flooring an easier and more manageable experience. We’re excited to build upon the current success of the platform and continue to provide top-tier service for our Kinetic Advantage customers,” Brady said.
Two floorplan providers familiar to independent dealerships made major announcements this week.
AFC, a business unit of KAR Global, shared an update about Principal Pass, while Kinetic Advantage expanded its leadership team.
AFC said through a news release that more than $2 million in deferred principal payments have happened since launching its deferred curtailment program.
The company explained its product enhancement provides eligible dealers with the option to pay a $50 fee in exchange for a $0 principal payment at the time of curtailment for eligible vehicles, without a change to their existing financial contracted terms.
“Dealers need flexibility in how and when they put their capital to work. Principal Pass preserves cash flow — empowering dealers with expanded operational flexibility,” AFC chief operating officer Will Mitchell said in the news release.
“We’re proud to offer a simple, flexible and affordable solution to help our customers operate more effectively, and are thrilled to see the response from dealers since we launched it a year ago,” Mitchell continued.
The company said eligible dealers can quickly and easily enroll at no cost and with no changes to their contracted financial terms by contacting their local AFC branch.
Once enrolled, dealers are able to log on to their account at autofinance.com and choose the specific eligible units to which they would like to apply Principal Pass. The program is available in the U.S. for eligible dealers in good standing on non-specialty vehicles with a total flooring value of up to $20,000.
Wes Pinson is owner of Amity Preowned and Nashville Preowned in Arkansas
“I love Principal Pass. By letting me skip my principal payment and only pay interest and fees, Principal Pass increases my cash flow a lot,” Pinson said in the AFC news release. “Along with the freed-up cash, it also gives me more time to get my cars frontline ready.”
AFC looks to helps independent dealers grow their business faster by providing financing for used vehicle inventory.
Across the U.S. and Canada, AFC works with more than 12,000 dealers in the retail and wholesale automotive space as well as RV, power sports and commercial truck dealers, salvage buyers and daily rental operators and is accepted as a form of dealer payment at more than 1,300 auction sources in the same footprint.
Kinetic Advantage names 3 division vice presidents
Meanwhile, Kinetic Advantage announced that Christian Simpson joined the company as a division vice president.
The company said Kevin Garrett and Nick Ahnen also have been named division vice presidents.
Adding a third field-based division provides additional support to dealers as Kinetic continues to expand the business that now includes more than 4,000 dealers and more than 800 inventory sourcing options.
The company now consists of three divisions and 11 regions, serving more than 70 markets nationwide.
“The newly appointed leadership team will enable us to better support our growing team and allow us to continue delivering unparalleled service to our dealers now and into the future,” Kinetic senior vice president of operations and sales Will Chandler said.
“Christian makes an ideal addition with his depth of floorplan and automotive wholesale experience. Christian will play a big part in continuing to drive our presence in the market,” Chandler added.
Buy-here, pay-here and independent dealerships have been the topic of conversations for at least part of this week’s National Auto Auction Association convention in Dallas.
Some of that dialogue took place as NextGear Capital announced on Thursday that it has created an auction advisory board to deepen its commitment to auctions that support independent dealers.
According to a news release, NextGear Capital said the goal is to seek firsthand insights from a diverse group of auction owners, industry leaders, alliance partners and influencers such as how to create greater efficiencies and maximize the use of technology in the rapidly evolving automotive remarketing space.
The floorplan provider indicated this feedback will help guide the company’s future investments and help elevate the entire industry.
The inaugural meeting took place on Tuesday as part of the NAAA annual convention.
“This new auction advisory board is an important partnership for NextGear Capital to enhance our processes and create efficiencies to better meet the needs of our valued auction partners,” said Sandy Moon, AVP of auction and floor plan services at NextGear Capital.
“In addition, it provides a collaborative platform for auto auction leaders to share feedback with NextGear Capital and ensure that we are able to grow together and best serve one another. The importance of this opportunity is not lost on our inaugural members,” Moon continued in the news release.
The company highlighted the 10-member auction advisory board also is a “natural extension” of NextGear Capital’s auction services department created earlier this year to build deeper relationships with auctions in order to better understand their unique needs.
NextGear added this new group also builds on the success of the company’s dealer advisory board launched in last year to better understand and serve independent dealers.
“I am truly honored and excited to be a part of this inaugural Advisory Board and its goal to create stronger partnerships within our industry,” ServNet Auctions president Chad Bailey said in the news release.
“As an auction owner/operator, it is crucial for my customers to have multiple financial outlets to weather uncertain times,” Bailey added. “NextGear Capital’s efforts to take the lead in the development of an industry road map for better communication, services and opportunities can only strengthen this goal.”
Your dealership customers likely are about to get an injection of cash via their federal tax return.
NextGear Capital rolled out a program enhancement on Thursday designed to further improve cash flow for independent dealers to invest back into their businesses.
NextGear is introducing a new element to Flex Pricing, a floorplan program that offers .01% principal reduction per period and fewer fees.
Now according to a news release, Flex Pricing will offer additional payment deferments on vehicles purchased from Manheim.
“This new element to Flex Pricing combines the power of two Cox Automotive brands to take a well-received financing program, especially among our cash-sensitive clients, and make it even better,” NextGear president Scott Maybee said in that news release.
“This is the first of several enhancements coming from our team this year that reinforces our commitment to investing in dealer success and providing choices that further their diverse goals and needs,” Maybee continued.
NextGear highlighted that the response from dealers who are using Flex Pricing for its cash flow benefits has been extremely positive.
“Flex Pricing has been very useful, especially when the business is having some slow peaks,” said William Boyd with B.M.N., Inc. in Alabama, who has been a NextGear client since 2014. “Paying on the back end, versus the front end, plays a major role in my decision making for the business. It’s like getting an extra month to pay off the loan.”
Amy and Ty Howorth whose Texas dealership, Howorth Auto Group, also has been a NextGear client since 2014.
“Flex Pricing helps our dealership keep curtailment costs down and assists with cash flow by allowing us to purchase more inventory on our floor plan, knowing that when it’s time to pay curtailments, we aren’t hit with large fees all at once,” they said.
While the added benefit of deferring certain payments applies specifically to vehicles purchased at Manheim, NextGear pointed out the original benefits continue to be available on all non-Manheim purchases for dealers enrolled in the Flex Pricing program.
NextGear also partners with Cox Automotive’s Ready Logistics to allow clients of both brands to buy, floor and transport vehicles in one seamless transaction.
Information recently shared by NextGear Capital reinforced which vehicles are clearly the ones being stocked and retailed by independent dealers.
According to its industry data, six of the top 10 vehicles floor planned with NextGear during the first and second quarters of this year represented the two most popular vehicles in America — the Ford F-150 and the Chevrolet Silverado.
The company pointed out that midsize sedans, including the Nissan Altima and Toyota Camry, were included on the list, as well.
NextGear compiled the list based on an analysis of data of floor planning activity from more than 20,000 independent dealers. The top 10 vehicles floor planned with NextGear in the first half of 2021 included:
1. 2013 Ford F-150
2. 2014 Chevrolet Silverado 1500
3. 2018 Ford F-150
4. 2014 Ford F-150
5. 2014 Ram 1500
6. 2015 Chevrolet Silverado 1500
7. 2015 Nissan Altima
8. 2015 Chrysler 200
9. 2016 Ford F-150
10. 2018 Toyota Camry
“The pandemic has caused consumers to reevaluate their needs when it comes to purchasing used vehicles,”, NextGear industry intelligence manager Shane Pyne said in a news release.
“Trucks and midsized sedans are dominating the list which tell us that customers are factoring in both lifestyle and budget when shopping for used vehicles,” Pyne continued.
And independent dealerships are likely on a budget, too, and NextGear Capital said that’s when it can be of assistance.
The company acknowledged independent dealers are facing more competition for less inventory in today’s post-pandemic wholesale marketplace. Then, when they find vehicles that meet their acquisition strategy, NextGearsaid those vehicles are costing more than before.
NextGear president Scott Maybee explained the cash flow from floor plan financing is helping independent dealers stay competitive and act quickly to acquire the right inventory. As a result, NextGear dealer clients are securing some of the most sought-after vehicles on the market.
Dealers can use NextGear floor plans to finance both auction and non-auction purchases, helping them acquire the inventory they need to attract customers and grow their business.
“Sourcing inventory in a tight market requires independent dealers to have a plan in place to make smart buying and pricing decisions,” Maybee said in the news release. “Using a flexible floor planning strategy can make a dealer’s inventory work for them and stay competitive in any environment.”
NextGear Capital and 10 independent dealers evidently see the potential benefits of meeting regularly in a digital space — something like we’ve all done often throughout the pandemic.
In an effort to stay connected with clients beyond just surveys and anecdotal feedback, NextGear Capital this week announced the creation of the DRIVE Dealer Advisory Board to stimulate dealer growth and success.
The floorplan servicer explained that the purpose of the group is to provide a platform for open and direct dialogue between NextGear Capital leadership and dealers to help identify ways to best address their business needs and drive NextGear Capital’s future planning and investments.
Over the past two years, the company highlighted informal dealer feedback contributed to many of the recent enhancements to Account Portal, NextGear Capital’s account management platform, reinforcing the value of creating a more structured approach.
The board’s inaugural meeting took place virtually in April with NextGear Capital president Scott Maybee and members of his leadership team in attendance.
Going forward, NextGear Capital said the board will continue to meet monthly in a virtual setting.
“Our goal is to gain first-hand perspectives from this advisory board about what matters the most to our dealers,” Maybee said in a news release. “Through collaborative interaction, DRIVE will help us better serve our 20,000-plus independent dealers, creating new solutions to reduce their pain points and providing a client experience that delivers value every day.”
To obtain varied viewpoints and wide-ranging feedback, NextGear Capital explained that it selected a diverse group of dealer clients based on the following criteria:
—Varying lines of credit
—Minority and female-owned dealership representation
—Operators who are quick technology adopters, as well as slow adopters
—Manheim and non-Manheim buyers
—Both long-term and new NextGear Capital clients.
The company added the 10-person advisory board also represents a cross-section of NextGear Capital’s national footprint from Florida to California.
The advisory board members are:
• Imran Ahmed, A.I. Monroe LLC in Bountiful, Utah
• Chris Tingler, Car Shop, Inc. in Covington, Va.
• Alex Balk, CARite LLC in Fort Pierce, Fla.
• Nicole Kogan, Cosmo Motors, Inc. in Hickory, N.C.
• Marcos Esquivel, Esquivel Auto Depot, Inc. in Rialto, Calif.
• Heather Moreno, Lightning Motorsports, Inc. in Grand Prairie, Texas
• Garrick Hatfield, Motor Trends of Houston in Alvin, Texas
• Michael Rudman, Scottsdale Wholesale Direct LLC in Phoenix
• Kathy Ward, Ward Motor Co., Inc. in Amarillo, Texas
• Angel Wright, Wright Car Sales LLC in Lake Worth, Fla.
“I have worked in the automotive industry for 35 years and appreciate the importance of learning to grow and evolve an independent dealership,” Ward said in the news release.
“It’s an honor to be part of the DRIVE Dealer Advisory Board and pay it forward by providing up-and-coming dealers with solutions to make their day-to-day operations easier, through insights and strategic planning with the other board members on how to best advance us into the new age of doing business,” she went on to say.
Floorplan providers are taking extensive actions nowadays to help independent dealerships secure the inventory they need as the wholesale market is impacted by soft volumes and soaring prices.
After moves by Cox Automotive’s NextGear Capital as well as KAR Global’s AFC, ACV on Wednesday announced new title-dependent products available through its financing arm, ACV Capital.
Continuing to build on the current flexible financing options, ACV said in a news release that its new product offerings are meant to increase the trust and transparency of digital auctions by extending the title receipt period, as well as expanding payment period options for title absent (TA) vehicles and credit lines for high volume sellers.
The new product offerings include:
● 60+30 Duration: ACV indicated the most frequently requested product enhancement from existing customers is the 60+30, allowing for a 90-day floorplan floating period. This product can give customers a “frictionless” experience no matter what term limit they desire.
Dealers can choose to opt out of the renewal before the expiration of their term by clearing the loan, or for those who prefer an extension, no additional action is required — the product auto-renews out by 30 days with just the single extension fee. ACV said there are neither curtailment nor refloor fees.
● ACV Advantage: Buyer TA Hold (Pay on Title Sent): Rather than the buyer being required to pay for the purchased vehicle at the close of auction, ACV explained the ACV Advantage product (TA Hold) can extend payment due to the day ACV receives and clears the title from the seller to a maximum of 45 days.
With this payment option, ACV said it is able to conduct a credit check and financial review of the buyer to assign a credit line that can be monitored during the floating administrative period.
● ACV Accelerate: Revolving Line of Credit for Sellers: The company stated ACV Accelerate product does just that — accelerates the receipt of funds when the car sells.
Created with the goal of supporting high volume sellers by awarding a revolving line of credit to float the period between auction end and the title being received by ACV, the company said the lending is evaluated daily through reporting, rather than on a per-VIN basis, to allow for high velocity changes in portfolio as titles are processed.
Regular rate adjustments protect both the buyer and the seller, according to ACV.
The news release also shared customer feedback on ACV’s recent enhancements designed to demonstrate the value these title-dependent products are providing for dealers. says,
Lori Trichilo is the office manager at Bridgeland Auto Brokers and Candy Cars in Bridgeport, N.Y.
“The ACV Advantage product has been convenient from an administrative perspective and also frees up operating cash on vehicles that we cannot sell or floor due to lack of title,” Trichilo said.
It’s already been an active month for ACV.
Last week, the company launched ACV PRIVATE MARKETPLACES, a new platform that gives dealer groups and commercial partners a way to host closed sales for select audiences.
And ACV chief executive officer George Chamoun elaborated about this move in connection with ACV Capital.
“These new ACV Capital enhancements take dealer feedback into account and provide them with flexible financing options that are built for their business. We are committed to giving our dealer partners the services they need to transact digitally with confidence,” Chamoun said.
For more information on ACV and its other network of brands, visit www.acvauctions.com.
For independent dealers with cash flexibility, AFC is rolling out a program to leverage that liquidity when securing inventory during these unprecedented times in the wholesale market.
On Tuesday, the business unit of KAR Global announced that it now offers cash buyers what AFC believes is a convenient, flexible and simple floorplan solution through its Daily Tab product.
To date, AFC said more than 109,000 units have been floored using this offering. The company explained the product is a less rigid solution than traditional fixed-duration floorplans and well-suited for dealers who anticipate fast-turning vehicles in today’s high-demand retail market.
Daily Tab can enable dealers to pay only for the days of flooring they need — starting as short as just one day and continuing until the unit is paid off. The offering reduces cash flow pressures for cash buyers and facilitates expanded working capital that can be put to work funding more inventory.
“Daily Tab is a simple idea that’s perfect for traditional cash-buying dealers: they pay a flat daily fee until their unit is paid off. So whether that’s in one day, one week or one month — they’re only paying for what they need, freeing up cash while keeping costs low,” AFC president Jim Money said in a news release.
“Daily Tab is ideal for the dealer who typically purchases low-value inventory or only needs very short-term financing, something that is cost-prohibitive with traditional floorplan products,” Money continued.
AFC indicated that a daily fee is paid each day the unit remains on floorplan and starts at just $2 per day, depending on the amount floored. The company explained that the fee structure is geared to be easy to calculate, completely transparent and inclusive of all fees, including the floorplan fee, interest, and document processing fee.
Daily fees are only incurred as long as a unit remains on floorplan, according to AFC.
“Daily Tab offers dealers the simplicity of buying with cash while also affording the flexibility and convenience that comes with a floorplan,” AFC chief operating officer Will Mitchell said. “The benefits really stack up — from more working capital so dealers can opportunistically source fresh inventory to a consolidated single payment source for all auction purchases whether digital, mobile or on-premise and even back-office support.
“It’s a win-win option for dealers ready to think outside the box and focus on selling more cars,” Mitchell went on to say.
Across the U.S. and Canada, AFC works with more than 11,000 dealers in the retail and wholesale automotive space as well as RV, power sports and commercial truck dealers, salvage buyers and daily rental operators and is accepted as a form of dealer payment at over 1,100 auction sources in the same footprint.
You’re a new operator. You’ve pooled together your savings; maybe some help from family or friends, too, but you're still short on cash to open your doors.
NextGear Capital is looking to be the financial resource to help independent automotive entrepreneurs to over the hump and make their dealerships a reality.
On Monday, the company launched a new product called First Gear; what NextGear believes is the first floorplan product in the industry designed specifically for new independent dealers.
In response to the current automotive retail and wholesale environment, NextGear highlighted in a news release that its latest product is a floor plan option that can provide early access to capital that is vital to jump starting a new dealership.
The company indicated independent dealers who’ve been in business for six months or less can get approved for up to a $100,000 line of credit without immediately submitting bank statements. NextGear sees this product giving operating the cash flow to purchase inventory and the flexibility to choose where to source while freeing up finances to grow their business.
Following an introductory period, as more information is submitted, the line of credit is evaluated and adjusted, as needed, according to NextGear.
The company said certain conditions apply and all rights reserved.
While NextGear operates nationwide, the company acknowledged that First Gear is not available in New York or South Dakota.
The company went on to mention advances are subject to terms and conditions of dealer’s demand promissory note and loan and security agreement and other agreements with NextGear. Advances made in California by NextGear are made pursuant to NextGear Capital’s California Finance Lender License No. 603G505.
In addition to being expensive, starting a new dealership comes with a lot of unknowns.
Beyond the funding, the company highlighted that First Gear dealers also can benefit from NextGear’s commitment to helping independent dealers thrive.
Supported by the resources of Cox Automotive, a designated portfolio manager can provide business analytics that can help new dealers identify inefficiencies, and gives them the information and tools they can use to make necessary adjustments, stay ahead of the curve and focus on profit and growth.
“NextGear Capital understands how hard it can be for independent dealers to secure lines of credit from traditional financing sources,” NextGear president Scott Maybee said in the news release.
“As our company’s primary focus is to invest in the success of independent dealers, we are committed to delivering new solutions that help them and our industry grow even stronger,” Maybee went on to say.
NextGear regional client solutions director Julie Noble elaborated about how independent dealers can benefit from First Gear through a video that’s available here and the window at the top of this article.
To learn more about NextGear Capital’s First Gear floor plan program, go to www.nextgearcapital.com/floor-plan-products/first-gear.
