NextGear Capital is offering a relief package to support independent dealers during the COVID-19 crisis.
Among those measures are base rate reduction by 50 basis points, deferred curtailment and extension payments for eligible floorplan advances and no late fees.
Company president Scott Maybee stated in a letter to the dealers that he hoped the measures “can provide some relief and assistance to your business and eliminate at least a marginal amount of stress.”
Effective starting today and for a period of 30 days, additional measures in the relief package for all NextGear Capital dealers in good standing include: no collateral audit reconciliation fees, no first extension fees, no full or partial waiver fee tied to curtailments or extensions and no collateral audit fees.
In the letter, Maybee added that he and his leadership team see “a unique opportunity to assist with some of the issues our clients may currently be facing.”
He wrote that his company anticipates a slow-down in business because of the current economic environment.
“The temporary measures set forth above will hopefully alleviate some of that pain,” he wrote.
He went on to say his company is prepared to continue providing its dealers with the ability to finance their transactions.
“However, in an effort to create an optimal future state for when this crisis passes, please be advised that it will be within the context of new credit availability guidelines,” he wrote.
He also stated that NextGear Capital will continue to conduct inventory audits.
But the company will make adjustments to the process. Maybee wrote that the adjustments are meant to reduce any undue burden and disruption to dealers’ business during the crisis. He told dealers that their portfolio manager can answer their questions on any other issues that might come up.
“It is our anticipation that this period will be short lived, and we can all return to business as usual very soon,” he wrote.
He added that coming together as an automotive community would be the best way to get through the crisis.
He wrote, “We are here to support you during this period and in the future when it’s time to get back to business as usual.”