“Even more important than streamlining independent dealers’ ability to purchase, floor and transport vehicles, the transportation costs we financed was money they didn’t have to pay upfront—extending their working capital,” said Randy Dohse, NextGear Capital senior vice president of operations. “This put our clients in a better position to acquire the right inventory and reinvest in their businesses.”
CARMEL, IN AND GILBERT, AZ – Since launching a first-of-its-kind automated transportation financing solution earlier this year, NextGear Capital has processed more than 14,500 transactions from independent dealers enrolled in the program. The program, available anywhere NextGear Capital is an accepted payment method and where Ready Logistics services, enables dealers to simplify their business operations by buying, paying for and moving vehicles in one seamless transaction, as well as free up cash flow by deferring payment on transportation costs until the vehicle is sold.
“Even more important than streamlining independent dealers’ ability to purchase, floor and transport vehicles, the transportation costs we financed was money they didn’t have to pay upfront—extending their working capital,” said Randy Dohse, NextGear Capital senior vice president of operations. “This put our clients in a better position to acquire the right inventory and reinvest in their businesses.”
With this program, dealers who buy vehicles in-lane and online at auction locations where NextGear Capital and Ready Logistics serve nationwide have more time and money to fuel their business. The transportation cost is added to the dealer’s floorplan for that vehicle, so they only have one company to pay, can cut out paperwork and improve cash flow.
Han Nguyen, president of Autos Only, has used the joint NextGear Capital and Ready Logistics program since it started in June. He reports being impressed with the seamless process and significant impact on his business.
“We increased cash flow by $100,000 by adding transportation costs to our floorplan for the 120+ vehicles we move per month,” said Nguyen. “This program helped me grow my business so much that I’m opening a fourth store in 2018.”
About NextGear Capital
NextGear Capital is the largest independent inventory finance company in North America, providing flexible lines of credit for dealers to purchase new and used inventory at over 1,000 auto and specialty auctions and other inventory sources throughout the United States, Canada, United Kingdom and Ireland. The company’s products and services allow dealers to floor plan nearly any type of remarketed unit in automotive retail, wholesale, salvage or specialty, including recreational vehicles and trailers, marine, power sports, used heavy trucks, auto salvage and auto daily rentals. With a customer base of more than 20,000 dealers, NextGear Capital also provides a robust array of services and support that allow dealers to acquire and sell more inventory, including state-of-the-art online and mobile account management tools, title services, records management and collateral protection. The company is headquartered in Carmel, Indiana and is part of the Cox Automotive group of companies, which includes Autotrader, Kelley Blue Book, Manheim and vAuto. Visit nextgearcapital.com to learn more.
About Ready Logistics
Ready Logistics simplifies automotive logistics for dealers, auctions, commercial clients and car owners nationwide. Leveraging innovative technology, enhanced processes and a network of more than 6,500 carriers, the full-service logistics provider moves vehicles quickly and conveniently from anywhere to everywhere. Headquartered in Gilbert, AZ, Ready Logistics is a Cox Automotive™ brand that creates efficiencies for its clients through strategic partnerships in the financial and assurance sectors. For more information about Ready Logistics, visit www.readylogistics.com.
About Cox Automotive
Cox Automotive Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, financial, retail and wholesale solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. Committed to open choice and dedicated to strong partnerships, the Cox Automotive family includes Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, vAuto®, Xtime® and a host of other brands. The global company has 32,000-plus team members in more than 200 locations and is partner to more than 40,000 auto dealers, as well as most major automobile manufacturers, while engaging U.S. consumer car buyers with the most recognized media brands in the industry. Cox Automotive is a subsidiary of Cox Enterprises Inc., an Atlanta-based company with revenues exceeding $20 billion and approximately 60,000 employees. Cox Enterprises’ other major operating subsidiaries include Cox Communications and Cox Media Group. For more information about Cox Automotive, visit www.coxautoinc.com.
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