A new funding product has been launched by NextGear Capital for franchised dealers.
The Franchise+ product has been developed based on dealer feedback from dealer using a NextGear Capital stocking plan.
The key issue identified in that research was the use of “disjointed, multiple source” finance to provide funding for demonstrator, courtesy car and staff cars, leading to “excessive and often complex administration”.
The new Franchise+ product – available from March 1 – provides a single source funding solution accessed via the same portal for demonstrator, sales, courtesy and management cars.
Dealers can then sell these vehicles directly to customers or transfer them on to the NextGear Capital stocking plan.
The process has been engineered to be as simple as possible and allows dealers to complete the transfer themselves in just a couple of clicks. Once on the plan, there is full visibility of the vehicle on the portal throughout its maximum 330-day stocking journey, which covers 180 days initial period and a further 150 days on the stocking plan.
Pam Halliday, sales and marketing director for NextGear Capital, said: “We already have 50 franchise dealers on our Stocking Plan without any marketing or focus on this area, which highlighted that demand exists in the marketplace for new and different funding sources.
“We’ve worked with those dealers to understand how we can better service their needs by providing a product that can act as an alternative or complement to existing arrangements.
“We’ve also ensured that the move to Franchise+ can be completed gradually, if needed, rather than an immediate transfer of funding for all vehicles, to enable dealers to honour existing arrangements that carry annual incentives.
“Ultimately, our aim is to help all dealers to stock more and sell more and the Franchise+ product does exactly that by providing less administration, greater flexibility and additional funding to support an improved flow of vehicles, better stock pool and faster stock turn.”