NextGear Capital’s Rapid Pay hits $1B mark of non-auction purchases in 2018
NextGear Capital’s funding feature for non-auction purchases, Rapid Pay, has financed more than $1 billion in inventory so far this year. The overwhelming adoption of this industry-first feature reflects dealers’ growing use of digital technology to maintain cash flow and enhance business operations.
NextGear Capital, a Cox Automotive brand, 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, it has proven to be the simplest way for clients to quickly secure funds from the industry’s largest independent inventory finance company.
“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 reveals 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 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.
Rapid Pay’s appeal is driven by dealers’ ability to experience:
- Faster Funding for Non-Auction Purchases: Prioritized Rapid Pay and Expedited Funding requests 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,” added Lutey.