CARY, N.C. -

In the latest installment of the annual Power 300 issue of Auto Remarketing, we launched a new feature to spotlight just a few of the companies on the list. In a Q&A format, we go behind the scenes with some of the leading companies in the used-car space.

First up in this series is Brian Geitner, president of NextGear Capital.

Auto Remarketing: How much are dealers dependent upon working capital and other wells of funds nowadays because of rising operating costs?

Brian Geitner: Working capital continues to be a valued source of funds for dealers of all sizes due to leasehold improvements, temporary bridges in capital and parts inventory supply. At this time, I don’t believe there is a dependency on working capital due to rising operating costs. However, I do believe that most costs are absorbed by customers as dealers fight to hold their earnings margins.

AR: How have dealers improved their balance sheets to be able to stabilize their operations and thrive during the ongoing upturn in used- and new-vehicle sales?

BG: Balance sheets remain strong, and we anticipate them to get stronger as new and used sales increase throughout 2015. By properly balancing the use of floor plan and working capital, dealers should be able to supplement unencumbered asset and cash positions.

AR: What recommendations do you have for an operator who is just breaking into the business?

BG: My first suggestion would be to stick to the basics, which includes learning how to properly source inventory. Second, embrace a model that leverages technology and focuses on superior customer service.

With today’s technology advances, these are one in the same, as many customers expect to find your inventory online. Lastly, make sure you understand the rules and regulations of selling. With increased CFPB activity, it’s important for dealers both big and small to be up-to-date on all regulations.

AR: How satisfying is it to be part of the system that helps dealerships of all sizes succeed?

BG: It’s such an exciting time for the automotive industry, and at NextGear Capital, we are leading the industry with innovative lending solutions and unparalleled offerings. As a part of Cox Automotive, NextGear Capital is uniquely positioned to bring more funding to dealers and play a vital part in helping transform the way the world buys, sells and owns cars.