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2. Introductions Bob is responsible for the management and oversight of all aspects of NextGear Capital’s business in the South Atlantic Region, including the hiring and training of Account and Sales Executives. Bob has more than 25 years of experience within the finance industry serving in numerous capacities with both Chase and Citigroup prior to joining Dealer Services Corporation in 2006. 2 Dealer Funding Bob Earle Regional Director, South Atlantic NextGear Capital bearle@nextgearcapital.com 330.353.6724 nextgearcapital.com

3. Introductions Janet is responsible for the management and oversight of all aspects of NextGear Capital’s business in the Mid Atlantic Region, including the hiring and training of Account and Sales Executives. Janet joined NextGear Capital in June 2013 and has more than 23 years of experience within the automotive industry, serving in numerous leadership capacities with Manheim at both the auction and corporate level. 3 Dealer Funding Janet Hendrixson Regional Director, Mid Atlantic NextGear Capital jhendrixson@nextgearcapital.com 615.314.9049 nextgearcapital.com

4. Who is NextGear Capital? The most comprehensive and innovative provider of lending products for dealers Serving more than 17,000 independent dealers across North America NextGear Capital account representatives make 1,200 dealer visits each day and interact with over 90,000 dealer phone calls each month NextGear Capital will floor plan approximately 30,000 transactions from independent auctions each month! 4 Introduction

5. National 5 Lending Providers

6. Regional 6 Lending Providers

7. A floor plan is comprised of the following: Line of Credit Amount : Credit approved amount for dealer to finance. Rate: Interest rate charged on the active line of credit. Term: Length of time a unit can be floorplanned. Fee: The charge associated with the flooring of the unit. Reduction amount: principal reduction amount made by the dealer as vehicle ages past the purchase date. All of the above are factors determined through the Credit and Lending process. For example, the greater the credit risk, the lower the line of credit. Also, a longer fee may correspond to an increased rate. 7 Floor Plan Financing Floor Plan 101

8. Value of Floor Planning for the Dealer 8 Floor Plan Financing

9. Ever heard the term… “I was so successful selling cars that I went out of business.” Why does that happen? 9 Floor Plan Financing

10. Value of Floor Planning for the Dealer It happens because every time a dealer sells a car, they are out of pocket that money until they are paid by the customer’s lender, which can take weeks The more cars a dealer sells, the more cash flow he needs 10 Floor Plan Financing

11. Value of Floor Planning for the Dealer Assume the average cash deal is $7,000 and average sales are 8 cars per week Each week, the cash flow needs are $56,000 ($7,000 x 8) just for inventory If the customer’s lenders don’t pay for two weeks after the sale, the dealer will need $112,000 in cash ($7,000 x 8 x2) in their business just to cover cars, not to mention payroll and other expenses 11 Floor Plan Financing

12. Value of Floor Planning for the Dealer If the dealer successfully grows his sales to 10 cars per week, they would need $140,000 in cash ($7,000 x 10 x2) That is another $28,000 for selling two more cars per week That is why growing sales takes money! 12 Floor Plan Financing

13. Solutions floor planning has to offer the dealer... Floor planning is the answer to his real issue; it will provide the cash flow to grow the business and not stretch the dealer to make payroll or buy at the next auction Floor planning provides the ability to buy at the next auction and keep the lot full Floor planning can improve cash flow and help grow sales 13 Floor Plan Financing

14. Importance of Relationships 14 Relationships

15. What to look for in a relationship? Trust The best relationships are the ones where both parties work to develop trust Trust builds confidence in each party Transparency Being open and upfront about goals on both ends Knowledgeable Lenders have a wealth of knowledge in the industry Anybody can shake somebody’s hand and ask them about the weather, but to have a true understanding and investment in somebody’s success is what truly defines a relationship. 15 Relationships

16. How do relationships benefit auctions? Continued business Better relationships = more returning customers Staying ahead of the game The right relationship keeps you up-to-date on the latest industry trends More assistance Greater access to more sources 16 Relationships

17. How Floor Planning Translates to Value for Auctions 17 Value for Auctions

18. What challenges do auctions face? 18 Value for Auctions Dealers not having funding Slow payment Difficulties in flooring No assistance available No marketing Decline in business

19. Benefits of Floor Planning 19 Value for Auctions Guaranteed funds via ACH Easy to use technology Mobile bidding, AuctionACCESS, etc. Title-absent funding available Ability to view dealer credit availability via multiple platforms Eliminates the middle man NextGear Capital Process Universal Source Network 17,000+ dealer base with proven purchasing power State-of-the-art service center staffed with fully trained personnel 24-hour virtual online access Biggest takeaway: Integration opportunities allow for a more streamlined process

20. What does floor planning mean for your auction? All in, what % of your auction volume is financed by a third party finance company? How has floor planning helped your auction maximize cash flow? What amount of your auction receivables carry over one week post auction sales? Has floor planning helped reduce auction collection issues – i.e. late pays, NSF’s? 20 Floor Plan Financing

21. CONTINUING EDUCATION PROGRAM DEVELOPED BY: Contact Us Questions?