Chase Auto and NextGear Capital are answering dealerships’ calls for floorplan relief amid the pandemic.
Chase Auto has a total auto portfolio of $83.5 billion as of fourth-quarter 2019, according to the company’s earnings report, although the bank does not break out its floorplan portfolio separately. By comparison, NextGear’s managed portfolio of $3.5 billion as of year-end, according to a presale report by S&P Global.
Chase Auto, for one, is zeroing in on its dealer network maintaining liquidity and cash flow in light of COVID-19, Bruce Jackson, head of dealer services at the bank, told Auto Finance News.
“We have several relief options to help our dealers maintain liquidity and cash flow, such as deferring principal and interest on all commercial loans for 90 days,” Jackson said. “And we won’t require payment on the accrued interest until the end of the year.”
On the consumer side, Chase Auto is waiving fees, extending payment due dates, and offering lease-end extensions for consumers who call with financial challenges related to COVID-19, Jackson noted. “And we’ve stopped all repossessions,” he said.
Read more: Toyota Financial: Floorplan relief is coming
NextGear, too, is offering relief for its dealer partners for the next 30 days. The Carmel, Ind.-based floorplan lender and subsidiary of Cox Automotive will reduce its base rate by 50 basis points and waive late fees, first extension fees and collateral audit fees, among other relief options, according to a note sent to dealers provided to AFN. NextGear will still conduct inventory audits.
“Given the current economic environment, NextGear Capital anticipates a slowdown in business,” President Scott Maybee said in the note. “We must and will continue to conduct inventory audits, but we will be making adjustments to the process to reduce any undue burden and disruption to your business during this critical time.”
