NextGear Capital UK has marked its first three months of trading with the announcement that more than £8 million worth of vehicles have been purchased on behalf of dealers via its used vehicle stocking plan.

That equates to more than 1,000 cars and vans, and Ford, Vauxhall and BMW the most popular three used marques.

Dealers approved for a NextGear Capital stocking plan can buy vehicles up to an agreed limit. So far 60% of vehicles have been funded through purchases from NextGear Capital’s auction partners and the remaining 40% through Trade Source, where a dealer can load used stock from other sources onto the plan.

Payment to partner auctions is paper free and completed in seconds as the vehicle is automatically transferred onto the stocking plan.

NextGear Capital’s managing director David Mercer said: “Launching a start-up company into an established marketplace is a huge challenge but progress since we launched three months ago has been outstanding.

"We’re pleased to report that using the NextGear Capital stocking plan is becoming a day to day business practice for auction houses and used vehicle dealers across the UK."

Mercer added: “Our network of partner auctions continues to expand across the UK and the ability to use our Trade Source facility to release funds for vehicles bought elsewhere means we expect to see demand increase further over the coming months.

“Feedback from our dealers confirms they are enjoying the transparency the system brings and we are already hearing reports of both profitability and cash flow improvements too, demonstrating that our product helps dealers to stock more and sell more.”