Kinetic Advantage Partnership Case Study
Current number of units floored with Kinetic
Average vehicle turn time (days)
Market: Addison, TX
You may think that an independent dealership with multiple partners creates a lot of conflict but that’s not the case according to co-owner Eric Huezo.
“Whips is comprised of four owners: Abel Segovia, Jaime Rodriguez, Daniel Ibarra and me. We’ve all known each other for years and come from different professions.”
-Eric Huezo
“We opened our dealership in early 2021. COVID had already taken a toll on the industry and independent dealerships were closing left and right. Some of the other dealers thought we were crazy. We worked hard and it was a formidable ride. Each partner came in every day and gave it their all and it has paid off. We recently relocated to Addison, Texas so we could have more space and continue to expand our inventory. We could only have about 40 vehicles at our old location and now we have the space for about 85 vehicles.”
“I already had a floorplan with another provider but when I saw the way Natalie, a representative with Kinetic Advantage, was interacting with other dealers at an auction, it gave me a good feeling about the company.”
“I already had a floorplan with another provider but when I saw the way Natalie, a representative with Kinetic Advantage, was interacting with other dealers at an auction, it gave me a good feeling about the company.”
<6
<6
Average days to close an audit
525%
525%
Floorplan growth since starting with Kinetic
Eric says he was familiar with floorplans but other dealers had spoken negatively about them. He quickly realized that what they said was a catch-22. “I had heard the word floorplan before, but they were still pretty new to me. I was told by other dealers that they had high-interest rates and their fees would cut down on our profits. But, the way I look at it is, without my floorplan, we couldn’t make the money we are and be this successful.”
After expressing some frustrations with his other floorplan providers and the difficulty he was having managing audits and keeping track of titles, he worked with Natalie to make some adjustments. “…we decided to reduce the number of floorplans we had and Kinetic became our top floorplan provider. The Kinetic 360 portal is really easy to use and I like being able to pay off multiple vehicles at the same time. It also makes managing my titles easy.”
Eric says that Kinetic Advantage differentiated itself from other floorplan providers by taking the time to get to know what makes their business unique. “After I started working with Natalie for a while, she got to know more about our story, and we had regular conversations about our business and future goals.”
Credit line decisions were made after reviewing Whips’ performance. “…based on how well we were doing with our turn times and clearing our audits, they were going to increase our floorplan to help us meet those goals,” he shared.
Whips started with a $100,000 floorplan in 2021 and now has over $1 million. “It’s hard to put on paper somebody’s true worth and Natalie has always been an advocate for us; that’s why we’ve been able to grow so much in a short time and be this successful.”
Eric says he was familiar with floorplans but other dealers had spoken negatively about them. He quickly realized that what they said was a catch-22. “I had heard the word floorplan before, but they were still pretty new to me. I was told by other dealers that they had high-interest rates and their fees would cut down on our profits. But, the way I look at it is, without my floorplan, we couldn’t make the money we are and be this successful.”
After expressing some frustrations with his other floorplan providers and the difficulty he was having managing audits and keeping track of titles, he worked with Natalie to make some adjustments. “…we decided to reduce the number of floorplans we had and Kinetic became our top floorplan provider. The Kinetic 360 portal is really easy to use and I like being able to pay off multiple vehicles at the same time. It also makes managing my titles easy.”
Eric says that Kinetic Advantage differentiated itself from other floorplan providers by taking the time to get to know what makes their business unique. “After I started working with Natalie for a while, she got to know more about our story, and we had regular conversations about our business and future goals.”
Credit line decisions were made after reviewing Whips’ performance. “…based on how well we were doing with our turn times and clearing our audits, they were going to increase our floorplan to help us meet those goals,” he shared.
Whips started with a $100,000 floorplan in 2021 and now has over $1 million. “It’s hard to put on paper somebody’s true worth and Natalie has always been an advocate for us; that’s why we’ve been able to grow so much in a short time and be this successful.”
<6
<6
Average days to close an audit.
Average days to close an audit.
Whips buys most of its inventory from online auctions but they also get vehicles through consignments and trade-ins. “We source primarily from auctions across the nation. We bid online and check condition reports for any major maintenance or refurbishment issues. We share notes on each vehicle and send our service manager to look at them in-person, if possible. Condition reports can only tell you so much and I think looking at the vehicles before purchasing them is the only way you’re going to get the best quality inventory. I think that’s why our turn times average 35 to 40 days, we’re able to get the best inventory for the best value.”
Eric says that one of the biggest challenges he’s faced since becoming an independent dealer is getting lenders to work with them.
“Kinetic is the only lender who hasn’t made the process difficult.”
“Kinetic is the only lender who hasn’t made the process difficult.”
Whips Discovered a Fifth “Partner”
Whips Discovered a Fifth “Partner”
While Whips’ business model has been successful with its multiple partners, Eric believes it’s also because of their fifth partnership. “We know how important communication is between the owners and we also try to be transparent with each other so all of the owners have a good grasp on what’s going on in different areas of the business. I found this to be a major hurdle in other dealerships I worked for. Whether it’s good news or bad news, we treat each other like one organism working toward the same goal. Kinetic Advantage has been the one floorplan provider that’s felt like another partner and part of that same organism.”
Eric says that while his Kinetic Advantage floorplan provides him with more cash flow, there’s an even greater benefit that he can’t put a price on. “Having more buying power has been the most beneficial part of having a floorplan but there are so many moving parts in this industry. I’m constantly having to figure out solutions to problems and, I can be at home taking care of my seven-month-old when I get a call from the dealership saying there’s an issue with something, I can let Natalie know and just a few minutes later she’ll have a solution or already has the problem resolved. Having that kind of support gives me peace of mind and provides me with the flexibility to spend more time with my family.”
When thinking about future goals, Eric says that the owners want to expand their inventory and transition into a new area of the automotive industry. “In our market, there’s a high demand for luxury vehicles, so we want to keep increasing our floorplan and maybe venture out into the luxury franchise world down the road. One thing for sure is that we’ll continue to rely on each other as partners.”
