US motor finance firm NextGear Capital has launched in Ireland, providing stock finance to car dealers.

It says that it has already processed €10 million worth of applications in the first week of September.

NextGear has partnered with seven vehicle wholesalers in Ireland to provide a source of vehicles to dealers.

These include Merlin Car Auction, Windsor Fleet Management, Merrion Fleet, along with the rental car companies Avis, Europcar and Sixt.

The Irish operation is being run by its British subsidiary, NextGear Capital UK, which launched in May 2014. It currently provides funding for 620 UK dealers with credit lines of $83 million (€73 million).

In Britain the firm has nearly 30 auction partner relationships and will offer funding in sterling for Irish dealers to purchase cars for import. David Mercer, managing director of NextGear Capital, said: “We have been planning our entry into the Irish market for the last few months, working with a series of partners and dealers of all sizes.”

New car sales here this year have exceeded 100,000 for the first time since 2008, while the sale of light commercial vehicles stood at 20,061 at the end of August, up 52 per cent.