The jump in repossession volumes, coupled with lower recovery rates and ever-rising
remarketing costs, continues to chip away at auto lenders' profitability. While
credit unions hold less than 16 percent of the market, auto loans represent
an average 38 percent of their overall loan portfolios.
Rather than put the brakes on auto lending, leverage technology to optimize
vehicle collections, from recovery through remarketing. For example, several
top auto-lending credit unions have implemented an inventory management system
(IMS) used by more than 240 auctions nationwide. The web-based repossession
and remarketing IMS provides credit unions a single, standardized platform for
exchanging, storing and analyzing data across branches and auctions.
Whether integrated with your credit union's internal system for data exchanges
or implemented as your core recovery and remarketing system, a web-based IMS
automates many labor-intensive tasks. Boost staff productivity and streamline
communications with repo agents and auctions by substituting faxes and phone
calls with Internet capabilities.
Control Vehicle Collections
During the recovery process, a repossession management system keeps inventory
visible and in your control, from agent assignment to secured at auction. Upload
business guidelines, track all vehicle record entries and changes, enforce business
rules and maintain accountability. Look for a system featuring the following
functions as well:
- Make assignments and receive agent acknowledgements online.
- Manage agent documents electronically. Upload agent licenses, bonds, insurance
certificates, etc., as digital images, and automate document expiration notices.
- Objectively evaluate agent performance metrics. Measure criteria such as
timeliness of assignment acknowledgements, recovery times, charges, etc.
- Leverage ad hoc reporting tools to analyze data. Run exception reports to
track recovery times, charges, and gauge repo agents' performance.
Flow Vehicles Straight to Auction
Almost 87 percent of repossessed vehicles are sold at physical auction, so the
ideal IMS integrates both recovery and remarketing. This way, the assigned auction
has the upstream visibility of vehicle statuses. Advance notice of pick-up/drop-off
instructions, legal holds and release dates, and other information involves
auctions in reducing your days to sell.
Other key features to look for:
- Online visibility and tracking across inventory statuses
- Direct data feeds to reduce redundancies and errors
- Integrated forms
- Electronic CRs with digital images for online viewing and sharing
- Independent title management functionality
- Real-time guidebook price feeds
- Automated floor-pricing tools
- Expense management tools and exception reporting
Benchmark Individual and Industry Performance
Measuring and managing intervals of key repossession and remarketing processes
provide actionable information to reduce days to sell, which in turn minimizes
Key process intervals encompass dozens of events influenced by all parties involved
in recovery and remarketing - from the average time for agents to acknowledge
assignments, to the interval between the auction securing a vehicle and producing
a condition report, to how long it takes a credit union to ship a title to auction.
Benchmarking your credit union against its own performance as well as its peers'
allows you to identify opportunities for improvement. Reduce cycle times and
costs by streamlining processes internally and with agent and auction partners.
Over time, you'll also gain the insight into the variables that affect your
credit union's cycle times and residuals.
To learn more about how credit unions use AutoIMS.com's recovery and remarketing
systems, call (888) 683-2272. Or, e-mail firstname.lastname@example.org
to schedule a live demonstration.