According to a credit union collections executive I recently spoke with, there are four practices that contribute to successful remarketing, regardless of a credit union’s asset size or auto lending program:
1.) Use Technology: Having the right tools to ensure optimal efficiency is critical in vehicle remarketing. Time is money. Tracking and communication software tools create greater transparency, reduce potential delays and miscommunications, and limit manual processes.
2.) Create Standards: Set goals for internal staff that focus on time between notice, repossession, and resale. Credit unions working with third parties to remarket their vehicles should also hold partners responsible for meeting agreed upon standards.
3.) Do the Analysis: Scale is important when it comes to vehicle remarketing. Conduct a cost-benefit analysis to decide whether it is worthwhile to partner with a third party or if it is more effective to re-sell the vehicles on your own. Always negotiate your repossession and auction fees to reduce cost.
4.) Benchmark: To ensure that you are getting the right price for the vehicles, track vehicle prices using multiple sources such as Black Book, Kelley Blue Book, NADA, and Manheim’s Marketing Report. Benchmarking is also important in determining whether you should take your vehicles to auction and which auctions you should use.