Dealer auctions and innovative Web-based auction technology are helping many credit unions sell their increasing numbers of repossessed vehicles faster and at higher prices, despite the tough competition in today's resale market, says a new report from Callahan & Associates, Inc.
The just-published report, "Optimizing Sales in a Competitive Vehicle Remarketing Environment," researches credit union vehicle auction experiences, highlights best practices in using dealer auctions, and reports the results of using web-based auctions.
Smaller CUs and those located away from major population centers are finding that selling on the web is proving especially attractive, according to the report, which was funded in part with a grant from TitleAuctions, which designs customizable auto auction technology.
The report is based on interviews with collections managers at 14 credit unions, most of which repossess between 200 and 1,000 vehicles per year and use a third-party service, usually a dealer auction, to outperform the traditional method of reselling vehicles at retail lots. Losses on the sale of repossessed vehicles, which today typically range from $3,000 to $6,000 per vehicle, are due in part to declining prices for used vehicles coupled with the dramatic rise in the volume of vehicle repossessions over the past seven years, Callahan's stated.
The new report stresses the benefits to sales results of close credit union involvement with a remarketing company in such areas as monitoring auctioneer and sales results, attendance at auctions, time of day and lane presentation, and establishment of incentives.
CUJ Resources
To order this report: www. creditunions.com/store/research/remarketing.asp
