The financial industry is currently facing a tumultuous vehicle recovery environment spurred on by marketplace challenges that have come to the forefront over the past 24 months. In its simplest form, these marketplace challenges can be reduced down to two major factors:
- Auto loan delinquencies continue to be an issue for auto lenders.
- Repo agencies are facing business threatening economic issues.
But all is not lost!
There are practices you can start applying right away to overcome these and other market challenges and enhance your recoveries and repossessions. These practices include:
- Collaborate with a remarketing provider to build a custom program
- Leverage recovery and location finding technologies, like license plate recognition and skip tracing technologies
- Assign vehicles out to a repo agent as early as possible
- Provide comprehensive information to repo agents
- Leverage a forwarding agent’s volume and resources
- Protect sustainability of repo agents by offering compensation that equates to importance or complexity of jobs
- Keep proof that vehicles were sold for fair-market price
- Require photos at time of connecting collateral to truck
- Document and respond to repossession complaints
- Ensure you are remaining compliant every step of the process
We know these practices work, because we have experienced the positive impact of adopting these practices. In fact, we saw the following improved results after enhancing our recovery practices*:
- Increased recoveries from $3.2 million to $14 million
- Dramatically decreased borrower complaints and issues
- Improved locate percentage from less than 50% to around 90% in 120 days or less
- Significantly reduced average locate and recovery times
* Allied Solutions results reported between 2008 and 2017
Learn more about how you can address the current auto recovery environment to optimize repossessions & recoveries:
Download the infographic: How to Address the Current State of Repossession
Contact us to learn more about how we can help you evolve and improve your auto recovery & repossessions practices.
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