Best Remarketing Practice: Streamline the Liquidation Process
September 1, 2011
September 1, 2011
When it comes to repossessing vehicles, credit unions must carefully consider the service to its members as compared to the financial impact that delinquent loans can have on the overall health of the credit union.
When it comes to repossessing items, such as a vehicle, credit unions strive to balance the service to members that they pride themselves on with the financial impact the delinquent loan has on the overall health of the credit union.When it comes to repossessing items, such as a vehicle, credit unions strive to balance the service to members that they pride themselves on with the financial impact the delinquent loan has on the overall health of the credit unionWhen it comes to repossessing items, such as a vehicle, credit unions strive to balance the service to members that they pride themselves on with the financial impact the delinquent loan has on the overall health of the credit union
Once the analysis of the delinquent member file is completed, the fact that the repossession Notice of Intent (NOI) process requires a redemption period prior to sale should not stop the preparation of the vehicle for sale. Since a very small percentage of repossessions are redeemed, it makes good fiscal sense to use the “hold” time wisely. In short, the best practice is to do what you can to be ready to sell the unit immediately after the NOI expires.
To do this, you will want to develop a process that can be reasonably completed during the waiting time period. First identify—and then prioritize—each step that must be taken from the point of repossession through to the sale. Keep in mind that some tasks must be completed before others can begin and that some tasks may involve other departments within the credit union. A simple checklist and some planning can speed up your sale by many days.
To streamline the sale process, start at the point of repossession:
- Transport the vehicle, as quickly as possible, to the place where the unit will be sold. This will eliminate storage fees and put the vehicle in the best place to assess its condition.
- Schedule a sale date to immediately follow the expiration of the NOI.
- Assign a qualified inspector to complete condition reports as soon as possible. The resulting inspection can then be compared to the auction condition report for inconsistencies. Next, order follow-up details as needed, such as keys, detail or repairs. Follow up on reports of “bad transmission” or “disconnected drive linkage” or “won’t start.” These can sometimes have simple solutions that can impact the assessment of vehicle value.
- Determine a fair market value by comparing the physical inspection to industry-standard data for matching make, model, damage and mileage.
- Prepare any required internal paperwork, order titles and process damage claims as soon as possible, and have a follow-up system in place to ensure timely responses from vendors or other credit union departments.
Knowing that depreciating repossessions are best sold quickly, getting a few days’ head start on the sale process can reduce the deficiency balance and alert you of any issues that need to be worked through.
If the credit union staff does not have the time or expertise to jump into this very complicated and sophisticated marketplace, consider finding an advocate who understands and represents the credit union community on an exclusive basis, with proven results.
About Repo Remarketing
Repo Remarketing was founded in 1998. With Repo Remarketing, the power of aggregation brings credit unions together under one umbrella, nationwide. Services include: recovery, remarketing, transportation, inspection, valuation, and all post-sale reporting. Repo Remarketing provides a trustworthy bridge to recover and liquidate inventory efficiently, using proven industry-standard principles with advanced technology, adapted expressly for credit unions. For more information, visit www.reporemarketing.com.
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