No one addresses the financial needs of a local economy better than community banks. They’re a key part of the local economic fabric, offering a range of services including auto loans and leases. Lending and leasing for vehicles can also involve remarketing off-lease and repossessed vehicles. At the end of those contracts, many community banks simply want to obtain maximum value for the pre-owned vehicles in the most efficient manner.
Depending on the time of year, economic cycle, or leasing trends, the volume of returns can vary significantly, making it difficult for a community bank to efficiently dispose of off-lease and repossessed vehicles. Community banks can eliminate the overhead required to manage these returns by working with a vehicle remarketing service provider.
Comprehensive Vehicle Remarketing Services
Vehicle remarketing services cover the full spectrum of needs and offer many competencies beyond what a community bank can independently provide. With an established network of services, integrated systems, and experienced staff, a vehicle remarketing service:
- Coordinates timely vehicle transportation to auctions
- Uses leading technologies and integration with inventory management such as AutoIMS to support streamlined remarketing processes
- Manages all administrative aspects of vehicle remarketing with experienced staff
- Provides access to traditional vehicle auctions as well as internet channels such as Manheim Simulcast, AWG, ADESA LiveBlock, Manheim OVE, ADESA DealerBlock, OpenLane, and SmartAuction
- Offers on-site representation at auctions to recommend and coordinate value-added repairs, and ensure vehicles are priced competitively
- Leverages a nationwide title network that includes state DMVs and title service companies for rapid title processing, tracking, and delivery
Vehicle remarketing services give community banks access to a national market and a wider range of technologies and capabilities that efficiently handle off-lease and repossessions.
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Lower Costs and Higher Returns
Community banks that use an experienced vehicle remarketing team will realize faster inventory turnaround and higher resale values. The economies of scale and established nationwide networks enjoyed by a vehicle remarketing services deliver:
- Fast, cost-efficient transport to auction sites, thereby reducing vehicle storage costs
- Multiple auctions and internet channels to enhance competitive bidding
- Accurate and competitive floor pricing using data from AuctionNet and other providers, combined with on-site representation and optimal lane position at auctions ensure maximum resale value
- Best rates on transport, sales fees, needed repair costs, and other auction expenses to lower the overall costs of vehicle remarketing
Vehicle remarketing services also have the flexibility to handle varying volumes of pre-owned vehicles throughout business cycles. Their technology and staffing models easily accommodate these changes.
Measure Remarketing Results and Costs
An effective vehicle remarketing service provides the community bank with detailed reports regarding sales and expenses. Regularly reported information provided to the bank includes:
- Monthly reports regarding sales, services, auction operations, and remarketing effectiveness to monitor efficiency and resale values for returned vehicles
- Quarterly auction statistics ranked and reviewed to determine which auctions or internet services deliver the best sales results
To ensure expenses are in line with results, an integrated, automated monitoring process compares auction expenses against established limits. Whenever an expense exceeds those limits, it is immediately flagged for further investigation. Cost savings alone may be the most compelling reason for community banks to seriously consider a vehicle remarketing service.
defi SOLUTIONS provides configurable loan origination systems, loan management and servicing, analytics and reporting, outsourced managed servicing and comprehensive vehicle remarketing services. If vehicle returns have become an administrative challenge, take the first step in realizing the benefits of an experienced vehicle remarketing service. Contact our team today.
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