INTRODUCTION
The automotive remarketing industry stands at a pivotal moment, facing evolving economic pressures, regulatory complexities, and disruptive technologies. To provide clarity and foresight, Primeritus convened a panel of leading experts in a recent webinar. This white paper captures their collective insights, delivering an informed, practical roadmap to help lenders, remarketers, and service providers effectively navigate the shifting landscape.
MEET THE PANEL OF EXPERTS
- Jeremy Robb – Sr. Director, Economist & Industry Insights, Cox Automotive
- Tim Mertikas – VP, Consumer Collections, Axos Bank
- Craig Brown – AVP, Specialty Collections, Navy Federal Credit Union
- Brooks Stewart – VP, Auto Finance Growth & Innovation, Allied Solutions
- Robert “RJ” Kontich – VP, Auto Remarketing, Primeritus Financial Services
MARKET DISRUPTION: KEY CHALLENGES FACING REMARKETING
Inventory Shortages & Affordability Pressures
The used vehicle market continues to feel the aftershocks of pandemic-era new car production declines. Supply constraints persist, though signs point to bottoming out and gradual recovery. Prices, while softening, remain significantly elevated compared to pre-pandemic levels—directly impacting consumer affordability. With interest rates at a 25-year high, vehicle financing has become less accessible, further squeezing demand and reshaping consumer behavior.
Lending Trends & Rising Negative Equity
With affordability challenged, many consumers now carry negative equity, creating loan structures that become unsustainable over time. This has led to increasing repossession activity, especially among borrowers who previously financed overvalued vehicles under more favorable rate conditions. The implications for lenders are profound, as portfolio risk and charge-offs rise.
Regulatory Complexity & Data Overload
Access to data has never been greater—but neither has the challenge of interpreting it effectively. Lenders are leveraging historical and real-time data to refine strategies but caution against over-analysis is warranted. Compounding the complexity, regulatory changes vary state by state, necessitating vigilant compliance management.
TITLING COMPLEXITY: PROGRESS MEETS PERSISTENT FRICTION
Digital Titling and Process Evolution
Advancements in electronic titling have streamlined many manual processes, improving efficiency and reducing errors. Automation between lenders, DMVs, and title systems is helping to cut processing times. However, the lack of standardization across states remains a significant bottleneck. Uniformity across jurisdictions continues to be more aspirational than achievable.
Centralized Title Vaulting as a Future Solution
Panelists advocated for a centralized title vaulting system within auction networks to reduce title touchpoints, decrease delivery expenses and minimize title loss. This strategic shift could simplify title flow, especially in multi-state operations, and allow lenders and remarketers to respond more swiftly in volatile markets.
TRANSPORT LOGISTICS: COSTS, DELAYS, AND SMART STRATEGY
Transportation Costs on the Rise
Fuel prices, driver shortages, and shrinking carrier availability have pushed up transport costs. The era of setting transport rates based on volume is over. Today’s logistics decisions must be strategic, focused on total net recovery rather than simply minimizing per-unit movement costs.
Shifting Focus from Price to Performance
Many lenders now prioritize transport speed over cost to reduce storage fees and maximize sale timing. Delays—even those caused by key duplication or mechanical issues—can erode recovery value significantly. Dedicated transport partnerships that offer transparency and consistent performance are becoming the standard.
USED VEHICLE VALUES: SPRING BOUNCE VS. LONG-TERM SOFTENING
Seasonal Dynamics & Economic Headwinds
The used car market is currently in the midst of the traditional “spring bounce,” fueled by tax refund season. Average refunds are up 6% YoY, infusing over $100 billion into the market and boosting wholesale values. However, this uptick may be temporary as macroeconomic uncertainty and tariff threats loom.
Vehicle Condition & Smart Repairs
Auction inventory is arriving in poorer condition, often the result of deferred maintenance prior to repossession. This has driven down average CR scores. Panelists stressed the importance of “smart repairs” to improve curb appeal and boost MMR retention. However, such efforts must be balanced against time-to-sale goals.
Forecasting Volume Trends
Wholesale volume is projected to decline modestly through the rest of 2025. Repossession spikes from previous years are plateauing, and off-lease returns—especially from ICE units—are down due to pandemic-era leasing slowdowns. Volume recovery may not begin in earnest until late 2026, with EV lease maturities expected to shape future off-lease trends.
TECHNOLOGY AND AI: INNOVATION WITH CAUTION
Emerging Inspection Tools & Automation
AI-powered inspection tools like PAVE and UVeye are revolutionizing vehicle evaluations with faster, more objective assessments. These solutions offer underbody scans, tire and tread detection, and high-fidelity condition reporting—reducing human error and increasing appraisal confidence.
AI in Pricing, Behavior Prediction & Portfolio Strategy
AI is also poised to transform remarketing strategies and lending practices. From setting optimal floor pricing to predicting customer payment behaviors and informing loan terms, machine learning is becoming a powerful ally. However, panelists urged caution: technology must complement, not replace, human judgment—particularly in assessing subjective factors like odor, aesthetic appeal, and real-time market context.
STRATEGIC TAKEAWAYS
1. Speed is Value
Reducing time to sale is critical. Every delay—from title corrections to transport coordination—can erode resale value. Remarketers must streamline every phase to maximize returns.
2. Partnership Matters
Strong relationships with transporters, auctions, and remarketing partners foster better communication, faster problem resolution, and ultimately, higher performance.
3. Use Data, Don’t Drown in It
The industry is awash in data, but real insight requires filtering signal from noise. Focus on actionable intelligence and practical application.
4. Prepare for Disruption, Embrace Innovation
From AI and automation to demographic workforce shifts in logistics, change is inevitable. Forward-thinking organizations will adopt selectively, enhance their core processes, and future-proof their operations.
CONCLUSION
In an environment defined by uncertainty and complexity, the keys to success in auto remarketing are agility, innovation, and partnership. By embracing change while staying grounded in operational fundamentals, industry players can not only weather disruption but emerge stronger and more resilient.