Recovery to Remarketing: Eliminating Bottlenecks and Hidden Costs

Introduction

Thank you for your interest in Recovery to Remarketing: Eliminating Bottlenecks and Hidden Costs. If you could not join us live, here is a look at our discussion around identifying bottlenecks in the repossession process, mitigating hidden costs, and building best-in-class operations.

Primeritus organized a webinar on March 26th, featuring a panel of industry experts with a discussion focused on leveraging partnerships in the repossession process to improve operational efficiency across all sectors. Participants included individuals representing stakeholders in each sector of the repossession industry.

Meet the Panel

  • Amanda Ferrell – Remarketing Manager, Primeritus Financial Services, Inc.
  • Seth Rose – Owner, Express Results
  • Pamela Bishop – Senior Director, Special Initiatives and Business Development, RunBuggy
  • Damion English – Repossession Manager, Navy Federal Credit Union

Bottlenecks

Communication, Data Accuracy, and Transportation

Bottlenecks within the repossession industry occur around a few common pain points. Regardless of what sector a partner may work in, bottlenecks are reported in areas such as communication, data accuracy, and asset transport. With each partner throughout the process utilizing their own standards of communication and oftentimes different platforms, we may find instances of updates needing to be logged in multiple ways and requests for updates that have already been submitted in a different way. Partners aligning on what updates are appropriate to be made system only and what may require a phone call or email can reduce this pain. Data accuracy issues are the root cause of delays across multiple levels of the process. Seemingly minorinaccuracies, like incorrect color listings, create additional paperwork and delays. Asset transport continues to be a challenge, with growing security requirements for transporters and need for more efficient transport routing. Artificial intelligence in the repossession process could flag potential inaccuracies for manual review earlier in the process or support in creating more efficient routes for transporters. Our panelists agree bottlenecks typically occur around communication, data-inaccuracy, and transportation. While some delays cannot always be prevented, collaborate with partners to improve efficiencies and align expectations where you see bottlenecks occurring.

Hidden Costs

From Key Fees to Storage Aging

Hidden costs can creep throughout the repossession cycle, and while we may be able to anticipate some before a case is ever sent out to partners, we cannot anticipate every fee on every unit. Some items, like key fees, we may expect based on a vehicles make and model. While agents are able to offer key cutting and programming for many vehicles on the market, there have been increases in key programming security. Some makes now require new keys to be made by a dealer, requiring transport to dealerships and back from agent lots or transport to auction as an inoperable vehicle. For high costkeys we have seen lenders offering incentives to customers who return a key. While we may anticipate some cases needing keys programmed at the time of assignment, no one is able to predict every potential delay in a case. Timely communication of unexpected delays are critical to prevent costs from building over the lifetime of a case. Unexpected issues like weather delays prevent agents from operating at full capacity, or delay transport and incur dry run fees from transport partners. Additionally, storage aging caused by these delays are associated with an increase in reconditioning work, and a delay by just a day can push a sale at auction back a full week. Continued collaboration with industry partners and adjusting processes to meet shifting best practices will continue to drive these hidden costs down.

Best-In-Class Operations

True Partnership Driving Results

Best-in-class service can be built with communication, transparency, and trust. Align as early as possible on expectations, establish regular touchpoints to address barriers and changes, and treat relationships as true partnerships. Consider when real-time visibility could be available and ensure updates are made in line with communicated standards. Best-in-class workflows continue to evolve in areas like keys and titles. Some lenders are beginning to offer incentives to customers to turn in keys to agent lots before moving forward with programming new keys. The titling process varies from state to state; our experts have found that working with on-site DMV directs at auction or title partners helps ensure the correct procedure is followed regardless of where a unit is in the country. True partnership empowers everyone involved to speak up about potential issues, identify solutions, and intervene before hidden costs begin to accumulate.

Summary

Final Thoughts

Our experts agree that increasing collaboration with partners, defining communication standards and expectations between parties, and continued refinement of processes will drive best-in-class performance, decreasing bottlenecks and hidden costs throughout the lifecycle of cases. Shifting lenders, forwarders, agents, and transporters from vendors and clients to true partners requires mutual trust and respect, with an understanding for logistics across all levels. However, this partnership will enable everyone involved throughout the process to identify and problem solve bottlenecks, mitigate hidden costs, and drive operational excellence.

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Thank you for reading; stay tuned for our next Repo RealTalk session next quarter!

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