| It's troubling that credit unions and banks selling | | | | the units to craigslist.org. By selling the vehicles |
| repossessed vehicles via local car auctions lose | | | | themselves they eliminate the middle man, the used |
| charge off to loan loss fifty to sixty percent of a | | | | car dealer, save the credit union or bank money more |
| borrowers loan balance. The average loss per car is | | | | often than not, and help borrowers in a tough bind pay |
| tremendous. Credit unions and banks are losing 10's of | | | | back less money in the end on the remaining balance |
| thousands of dollars each month and billions of dollars | | | | WHY THIS WORKS: Using this strategy drives |
| annually to charge of losses when repossessed cars | | | | website traffic to the parent company, credit union or |
| are sold via auto auction. | | | | bank website which can mean they make more loans |
| Part of the reason that financial institutions do not try | | | | and incur fewer or lower losses on repossessed cars |
| to sell them on their own is because they do not have | | | | and it means borrowers that had to give up their car |
| the space or think they do not have the space. Going | | | | potentially end up with much lower remaining deficiency |
| to the trouble of finding a lot to store the vehicles and | | | | balances after their repossessed car gets sold. |
| setting up someone to cover the lot is not easy. The | | | | Everyone loves a great deal. In today's economy we |
| other reason credit unions and banks do not sell the | | | | are shopping for homes being sold on short sale, |
| cars they repossess is because when they have kept | | | | groceries with coupons, and now the public might be |
| them cars, advertised them in the local paper and | | | | able to buy them just like the used car dealers at the |
| waited for the bids then sales to come in the results | | | | local auto auction but without the middle man eating up |
| have been less than stellar. | | | | the savings. In the end just maybe everyone can end |
| One major hurdle to selling the repossessed cars and | | | | up ahead in the situation. |
| trucks is getting the word out that they have vehicles | | | | Setting up dedicated repossessed vehicle websites by |
| for sale to credit union members and bank customers, | | | | the credit unions and banks is perfect in this day and |
| and the public. There is a solution to this dilemma. The | | | | age. By delivering the repossessed units to the local |
| way to solve the problem of visibility and get the cars | | | | auction all the credit unions and banks are doing is |
| sold is to harness the internet. Credit unions and banks | | | | taking the proverbial path of least resistance. The |
| usually have really great websites most of which are | | | | credit unions and banks take a huge beating losing |
| visited by their members daily and for sure weekly. | | | | anywhere from fifty to sixty percent to charge off. |
| With the tremendous amount of website traffic | | | | For example if a borrower has a balance owed on a |
| already coming to credit union and bank websites the | | | | car of $10,000 and the car goes for $5,000 at auction |
| straight forward approach to selling the units and | | | | the loss incurred is a whopping $5,000. Sell 20 of those |
| saving tons of money is to set up an easy to navigate | | | | in a month and you're talking a $50,000 loss in one |
| website with a car database attached, run and | | | | month at one institution. A repo website tied to the |
| ongoing ad in the local newspaper in the display | | | | bank or credit union website could save the institution |
| section and a couple ads in the classified section, ad | | | | tons of money in charged off losses. |