NEW CUDL WHITE PAPER REVEALS CREDIT UNION BENCHMARKS FOR EFFECTIVE ASSET DISPOSITION PROGRAMS
Ontario, CA, January 8, 2013 -- CUDL (www.cudl.com), administrators of the nation’s largest auto lending network for credit unions, consisting of over 1,000 credit unions and 9,000 auto dealers, has partnered with Remarketing by GE and Manheim to release a new white paper detailing benchmarks for successful credit union asset disposition programs.
The white paper, “Effective Asset Disposition,” offers insight to benchmarks and best practices based on strategies of leading national automotive wholesale remarketers. The paper notes that credit union lending and collections teams must view asset disposition as an integral component of the lending cycle, measuring their disposition results against benchmarks established by industry experts.
Vehicle repossessions for U.S. credit unions reached $317 million in 2008, but have continued to improve over the last couple of years. In the last year, credit unions have reduced the volume of repossessed vehicles, as the quantity and dollar volume has declined by 16% to just under $145 million.
The credit union average value per repossessed vehicle was $10,161 at the end of the second quarter of 2012. The white paper notes that nearly 75% of credit union repossessed vehicles are valued from $5,000 to $20,000, and as a result, credit unions need to enact procedures that make disposition of these assets more efficient, timely and cost effective.
“The Remarketing by GE team is privileged to serve more than 200 credit unions nationwide,” said Paul Seger, vice president of asset remarketing at GE Capital Fleet Services, “we’re excited about the opportunity to share key disposition insights with the credit union movement.”
The white paper reveals that credit unions need to benchmark the performance of their asset disposition programs against key metrics that are commonly used by top performing remarketing companies, including: days-to-sale (DTS), tracking retention rates at auction, tracking the number of bidders at auction, monitoring fees paid to auction providers and third party remarketing services.
The white paper points out that credit unions should view asset disposition as a key risk mitigation component of the lending cycle, critical to optimizing the performance of a credit union’s auto loan portfolio.
“This white paper sheds important light on how to effectively measure the success of credit unions’ asset disposition programs,” stated Jerry Neemann, executive vice president, CUDL Automotive. “Whether they manage their own disposition program or outsource it to a qualified third-party remarketer, when managed well, the wholesale disposition channel can be both time and cost efficient for credit unions.”
Credit unions interested in requesting a copy of CUDL’s white paper can do so by visiting CUDL’s website.
# # #
Based in Ontario, California, CUDL® (a CU Direct Corporation flagship brand) is the leader in indirect and point-of-purchase lending services for the credit union industry. As a Credit Union-owned Service Organization, CUDL develops custom applications, training and marketing programs to help credit unions achieve their indirect vehicle lending goals.
More than 1,000 credit unions and 9,000 dealerships nationwide rely on CUDL’s national lending network to better serve members’ vehicle shopping needs and drive member financing at the point-of-purchase. For more information about CUDL visit www.cudl.com and www.cudlautosmart.com.