The percentage of auto loan defaults rises and falls with the U.S. economy, but even in the best of times some loans will go bad. When a consumer defaults on an auto loan, the financial institution goes in the red just in terms of vehicle depreciation. The losses really mount, however, when you add the costs of repossessing and wholesaling those vehicles. One mid-size bank confided that repossession-related expenses alone exceed $1 million per branch each year.

The search for ways to cut these expenses are driving this bank’s and other financial institutions’ recent pilots of Auto Auction Services Corp.’s (AASC) LiveRepos.com. While some repossession agencies offer consignors the option to assign inventory online, LiveRepos.com acts as a centralized communications portal to manage and track repossessions with repo agents nationwide.

In addition to gaining inventory visibility and agent accountability, LiveRepos.com automates resource-intensive processes. The streamlined exchange of information results in lower expenses with reduced days to sell.

LiveRepos’ key functionalities include:

• Assign repossessions and track vehicle status online.

• Manage agent documents and expiration dates electronically with automatic notifications to the bank and the agent.

• Easily and objectively measure and compare agent performance by any metric: time to recover, charges, etc. through built-in reports.

• Flow vehicles straight to auction via AutoIMS.com, AASC’s Internet-enabled inventory management system.

• E-mail agent assignments directly to a computer, wireless device, cell phone, etc.

• Access agent assignment details and update status from any Web browser.

Track Repos Online From Assignment to Auction

Acting as a single communication portal, LiveRepos.com virtually eliminates the need to exchange faxes and phone calls. The Internet-based application is accessible from any Web browser to authorized users with a log-on and password.

Simplified menu options and point-and-click navigation make the system easy to use with little or no training. The main menu presents straightforward choices:

• Add repossession inventory.

• View assigned or unassigned inventory.

• Search repossessed inventory.

• Access repo agent administration.

Bank personnel can enter vehicles in the system individually using a Web-based form, or they can batch-process multiple vehicles. Once the bank designates a repossession agent for an assignment, LiveRepos automatically e-mails notification. The e-mail identifies the assigning institution and contains basic vehicle information, including the VIN. To accept the assignment and access details such as the borrower’s information, the agent clicks on an encrypted link embedded in the e-mail.

This link takes the agent to the LiveRepos.com home page. As added security, the agent must enter the last eight digits of the VIN as well as a unique agent code (both provided in the e-mail). Once logged in, the agent can accept or decline the assignment as well as access all other active assignments.

Bank personnel and repo agents can use LiveRepos.com to minimize voice and fax contact. Each record contains fields for agents to update assignment status, note recovery attempts and other activities, enter charges, and complete an electronic inspection form.

Banks can easily integrate LiveRepos.com with internal systems to download and update data. It also integrates with AutoIMS.com, allowing subscribing institutions to automatically flow repossessed vehicles directly to auction, further speeding the sale process.

Manage Agents, Measure Performance

Not only does LiveRepos.com provide a centralized database to manage and track vehicles, but the system also serves as a repository for all agent information and documentation. Data analysis tools enable objective agent performance evaluation. Banks can utilize preformatted reports to measure criteria such as time to accept assignments, days to secure vehicles, or total charges.

LiveRepos.com also automates agent document management — currently a significant resource drain for many banks. Financial institutions can burn the paper trail by uploading agent licenses, bonds, insurance certificates, letters of credit, and other documents as digital images. LiveRepos will track dates of issue and expiration.

For example, if bank policy dictates ceasing all new assignments within 30 days of insurance expiration, LiveRepos automatically generates a 60-day prior e-mail notifying the agent to provide an updated policy within 30 days or the assignment will be moved to inactive status. Designated bank personnel are copied for their records.