Auto lending network CUDL has partnered with Remarketing by GEand Manheim to release a new white paper detailing benchmarks forsuccessful credit union asset disposition programs.

The white paper, “Effective Asset Disposition,” offers insightto benchmarks and best practices based on strategies of leadingnational automotive wholesale remarketers.

The paper notes that credit union lending and collections teamsmust view asset disposition as an integral component of the lendingcycle, measuring their disposition results against benchmarksestablished by industry experts, CUDL said.

Vehicle repossessions for U.S. credit unions reached $317million in 2008, but have continued to improve over the last coupleof years, according to CUDL. In the last year, credit unions havereduced the volume of repossessed vehicles, as the quantity anddollar 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, CUDL said. Thewhite paper notes that nearly 75% of credit union repossessedvehicles are valued from $5,000 to $20,000, and as a result, creditunions need to enact procedures that make disposition of theseassets more efficient, timely and cost effective.

CUDL said the white paper also reveals that credit unions needto benchmark the performance of their asset disposition programsagainst key metrics that are commonly used by top performingremarketing companies, including days-to-sale, tracking retentionrates at auction, tracking the number of bidders at auction,monitoring fees paid to auction providers and third-partyremarketing services.

The white paper points out that credit unions should view assetdisposition as a key risk mitigation component of the lendingcycle, critical to optimizing the performance of a credit union'sauto loan portfolio, according to CUDL.

Credit unions can request a copy of CUDL's white paper on theCUSO's website.