Perspectives

Wreckonomics: Low Value & End of Life Vehicles in a Changing World Market

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Joe Hearn

American automotive markets are facing huge challenges at wholesale and retail.  Remarketers, Repossessors, Fleet Operations, Insurance Salvage and Finance verticals are facing uncertainty at near record levels.  Success is harder and more elusive than ever.  There is no rescue coming, no unified vision about the future.  The uncertain market we are in now is the NEW NORMAL. For those of us who compete in related industries; How do we run our businesses?  Can ‘we’ as industry leaders forecast our models, budget for recoveries, allocate for staff and navigate competition?

At ARS, as innovators, designers and managers, we urge our clients to examine their portfolios differently.  If  the market won’t provide relief, you need to find areas to maximize and optimize. In today’s complicated landscape, smart managers need to:

  • Evaluate your Remarketing Process at every step.
  • Understand your assets and cycle time.
  • Segment your volume for optimization.
  • Triage negative equity units early and aggressively.
  • Identify logistics opportunities.

For many ARS clients, portfolio success often begins with focusing on the end of life vehicles (ELV’s), classically regarded as ‘scrap,’ ‘junk’ or ‘wrecked,’ that’s why we are calling this series of posts:

Wreckonomics™

[rek-uh-nom-iks]

noun

  1. Dealing with the distribution, and consumption of end of life and low value vehicles

To understand the ARS view of Wreckonomics we need to focus on more than just scrap, we need to broaden the discussion.  To that end, we’ve prepared a series of blog posts focused on entire vehicle marketplace and the challenges and opportunities we see.

In coming posts, we’ll break down markets, look at segments and tools for success. Stay tuned or subscribe to our Wreckonomics posts below:

Just to give you a sample of what’s to come:

Wreckonomics 1.1        Overall Vehicle Landscape

Wreckonomics 1.2        Scrap Markets

Wreckonomics 1.3        Late Model Wholesale  

Wreckonomics 1.4        Wholesale Markets & Older Vehicles

Wreckonomics 1.5        Segmentation and Tranche Value

If you have a pool of low value vehicles in your portfolio or if you’re looking at ways to maximize recoveries, please reach out to us at ARS.   send us an email; success@arscars.com  

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https://www.arscars.com/category/market-metals/

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Joe HearnWreckonomics: Low Value & End of Life Vehicles in a Changing World Market

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