Automotive captive finance company remarketing of off-lease vehicles

An automotive captive finance company faced a significant increase in off-lease vehicles and associated residual risk exposure. Because of high lease penetration, the captive controlled a large portion of the auction market for their VM’s used vehicles. The client management team wanted to assess the organization’s remarketing capacity and ability to handle the increased off-lease vehicles.

Strategy& assessed the captive’s operations versus industry best practices at each step in the remarketing value chain and evaluated their ability to handle the imminent increase of off-lease vehicles. We made recommendations to mitigate risks to the portfolio based on practical retail and wholesale programs. We also identified new strategies and tactics to optimize remarketing by maximizing customer loyalty, maximizing asset values, and minimizing transaction costs.