Since pulling together remarketing services into an “end-to-end” solution in March, Ally Financial has revealed to Auto Finance News its target market share for 2024.
While it’s still a “fledgling business,” Ally 3PR (short for 3rd-party remarketing) has set his sight on “10% of the overall repossession space,” Director Scott Dumboski told AFN.
“If you look at the complete repo space, there’s a ton of large captives that we know we’re not going to target,” Dumboski explained, adding that captives typically have their own in-house programs. “So we looked at the market segment we thought we could potentially target and looked at the competition there and we figured out if we can get 10% of these it would be profitable and a viable business.”
Dumboski said Ally 3PR is relying largely on partnerships with two forwarders “who have hundreds, thousands of clients” to market the program. “They’re cross-selling the remarketing service now so they say, ‘We can repossess your car and remarket it for you,’ and [Ally 3PR] just provides the remarketing services for them,” he said, which includes managing the transportation, inspection and titling logistics.
The program ropes together two of Ally’s longstanding remarketing services: online auction platform SmartAuction and Smart Lane, the service that provides Ally’s nationwide network of auctions, inspectors and transport suppliers.
Despite having the resources, infrastructure and 20 years’ experience “to handle the business,” Dumboski said he still views it as a proof of concept. “We’re not going to jump in, because we don’t have to,” he explained. “It’s really something [where] we’re leveraging our current infrastructure and offsetting the [operation expenses] we’re already paying for.”
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