REDWOOD CITY, Calif. — In an effort to help lenders save costs, OPENLANE and the American Recovery Association recently created a program to sell repossessed vehicles online.

The centerpiece of the remarketing program is providing recovery agents the chance to auction vehicles online for lenders directly from their lots. Officials from both organizations contend that their program can help lenders save as much as $300 per vehicle as well as reduce time to sale.

The companies noted that generally, repossessed units are recovered and stored by a agent then sent to a physical auction to wait for a sale through the lanes.

Officials said that this new program can help alleviate some of the risk for lenders. Examples OPENLANE and ARA cited were costs and risks associated with transporting vehicles several times, unit depreciation, in addition to cost of capital and exposure to a limited market that can sometimes slow down the sales process.

Beyond reducing risk, officials also pointed out several other benefits for recovery agents and lenders as well as lien holders and other financial institutions. They noted the potential for national sales exposure, third-party vehicle inspections and detailing, along with title processing and arbitration, multiple transportation options and analytical services.

Furthermore, OPENLANE and ARA predicted that this new program could be especially helpful to smaller lenders since more than 12,000 dealers are active with OPENLANE.

"Partnering with ARA to provide the Recovery Remarketing Program is another way that OPENLANE continues to provide streamlined processes and greater efficiencies to the wholesale market," Zach Hallowell, business line director for OPENLANE, explained.

"We're always looking for new ways to bring value and vehicle choice to dealers and consignors, and adding recoveries to our already extensive inventory provides an even greater selection of vehicles for our dealers," he went on to say.

Concurring with Hallowell was Jim Hall, owner of Hall Recovery Services and president of ARA.

"As president of ARA, I'm pleased with the partnership and solution offered by OPENLANE," Hall emphasized.

"The Recovery Remarketing Program allows recovery professionals to offer an expanded set of services, sell vehicles faster and increase a lender's financial return," he continued. "Online auctions are a win-win sales method for recovery agents and lenders alike."