CITRUS HEIGHTS, Calif. — Whether you are a small credit union with just a few repossessions or a larger credit union with many, proven industry tips can help your bottom line. Included here are two frequently asked questions.

I would like to sell the vehicle for more money, so should I fix the damages?

Be careful here and ask, "will the repairs decrease risk?" A yes answer to this question will motivate a buyer to bid more competitively. Cost-effective reconditioning equals investing receiving a higher return.

We use a rule of spending $1 to recover $3. The foundation is this: Will the investment change the source of buyer or reduce buyer risk?

For example, if a unit is not running and for the cost of a $35 inspection, an electrical problem is discovered that can be repaired for $200. Do it and here's why. If the potential buyer does not know the problem or cost of repairs, the bid will be thousands less to cover possible repairs. 

Next, be careful not to fix the obvious such as body damage. The buyers have a keen eye and a pipeline to prepare units for their lot. Let them do it, and save the money and depreciation time to repair.

Should I try to sell the vehicle locally and save the auction or sale fees?

This always sounds good but rarely brings consistently higher sales prices. Why? The larger the market, the more money is involved.

Our experience with sale prices has been consistent. They've come in 10 percent or more greater when units are presented in a live, competitive bidding arena.

By selling to a small handful of buyers, your potential return is limited by their needs. If a buyer doesn't need the vehicle, they may still bid, but much less than if the unit would round out their inventory mix.

Large regional auctions can have about 1,500 buyers — including a simulcast — which is a much more substantial purchasing pool.

Try comparing several units on your own. Get local bids and then send them to the largest auction in your area. Don't short your credit union by trying to save on sale costs. They are an investment to overall higher returns.

Repo Remarketing brings credit unions together under one umbrella for national repossession and remarketing services. If you're interested in specific recovery or remarketing information to help your credit union, submit your question to DorothyD@RepoRemarketing.com.