The auto lending industry is being squeezed like never before. Delinquencies are climbing, recovery costs are skyrocketing, and lenders are hemorrhaging billions in unrecovered vehicles. The Federal Reserve reports that auto loan delinquencies have surged to their highest levels in over a decade, with more than 7% of auto loans now 90+ days past due.
Every unrecovered vehicle represents thousands in lost principal, unpaid interest, and mounting repossession costs. For lenders, the stakes are clear. Without advanced skip trace teams and technology, portfolios will continue to suffer avoidable losses.
But there’s good news. Secure Collateral Management (SCM) redefines what skip tracing can do by offering unmatched solutions backed by an expert team of 150 skip tracers, 50+ integrated databases, license plate recognition (LPR) technology, and proprietary systems that deliver results with transparency, compliance, and professional integrity.
This isn’t just skip tracing. It’s portfolio protection and loss mitigation at the highest level. With a comprehensive suite of services, SCM provides end-to-end solutions designed to complement your operations, improve recovery rates, and reduce charge-offs.
What Is Skip Tracing?
Skip tracing is the process of finding hard-to-locate defaulted vehicles after traditional loss mitigation channels have failed to locate the unit. . When an asset is missing, not where it should be, or simply just hard to track down, a skip tracer comes in to gather and distill the information from various databases to find the location of the asset. Without reliable location intelligence for skip tracing, repossessions stall, allowing vehicles to depreciate fast.
For auto lenders, skip tracing is the critical bridge between delinquency and recovery. Done right, it means:
- Enabling positive resolution of the loan to keep it on the books
- Locating hard-to-find vehicles quickly
- Recovering vehicles before they lose value
- Reducing charge-offs and net losses
- Remaining 100% compliant in the recovery process
But not all skip tracing is created equal. SCM sets the skip trace standard.
Why Partner with SCM for Skip Tracing?
SCM delivers white-glove solutions that go beyond the basics to investigate and find the most difficult-to-locate vehicles with our deep skip tracing service. Here’s why lenders nationwide trust SCM to protect their portfolios:
1. White-Glove Service with Expert Precision
Our dedicated team of 150 skip tracers brings decades of industry experience, treating every account with the highest level of care and urgency. SCM’s nationwide recovery efforts are a customized, hands-on vehicle recovery strategy designed to protect your portfolio.
2. Access to 50+ Integrated Databases
Where others stop at a handful of sources, SCM taps into more than 50 specialized and proprietary databases, giving lenders the most accurate, up-to-date vehicle data available. This means faster confirmations, fewer dead ends, and higher recovery rates when interpreted by our experienced skip tracing teams.
3. Cutting-Edge LPR Technology
With license plate recognition (LPR) systems, SCM locates vehicles in real time nationwide. If your asset is on the move, SCM’s network helps pinpoint its location with unmatched speed and accuracy.
4. Proprietary Recovery Systems
Our proprietary skip tracing tools integrate multiple data streams, allowing us to analyze, verify, and act with precision. This gives lenders deeper insights and faster recovery times than other providers.
5. Transparency and Integrity
At SCM, every recovery effort is backed by rigorous compliance protocols. We keep lenders fully informed with transparent reporting, while ensuring every action is taken with professional integrity to protect both your bottom line and your reputation.
6. Strict Compliance with Industry Standards
SCM enforces strict compliance through third-party vendor oversight, on-site inspections, and ongoing RISC-led training. RISC maintains all documentation and verifies vendors meet SCM standards (background checks, document tracking, compliance checks).
The Pain Points Auto Lenders Face Today
Auto lenders today are facing mounting challenges that directly threaten portfolio performance. Rising defaults fueled by economic instability have driven delinquency rates to their highest levels in more than a decade, with subprime borrowers defaulting at alarming rates. At the same time, vehicle recovery costs are soaring. Every day a vehicle remains unrecovered, rapid depreciation can turn an $18,000 asset into a near-total-loss charge-off, or even a lien loss.To make matters worse, lenders are navigating regulatory minefields, with strict federal oversight and state-level agencies. One misstep can result in costly fines, lawsuits, and reputational damage. Without the support of a high-level skip tracing partner, these pressures compound quickly, leading to millions in avoidable portfolio losses.
Why Skip Tracing Is More Important Than Ever
- The U.S. auto repossession industry is projected to surpass $1.3 billion by 2027, fueled by rising delinquencies.
- Lenders lose an average of $7,000-$10,000 per unrecovered vehicle, when factoring in depreciation, legal fees, and lost loan balances.
- Lenders using advanced skip tracing solutions like SCM’s see 30-40% higher recovery rates compared to those relying on outdated methods.
- TransUnion reports subprime auto loan delinquencies hit a 20-year high in 2023, underscoring the urgent need for advanced recovery strategies.
The SCM Difference in Action
When auto lenders partner with SCM, they gain a strategic partner committed to protecting every dollar of their portfolio.
Our clients can expect:
- Increased positive resolutions on accounts
- Faster recoveries
- Higher recovery rates
- Lower charge-offs
- Professional and compliant service
Plus, beyond the early-days-to-recover via skip tracing, deep skip is our expertise. When a vehicle has been out of sight for more than three months, the chances of recovery drop dramatically and the risk of charge-off soars. At this stage, deep skip tracing is essential. SCM leverages its 150 expert investigators, 50+ integrated databases, advanced LPR technology, and proprietary recovery systems to track down even the hardest-to-find assets. With skip-tracing expertise, transparency, and compliance-first practices, SCM gives auto lenders the partner needed to recover vehicles that most providers would write off as lost.
The Bottom Line: Protect Your Assets with SCM’s White-Glove Skip Tracing
Today’s lending environment demands more. With delinquencies climbing and vehicles harder to locate, skip tracing is no longer optional. It’s essential.
SCM offers the most advanced, compliance-driven, and transparent skip tracing in the industry. With white-glove services, 150 expert investigators, 50+ databases, cutting-edge LPR technology, and proven proprietary systems, SCM helps auto lenders recover assets faster to reduce losses and charge offs.