Recovering Cold Auto Assets with SCM
Auto loan delinquencies and loss rates are mirroring record highs, especially in the Below Prime segment. When an asset has been delinquent for 200 to 500+ days, crossed state lines, or failed recovery with multiple agencies, traditional automation hits a wall. To recover these lost units and protect your bottom line, you have to look deeper.
At Secure Collateral Management (SCM), we specialize in Deep Skip Tracing. A multi-faceted investigative strategy executed by veteran investigators who treat every cold file like a private investigation to recover your hardest to locate or even charged-off vehicles.
Below, we answer the most frequently asked questions about how Deep Skip Tracing works, why human intelligence outperforms algorithms using specialized tactics, and how SCM turns written-off assets back into liquid capital.
What is Deep Skip tracing, and how does it differ from standard skip tracing?
Traditional skip tracing relies heavily on automated batch-processing and static data like credit headers, utility records, and historical database hits. SCM’s Deep Skip is a tiered, multi-faceted investigative strategy. We move beyond simple automation to deep-dive into social foot printing, secondary networks, and over 50 non-traditional data points to find assets that have completely gone cold in standard systems.
Why are auto loan delinquencies rising, and how does SCM help?
Data from corporate EDGAR filings shows that auto loan performance is mirroring record-high losses, particularly in the Below Prime segment. Delinquency and loss rates are expected to stay elevated long-term. SCM acts as your safety net, specializing in recovering the most difficult, aged assets that standard recovery methods miss, turning lost units back into liquid capital.
At what point in the delinquency cycle should an account be sent to SCM?
While our competitors focus on high-volume, fresh assignments (30–90 days delinquent), SCM’s sweet spot is aged accounts that have been unrecovered for 200 to 500+ days. If an asset has settled into an evasive pattern, moved across state lines, or failed recovery with at least two other agencies, it is a prime candidate for our Deep Skip team.
How do you locate vehicles that are actively hidden or garaged?
When a vehicle is deliberately hidden, standard automated LPR (License Plate Recognition) systems hit a wall. SCM counters this with the expertise of veteran investigators who analyze historical scans and previous location sightings to consider the broader ecosystem rather than just relying on active patterns.
What kind of LPR network does SCM utilize?
We leverage a nationwide footprint consisting of more than 650 agents across the country. This network provides both active and passive LPR scans, feeding fresh, real-time data into our investigations rather than relying strictly on outdated historical databases.
Who handles the actual investigations at SCM?
Your aged assets are not run through an automated waterfall processor. They are handled by expert investigators who operate with the mindset of private investigators. Our team averages over 15 years of experience in deep-dive investigative tactics.
Why are the contingency fees higher for Deep investigative services, and is it cost-effective?
Deep investigating tactics are highly labor-intensive, requiring experts to manually uncover new leads on cold files. Plus, data resources used at this level of investigation are more costly. While the contingency fees are higher than traditional front-end forwarding, the service is highly cost-beneficial to lenders. Recovering a vehicle you have already written off allows you to avoid a total loss write-off, directly protecting your bottom line.
How does SCM help optimize our active recovery portfolio?
We don’t just look for cars; we resolve accounts. SCM cleanses your active repository by either locating the asset or definitively confirming that it is permanently off the road. By eliminating truly unrecoverable units from your books, we help your team prioritize actionable leads and optimize your overall portfolio performance.
How long does SCM keep an investigation open?
Most competitors rely on a volume and speed model, closing files after 30 days if they don’t get an immediate LPR hit. SCM wins on investigative persistence. Our Deep Skip team has the granular bandwidth to maintain ongoing, long-term investigations into the vehicle’s ecosystem until the asset is resolved.