The United Recyclers Group has announced the launch of "URG Auction," a new online auto salvage auction service that is user-friendly, and designed to help the auto insurance industry improve profitability.
URG Auction creates a new source for salvage vehicles, and nationwide coverage is being provided, so all insurers and URG members can participate. URG Auction is being created in a joint venture between URG and Lonegan Snow LLC, operators of the Auto Bid Services program. The URG Auction Web site will be powered by Dakabi Software LLC.
"URG Auction is unique for a couple of reasons," says Michelle Alexander, URG executive director, who led the effort to make this deal happen. "First of all, URG actually makes the payment directly to the insurer on behalf of our members in order to guarantee prompt payment and ensure customer satisfaction. Second, since there is no buyer's fee or other charges -- as are found in most other salvage pools -- our members can use the money they are saving in fees, to then bid higher in the auction. Of course what that means is higher net recovery for insurance companies."
"We are always looking for mutually beneficial ways to help URG members," she says, adding that the URG Auction differs from all competitors because of the role United Recyclers Group takes in the process.
"Because URG handles all collections, it makes us a single point of contact for the auction, and that eliminates the insurer's need to chase the money from the winning bidders," adds Alexander. "Life of a vehicle file is now shorter -- averaging just 30 to 40 days. Plus, reporting capabilities are enhanced in the URG Auction software. The bottom line is that we are taking the high-priced middleman out of the picture, shortening the cycle times and eliminating storage because the cars go right from the insurance company to the recycler."
"When URG approached us with this opportunity, I immediately realized it was an idea whose time had come, that it was a win for insurers, a win for URG and their members, and win for us and our customers," says Rudy Lehman, managing member of Dakabi LLC. "URG Auction also fits nicely with our other product offerings by creating yet another user-friendly solution for our clients." Lonegan Snow LLC will market URG Auction under both their Auto Bid Services and Dakabi brands to auto insurance carriers, fleet managers, rental car companies, corporations and dealerships.
For more informaiton, visit www.lonegansnow.com or www.u-r-g.com.
