Program expansion boosts auto lending portfolios for credit unions nationwide
HAUPPAUGE, N.Y. - Nov. 16, 2017 - PRLog -- GrooveCar's CU Xpress Lease is helping credit unions achieve success in markets once thought out of reach, as the desire to lease vehicles, by members, continues at a steady pace. Funding over $1 billion in lease volume in 2016, the CUXL program allows credit unions to enter the highly lucrative vehicle leasing market. "CU Xpress Lease provides a program for credit unions to become full service lenders. This is a game changer for credit unions where lending opportunities once only existed in new vehicle retail and pre-owned retail," states Frank Rinaudo, Senior Vice President of CU Xpress Lease. The program is designed for credit unions to be competitive in high lease volume regions of the U.S. where traditional financing is outpaced by leasing.
In high-density areas of the country, leasing has become the primary choice of consumers looking to get into a new vehicle, in all age groups. "Within these regions, leasing can account for upwards of 70-80%, leaving credit unions without a program, able to compete for only the remaining 20%. It makes a lot more sense to be competitive, a 100 percent of the time, at the point of sale," Rinaudo adds. Nationwide, vehicle leasing accounts for 30 to 33 percent of all new vehicles financed, the percentages go up in more urban areas. In 2016, automotive lease volumes reached an all-time high of 4.3 million vehicles, representing 31 percent of the total market for new vehicle sales. In 2017, leasing is expected to level off, however opportunities for 2018 are very exciting.
"As we look towards 2018, while growth may not be as powerful as it was in previous years, it remains the financing of choice by most members. Fueling lease growth in 2018 will be a more diverse number of manufacturer opportunities for credit union vehicle leasing programs," Rinaudo explains. The manufacturers will not be supporting or offering lease programs on some of their popular models, this allows CU Xpress Lease the ability to provide more vehicles to credit unions than ever before. "The market conditions are just right for increased growth through additional inventory and attractive lease programs, members are looking for."
Providing customized consulting, in-house credit union support and dealer relationship managers, the CU Xpress Lease program covers all areas of concern a credit union might have when starting up a new program. "We provide guidance and management of the program every step of the way. It's all about growing the auto loan portfolio with knowledge-based solutions to members into vehicles with a leasing option," states Rinaudo. The CU Xpress Lease dealer relationship mangers train and maintain strong dealer relationships while communicating with the CUs. The result is a credit union competitive on all levels as the program closes the gap and opens more market opportunities.
About CU Xpress Lease:
A lease product specifically designed for the credit union to reap the benefits of leasing while maintaining control of the credit process, CU Xpress Lease and its affiliated companies bring decades of experience in auto remarketing and lease servicing to meet the needs of credit unions and their members. With offices in Bedford, Texas; Lebanon, NJ and Hauppauge, New York, an experienced infrastructure is ready to provide credit unions with an innovative product without the risk.
Founded in 1999, GrooveCar provides automotive loan growth solutions to credit unions nationwide while providing their members, as well as the general-public, with the most informative and user-friendly auto search engine. With its expansive dealership network surpassing five million vehicles, GrooveCar facilitates the entire car buying process, including shopping, researching, buying, leasing, and financing. Through the national auto-leasing program CU Xpress Lease, credit unions can take advantage of leasing opportunities in the new and pre-owned vehicle market. CU Xpress is the leading credit union lease program in the nation. Additional information on GrooveCar or CU Xpress Lease may be found at http://www.groovecarinc.com.
Director of Public Relations
Director of Public Relations
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CU Xpress Lease Helps Credit Unions Become Full-Service Lenders
November 16, 2017 at 10:16 AM EST