CU Xpress Lease releases results for 2017
HAUPPAUGE, NY (February 13, 2018) — GrooveCar’s CU Xpress Lease, the national vehicle lease program for credit unions has announced 2017 performance results. “CU Xpress Lease continues to outperform the competitors to deliver a program credit unions can compete with at the point-of-sale,” Robert O’Hara, Vice President of Strategic Alliances, GrooveCar Inc. In 2017, nearly 15,000 leases were written. Since launching in 2006, over 105,000 leases totaling greater than 4 billion have been funded and each credit union has been repaid the full residual amount on over 50,000 matured leases.
New programs are continually being added to help credit unions reach their lending goals. Making CU Xpress Lease unique, are the one-on-one consultations designed to work with credit unions on strategies to penetrate markets served. “In southern California, for instance, CU Xpress Lease is seeing increased traction through expansion activities in that region along with the addition of a dedicated dealer relationship manager for that territory. Working directly with our partners and dealerships is just one of the ways we accomplish increased reach. This is one of the hottest lease markets in the country, credit unions without a lease program will miss out on nearly 70% of the new vehicles sold,” explains O’Hara. Overall, leasing represents 30% of all new car sales across the U.S., in urban areas this number climbs to 70% at select dealers. The goal for credit unions is to be competitive 100% of the time.
For Credit Unions, it is important to partner with a company which assumes all residual risk. Some takeaways from 2017’s performance within the CU Xpress Lease program were:
- 770 Average FICO
- 36 Months Average Term
- 65% Look-to-Book
Because CU Xpress Lease manages and assumes all risk at lease maturity, for instance, collection of lease end fees, including termination fees, over mileage charges, excess wear and tear damage, and other fees, popularity of the program continues to climb. The following are just some of the ways the program reduces the burden on credit unions and their members:
- No surprises wear and tear lease return process
- Credit unions paid full residual amount on all matured leases – over 50,000 leases
- Build and manage dealer relationships
- A team of lease specialists at your credit union’s disposal
CU Xpress Lease is looking at 2018 to be its most successful year in its 10-plus year history offering credit union leasing. Credit unions who have not taken the next steps to become full-service lenders should do so, it’s a benefit to members and auto portfolios. Some of the opportunities present this year include more leasing inventory will be available on the most popular makes and models that consumers enjoy. “This is an exciting development as more vehicles will not be supported by the manufacturers in 2018. Some of the most popular vehicles will be offered to members through CU Xpress Lease, great news for the credit union,” offers O’Hara. Credit unions looking to make a difference with member satisfaction in 2018 should provide members with all the financial options they need to obtain the vehicle they desire. As the cost of vehicles continue to increase, members will be looking at affordable ways to meet their budgets, leasing is that solution.
GrooveCar, a Fusion AF company, has been providing full-service automotive loan growth solutions to credit unions since 1999. GrooveCar focuses on building strong, lasting relationships with credit union partners by ensuring they can capture loan volume without compromising the quality and integrity of their portfolio. GrooveCar’s knowledge of the credit union industry, combined with an expansive dealer network surpassing 4 million vehicles, enhances the ability of credit union partners to secure loans and leases while offering the guidance and knowledge that their members seek.Additional information on GrooveCar can be found at http://www.groovecarinc.com.
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.