By: Robert O'Hara, VP Strategic Alliances, GrooveCar & CU Xpress Lease
The American athletes in Rio continue to display unwavering strength, power and dominance in nearly every venue they enter. It’s exciting to watch where they came from, the hard work they put into their sport and the golden results. This week as I watch the Olympics, I am reminded about the parallels of the hard work that goes into every successful venture. Standing on that podium takes years of sacrifice and little recognition until you’re the best at what you do and the competition against you proves that.
CU Xpress Lease had its own golden news this week. Celebrating its 10-year anniversary, the program had humble beginnings in a select (although strong) lease market with one location and a couple of clients. We are thrilled to report the program is up 40 percent over YTD 2015, and is projected to close approximately $1 billion in leases in 2016. Also, CU Xpress Lease has expanded into other locations across the nation, something we have been announcing over the past year. These milestones, just like reaching new athletic heights, were not achieved without a lot of hard work, dedication and support. They are more than numbers on a page, reaching goals requires trust in the face of much uncertainty at times.
Today auto leasing is one of the most popular ways to get into a new vehicle and your members know that. In certain markets of the U.S., leasing can represent up to 70 percent of all new car loans sold. I have pointed this out before, if your credit union is in one of the hot lease markets and not offering a lease program, the struggle for the remaining 30 percent of the market is stiffer than what the competitors of Michael Phelps or Simone Biles have faced.
Need more reasons to consider a lease program that is suitable for you? How about: Millennials are the leaders in leasing with more than 34 percent of them leasing rather than financing their car purchases. Millennials are looking for lower payments, no money down options and want to keep up with the rapidly changing technological enhancements introduced each year.
At GrooveCar, we are very proud of the suite of products we have implemented since 1999 to provide credit unions with the ability to tap into areas of incremental growth. As we continue to celebrate our athletes in Rio and we are able to bask in our American pride, just make sure your credit union’s vision is all about acceleration and striving for new heights while never looking back.