HAUPPAUGE, N.Y.–GrooveCar is reporting it continues to see steady growth in its CU Xpress Lease program.
The company noted that during 2016 it funded more than $1 billion in lease volume.
In high-density areas of the country, GrooveCar said leasing has become the primary choice of consumers looking to get into a new vehicle, in all age groups. 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.
“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,” said Frank Rinaudo, senior vice president of CU Xpress Lease. “Within (certain) 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 100% of the time at the point of sale.”
GrooveCar reported that nationwide, vehicle leasing accounts for 30% to 33% 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% of the total market for new vehicle sales. In 2017, leasing is expected to level off, however opportunities for 2018 are very exciting, GrooveCar said.
“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 said.
The manufacturers will not be supporting or offering lease programs on some of their popular models, according to GrooveCar, which gives 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.”
GrooveCar said the program provides 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,” added 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, the company said.
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