Make the Money You Lend Work
Twice as Hard
Depending on your market, up to 60% of all new vehicles are leased; by offering leasing at point of sale, credit unions recognize substantial growth in quality loan volume. CU Xpress Lease places the power of lending back into the hands of the credit union. Credit unions can achieve a desired level of return on investment balanced with a volume objective to reach an optimal blend of growth and profit.
Membership Growth
If it chooses to do so, an open charter credit union can enjoy unprecedented increases in new member growth. Since the volume of leasing can be controlled, this opportunity is well managed.
A New Road to a Familiar Place
It’s often said that timing is everything in life. That was certainly the case when the management teams at GrooveCar, Inc. and Fusion Auto Finance, LLC each saw the need for a lease product designed specifically for credit unions. A product that would allow credit unions to reap the benefits of a leasing while maintaining control of the credit process but eliminating the residual value risk that had until now been associated with leasing.
Fusion Auto Finance, LLC and GrooveCar, Inc. joined together to create the next generation in credit union auto leasing. CU Xpress Lease, Inc. was formed in 2007 to provide an advanced lease product for credit unions and their members. Since the time CU Xpress Lease was launched it has become the nation’s number one originator of new car credit union leases and has over $4 billion and over 95,000 leases since 2007.
Fusion and its affiliated companies bring decades of experience in auto remarketing and lease servicing. End Trust Lease Services, the parent company of Fusion, has managed the vehicle portfolios for such companies as GE Fleet; GrooveCar brings the same level of experience in program development, relationship management, and marketing. GrooveCar has partnered with credit unions with assets of $200 million to credit unions with over $5 billion in assets.
CU Xpress Lease, with offices in Bedford, Texas, Lebanon, New Jersey and Hauppauge, New York, has a team of over forty men and women who are dedicated to meeting the needs of credit unions and their members.
Leasing has existed for decades with cycles of great success. The key is to capture what elements make those periods successful and harness their power. The success of CU Xpress Lease lies in the product DNA, our staff, and the infrastructure to execute.
It is clear that leasing provides credit unions with tremendous opportunity. CU Xpress Lease finally offers the reward without the risk, an innovation your credit union will surely appreciate.
Part of the GrooveCar Family of Brands
High Performance High Efficiency
High Quality Credit
The FICO score of a lease application is generally higher than that of conventional loans. The average FICO score generated by CU Xpress Lease portfolios is over 750.
Built in Loan Growth
Lease end provides a great opportunity for new leases and loans on maturing leases. Many members will choose to lease a new vehicle, while other members will choose to purchase their current vehicle at lease end. The credit union will have the first opportunity to provide seamless financing for this transaction.
Quicker Turn
Typically the longer terms of car loans and mortgages can be more speculative, compared to turning leases every 3 years. Leasing provides quicker return, contained risks, and brings customers back
into the market for another loan
or lease sooner.
Do You Know the True Potential?
Be a Full-Service-Lender
Why should you or your members settle for a partial product offering?
Leasing plays a significant role in point of sale auto purchasing. Offering
leasing will result in more quality loans, loyal members, increase in member growth, and higher average balances.
Incremental Loan Growth
Up to 60 percent of new vehicles are leased nationwide*; therefore, significant business is lost if leasing is not offered at point of sale. Members will also need to secure financing for their vehicle at lease end, which provides an opportunity for a built-in lending relationship.
New Member Growth
Credit unions can expect up to ninety-percent of all lessees to be new members, depending on the charter. This is by design and can be specifically tailored to the credit union’s needs.
Increase in Efficiency (Approve/Book Ratio, etc.)
Retain a higher percentage of approved loan applications.
The competitive nature of “shot-gunning,” (sending loan applications
simultaneously to several lenders) lends itself to a very inefficient way of
doing business, by no fault of the credit union. Leasing is different because
lease payments are based on multiple factors and not solely on interest rate.
Unlike conventional auto loans, dealers rarely “shotgun” lease applications
to other lenders.
Feature. Function. Great Value.
Dealer Relationships
Do what you do best and let CU Xpress Lease manage the leasing relationship between the dealer and credit union. Credit unions maintain complete control over credit decisions and funding, and the level of our involvement is based on your needs. If your credit union has no dealer relationships/network, allow us to create one, CU Xpress Lease management has over 115 years of experience creating and managing thriving dealer networks.
Processing Lease Applications
CU Xpress Lease will provide you with our own proprietary application platform, AppTrac. AppTrac is an Internet based application that enables dealerships to submit applications to your credit union. From AppTrac you will be able to decision applications, view reports, and communicate with the dealer.
Lease End Transparency
Our lease end process was designed with superior customer service in mind. Our “No Surprises” wear and tear policy is straightforward and concise, leaving nothing to the imagination. Most damage that fits under a driver’s license is permitted with no additional charge. Each dealer is provided with point of sale literature explaining the terms.
Niche Process
Our processes allow credit unions to reach their volume needs. We carefully analyze your market’s demographics, select specific models, and create lease specials on these vehicles. CU Xpress lease ensures that your program can be viewed in all lease quote systems used by dealers, giving your credit union the most competitive program in the market and the ability to control volume to best meet your goals.
