HAUPPAUGE, N.Y.–CU Xpress Lease, a subsidiary of GrooveCar, and CUNA Mutual Group said they will expand their collaboration into major auto leasing markets in Florida, California, New Jersey, New York, and Massachusetts to help credit unions, auto dealers, and members secure and safeguard more automobile leases.
Through the partnership, CU Xpress Lease said it is providing credit unions with a turnkey auto leasing program that can be issued to members directly through the credit union’s dealership partners. CUNA Mutual Group serves as the underwriter for CU Xpress Lease’s Guaranteed Asset Protection (GAP) product, which covers the difference between the member’s primary insurance settlement and the outstanding loan balance in the event of an accident or theft.
“GrooveCar is proud CUNA Mutual Group has selected us to promote our CU Xpress Lease product. We look forward to delivering the nation’s premier automotive lease product to CUNA Mutual Group’s credit union partners throughout the country. In select, mature lease markets, leasing accounts for up to 70% of new vehicle loans. Providing this opportunity, along with CUNA Mutual Group’s support, will offer credit unions new avenues of growth and expansion,” said Frank Rinaudo, senior vice president, GrooveCar.
Auto leasing has surged in popularity, up 40% since 2010, and accounts for more than a quarter of all new car purchases nationwide. In select regions of the U.S., that number is steadily on the rise, according to the companies.
Data shows car-buying Millennials are more likely to lease a car than their Generation X and Baby Boomer counterparts. Leasing accounted for nearly 29% of millennials’ car purchases in 2015. “Credit union members benefit from flexible lease terms and mileage allowances and a ‘no surprises’ wear-and-tear policy. Leasing is sustainable product for credit unions and members of all ages, especially millennials,” explains Robert O’Hara, VP-strategic alliances with GrooveCar.
“Credit unions want programs that are easy to administer, help secure more loans and protect more members. Our partnership with GrooveCar and CU Xpress Lease is another example of how CUNA Mutual Group is developing products and services to meet credit union and member needs,” said Chuck Cashman, vice president, business development and strategic partnerships, CUNA Mutual Group, adding, “We’re looking forward to informing credit unions about this valuable new program.”
As an added value for credit union members, GrooveCar said it offers user-friendly auto purchasing resources, including vehicle pricing, unbiased car reviews, video presentations, vehicle history reports, pricing comparison tools, financing information, payment calculators, expert advice, and other valuable resources and information.