HAUPPAUGE, N.Y.—The 2017 performance results for GrooveCar’s CU Xpress Lease program are in.
“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 four billion have been funded and each credit union has been repaid the full residual amount on over 50,000 matured leases.”
O’Hara said that 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,” O’Hare explained. “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. 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.”
According to the company, CU Xpress Lease 2017 performance highlights include:
- 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,” said O’Hara.
O’Hara said that 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
- Build and manage dealer relationships
- A team of lease specialists at the 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,” said O’Hara. “Some of the opportunities present this year include more leasing inventory on the most popular makes and models. 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.”