HAUPPAUGE, N.Y.—GrooveCar’s auto leasing program for credit unions, CU Xpress Lease, has announced year-to-date volume is up 39% in Q1 2017 over Q1 2016.
Overall, CU Xpress Lease funded nearly $1 billion in lease volume for 2016.
“The year is off to a great start, and credit unions report strong growth in attracting deposits and loans. Q1 2017 will break records for credit unions according to Callahan & Associates, experiencing the fastest 12-month share growth rate in 14 years and the third year of double-digit growth,” GrooveCar said.
A GrooveCar partner, Teachers Federal Credit Union, headquartered on Long Island with assets of $5 billion, is exceeding national trends, reporting lease volumes have increased significantly in the last year, GrooveCar noted.
“In 2016, auto lease volumes were up by 33% versus 2015 numbers, in 2017 Q1 volume is up 85%. The success, according to Teachers, is driven by lower money factor rates coupled with competitive residual values,” GrooveCar explained.
“Long Island credit unions are making an impact and are now taking business away from captive lenders and banks. This is a profit changer. CU Xpress Lease offers credit unions a means to be competitive at all stages of the auto buying process,” said Frank Rinaudo, senior vice president of GrooveCar’s CU Xpress Lease.
Regional growth for the program is attributed to the continued popularity of leasing versus traditional financing, added Rinaudo.
“The program continues to drive loan volume for credit unions and increased sales for Long Island auto dealerships where 90% of the franchised dealerships participate in the GrooveCar program,” he said. “We are thrilled to provide a leasing solution where credit unions and our preferred dealers, here on Long Island, can do some serious business together.”
Francis Collins, senior vice president, credit, at Teachers Federal Credit Union, located in Hauppauge, N.Y., agreed.
“The leasing program has been a main driver behind our significant auto loan growth in 2016 and now into 2017. Members are benefiting from the program through low rates and great service at origination and lease termination,” Collins said.
GrooveCar explained that The CU Xpress Lease program provides a solution for credit unions and their members to participate in leasing on Long Island.
“Providing a program for consumers allows credit unions and dealerships to do more business together given nearly 70% of all new vehicles sold are through the lease channel,” GrooveCar said.
Robert Kravetz, general sales manager for Huntington Jeep Chrysler Dodge, located on Long Island reports leading is up at his dealership.
“We are seeing 75%-85% of our business through leasing. Of that number, 70% of all leases are going through credit unions because the programs work well for the consumer and the dealership,” Kravetz said.
In addition to serving Long Island, GrooveCar’s CU Xpress Lease is a national program that serves credit unions throughout the nation, with sales representatives and support staff to assist credit unions in managing all aspects of the program. The program has been in operation for over a decade, helping CU successfully navigate many lease cycles in which they have been made 100% whole when each cycle ends, GrooveCar said.