Press Release

CU Xpress Lease Sees Record Growth in 2018

CU Xpress Lease, Press Release / / / , ,

CU XPRESS LEASE SEES RECORD GROWTH IN 2018

HAUPPAUGE, NY – CU Xpress Lease, the nation’s top performing vehicle lease program for credit unions, has announced that 2018 represented another record year as volume reached $707 million, a 45% YOY increase. This increase in volume was driven by the 19,384 leases originated in 2018, a 41% increase compared to 2017.

Additional takeaways from CU Xpress Lease’s 2018 performance include:

  • Borrowers had a 770 average FICO score
  • 65% average look-to-book ratio on transactions
  • 100% residual value repaid to credit unions

CU Xpress Lease continues to outperform market expectations, allowing credit unions to compete at the point of sale for super-prime credit, while mitigating the residual risk and remarketing resources associated with leasing. Since launching in 2006, CU Xpress Lease has originated over 120,000 leases totaling $4.5 billion in volume. Of the 65,000 leases that have matured since the program’s inception, 100% of the full residual value of each origination has been paid to each credit union. CU Xpress Lease is the only credit union lease program that will guarantee full residual value at lease maturity.

Affordability makes auto leasing a more appealing option than traditional financing, especially for millennial drivers. By providing credit unions the ability to offer full service automotive lending without buying deeper credit and lowering rates, CU Xpress Lease can help successfully capture customers trying to avoid rising vehicle costs and interest rates.

CU Xpress Lease will be attending CUNA’s Governmental Affairs Conference in Washington, D.C., March 10th to March 13th, 2019. Credit unions are invited to stop by booth #471 to test drive the auto resource, discover what’s new, and discuss how the program can deliver solutions to grow your auto loan portfolios.

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GrooveCar’s Indirect Auto Lending Increased by 44% in 2018

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GROOVECAR’S INDIRECT AUTO LENDING INCREASED BY 44% IN 2018

HAUPPAUGE, NY – GrooveCar, one of the nation’s leading providers of auto loan growth, has announced that its credit union partners have seen a 44% increase in indirect auto loans, the highest loan growth within a 12-month period since the company’s inception in 1999.

The strong demand for auto loan volume by GrooveCar’s credit union partners is consistent with current industry trends. New vehicle sales reached 17.3 million units nationwide in 2018, a modest increase of 1.2% over 2017. Credit unions took full advantage of the growing market in 2018, experiencing a 10.7% in auto loan growth nationwide.

In the New York region, new car sales remain a solid performer for auto loan growth. Credit union members total over one million strong and nearly 90% of franchise dealerships participate in the GrooveCar program. GrooveCar brings all parties together with its online auto buying platform for indirect loans and its dealer network solutions with dedicated dealer reps and support services. As part of the fabric of car buying for nearly two decades, credit unions, members and dealerships look to the GrooveCar program to provide dedicated ways to help drive business.

Demand is projected to remain strong through 2019. This is especially true of the auto leasing market. In addition to traditional financing, there is a continued interest in leasing. In certain markets, almost 70% of new vehicle loans are structured through a lease. Vehicle financing is also performing extremely well, with members buying vehicles through their credit unions in record numbers.

GrooveCar will be attending CUNA’s Governmental Affairs Conference in Washington, D.C., March 10th to March 13th, 2019. Credit unions are invited to stop by booth #471 to test drive the auto resource, discover what’s new, and discuss how the program can deliver solutions to grow your auto loan portfolios.

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GrooveCar Direct Continues to Grow in 2018

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GROOVECAR DIRECT CONTINUES TO GROW IN 2018

HAUPPAUGE, NY – GrooveCar Direct, the nation’s leading platform for credit union member engagement and direct auto loan growth, announced that 2018 was another year of significant growth as it surpassed 300 credit union clients across 36 states. The program welcomed 65 new credit unions in 2018, a 33% YOY increase in credit union clients. New credit union partners had a combined asset size of $12 billion, an average asset size of $186 million each. They also contributed an additional 1.1 million members to the program, an average membership of 17,850 members.

Credit unions continue to value capturing auto loan borrowers during the car research phase. The average car shopper will spend over 14 hours researching a car before purchase. At least 60% of this time is devoted online. GrooveCar Direct allows credit unions of all sizes to compete, providing a customized platform that connects credit unions with relevant auto shopping members in real time. Credit unions can also utilize their preferred dealer network, which is ideal for credit unions that self-manage their indirect program.

Additionally, credit unions value the need to provide relevant and meaningful experiences to their existing members to strengthen their relationships. Offering relevant information at the right place and time is critical for building loyalty and brand awareness. GrooveCar Direct allows credit unions to carry out this function, while increasing product per member ratios.

In 2018, GrooveCar improved the member experience by adding several new features to its shopping platform:

  • Refreshed homepage design to better enhance the user’s experience
  • KBB Price Advisor compares real-time pricing on used vehicles, giving users transparency on a vehicle’s purchase average sales in their market
  • Search by Payment Calculator allows users to find available inventory based on desired monthly payment

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Fusion Auto Finance Acquires GrooveCar

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FUSION AUTO FINANCE ACQUIRES GROOVECAR

BEDFORD, TX (August 10, 2017) – Fusion Auto Finance, the leader in credit union leasing, announced today that it has acquired the GrooveCar Family of Brands, the industry’s premier auto buying program for organic loan growth, for an undisclosed sum.

“GrooveCar provides an exciting opportunity for us to strengthen our relationships with our credit union partners and to accelerate our growth plans into new markets,” said Jim Calvert, CEO of Fusion Auto Finance. “We’re excited to welcome the GrooveCar team to our organization and look forward to working together to further enhance our product offering.”

The GrooveCar Family of Brands includes CU Xpress Lease, the nation’s premier auto lease program for credit unions, with a portfolio exceeding $5 billion and more than 100,000 vehicles, and GrooveCar Direct, an innovative online auto buying platform exclusively for credit union members. The acquisition also includes CU Xpress Lease CA, CUAutoCoupon, and GrooveCar, Inc.

Prior to the acquisition, CU Xpress Lease was a joint effort of the two companies. GrooveCar provided the indirect lending platform, marketed the program to dealers, acted as a liaison on behalf of the credit union, and managed the dealer relationships. Fusion is the titled owner of each leased vehicle, bears the value risk on all vehicles at lease maturity, and pays full residual value to the credit union at lease maturity. By acquiring CU Xpress Lease, Fusion will be able to increase efficiencies, collaboration, and competitiveness of the program.

ABOUT THE GROOVECAR FAMILY OF BRANDS

GrooveCar is the nation’s leading auto buying resource for credit unions. Our products include CU Xpress Lease, a credit union leasing program with over $5 billion in volume, and GrooveCar Direct, a customizable auto-buying platform that enhances credit unions’ ability to secure loans while offering the value and guidance their members seek. For further information, please visit GrooveCarInc.com.

ABOUT FUSION AUTO FINANCE

Fusion Auto Finance develops turn-key auto leasing programs with credit unions that generate a high return on investment as well as high customer satisfaction. Core competencies in residual value analysis and lease end account management help mitigate the two most challenging risks associated with automotive leasing. Remarketing is the foundation for Fusion and handling the customer interaction as well as the vehicle at lease maturity. Fusion, with its sister company, EndTrust Lease End Services, LLC, has created a lease termination environment that allows Fusion to take an aggressive approach in residual value setting. EndTrust brings to Fusion its strategic, residual value management approach with loss mitigation and profit enhancement tools. The combination of Fusion and EndTrust delivers a lease product to credit unions that is unique within the consumer lease market.

Fusion focuses its business model on providing competitive programs that are financially sound for the company, the credit union partner, and the credit union member. Members enjoy the benefits of lower monthly payments, gap waiver coverage, flexible lease terms, and a fair wear-and-tear policy. Credit unions devote their efforts to credit risk and servicing members while Fusion manages all residual value risk. For further information, please visit FusionAutoFinance.com.

Media Contact:

Chuck Meagher, Sr. Sales & Marketing Manager
cbmeagher@fusionautofinance.com

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