CULA posts record month for vehicle leasing at credit unions

Credit Union Leasing of America (CULA) recently recorded its best month ever, generating the highest single month of originations in its more than 30-year history.

The company that processes indirect vehicle leasing for credit unions booked more than $150 million in lease originations in October. The volume represented a 31% increase over the same period in 2019.

CULA highlighted that its partners include nine of the top 10 credit unions offering leasing in the U.S. 

“Vehicle sales have been leading the recovery during this pandemic, and are a bright spot on the path to economic stabilization. Vehicle leasing is uniquely positioned to meet this moment as borne out by the record number of credit union members CULA helped into leases,” Credit Union Leasing of America president Ken Sopp said in a news release.

“Leasing has historically represented about one-third of all new vehicle sales,” Sopp continued. “In today’s uncertain climate, consumers want flexibility and affordable payments, something that leasing offers.

“Couple that with the trust consumers place in their community credit unions — and the growing importance of the personal vehicle — and we believe leasing is poised to be an increasingly critical component of credit union portfolios,” he went on to say.

According to an Edmunds forecast, consumers purchased 30.6% more new vehicles in the third quarter of 2020 than in the second quarter in the immediate wake of the COVID-19 pandemic’s emergence.

As consumers head back to a new-car market, CULA can enable credit unions to offer flexibility and more affordable payments of vehicle leasing, while helping them grow membership, diversify lending options and increase yield.

CULA said its clients consistently report an average increase in yield of 60 to 100 basis points over retail installment contracts.

“CULA’s growth during these difficult times is a validation of the strength of leasing as a lending product and of the durability, and importance, of credit unions as financial service providers to their communities,” CULA vice president of business development Mark Chandler said.

“As the largest credit union-focused leasing partner in the credit union industry, CULA offers a leasing solution that increases yields, deepens dealer relationships, enhances credit union offerings, and improves the overall member experience,” Chandler went on to say.