CU XPRESS LEASE - Nation's #1 Credit Union Lease Program
Fusion Auto Finance and GrooveCar have successfully partnered to market the CU Xpress Lease, a turn-key leasing program for credit unions that generates a solid return on investment and high member satisfaction. CU Xpress Lease is the number one credit union leasing program, generating high quality portfolio growth and thousands of new vehicle loans for our credit union financial partners. This program conforms to all NCUA rules and regulations for credit union leasing.
Key Roles of GrooveCar and Fusion – administration of the CU Xpress Lease program is a joint effort of our two companies. GrooveCar provides the indirect lending platform, markets the program to dealers, acts as a liaison on behalf of the credit union, and manages the dealer relationships. Fusion is 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. The credit union’s sole responsibility is credit risk. See Application and Funding Flow
Indirect Leasing Program – CU Xpress Lease is an indirect leasing program which is originated at the point of sale in franchised new car dealerships. CU Xpress Regional Managers sign up new car dealers for the program and provide ongoing training and marketing support to keep your credit union relevant in the dealerships. Fusion provides state specific motor vehicle lease contracts to the dealers.
Credit Decisions – credit union establishes credit criteria, sets the parameters, approves and funds the leases. Dealer submits applications to your credit union via a proprietary internet based lending platform managed by GrooveCar. Average FICO score for CU Xpress Lease portfolio is 750+..
Residual Values and Rates – Fusion determines residual values on all new vehicles and provides an internet based guide for dealers and credit unions. Rates, expressed as money factors, are set by the credit union with guidance from Fusion and GrooveCar. Costs for insurances such as residual value, contingent liability and gap waiver are built into the market money factor offered. As a niche program, CU Xpress targets select high-value vehicles and offers them as “Lease Specials” with a notice sent to dealers. Rates, residual values, and specials are made available to lease quoting services and dealer management companies to be quoted at point of sale.
Parties to the Lease Agreement – at the point of origination at the dealership, the dealer is the lessor and the member is the lessee; when the credit union completes its due diligence review of a credit package and funds the contract, Fusion becomes lessor and owner of the leased vehicle. Fusion then assigns the lease agreement to the credit union which becomes lessor throughout the term of the lease. The member makes all lease payments to the credit union as with any other loan.
Securing the Credit Union – as the lessor on each assigned lease agreement, the credit union has all contract rights with respect to the member/lessee. Vehicles are titled in the name of Fusion with the credit union as lienholder; collision and liability coverage lists the credit union as loss payee; residual value insurance lists the credit union as additional insured; contingent liability insurance lists the credit union as additional insured. Fusion tracks insurance and maintains a title bank. Fusion also maintains an escrow account with and under the control of the credit union and governed by a written agreement.
Lease End Remarketing Management – CU Xpress Lease has become the largest provider of credit union leasing based on Fusion’s expertise in managing residual value risk and making the credit union whole at lease-end. Fusion utilizes proprietary processes to engage the member from 180 days prior to lease maturity, providing a purchase option at residual value with credit union financing. Members who choose to return their leased vehicle are guided through a wear-and-tear inspection and return process that is fair and consistent – collection of any excess wear and mileage is done by Fusion with no financial responsibility on the credit union. Fusion maximizes resale value of lease return vehicles through its two licensed dealerships, exclusive member-only sales events, internet based retail and auction sales, and by utilizing long standing relationships with key-pointed wholesale auctions. Fusion completes its role, paying the credit union full residual value on all vehicles at lease maturity. See Remarketing Timeline
GrooveCar and Fusion are offering this unique leasing program to select Credit Unions – program parameters and eligibility details are available – contact Rob O’Hara, VP of Strategic Alliances, at GrooveCar today; Rob can be reached at 631-454-7500, ext. 124 or at firstname.lastname@example.org
Leasing is the Most Effective Tool for Capturing Auto Loans
AUTO LEASING CONTINUES TO RISE – MORE THAN 27% OF NEW CAR SALES IN 2014
Our leasing program captures guaranteed incremental growth and provides exposure to a new consumer/member stream with the highest FICO credit quality and stronger ROI.
Since 2007, over 43,000 vehicles approaching $2 billion
We are responsible for residual value & disposition at lease end