Finopotamus Interview with Mark Chandler at GAC 2022
March 10, 2022
At the recent CUNA Governmental Affairs Conference, Finopotamus spoke with Mark Chandler, vice president of business development for Credit Union Leasing of America (CULA). The company enables credit unions to provide auto leasing through a network of more than 4,000 dealers in states across the country, including Minnesota, Wisconsin, Illinois, Ohio, Pennsylvania, New York, New Jersey, Massachusetts, Colorado, Utah, Nevada, California, Texas and Florida.
Chandler explained that CULA had to develop its own software platform to make up for the deficiencies in the traditional loan origination system (LOS). “We developed our proprietary information management exchange called Seamless Lease Connection,” he said.
Read the full article on the Finopotamus site.
IMPACT 2022
CULA is a sponsor for IMPACT 2022 in Grapevine, TX. We’re excited to be a part of this excellent event from the Cornerstone Credit Union League. Our team is looking forward to meeting friends and seeing new faces in Texas! Contact us at info@cula.com to set up a meeting while we’re there.
March 10 – March 13, 2022
Las Vegas Convention Center
Our team is heading to Vegas for the 2022 NADA Show! We hope to see you there!
CULA Originates 50,000 Leases for $2 Billion in 2021
Indirect vehicle leasing leader contributes to credit unions’ increasing share of leasing market, achieves single-year record for lease originations through credit union partners, and enjoys exponential growth in dealer partnerships
San Diego, CA – January 26, 2022 – Credit Union Leasing of America (CULA) achieved $2 billion in lease originations in 2021, a single year record, the Company announced today. This record is the result of originating 50,000 leases in 2021, also a company first.
In October, for the first time in CULA’s 34-year history, the indirect vehicle leasing leader exceeded 100,000 active leases in its portfolio, which has nearly tripled in five years to $3.8 billion. CULA offers leasing through credit unions in 17 states, adding six more states in 2021 alone. More than 30 credit unions are currently active on CULA’s innovative leasing platform.
CULA’s record growth came during year two of the COVID-19 pandemic, during an increasingly difficult market in which inventory constraints led to record high vehicle prices[1].
Leasing proved a more affordable, more flexible option for car buyers. It was especially beneficial for credit unions, who increased their share of auto loans and leasing during the last year.[2] In fact, leasing is a “critical” option according to Experian,[3] who recently reported that “leasing will continue to remain an important option for those looking to get a new vehicle with a lower monthly payment.”
“We have never seen an auto market like this and, while 2022 promises to have its challenges, as we enter a new year on the heels of a record-breaking year, we are optimistic about the future – thanks in no small part to our extraordinary credit union and dealer partners,” said Ken Sopp, President of CULA.
“With leasing’s flexible terms, and payments on average $109 less than loan payments[4], we look forward to supporting our credit union partners as they help even more members into new vehicles in 2022. We also look forward to our continued work with our innovative auto dealer partners as they have a measurable impact in extending leasing’s benefits to car shoppers. Vehicle leasing, we believe, is the perfect auto lending product, for consumers, auto dealers, and credit unions alike.”
Sopp noted that even in a shrinking market, credit unions generated 20.2% of total auto loans and leases during Q3 2021, higher than the pre-pandemic share of 19.6% in 2019’s third quarter[5].
“Leasing matters for credit union members, and our record-breaking numbers for 2021 prove it,” continued Sopp.
Robert Cashman, CEO of Metro Credit Union, whose credit union began leasing on CULA’s platform in 2021 explained: “Leasing is quickly emerging as an important option for car buyers who are entering a vehicle sales market with constrained inventory and record high prices.” Cashman continues, “We wanted to be in the forefront of offering the affordable and flexible vehicle finance options that leasing provides.”
CULA vehicle leasing also proved a key tool for dealers in 2021: CULA experienced exponential growth in dealer partnerships, increasing the number of dealers in its network more than ten-fold in the past three years.
Says Cody Carter, internet sales manager at Tustin Toyota in Southern California, who works with CULA: “There are very few customers a lease won’t work for. And as the market normalizes, having an alternative bank, such as a credit union, means that we can hit payments that work for our customers and gives us an edge that no one else has.[6]”
CULA pioneered indirect vehicle leasing for credit unions with its analytically driven, high-value leasing program supported by stellar customer service and proven systems, all with a focus on helping credit unions meet their financial and membership goals.
About Credit Union Leasing of America
Credit Union Leasing of America (CULA) has been the leader in indirect vehicle leasing for credit unions for over 30 years. Founded in 1988, CULA provides best-in-class program assistance, analytics reporting, compliance support, dealer management tools and member services. The CULA indirect vehicle leasing program empowers credit union innovators to diversify their existing loan portfolios, improve yield and expand member services. Visit www.cula.com to learn more.
Angela Jacobson, mWEBB Communications, angela(at)mwebbcom(dot)com, (714) 454-8776
Melanie Webber, mWEBB Communications, melanie(at)mwebbcom(dot)com, (949) 307-1723
[1] https://www.kbb.com/car-news/average-new-car-price-tops-47000/
[2] https://www.cutimes.com/2021/12/02/credit-unions-gaining-auto-loan-share-in-shrinking-market/
[3]https://www.experian.com/blogs/insights/2022/01/leasing-decreased-in-q3-2021-but-remains-a-critical-option-for-affordability/
[4] Experian State of the Automotive Finance Market: Q3 2021
[5] https://www.cutimes.com/2021/12/02/credit-unions-gaining-auto-loan-share-in-shrinking-market/
[6] https://www.cutimes.com/2022/01/07/covid-19-the-emerging-path-for-indirect-auto-lending/
INFOGRAPHIC: Vehicle Leasing – The Perfect Auto Lending Product
It’s a new year and CULA is ready to help you access the perfect auto lending product! It’s a challenging market for anyone shopping for a vehicle. Leasing can help your members get a vehicle with a lower monthly payment while helping you improve your lending portfolio. Download our infographic for the TOP 5 REASONS leasing is the PERFECT auto lending product. We encourage you to share this infographic with anyone who is on the fence about the value of indirect vehicle leasing for your credit union’s auto lending portfolio.
Download the infographic here.
COVID-19 & the Emerging Path for Indirect Auto Lending
January 7, 2021
The auto industry’s shift to a digital-first model resulting from the pandemic highlights the importance of a people-first approach. This topic is explored in the Credit Union Times by CULA’s own Mark Chandler. At CULA it has been our relationships with our credit union partners and dealers – and the people they serve – that have helped us not only survive the pandemic, but thrive. As an ever-changing landscape continues to shift the industry into new ways of doing business, it’s important to remember that new technology is simply a tool for helping those who matter most: the people.
Excerpt:
The pandemic has been life altering for the transportation industry in many ways, from the new work-from-home generation to a diminished ride-sharing industry, and now to the beginnings of a more digitally focused auto industry. In fact, what was at first a body blow for the car sales and auto finance businesses in the early days of the pandemic has instead become an opportunity for a resurgence.
Despite massive supply chain issues, auto dealership profits are hitting record highs. Consumers value vehicle ownership more than ever, which makes them willing to pay the historically high prices dictated by a shrinking pool of vehicle choices. At the same time, dealers are enjoying greater efficiencies from the increased digitization of the sales process forced on them by the pandemic, as well as lower carrying and operational costs from no longer needing to bear the overhead of keeping hundreds of vehicles in inventory. Interestingly, these inventory shortages are leading auto dealers down a path of pre-sales and even build-to-order sales, models that align well with the auto industry’s increasing shift to digital retailing.
So how will this digital shift affect indirect auto lending, particularly for tradition-bound credit unions? According to one auto dealer and a credit union leasing partner, the answer lies in making people your priority.
Read the full article here:
https://www.cutimes.com/2022/01/07/covid-19-the-emerging-path-for-indirect-auto-lending/
Vehicle Leasing Surges at Credit Unions as CULA Marks Leasing Milestone
Leader in indirect vehicle leasing for credit unions marks 100,000 active leases, worth nearly $3.8 billion, as credit union members increasingly opt for leasing’s flexibility and affordability
San Diego, CA – November 10, 2021 – Credit Union Leasing of America (CULA), the leader in indirect leasing for credit unions, announced today that its portfolio has exceeded 100,000 active leases through its credit union partners, and is worth nearly $3.8 billion, a milestone in the company’s 30-year history.
That portfolio has nearly tripled in five years, as credit unions increasingly embrace indirect vehicle leasing. Offering consumers increased auto loan flexibility and affordability, leasing provides substantial benefits for credit unions as CULA is seeing record originations this year. With more than 30 active credit unions, CULA’s credit union partnerships are at their highest number to date, and the company has expanded their dealer network across the country by 22% over the past 3 years.
“These are tremendous milestones for our organization,” says Ken Sopp, President of CULA. “With all the upcoming credit unions in the pipeline, these numbers are sure to rise. It’s exciting to see that the industry is embracing the value that leasing brings to the credit union marketplace.”
CULA pioneered indirect vehicle leasing for credit unions with its analytically driven, high-value leasing program and handles the intricacies of leasing for its clients, including analytics, insurance, operations, compliance and more.
In further evidence of the increasing value of vehicle leasing to credit unions, in recent months CULA has grown its national footprint into four more states. CULA already works with many of the industry’s most innovative credit unions, including nine of the top 10 leasing credit unions, and continues to help current partners extend their leasing programs into new states. For example, this year, CULA helped partner Alliant Credit Union expand leasing into six new states.
Current market conditions have driven new and used vehicle prices to all-time highs. The new vehicle transaction price exceeded $45,000 in September 2021, with used-vehicle retail prices averaging more than $25,000.(1) In this car-buying climate with rising car prices, and constrained vehicle inventory and shortages, leasing has proved to be a better / best option for many car buyers, with industry analysts arguing that leasing offers cheaper monthly payments, the opportunity to explore makes or models not previously considered(2), and getting into a new model for two or three years until the industry’s manufacturing problems settle down and prices stabilize(3).
“At a time when inventory challenges remain, and new car prices continue to skyrocket with no exact end in sight, leasing could very well save the day for many consumers,” said Mark Chandler, CULA’s VP of Business Development. “Not only can leasing offer credit union members more financial control, but it can also help grow membership, diversify lending options, and increase yield.”
Chandler noted that because CULA is backed by experience and expertise, it is well positioned to help credit unions be a key part of the auto finance solution during the COVID-19 recovery, providing leasing programs that encapsulate all that credit unions are known for: sterling customer service, creative financing solutions and process flexibility.
About Credit Union Leasing of America
Credit Union Leasing of America (CULA) has been the leader in indirect vehicle leasing for credit unions for over 33 years. Founded in 1988, CULA provides best-in-class program assistance, analytics reporting, compliance support, dealer management tools and member services. The CULA indirect vehicle leasing program empowers credit union innovators to diversify their existing loan portfolios, improve yield and expand member services. Visit http://www.cula.com to learn more.
Media contacts:
Angela Jacobson, mWEBB Communications, angela(at)mwebbcom(dot)com, (714) 454-8776
Melanie Webber, mWEBB Communications, melanie(at)mwebbcom(dot)com, (949) 307-1723
(1) https://www.forbes.com/wheels/news/new-car-price-tops-45000/
(2) https://www.thedetroitbureau.com/2021/10/record-vehicle-prices-mean-one-thing-record-monthly-payments-for-new-and-used-cars/
(3) https://www.forbes.com/sites/jimgorzelany/2021/09/13/these-are-the-cars-and-suvs-you-can-still-lease-for-less-than-200-a-month/?sh=40f7fb987b69
CU Management:
“Why Auto Leasing Makes Sense For Your Credit Union In The ‘New Normal’”
While low supply drives up new and used car prices, leasing can offer members more financial control while diversifying credit unions’ portfolios. In this CU Management article published in September 2021, CULA VP/Business Development Mark Chandler discusses how indirect vehicle leasing meets consumers’ needs and helps credit unions succeed in a post-pandemic landscape.
Excerpt:
We’ve been here before, except last time it was toilet paper and hand sanitizer: Today’s shortage is new cars, and the impact on consumers is far greater than hours-long checkout lines or upset shoppers in grocery store parking lots. Dealers simply don’t have enough cars to sell, prices are higher than ever and there are surprisingly few incentives to help defray the cost of a new auto purchase. According to Kelley Blue Book, in June 2021, the estimated U.S. average transaction price for a light vehicle was $42,258. That’s an increase of over $2,500 (6.4%) from a year ago.
Thousands of half-built cars sit in parking lots around the nation, silently awaiting chips. The natural order of things has yet again been turned upside-down courtesy of COVID-19—there’s a persistent microchip shortage and sky-high used vehicle prices. Who in the world would buy a car in a “new normal” like this?
Read the full article here:
CUNA GAC 2022
February 27 – March 3, 2022
Washington Convention Center
Visit our team in D.C., at the 2022 CUNA Governmental Affairs Conference! We look forward to visiting D.C. once again as an exhibitor and sponsor. We hope to see you there!
2022 CUNA GAC official website
CULA Expansion Continues: Launches in Utah with University Federal Credit Union Leasing Program
UFCU partners with CULA to become the only Utah-based credit union to offer the affordability and flexibility of vehicle leasing to members
San Diego, CA and Salt Lake City, UT– September 14, 2021 – Credit Union Leasing of America (CULA) and Utah’s University Federal Credit Union (UFCU) today announced that they are partnering to bring the affordability and flexibility of credit union vehicle leasing to Utah, with their first leases having closed in August. This partnership makes University Federal Credit Union the only credit union in Utah to offer vehicle leasing, while further expanding CULA’s national footprint.
University Federal Credit Union, which was founded in 1956, is a values-based, full-service financial co-operative serving the needs of more than 100,000 member-owners and their communities. CULA, the leader in indirect vehicle leasing for credit unions for over 30 years, has experienced record leasing demand over the past six months, and, in addition to Utah, recently expanded into or increased regional coverage in New Hampshire, Texas, Massachusetts, Michigan, Pennsylvania, and California, among the many markets it serves.
“Our core values are to create a positive impact on our community and to make a difference for every member, every day, and this means making sure a wide range of financial products are available to our members,” said Jack Buttars, Chief Executive Officer of UFCU. “Finding the right vehicle at the right price has probably never been more challenging than it is today. Working with the terrific CULA team, who streamline the complexities of leasing – from analytics to insurance to operations to compliance – we are now able to ensure that our members have the opportunity to benefit from leasing’s more affordable payments and term flexibility, critical factors given the current market landscape.”
Pandemic-driven chip shortages and supply chain issues have led to severe vehicle inventory restraints that have driven vehicle pricing to record levels, while limiting choice for car buyers. The estimated average transaction price for a light vehicle in the United States was $42,258 in June 2021, with new vehicle prices increasing $2,527 (up 6.4%) from June 2020, and $928 (up 2.2%) from May 2021.[1] Vehicle leasing offers consumers the option of lower monthly payments – on average about $100 less than vehicle loan payments,[2] with lease payments on SUVs an average of $109 lower than loan payments[3]. In addition, leasing provides consumers with the option of shorter term commitments versus purchasing. This is key for consumers who need a vehicle, but can’t find the exact model they want in the current market.
“We’re pleased to be able to further extend our footprint in the West, at a time when leasing is such an important option for consumers, by partnering with UFCU, an institution that exemplifies what credit unions are all about: serving the community,” said Ken Sopp, CULA’s President. “Utah is a new state for us and we are excited to ‘pioneer’ credit union leasing here. Our leasing program can amplify the customer-centric values of University Federal Credit Union, while also expanding and diversifying their portfolio of services, helping to further enhance membership and yield.”
The above market conditions have driven a swell of interest in leasing; and credit unions, with their trusted positions in their communities in these uncertain times, have helped their members with a record number of leases in partnership with CULA. The first six months of 2021 were record-breaking for CULA, with over $950 million in lease originations, an 88.8% increase over the same period in 2019, and the highest period of originations in CULA’s more than 30-year history.
CULA pioneered indirect vehicle leasing for credit unions with its analytically driven, high-value leasing program supported by stellar customer service and proven systems, all with a focus on helping credit unions meet their financial and membership goals.
About University Federal Credit Union, Utah
University Federal Credit Union is a values-based, full-service financial co-operative serving the needs of more than 100,000 member-owners and their communities. Our mission is to create a positive impact on our community and to make a difference for every member, every day.
About Credit Union Leasing of America
Credit Union Leasing of America (CULA) has been the leader in indirect vehicle leasing for credit unions for over 30 years. Founded in 1988, CULA provides best-in-class program assistance, analytics reporting, compliance support, dealer management tools and member services. The CULA indirect vehicle leasing program empowers credit union innovators to diversify their existing loan portfolios, improve yield and expand member services. Visit www.cula.com to learn more.
Media contacts:
Angela Jacobson, mWEBB Communications, angela(at)mwebbcom(dot)com, (714) 454-8776
Melanie Webber, mWEBB Communications, melanie(at)mwebbcom(dot)com, (949) 307-1723
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[1] https://mediaroom.kbb.com/2021-07-19-Average-New-Vehicle-Prices-Hit-All-Time-High,-According-to-Kelley-Blue-Book
[2] https://www.experian.com/content/dam/marketing/na/automotive/quarterly-webinars/credit-trends/q1-2019-safm-final-v2.pdf
[3] https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/state-of-auto-finance-q2-2021.pdf
