We’re experts at managing and mitigating residual value risk
We pioneered credit union indirect vehicle leasing – a low-risk, high-value leasing program supported by stellar customer service and proven systems that make vehicle leasing a win for credit unions, auto dealers and credit union members.
We take a broad-brush approach and ask the right questions - is there a viable vehicle lease market for your credit union? Is it the right time for your credit union? What impact will an indirect vehicle leasing program have on your members and portfolio?
We work with your credit union to determine the financial impact on your credit union’s portfolio. Our models and experience enable us to run through scenarios unique to your credit union’s market, lending appetite and risk preference.
All leasing programs have inherent risk. We manage and mitigate risks by employing our proven Residual Value Risk Management System. Three decades transcending three deep U.S. recessions have proven CULA’s model.
Credit union members want a lease optionConsumers are demanding more options to get into the right vehicle. Roughly 30% of new vehicles are being leased today. Vehicle leasing is popular among millennial and boomer markets – two demographics that typically have higher credit scores.
Benefits of indirect vehicle leasing for members
- Lower monthly payments to your member
- The best lease in the industry
- Flexibility in ownership, as needs change, vehicles change
Benefits of indirect vehicle leasing for Credit Unions
- Leverages the structure of your existing, indirect vehicle loan program
- Enhances your dealership relationship
- Delivers an ROI that is accretive to your entire product portfolio
- It doesn’t try to be all things to all members (vehicle selection)
- More “stickiness” with members a way to attract new ones
- Lessees are good credit risks. Average FICO scores are over 740!