In a challenging auto finance environment, CULA grew its portfolio as well as Credit Union and Dealer Partners, while expanding national footprint

San Diego, CA – February 29, 2024 – Credit Union Leasing of America (CULA) experienced double-digit growth in its portfolio, credit union and dealer partners in 2023, even in the face of a challenging auto finance environment, the company announced today. CULA drove 24% growth in credit union partnerships year-over-year, with four of those additions driving expansion into multiple states.

In addition, the Company grew active dealers 17%, adding 274 new dealers to the program. CULA now offers vehicle leasing through credit unions in 23 states and more than 40 credit unions are currently active on CULA’s innovative leasing platform.

“While vehicle prices have been trending down, the average transaction price remains $6500 higher than in January 2021 according to Kelly Blue Book[1],” said Ken Sopp, President of CULA. “High prices, coupled with an elevated interest rate environment, continues to make it challenging for consumers to afford cars, which is why leasing remains a strong option for credit unions to offer members in the market for a new or used vehicle – and why we expect to see continued growth in 2024.”

According to CULA’s January 2024 “Future of Auto Finance” survey, nearly 60% of credit union professionals say they believe vehicle leasing would be a positive addition to their finance portfolio in 2024 – data that is borne out by the uptick in new vehicle leasing reported by Experian: from 21.15% in 2022 to 27.37% in 2023[2].

Sopp also noted that the growth CULA has seen in its dealer partnerships is something they expect to continue in 2024. In fact, over 70% of credit unions in the CULA survey reported that they plan to deepen/increase those relationships in 2024. “Dealer partnerships have been core to a credit union leasing program’s success and it makes sense as it offers dealerships yet another financing option for its customers.”

“Vehicle leasing enables dealers and credit unions to provide relief from the high price of vehicles to their members, as well as term flexibility, without the risks of longer-term loans,” continued Sopp. “Leasing has, quite simply, become a necessary portfolio offering to help credit unions remain competitive in the current environment – and for the long term.”

According to Vince Nowicki, Chief Lending Officer of Mission Federal Credit Union in San Diego, California, a CULA partner since 2018: "Since we have partnered with CULA on vehicle leasing, we have been able to open up an important, more affordable alternative to help our members get into a vehicle without taking on an extended loan. And the benefits to us, in addition to helping our members, are higher yield, greater portfolio diversity and staying relevant with our members’ preferences, as well as being able to rely on CULA to navigate the back-end complexities of leasing for us so we can focus on member service. Offering a lease product was a new strategy for Mission Federal. We were fortunate to have partnered with CULA who helped us every step of the way.”

CULA has been the leader in indirect vehicle leasing for credit unions for over 35 years. Its innovative leasing program is analytically driven, high-value and handles all the intricacies of leasing for its clients – including insurance, operations, compliance and more. CULA’s understanding of the credit union financial model has resulted in long-term business relationships with top-tier credit unions, including nine of the top 10 credit unions offering leasing in the U.S. The program enables credit unions to easily add leasing to their portfolios and dealers to offer their customers more finance options, especially as affordability becomes their main concern.

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 35 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 https://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.kbb.com/car-advice/when-will-car-prices-drop/#link1 

[2] https://news.cuna.org/articles/123161-vehicle-loan-terms-decrease-as-interest-rates-rise

The leader in indirect vehicle leasing for credit unions partners with New York-based credit union to expand its reach in the northeastern U.S.

San Diego, CA & Corning, NY – November 28, 2023 – Credit Union Leasing of America (CULA) today announced that it has been selected by New York-based First Heritage Federal Credit Union to bring the affordability and flexibility of vehicle leasing to its more than 45,000 members. The partnership further extends CULA’s footprint in the northeastern United States.

First Heritage Federal Credit Union has served members in communities throughout New York and Pennsylvania for nearly 70 years, has more than $700 million in assets, and was recently voted the Best Credit Union in the Twin Tiers for the third straight year. CULA, which enables credit unions to easily add vehicle leasing to their portfolios, and dealers to offer their customers more finance options, has been the leader in indirect vehicle leasing for credit unions for over 30 years.

“We are pleased to partner with CULA to offer vehicle leasing as an effective and affordable vehicle financing option to our members,” said Tom Pisano, First Heritage President and CEO. “This aligns with our commitment to help our members achieve a better life for themselves and their communities: a ‘people helping people’ mindset that instills in our operations a higher level of service and value, and one of the reasons we selected CULA’s program.”

Pisano also noted that, with CULA, their dealer partners now have more options, greater lending solutions to leverage, and more flexibility, a key advantage, especially as vehicle prices continue to stay elevated.

According to Edmunds, as of Q3 2023 used vehicle prices averaged $28,935 – a 44% increase over Q3 2018. A recent survey of credit unions conducted by CULA revealed that over-extension on used vehicle loans is the number one concern for credit unions. The survey also found that the vast majority of credit union respondents (92%) agree that they would like a better alternative, such as short-term financing with affordable payments and higher yield. Indirect vehicle leasing offers a low-risk, good-yield, short-term finance option for both lenders and consumers.

“First Heritage Federal Credit Union has been meeting the financial needs of their community members for several decades. We’re pleased to further help them help their members, especially in providing a solution to persistent vehicle affordability issues, while also helping improve yield,” said Mark Chandler, Vice President of Business Development for CULA.

CULA’s indirect vehicle leasing program, which has experienced record growth over the last two years, handles the intricacies of leasing for its clients – including analytics, insurance, operations, compliance, and more. The company pioneered indirect vehicle leasing for credit unions, has the largest number of credit union partners, the longest combined tenure with credit unions and partners with the industry’s most innovative credit unions, including nine of the top 10 credit unions offering leasing in the U.S.

About First Heritage Federal Credit Union

First Heritage Federal Credit Union is a community-chartered credit union that serves more than 45,000 members in an eleven-county region including Chemung, Steuben, Livingston, Schuyler, Tioga, Allegany and Yates Counties in New York and Tioga, Bradford, Lycoming and Potter County in Pennsylvania.        

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 https://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

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.

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.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/

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, AND SALT LAKE CITY - 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 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://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