HAUPPAUGE, NY (June 17, 2013) As the economy turns, so does auto leasing, according to CU Xpress Lease (www.cuxpresslease.com) based here, which today reported a 125% climb in nationwide leasing numbers it has been tracking since the start of the year. In May alone, this produced a 248% rise since the same period in 2012.
More and more credit union members are looking to lease rather than buy, the nation's largest originator of credit union leases and a GrooveCar affiliate company acknowledged, with the mean credit FICO (Fair Isaac) score on a new vehicle lease at 755.
Recent polls by CreditForecast.com and Experian Automotive underscored that total US auto lease balances were up an average 9% in March or twice the increase over the same period in the prior year. Experian's numbers showed that new vehicle leasing during the first quarter alone of this year broke all records since they started to track in 2006, which CU Xpress Lease validated in its recent polling activities.
Among the credit union leaders in auto leasing volume last month alone were Teachers FCU, Nassau Educators FCU, and Bethpage Federal FCU, the major Long Island-based credit unions. Overall, LI credit unions closed over $30 million in May lease loans, a 372% surge from the previous year, which CU Xpress Lease has been tracking. CU Xpress Lease's portfolio currently exceeds $1.4 billion.
Leasing is the perfect product for this economic environment, explained Frank Rinaudo, CU Xpress Lease senior vice president. "Consumers and CU members are actively taking advantage of the low out-of-pocket and monthly cost to lease a car, especially when you consider the high labor rate in fixing or repairing. People are leasing all levels of vehicles from budget, compact, mid-sized to luxury and this is giving rise to a changing consumer mind-set about leasing. Nowadays, we find that once you lease, you will always lease."
He also took note of a trend among younger buyers, who have joined middle-aged mature professionals and turned to leasing.
CU Xpress Lease also found that the average monthly payment for a new vehicle thus far this year was down from the previous year, reflecting better available rates, inventory and funding, notably through the nation's credit unions, who have the money and ability to lend.
About CU Xpress Lease, Inc.
CU Xpress Lease is a joint venture of privately held GrooveCar, Inc. in Hauppauge, NY and Fusion Auto Finance LLC in Hurst, TX. It was formed in 2006 to provide an alternative lease product for credit unions and their members. Additional information may be found at www.cuxpresslease.com or contact us at (631) 532-2539.