Why Do So Many Credit Unions Offer a Lease Product?

31% of new cars sold are leased, providing the opportunity for incremental loan growth.

The Federal Reserve has raised interest rates three times in 2018 and is expected to increase them further in 2019. This has increased the average APR on a vehicle loan in September to 5.8%, compared with 4.8% a year ago. Rising interest rates increases the monthly cost of a new vehicle, making leases a more appealing option for your members who are seeking lower payments.

To experience continued growth in this rising rate environment, auto leasing should be at the forefront of your strategy. Otherwise, you're limiting your potential by missing out on this lucrative market:

  • 70% of all new vehicles sold are leased [in select markets]
  • 33% of Millennials leased their car in 2018
  • 80% look-to-book with a 770 average FICO

 

Download our free guide to auto leasing, where you'll learn:

  • The key factors into why your members choose to lease
  • Decisive benefits to your credit union
  • How to offer a lease program that guarantees full residual value without risk exposure

 

 

Complete the form to get your free guide to auto leasing:

 






 

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CREDIT UNION PARTNERS THAT OFFER LEASING