ONTARIO, Calif.–CU Direct, the provider of lending, automotive and strategic solutions to the credit union industry, has entered into a new agreement with Credit Union Leasing of America.
As a result of the agreement, CU Direct said it will be leveraging CULA’s technology through its CUDL Auto Lending Network to offer a consumer vehicle leasing option to credit unions and their members. The CUDL Network is the nation’s largest credit union auto lending platform, with 1,100 credit unions and 11,400 auto dealers.
Integrating CULA’s leasing interface into CU Direct’s CUDL Network provides interested credit unions a solution to capture member financing through the leasing channel, the company said. With the growing trend in consumer leasing at the dealership, accounting for slightly more than 31% of new-vehicle financing in the first three months of 2015, credit unions can now better serve their members, the company added.
“Credit Union Leasing of America is extremely excited about our partnership; having CU Direct select us as their approved lease program vendor is a major milestone in our 27 year history,” said Greg Gandolfo, CULA’s executive vice president. “This partnership will give CU Direct’s credit unions and dealers access to a financing option whose national market share now exceeds 30%. CU Direct’s credit unions now have an additional option to help grow new membership, as well as have the ability to retain their current members that prefer to lease their vehicles. Their technology, as well as their credit union and dealer partners will help fuel CULA’s growth.”
CULA has provided safe, compliant consumer and business lease and balloon loan programs for credit unions engaged in indirect lending and business lending since 1988.
“We look forward to working with CULA, and to providing our credit unions with a leasing solution that will help them to better serve their members, and increase loan opportunities,” said Chris Harper, CU Direct’s national director, strategic alliances. “Vehicle leasing continues to be an area of lending that credit unions are looking at to generate loans.”
CU Direct credit unions funded more than 1 million loans through CU Direct’s CUDL lending platform, generating $22 billion in credit union auto loans in 2014. The company reported it has helped its credit unions increase loan growth 17% thus far in 2015, and as a result CU Direct credit unions, as an aggregate, are the third largest auto lender in the nation.