CU Xpress Lease and CUNA Mutual Group will expand their collaboration into major auto leasing markets in Florida, California, New Jersey, New York, and Massachusetts, in an effort to help credit unions, auto dealers and members secure and safeguard more automobile leases.
Under the partnership, CU Xpress Lease will provide credit unions with a turnkey auto leasing program that can be issued to members directly through a credit union's dealership partners, while CUNA Mutual Group will underwrite for CU Xpress Lease's Guaranteed Asset Protection product that covers the difference between the member's primary insurance settlement and the outstanding loan balance in case of an accident or theft, the companies announced Monday.
CU Xpress Lease is a subsidiary of GrooveCar, a provider of automobile and automotive services and products. CUNA Mutual Group offers credit unions both commercial and personal insurance products.
"Providing this opportunity, along with CUNA Mutual Group's support, will offer credit unions new avenues of growth and expansion," Frank Rinaudo, senior vice president, GrooveCar, said in a press release about the partnership.
Since 2010, auto leasing has risen 40% and accounts for more than a quarter of all new car purchases nationwide, including 29% of millennials' car purchases in 2015, according to GrooveCar.
