It’s no news that the “renter” generation, a.k.a. the millennials, have been the drivers of the leasing trend recently. Different finance providers take note of that.
Credit Union of Southern California (SoCal), for one, is preparing to launch leasing in March 2016, Tom Orman, senior vice president of lending, told Auto Finance News.
“Dealers constantly want speedy decisions and fast loan turnaround,” Orman said. “Especially with leasing, we deal with super-prime customers who demand great service.”
To meet those needs, the 80,000-member credit union partnered with CU Xpress Lease last week to begin integrating an indirect lease network. Alternative lease provider CU Xpress Lease builds relationships with local auto dealers and then provides lease information on individual lease applications, according to Orman.
“The Southern California market is one of the top lease markets in the country, and we felt that being in this channel would allow us to do more contracts of quality,” he said. CU Xpress will also purchase off-lease returns once the leases mature, and it will bear costs for any excess wear and tear.
“The process is automated, as the applications are filed online, and our job is to just turn around the paperwork,” Orman said. “It helps us, as we move to integrating e-contracting and e-signatures in the near future.”
The story originally appeared in weekly Auto Finance News Update. Subscribe to receive more exclusive stories in your inbox.
