HAUPPAUGE, N.Y. -

Two Northeast credit unions recently reported exponential growth using CU Xpress Lease, an alternative new-vehicle leasing product that incorporates low residual value risk to create incremental loan growth and increased efficiency.

Teachers Federal Credit Union in Hauppauge, N.Y., said it experienced year-over-year growth in excess of 277 percent using the program. IC Federal Credit Union in Fitchburg, Mass., indicated it has experienced more than 150 percent growth since 2012.

"We introduced leasing in 2007 to diversify our product line while expanding our access to prime borrowers," said Nancy Orlando, senior vice president of credit at TFCU. "Since then, we have seen exponential growth as our members have embraced leasing as their preferred auto financing option."

CU Xpress, which is a part of GrooveCar, leased more than 36,000 vehicles through December in a portfolio exceeding $1.5 billion.

"Leasing not only propels a credit union into becoming a full service automotive lender, it provides a doorway into capturing a substantial portion of new vehicle market share. In fact, in certain areas of the country, leasing represents more than 50% of the new vehicle market," GrooveCar senior vice president Frank Rinaudo said.

"Plus, there are far fewer lease lender options for dealers to choose from when compared to traditional finance options," Rinaudo continued. "This significantly increases the opportunity for our credit union partners to pick up substantial volume without compromising credit and interest rate risk.

"One of the key points these growth numbers indicate is that leasing is a strong product in multiple markets and it is viable for credit unions of different sizes and demographics," he went on to say.

CU Xpress Lease was formed in 2007 by GrooveCar and its affiliated partner, Fusion Auto Finance. Additional information can be found at www.cuxpress.com.