Welcome to LoveMyCreditUnion.org

Welcome to the Love My Credit Union Rewards Blog!

Love My Credit Union Rewards is an exclusive discount program that was created (as Invest in America) in 2008 to help credit union members save on the products and services they use every day.

We began with the Credit Union Member Discount from GM and soon grew to include the Sprint Credit Union Member Discount as well as savings programs from TurboTax, DIRECTV, Allied Van Lines and ADT. Plus, we offer our own discount partners Love to Shop and the Credit Union Auto Club.

Our blog is to give you insider info on the latest discounts and share other ways to help you save. We hope you enjoy our blog and saving at LoveMyCreditUnion.org!

Thursday, September 24, 2009

Now Is The Right Time To Take Advantage of Leasing Opportunities

In today's increasingly competitive environment of both brick and mortar and online financial institutions, your credit union's loan portfolio may be taking a beating.  To attract new members and grow your credit union's portfolio, your credit union needs to offer a wider variety of products.

One way to do that is to get your credit union involved with leasing GM or Ford vehicles through Invest in America.  Now if you think that leasing is to risky for your credit union, I ask you to think again.  With today's rising residuals and, thanks to Cash for Clunkers, a shortage of used cars, now's a great time for credit unions to get into the leasing business.

How is the Invest in America leasing program different from traditional leasing programs?  Key reason: Leasing through Invest in America lessens your credit union's financial risk because of the manufacturer's contributions.

How else is the Invest in America leasing offer different?
  • Reserve for residual losses: 10% through Invest in America, 3% through traditional lease programs
  • Reserve provided by: 60% provided in cash by the manufacturer with Invest in America; provided by lease partner and taken from Acquisition fee through traditional lease programs
  • Wear and Tear: Through Invest in America, the lease partner waives the first $1,000 of the wear and tear at lease end.  Any additional wear and tear not collected at lease end is a credit risk.  In a traditional lease program, the credit union bills the member for lease end wear and tear.  If not collected, it is a credit risk.
  • Residual Value Insurance: Through Invest in America, it is designed to pay claims after 10% of the reserve has been used*; in traditional lease programs the claim is paid only after 100 basis points has occured
  • Risk: Leasing through Invest in America has low risk, with great growth and profit potential.  
  • Residual Values: Conservative with Invest in America, enhanced through traditional lease programs
  • Competition: Through Invest in America, there is little to no bank and captive company competition, traditional lease programs have strong bank and captive company competition.
Remember, just because leasing is considered by some to be non-conventional doesn't mean there is more risk involved.  Do your research, both Credit Union Leasing of America and Groovecar can help you work out the benefits and risks.  There's never been a better time for credit unions to start leasing, and it's never been easier or safer than with Invest in America.

*Provided Black Book Average is the settlement floor.

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