HOUSTON, Texas -- Auto Financial Group has signed an agreement with Credit Union Services Inc., a wholly-owned CUSO of Dallas-based Credit Union of Texas that allows the online provider of residual-based financing to market CUSI's vehicle lease solution to other credit unions throughout the U.S.
In the past the CUSO provided its FairLease program to other credit unions' members, but more recently CUSI's focus has been on indirect leasing, according to CUSI's Sonny Geels, business development coordinator.
CUSI's partnership with AFG, she said, will make it possible for the CUSO to originate leases with additional credit unions, specifically AFG's approximately 175 credit union clients.
CUSI already has relationships with over 600 dealers in 45 states through the indirect leasing program set up with Credit Union of Texas. Geels said the CUSO will offer credit unions both direct and indirect leasing programs, depending on what they want.
Since 1995, CUSI has originated over 26,000 lease contracts representing more than $950 million in auto receivables.
As part of its new partnership with the CUSO, AFG will handle all proactive marketing, disposition of lease vehicles at lease maturity and provide residual value insurance.
AFG's Driving Sense(TM) online residual-based auto financing product lets credit unions "build" a vehicle for their members and compare payment terms with conventional loans. Other features include a guaranteed, predetermined vehicle residual value through third-party insurance and automatically generated loan documents. At the end of the lease term, AFG handles the disposition of the vehicle.