SAN DIEGO – Credit unions have typically shied away from auto leasing because of the risks involved with paying off the residual value of leased vehicles. But with interest rates rising, leasing is again becoming a popular option among consumers, and Credit Union Leasing of America says its tools can help bring credit unions to the necessary level to be able to compete effectively in this important market and with minimal risk.

According to CNW Marketing Research, 20% of all vehicle finance contracts in 2005 were for leased vehicles, and AutoCount data show the leasing market increased 17% as of December 2005 to its current level of nearly 23%.

"Twenty-two percent of every car sold is a lease. So if a credit union doesn't offer a leasing product, that's a big chunk of business they're losing," said CULA's Greg Gandolfo, vice president of business development.