F&I and Showroom, December 2020

DEVELOPMENTS 10 F I and Showroom December 2020 VEHICLE LEASING SOARS AT CREDIT UNIONS IN OCTOBER Credit Union Leasing of America CULA announced that October was a record month for vehicle leases for the company with more than 150M in lease originations booked through its credit union partners in a single month This represents a 31 increase over the same period in 2019 and the highest single month of originations in its more than 30 year history CULAs partners include nine of the top 10 credit unions offering leasing in the U S Vehicle sales have been leading the recovery during this pandemic and are a bright spot on the path to economic stabilization Vehicle leasing is uniquely positioned to meet this moment as borne out by the record number of credit union members CULA helped into leases last month said Ken Sopp President of Credit Union Leasing of America Leasing has historically represented about one third of all new vehicle sales In todays uncertain climate consumers want flexibility and affordable payments something that leasing offers Couple that with the trust consumers place in their community credit unions and the growing importance of the personal vehicle and we believe leasing is poised to be an increasingly critical component of credit union portfolios According to an Edmunds forecast in the third quarter of 2020 consumers purchased 306 more vehicles than in the second quarter in the immediate wake of the COVID 19 pandemics emergence GETTYIMAGES COM STUARTMILES99 At a time when many Americans are adapting to a lifestyle with fewer places to go a new survey from Ally finds that cars and personal transportation are more essential to peoples lives than prior to the COVID 19 pandemic Seventy two percent of car owners say that going for a drive alone allows them to clear to their head according to a survey of 2000 American adults conducted by OnePoll on behalf of Ally Financial Nearly three quarters of men 73 and more than half of women 53 consider their car to be their personal fortress of solitude In addition the pandemic has caused Americans to rethink their desired mode of transportation Nearly 3 out of four Americans 72 are wary of using public transportation because of COVID 19 This isnt just a short term trend 69 of car owners say they plan on driving more after the pandemic ends rather than use public transportation The pandemic has forced Americans to rethink how we use cars and why said Mark Manzo president of Ally Insurance Even though many of us are using our vehicles differently cars are more vital than ever serving as a source of solitude and providing a safe means of travel for us and our families When it comes to work related driving 45 are spending less time driving or not driving at all to and from work Meanwhile 26 of gig job drivers such as DoorDash or Instacart have increased their time behind the wheel While driving plays an important role helping Americans ease their minds Allys survey finds that many car owners are dealing with stress concerning auto expenses More than half of drivers 57 are worried about unexpected repair costs and 58 may hold on to their current vehicle longer than originally planned The survey results also highlighted the tough choices many car owners have made due to the pandemic More than one in three 36 have had to choose between a car payment or car repair GETTYIMAGES COM DUSANPETKOVIC Survey Reveals Heightened Dependence on Cars in Pandemic