HOUSTON – Auto Financial Group (AFG), an online provider of residual-based financing products for credit unions, has signed an agreement with Credit Union Services, Inc. (CUSI). Under the agreement, AFG will be responsible for marketing CUSI's vehicle lease solution to other credit unions, as well as handle all proactive remarketing, disposition of lease vehicles at lease maturity, and provide residual value insurance.
As a subsidiary of Credit Union of Texas, CUSI has been originating leases to its members for more than a decade. This deal with AFG will allow it to originate leases with additional credit unions, specifically the approximately 175 credit unions that AFG counts as current customers.
AFG has experience in auto financial products for credit unions. Its Driving Sense product includes many of the same features as the lease solution it is now providing to CUSI, including a guaranteed, predetermined vehicle residual value through third-party insurance, automatically generated loan documents, and no end-of-term hassles because AFG handles disposition of the vehicle.
By removing the financial risk to the credit union, AFG empowers the credit union to compete with traditional loans and conventional leases from auto manufacturers and banks. Under the agreement, CUSI will offer the lease solution in 45 states.