Our Products / Commercial Vehicle Lease
1) Key Commercial Leasing Program Features
CULA’s Commercial Auto Leasing Program is designed for credit unions and banks of all business lending experience. CULA’s TRAC lease (Terminal Rental Adjustment Clause) product can be offered to existing and potential members alike when financing options are discussed by the loan officer or at the dealership. The lender makes the credit decision, the dealer executes the necessary paperwork and the lender can fund the dealer directly. CULA’s comprehensive insurance protection, as well as its unmatched experience with member education and disposition of returned vehicles at lease end assures a safe, competitive and compliant program that is proven to increase the lender’s loan growth.
A) Comprehensive lessor related insurance
Protects the lender from potential exposure in a wide variety of circumstances:
- Contingent Liability/Contingent Physical Damage Insurance
- The lender is named as the loss payee guaranteeing the lender receives the insurance benefits
- Full Care, Custody, and Garage Keepers.
B) No residual risk to the lender
The CULA Business Lease is an open-ended, Terminal Rental Adjustment Clause (TRAC) lease.
- The lessee is responsible at lease end for any difference in realized market value and the residual value of the vehicle.
- The lessee is guaranteed a certain residual price for the lease when the lease ends.
- TRAC lease residuals are set with conservative industry standards, to put the business member in the best possible position at lease end.
- The lender has no residual risk with a TRAC lease.
C) NCUA, state and federal program compliance
Keeps the program up-to-date and gives the financial institution peace of mind:
- CULA’s leasing program is designed to be compliant with NCUA’s ruling regarding credit unions and banks engaged in Indirect Leasing
- State compliance and federal leasing laws are carefully monitored to ensure a compliant lease financing program is in place
- The industry’s lead counselor, Nisen & Elliott, LLC, has been partnering with CULA to ensure state and federal compliance.
D) Complete packages customized for your program
All necessary forms, designed to be NCUA-compliant, provided at no cost to the financial institution:
- No need to create forms or other documents
- Customized automobile lease agreements that are state specific
- Lease documents for dealers
- Dealer Lease Program guides available via the Internet
- Online Training manuals for staff
E) CULA performs tax filings and lease accounting
Full lease accounting and management provided:
- Relieves the lender of accounting and tax remittance responsibility
- CULA reports and remits the sales tax and manages all lease accounting, including FASB 13
- Reduces accounting work performed by the lender
F) Extensive and on-going staff training
In-house planning and training at all levels. Assures the program launches and runs smoothly:
- CULA provides pre-implementation planning and training
- Comprehensive training manuals for staff
- Ongoing training by experienced trainers
- Senior management and board member training sessions
- A CULA Service Manager is assigned to assist your financial institution
G) Dealer Training and Support
Active presence and support at the dealership. Secures dealership loyalty to your program:
- Dealer representatives trained in the field
- CULA also provides Dealer Lease Program guides via the Internet
H) Comprehensive member education regarding lease-end options
Multiple resources made available to members at lease end. Keeps members satisfied with their leasing experience:
- Personal tele-consulting, educational brochures and complete follow-up provided
- Member education and convenience is emphasized
- Enhances member retention and product satisfaction
I) Uniquely effective remarketing services
Experienced disposition experts aim for top dollar recovery. Sales proceeds maximized, selling time minimized:
- CULA’s remarketing department assists the member with convenient vehicle return and disposes of the vehicle for the lender
- Unique remarketing strategies for lease returns using nationwide industry relationships provide maximization of sales proceeds, while minimizing the time for selling off-lease vehicles
- Assistance with repossessed vehicles also available
To print a presentation of this information, click here to be directed to our marketing documents.
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2) Commercial Vehicle Leasing – Business Lessee Benefits
Your financial institution should offer a superior lease program, specifically designed to meet the needs and expectations of the financial institution business lessee. CULA’s Business Lease has some clear advantages:
A) Tax-Oriented Lease and a Pre-Established Purchase Option
The CULA TRAC lease provides a business with the tax benefits associated with leasing. The purchase option price is established at lease inception and the lessee can purchase the vehicle at lease end for the pre-established price.
B) No Down Payment Required
There is no down payment or security deposit required as part of CULA’s Business Lease.
C) Simple Interest Calculation
Simple Interest is the fairest lending calculation methodology which helps keep the member’s payoff balance lower.
D) No Early Termination Penalties
Many lease programs still impose penalties, even thousands of dollars if the lease is paid off early. With CULA’s business lease, the member is only responsible for the current payoff at the lender and a market competitive purchase option fee (as disclosed in the lease agreement) if he/she elects to end the lease early.
E) No Cash Outlay for Taxes and Registration
Initial taxes and registration fees can be included in the capitalized cost of the vehicle. There is no up front taxation of the vehicle purchase price for the member to pay or for you to finance.
F) More Options At Lease End than a Conventional Loan
With CULA’s business auto lease, the member has many options available; purchase and keep or purchase and sell at any time, lease again, trade-in at a dealer, or turn in at the end of the lease term.
G) Lease-End Lessee Assistance
The financial institution business lessee is contacted prior to the expiration of their auto
lease by CULA's customer service representative (CSR). The CSR works with the
member regarding their lease-end options and how to conclude their
responsibilities based on the member's selected option at the
end of the lease term.
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