Because car buyers come in all shapes and sizes, meeting the needs of the vehicle-buying population should go beyond a one-size-fits-all approach. When a member is shopping for a vehicle, credit unions should provide as many options as possible – especially to millennials, a group that is starting to define the lending landscape. While applications for leases grew 7% in 2016 over 2015, in the last five years leasing has increased by double digits (from 16% to 33%).

Overall, there was a 49% increase in millennials with a lease contract on a new vehicle between 2012 and 2016, according to Dealertrack. Their influence will only continue to grow as their buying power increases. Providing a lease option will not only attract this segment of the population, but also provide a healthy boost for a credit union's loan portfolio. With one of every three new cars being driven off the lot via a lease, being part of this all-time high will be an important consideration for credit unions.

While leasing accounts for one-third of the autos financed in the U.S., in some regions that number is much higher. In the metropolitan New York City area, dealers reported up to 70% of all new car sales are financed through leasing, and the same is true in South Florida, Southern California and Michigan. The reason these areas experience a higher than national average leasing rate is the environment is just right for it. Urban professionals are looking to take advantage of the monthly cost savings and are also able to meet the required low mileage allowances. Other reasons for obtaining a lease include getting more car for your money, enjoying fewer maintenance headaches, putting less money down and being able to drive a new vehicle every three years. Another bonus is a vehicle financed through a lease can cost up to $100 less monthly than if it is purchased through a traditional loan. Experian reported a new loan in the third quarter of 2016 cost an average of $495 monthly compared to a new lease at $405 monthly. This represents a huge savings for many members who can keep their mileage within the limits of the lease while preserving the vehicle's resale value.