CULA expects 15% YoY leasing growth in 2026 amid industrywide drop

While overall auto leasing is expected to fall in 2026 after the expiration of the EV tax credit, Credit Union Leasing of America could see growth as credit unions look to solve affordability concerns. CULA plans to grow its leasing volume 15% year over year in 2026 on the heels of a 35% month-over-month uptick in leasing applications in March, Chris Harper , director of business development at CULA, told Auto Finance News . Part of the growth may result from CULA’s upcoming geographic moves, he said. CULA, which inked a deal with Springfield, Vt.-based One Credit Union on March 23, plans to expand into “several new states,” including Kansas and Georgia, Harper said. Credit unions are interested in leasing to address sustained consumer affordability pressures , he said. Leasing, Harper said, can provide credit unions with: Lower delinquency rates, as mostly prime and super-prime consumers lease; Lower monthly payments for consumers; and Less negative equity, compared to stretching out loan terms to 96 months. “It puts strain on a credit union’s portfolio by going with these extended terms … because they are rolling negative equity from one loan to the next.” — Chris Harper, CULA “It puts strain on a credit union’s portfolio by going with these extended terms … because they are rolling negative equity from one loan to the next,” he said. “They’re putting constant pressure on their portfolios. If a loan goes bad in year four, you’re now looking at a deficit loss that you weren’t looking at previously.” Leasing made up 22.9% of industrywide auto sales in March, down 0.5% YoY, according to a JD Power report published March 26. Used leasing ‘not embraced’ yet by dealers Despite some lenders eyeing used- and certified pre-owned vehicle leasing , dealers have not bought into used leasing as a whole, Harper said. CULA has not “seen the dealers embrace” used-car leasing as an alternative to used-vehicle financing, he said, noting dealer sentiment may change as affordability pressures mount. “The market is going to force dealers to start looking at it,” he said. Other lenders have also shown interest in used leasing: Fintech AmeriTrust Financial Technologies launched a side-by-side used-vehicle loan and lease comparison tool in January to help customers lower their monthly payments. EV headwinds The biggest challenge facing leasing volume appears to be the expiration of the federal EV tax credit, which caused an industrywide “big drop” in leasing in Q4 2025, Harper said, noting that CULA mainly leases internal combustion engine vehicles. “We’re not huge into the EV market,” Harper said. “We deemed it a little bit volatile for the risk it might pose to our credit union partners.” New lease volume and lease penetration are expected to decline in 2026, driven by the end of the federal EV tax credits, according to Cox Automotive’s first-quarter forecast published March 25. New lease volume is expected to drop 12.7% YoY to 2.8 million vehicles in 2026, and lease penetration is expected to fall 2% YoY to 22%, according to Cox. Regardless of the EV market, credit unions are in a strong position to offer leasing, as they have more liquidity than in 2024, and it seems unlikely that interest rates will increase, CULA’s Harper said. “Those two dynamics will really help propel us,” he said. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live .

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CULA expects 15% YoY leasing growth in 2026 amid industrywide drop

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