BEDFORD, Texas — Fusion Auto Finance, which develops auto leasing programs for credit unions, has acquired the GrooveCar Family of Brands for an undisclosed amount.
The GrooveCar Family of Brands includes CU Xpress Lease, an auto lease program for credit unions with a portfolio exceeding $5 billion and more than 100,000 vehicles, and GrooveCar Direct, an online auto buying platform exclusively for credit union members. The acquisition also includes CU Xpress Lease CA, CUAutoCoupon, and GrooveCar Inc.
"GrooveCar provides an exciting opportunity for us to strengthen our relationships with our credit union partners and to accelerate our growth plans into new markets," said Fusion CEO Jim Calvert. "We're excited to welcome the GrooveCar team to our organization and look forward to working together to further enhance our product offering."
Prior to the acquisition, CU Xpress Lease operated as a joint effort between the two companies. GrooveCar provided the indirect lending platform, marketed the program to dealers, acted as a liaison on behalf of the credit union, and managed the dealer relationships. Fusion is the titled owner of each leased vehicle, bears the value risk on all vehicles at lease maturity, and pays full residual value to the credit union at lease maturity.
By acquiring CU Xpress Lease, according to officials, Fusion will be able to increase efficiencies, collaboration, and competitiveness of the program.