LEASE CREDIT APPROVAL RATES IMPROVE SLIGHTLY TO 70.9% IN OCTOBER
Lease Approval Ratings Rise Slightly Following -3.9% Dip in Month of September
Cincinnati, OH (November 16, 2018)
Swapalease.com, the nation’s largest car lease marketplace, reports car lease credit applicants registered a 70.9% approval rate in October, a slight rise from the September rate of 69.8%.
The number of lease approvals is significantly higher than the same time last year, as just 55.6% of lease applicants were approved in October 2017. Another 61.5% were approved in October of 2016.
The modest increase comes as no surprise, as it follows the consumer credit announcement last week where it was reported that consumer credit increased at a seasonally adjusted rate of just 3.3% in September, down from the 7.0% increase in August. Nonrevolving credit, which includes auto loans, decreased significantly at an annual rate of 0.4%, following a 5.3% increase in August.
Lease approvals have been slowly increasing since January, with a slight dip in approvals for the month of May, and now again in September. The approval rate was up again in October, and sits just below the highest approval rating of the year which was in August at 72.6%. Swapalease.com is benefitting from more car shoppers seeking alternate channels for lease deals, as incentives on leases have decreased at the dealership.
“Our lease approval rate continues to hover near market-healthy levels, especially as the continued strong economy helps with lease approvals,” said Scot Hall, Executive Vice President at Swapalease.com. “We’re continuing to see an influx of applicants who are looking to change vehicles but take advantage of yesterday’s lease deals by taking over an existing contract as opposed to the higher payments they’re being offered at dealerships today.”
Swapalease.com matches a person wanting out of their existing vehicle lease contract with a car shopper looking to take over a short-term vehicle lease. The marketplace has several thousands of cars and trucks available for transfer to anywhere in the continental U.S.
