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CAR LEASE CREDIT APPROVALS REBOUND SLIGHTLY IN DECEMBER
Holiday Shopping Trends Help 2013 Finish With Healthy Credit Approvals
Cincinnati, OH (January 14, 2014)
Swapalease.com, the nation’s largest car lease marketplace, reports lease credit approvals were up slightly in December (73.3%) compared with November levels (70%). The overall approvals rate on the year finished at 72.7%, compared with a 2012 rate of 65.3%.
Holiday lease shopping from a higher population of well-qualified lessees helped improve the credit approval rate from November, when just 70% of applicants were approved. Prior to December, the lease credit approval rate had slipped to 67.9% and Swapalease.com executives believed a higher volume of less-than-ideal credit shoppers were placing stress on the approvals rate.
Historical marketplace trends show that a 70% credit approvals rate is considered healthy for Swapalease.com. The approvals rate had jumped as high as 76% in June of this year before dipping back down, mostly as a result of a higher influx of younger drivers dealing with high levels of student loan debt. Credit is the lifeblood of leasing, and the lease company must approval of all incoming lessees before a transfer can complete in the marketplace.
“We anticipated that 2013 would outperform 2012 levels due to the rising health of the automotive industry and overall economic conditions that continue to improve,” said Scot Hall, Executive Vice President of Swapalease.com. “The appetite for leasing should remain solid in 2014 and we believe we will maintain several months of healthy approvals activity, pending unforeseen economic climate conditions.”