RISING AUTO & CREDIT DELINQUENCIES LEAD TO LOWER LEASE CREDIT APPROVAL RATES

January Sees Lowest Approval Rates Out of the Last Three Years

Cincinnati, OH (February 9, 2017)

Swapalease.com, the nation’s largest car lease marketplace, reports car lease credit applicants registered only a 50.0% approval rate for January, down slightly from December’s level (54.2%). A year ago, the approvals rate was 63.6% during the same month.

January’s approval rate was the lowest lease credit approval rate in the past three years. In 2016, the lowest lease credit approval rate was 54.2% in December. In 2015 and 2014 the lowest rates were 54.5% and 56.5% respectively.

The lease credit approvals rate is often similar to the rise in credit card accounts in the U.S. As more applicants file, the higher the chance for applicants to be denied. According to the American Bankers Association (ABA), credit card delinquencies increased to 2.74% of all accounts in the third quarter.

The report also said that auto loan delinquencies were also higher, up to 0.87% in the most recent quarter from 0.82% in the previous quarter, according to the ABA.

“As with many marketplaces currently we are constantly working with our lease company partners on all applicants looking to take over a lease,” said Scot Hall, Executive Vice President of Swapalease.com. “We anticipate that we’ll see continued volatility in the lease credit approvals rate as long as the economy remains healthy, and credit standards remain relatively loose.”

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.