Categories


CONSUMER INTEREST IN LUXURY SUVS DRIVES INCREASE IN CREDIT DECLINES IN THE SWAPALEASE.COM MARKETPLACE

Rise in Applicants for Higher-Priced Leases Translates into Credit Declines from Lease Companies

Cincinnati, OH (June 19 2017)

Swapalease.com, the nation’s largest car lease marketplace, reports car lease credit applicants registered just a 48.1% approval rate during May, the lowest approval rate tracked by the company dating back to 2014 when the monthly approval ratings began.

Company officials pointed to a higher-than-normal influx of applicants looking to take over higher-end luxury leases, especially high-priced SUVs that come with payments in the $600s and $700s each month. Applicants for leases in this price range usually result in higher declines from applicants failing to meet the credit requirements of the lease company.

Year-to-date, the car lease credit approval rate has registered a monthly average of 61.1%, which compares to 67.7% for the same period last year. Over the last three months, the lease credit approval rate has averaged 62.1%.

“We’ve been tracking a rise in the number of people searching and attempting lease takeovers on higher-priced luxury SUVs recently,” said Scot Hall, Executive Vice President of Swapalease.com. “With a healthy economy and moderate fuel prices, we believe people are feeling confident in obtaining a higher monthly vehicle payment each month. Unfortunately, their attempts aren’t always successful, especially if their credit just doesn’t match the appetite for their desired vehicle.”