February Credit Trends

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LEASE CREDIT APPROVAL RATES DIP SLIGHTLY TO 65.9% ENTERING MARCH

Higher Number of Applicants Due to Fewer Lease Incentives at the Dealership

Cincinnati, OH (March 13, 2019)

Swapalease.com, the nation’s largest car lease marketplace, reports car lease credit applicants registered a 65.9% approval rate in February, a decrease from the January rate of 67.6%. Higher lease prices at the dealership are driving more people to seek existing leases offered at yesterdays prices on secondary markets such as Swapalease.com.

According to Edmunds.com, consumers find themselves paying as much as 26% more than they did in 2016, and more than $1,600 over the life of the lease on average. Record-high vehicle prices, weakening residuals and rising interest rates are mostly the cause for the increases.

February experienced a slightly higher number of applicants with qualifications for taking over another person’s lease contract during the month, but a slightly lower approval rating. February saw a slight increase in approval ratings in comparison to February 2018, where only 65.2% of lease applicants were approved. However, the past two years have experienced slightly lower approval ratings when compared to 2016 and 2017.

February data showed that 72.2% of applicants were approved in February 2017, and 70% were approved in February 2016.

“We are seeing an increase in the number of applicants looking to take over another person’s lease this month, which usually result in more non-approvals from people who do not have the credentials to take over a lease,” said Scot Hall, Executive Vice President of Swapalease.com. “Shoppers are seeking alternative outlets like Swapalease.com to shop for new leases, knowing they can find a better deal than what is currently being offered at the dealership.”

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 thousands of cars and trucks available for transfer to anywhere in the continental U.S.