2015 LEASE CREDIT APPROVALS BEGIN THE YEAR WITH NOTICEABLE IMPROVEMENTS

Subprime Auto Loans Show Improvements; Remain A Challenging Environment for Lease Applicants

Cincinnati, OH (February 25, 2015)

Swapalease.com, the nation’s largest car lease marketplace, reports lease credit approvals for January started out on a high note, with approvals finishing at 75.0% on the month. The jump in approvals illustrates the ongoing volatility in the indicator after January saw only 60.9% approvals.

“It’s difficult to get a read on the clear direction for lease credit approvals right now, but we believe in the overall picture we will continue to trend in an upward projection,” said Scot Hall, Executive Vice President of Swapalease.com. “January has traditionally been a strong month for lease approvals, so we aren’t terribly surprised that the number saw a bounce back from December and end-of-year levels.”

Over the last three months, the lease credit approval rate has been slightly above average at 72.5%, compared with the overall 2014 rate that saw 69.0% approvals.

Several areas continue to present mild concern for Swpalease.com executives, including a growing number of younger car shoppers with student debt, as well as Millennials who may not have the right amount of credit history to qualify for a lease.

A third area Swapalease.com executives are monitoring is the volume of subprime shoppers entering the auto market. According to a recent report by Equifax, nearly four out of every ten approvals for car loans, credit cards and personal borrowing were given to subprime borrowers in 2014. And while the credit reporting agency shows that these borrowers are improving their credit scores three years after taking out their car loans, leasing remains a challenge for subprime customers.

A larger number of subprime customers have also entered the Swapalease.com market, with many seeing declines from banks that scrutinize their credit when applying to take over someone else’s existing lease contract.