Lease Credit Approval Rates Dip in June
Car lease credit applicants registered a 68.4-percent approval rate in June, a slight dip compared to the same month last year but slightly from the 67.9 percent mark registered in May, according to Swapalease.com.
Swapalease.com has experienced more stability in its lease approval rates since the beginning of the year. Since February, the lease credit approval rate hasn’t dipped below 65 percent, illustrating a normal and healthy approval range, according to the company.
“We’re seeing a few more applicants with quality credit to take over leases in the marketplace, most likely as a result of higher lease costs at the dealership,” said Scot Hall, executive vice president of Swapalease.com. “An additional benefit of taking over an existing lease is that the buyer is insulated from economic changes affecting dealership prices, such as higher interest rates or lower incentives offered at present day.”
Even though lease origination activity at dealerships has been down slightly in 2018, lease takeover activity has remained healthy, with many shoppers taking advantage of shorter, customizable terms offered on the secondary market, according to the website. 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.
