Lease Credit Approval Rates Hit Annual Low in Wake of Damaging Hurricane Season

Swapalease.com reports car lease credit applicants registered just a 47.6-percent approval rate for September.

The lease credit approval rate fell to the lowest percentage seen thus far this year in September after a relatively strong month in August when the approval rate was 68.3 percent.

It is likely that the effects of Hurricane Harvey and Hurricane Irma played a roll in September’s lower numbers, according to Swapalease.com. Following the two devastating storms, consumer confidence dropped to 95.1 after reaching a seven-month high in August, according to CBNC. What’s more, an influx of auto shoppers impacted by the hurricanes saw a rise overall in applicants on the Swapalease.com marketplace, including a higher number of people with credit that was not approved by the lease companies.

“Following the destruction of the hurricanes that hit the U.S. in September, many consumers have been more focused on recovering from the storms, including vehicle replacements,” said Scot Hall, executive vice president of Swapalease.com. “We expect these numbers to even out in the coming months as auto shopping returns to a more normal environment heading into the end of the year.”