CINCINNATI—Car lease credit applicants registered a 69.9% approval rate in May, just a brake tap below the 70.7% approval rate in April, Swapalease.com is reporting.
The May number, although lower than last month's rate, is higher than the same time last year, when the approval rate was at 68.6% right at the beginning of the pandemic. The steady, incremental increase indicates consumer credit levels are also holding steady as many households continue to receive stimulus relief provided by the government, the company said.
“As opposed to consumer borrowing, many are utilizing stimulus checks toward paying debt. With consumers reigning in their credit usage as well as lowering revolving debt, Americans have more confidence to go out and take over someone else’s vehicle lease,” said Scot Hall, executive vice president of Swapalease.com.
Hall said the company believes many of its site visitors and vehicle customers have solid credit credentials available to take over a person’s vehicle lease.
“The stability to have more flexibility in leasing through economic uncertainly may contribute to an increase in shoppers looking to lease vehicles through the secondary market – where lease payments are much more appealing than what’s currently offered at a dealership,” he said.
Continuing to Stabilize
“Credit strength continues to stabilize due to the figures maintained throughout the first half of 2021 and we believe this will only continue into the second half. “Because Americans are either saving or paying down debt with their government stimulus money, consumer credit confidence will ultimately continue to grow leading to larger spending in future quarters.”
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.