CINCINNATI—Car lease credit applicants registered a 70.8% approval rate in February, a slight increase from the 68.3% approval mark that opened up the new year in January, Swapalease.com reported.
“The February number is just off slightly from the same time last year, when the approval rate was at 72.3% right before the beginning of the pandemic. The steady numbers indicate consumer credit levels are also holding steady, perhaps as a continued sign of the ongoing stimulus relief provided by the government,” Swapalease.com said.
According to recent Federal Reserve data, consumer borrowing decelerated again in January, which may suggest that Americans are using the latest stimulus checks to pay down debt. Total consumer credit decreased $1.3 billion In January. That’s an annual decline at a 0.4% rate and follows a 2.5% gain in the prior month, Swapalease.com noted.
‘Solid Credentials’
Swapalease.com said many of its site visitors and vehicle shoppers have solid credentials available to take over a person’s vehicle lease.
“The inclination to have more flexibility through leasing amidst economic uncertainly may contribute to a rise in shoppers who are looking to lease vehicles through the secondary market, where lease payments are more attractive than what is currently offered at the dealership,” stated Scot Hall, EVP of Swapalease.com. “Given that the year has started out with credit-stability figures that were maintained throughout the third and fourth quarters, we believe in the short term this stability will continue. The latest and recently signed stimulus package, combined with the accelerated momentum we’re seeing with vaccine rollouts should further strengthen the outlook for credit in the months ahead.”