CINCINNATI—Car lease credit applicants registered a 71.3% approval rate in August, an increase from the 70.0% rate seen in July, Swapalease.com is reporting.
The August number is also higher than the approval rate at the same time in 2020, when the approval rate was only at 67.1% after a few months of the pandemic setting in.
“The increase indicates consumer credit levels are continuing to hold steady. Additionally, households still have plenty of saved stimulus relief in their bank accounts after multiple government stimulus distributions,” Swapalease.com stated.
According to the company, as consumers continue to increase their credit standings by paying down debt, Americans are now contemplating upgrading personal items, including cell phones, computers and vehicles to new models. However, instead of going into car dealerships, customers are searching sites such Swapalease.com for inventory that may not be available in a traditional dealership setting, the company said.
Confidence is ‘High’
“Since credit strength continues to rise due to the figures maintained throughout the year, lease credit approvals also continue to increase,” said Scot Hall, EVP of Swapalease.com. “Consumer confidence is at its highest as many households were able to save money while also paying down revolving debt. This has led to yet another month of strong credit approvals during the month of August.”
Swapalease.com seeks to match a person wanting out of their existing vehicle lease contract with a car shopper looking to take over a short-term vehicle lease.