CINCINNATI—Lease applicants registered a lower approval rate in September than in August, Swapalease.com is reporting.
The nation’s largest car lease marketplace said lease credit applicants registered a 67.6% approval rate in September. The approval rate is a slight decrease from the 71.3% rate in August.
“The September number is similar to the approval rate at the same time last year, when the approval rate was also at 67.6% after a few months of the pandemic setting in. Despite the small decline Swapalease.com executives believe the level of consumer credit continues to hold steady this year. Furthermore, overall vehicle shopping activity has been relatively stable along with the broader economy,” Swapalease.com said. “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 like Swapalease.com for inventory that may not be available in a traditional dealership setting.”
Paying Down Debt
“Since credit strength continues to rise due to the figures maintained throughout the year, lease credit approvals also continue to stabilize,” said Scot Hall, EVP of Swapalease.com. “Consumer confidence is relatively strong as many households were able to save money while also paying down revolving debt over the last year-and-a-half.”
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.