CINCINNATI—Lease credit approvals continue to decline as lease applications increase.
Swapalease.com reported car lease credit applicants registered a 65.1% approval rate in July, a slight decline from the June rate of 67.1%.
July experienced a higher number of applicants with qualifications for taking over another person’s lease contract, yet saw a slight decrease in the number of applicants who were approved. The approval ratings are also slightly lower than those in years past.
In July of 2019, approximately 69.1% of applicants were approved, and in July of 2018, a healthy 71.2% of applicants were approved. Approval rates have continued to fluctuate since January when the spread of the COVID-19 virus first began. The approval rates continued to rise in January and February, with slight fluctuations each month from March to July.
Looking for ‘Alternatives’
“While the Consumer Financial Protection Bureau reported credit applications for automotive loans fell between 30% and 50% since March, we’ve been fortunate to see an increase in shoppers and credit applications to take over another person’s lease each month,” said Scot Hall, EVP of Swapalease.com. “Shoppers are looking for alternative means to vehicle acquisition, and sites like Swapalease.com make that possible. Shoppers want short-term commitments with low risk during unprecedented times.”
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.