CINCINNATI–Lease credit approvals entering July rebounded from June levels, jumping 3.5% to an overall approvals rate of 72.0%, compared with just 69.6% in the previous month, according to a new report.
Swapalease.com reported the year-to-date approvals rate improved to 68.0%, hovering close to the “healthy” average of 70% that Swapalease.com has historically benchmarked. The July numbers reflect the continued summer strength in dealer showrooms, with a continued growth in car sales, the company stated.
Compared to the previous year, the lease credit approvals rate has been steadily improving, with last year’s year-to-date rate at just 64.5%.
The lease credit approval rate has experienced some volatility over the past 12 months, with the approvals rate up and down from one month to the next, noted Swapalease.com. The company predicts that leasing will continue to grow overall, spurred by a steady flow of credit-challenged individuals and Millennials.
CUToday.info previously reported Millennials’ strong interest in leasing, with the 18-34 age group accounting for 28.9% of cars sold as leases compared with the industry average of 26.7%.
“Leasing continues to rise throughout the entire auto industry, with particular interest from younger drivers,” said Scot Hall, EVP of Swapalease.com. “Our marketplace remains an attractive option for these drivers to exercise their ability to change cars more frequently, and without harm to their credit.”