CINCINNATI—It’s not just lower monthly payments driving leasing’s growing popularity, it’s the holiday season, according to one company that also expects lease penetration next year to reach 30% of all car sales.
Swapalease.com reported that lease credit approvals during November rose to 84.2%, the second-highest monthly lease approvals rate during 2014 (August, 85.7%).
The monthly approvals rate was driven by early holiday lease campaigns and offers, with a rising number of lessees exchanging vehicles from brands such as Chrysler, Mazda, Jeep, GMC, Ford, Buick and Chevrolet. Among luxury brands, Lexus saw its typical seasonal jump in exchange requests.
Year-to-date, Swapalease.com has recorded a lease credit approvals rate of 69.7%, the highest YTD rate since January when 2014 started out with a 70.6% approval rate.
Automotive market experts have noted leasing’s resurgence in the last 18 months, to about pre-recession levels. Experian reported that 29% of car sales were written as leases during the third quarter. Swapalease.com believes the lease penetration rate will rise above 30% in 2015.
“Lease deals will continue to rise over the next several months as car sales increase and used car values maintain their strong retention rates,” said Scot Hall, EVP of Swapalease.com. “What’s more, leasing is gaining popularity among millions of consumers who now view their car as just another monthly payment.”