Lease Customer Credit Approvals Continue Slight Decline, Still Considered Healthy

Swapalease.com recently learned the latest year-to-date credit approval average came in slightly lower in September than in August.

Site officials said September’s reading settled at 72.7 percent, down slightly from a 74.5-percent approvals rate year-to-date in August.

The average year-to-date approvals rate considered to be healthy is 70 percent, according to the company.

Swapalease highlighted a new auto lease trend appears to have formed over the last three months, one that shows the approval rate slipping during the previous three months compared with the same time last year when the rate showed a slight increasing trend.

Site executives believe this trend is most likely the case because the company is processing 45.5 percent more applications this year compared with the same time last year.

“There are more drivers looking to change their vehicle today compared with this time last year, which is also reflected in the increased number of people shopping for a different car in the showrooms,” said Scot Hall, executive vice president of Swapalease.

“We expect to see the overall approvals average shift a little during this process as a large segment of these shoppers are still focused on improving their credit from the downturn,” Hall continued.

Hall emphasized credit is the lifeblood of vehicle leasing, and each incoming driver looking to take over a lease on the Swapalease marketplace must be approved by the vehicle lease company.

In reviewing approvals activity only, Swapalease has seen 39 percent more approvals when comparing the previous three months of 2013 with the same time in 2012, and 16.8 percent more approvals year-to-date in 2013 compared with the previous year.

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