Lease-transfer approvals close Q1 on upswing
With average federal tax refunding averaging more than $2,800, Swapalease.com sees the trend being a part of its approval lift seen in March.
Approvals for vehicle-lease transfer application on the site came in at 70.7%, which is up from the February rate of 65.9% as well as the reading from last March of 67.3%.
Swapalease said March experienced a higher number of applicants with qualifications that led to more approvals for taking over another person’s lease contract.
Since January, the lease approval rate has continued to rise, making March the strongest month of the first quarter. Approvals registered in at 67.6% back in January
Swapalease executive vice president Scot Hall referenced the roll tax-refund money might have played. Kroll Bond Rating Agency (KBRA) reported earlier this week that federal refunds averaged $2,873 through March, just $20 lower than a year ago.
“We are impressed by the number of applicants looking to take over another person’s lease for the month of March, as well as the increase in lease approvals,” Hall said.
“It is very likely that we saw more activity in March from people receiving their tax rebate checks and using them toward a lease in our marketplace, which in many cases avoids a down payment,” Hall added.