CINCINNATI -

While in the installment contract space subprime financing is at levels not seen since 2006, Swapalease.com is finding that an influx of subprime consumers applying to the leasing sector is “muddying the approval waters a bit.”

Site analysts reported their lease credit approvals during the month of September dropped down to 64.5 percent, falling after reaching into the low 80-percent range during July and August. They reiterated the approvals rate is an important indicator of how successful car shoppers are at getting approved for a vehicle lease.

Swapalease.com explained the approvals rate has witnessed noticeable turbulence in recent months with subprime shoppers being the likely trigger.

The site determined year-to-date approvals are at 67.8 percent through the end of September, slightly off the 70-percent rate that is considered “healthy” by historical trends in the Swapalease.com marketplace.

Compared to the same month a year ago, which saw just 63.0 percent approvals, the trend continues to show growth in overall approvals, site officials indicated.

Swapalease.com executive vice president Scot Hall acknowledged subprime shoppers have weighed heavily on lease approvals throughout 2014. Hall explained credit is the lifeblood of leasing, and each shopper on the Swapalease.com marketplace must have his or her credit approved by the bank holding the existing lease available for transfer.

“The appetite for credit expansion is fueling this desire to shop for a car, regardless of credit status,” Hall said.

“We continue to see a rise in the number of applicants seeking to take over a car lease through the Swapalease.com marketplace,” he continued.

“The subprime applicants are certainly muddying the approval waters a bit, and we expect this trend will continue into the near future as these shoppers look to find ways to obtain new transportation,” Hall went on to say.

Hall also mentioned subprime shoppers have grown in numbers on the Swapalease.com marketplace as they seek alternate channels for vehicle shopping.

“Many are unsatisfied with loan options at the retail level and look for ways to take over an existing lease through Swapalease.com,” he said.