CINCINNATI, Ohio – Swapalease.com, the nation’s largest car lease marketplace, reports car lease credit applicants registered a 70.0% approval rate in July. The approval rate is an increase from the 67.6% rate in June.
Since credit strength is continuing to stabilize due to the figures maintained throughout the third and fourth quarters, lease credit approvals slightly decreased during the months of May and June.
The July number is also higher than the approval rate at the same time last year, when the approval rate was only at 65.1% after a few months of the pandemic setting in. The increase indicates consumer credit levels are also holding steady as more people are vaccinated from COVID-19. Additionally, households continue to save stimulus relief provided by the government.
As opposed to consumer borrowing, many are utilizing their savings accrued during the pandemic toward paying debt. With consumers reigning in their credit usage as well as lowering revolving debt, Americans are now looking to upgrade their vehicles to a newer model but are searching channels such as Swapalease.com for inventory that may not be readily available at a dealership.
Swapalease.com believes many of its site visitors and vehicle customers have solid credentials available to take over a person’s vehicle lease. The stability to have more flexibility in leasing through economic uncertainly may contribute to an increase in shoppers looking to lease vehicles through the secondary market – where lease payments are much more appealing than what’s offered at a dealership.
“Since credit strength is continuing to stabilize due to the figures maintained throughout the third and fourth quarters, lease credit approvals slightly decreased during the months of May and June,” said Scot Hall, Executive Vice President of Swapalease.com. “Since Americans were either saving or paying down debt with their government stimulus money, consumer credit confidence ultimately grew. This has led to an increase in credit approvals during the month of July – hinting at larger spending in future quarters.”
Swapalease.com matches a person wanting out of their existing vehicle lease contract with a car shopper looking to take over a short-term vehicle lease. The marketplace has thousands of cars and trucks available for transfer to anywhere in the continental U.S.