Stronger Consumer Car Leasing Credit This Year

Wall Street Journal - May 14, 2013

The lat­est car lease cred­it approvals data from Swapalease.com shows 2013 has start­ed out with the strongest cred­it health since the reces­sion.

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The lat­est car lease cred­it approvals data show 2013 has start­ed out with the strongest cred­it health since the reces­sion. Accord­ing to cred­it approvals data from Swapalease.com, the nation’s largest auto­mo­tive lease mar­ket­place, 77.3% of cus­tomers were approved dur­ing April, up from 70% dur­ing the pre­vi­ous month.

Cred­it remains the lifeblood of car leas­ing, and lenders must approve each indi­vid­ual look­ing to take over a lease on the Swapalease.com mar­ket­place. Once approved, the incom­ing dri­ver com­pletes the remain­ing por­tion of the car lease con­tract, while the out­go­ing per­son is no longer oblig­at­ed to make the month­ly pay­ments.

In look­ing at the cred­it approvals data fur­ther, 73.6% of Swapalease.com cus­tomers have been approved so far in 2013, com­pared with just 57.5% approvals dur­ing the first four months of 2012. This also com­pares to 68.3% of approvals dur­ing the first four months of 2011.

“The auto­mo­tive indus­try has con­tin­ued to grow in 2013, with new sales expect­ed to be mar­gin­al­ly high­er than 2012 lev­els,” said Scot Hall, Exec­u­tive Vice Pres­i­dent of Swapalease.com. “Above this, key eco­nom­ic fac­tors such as con­tin­ued job growth, low gas prices and a heal­ing hous­ing mar­ket have all helped per­son­al cred­it lev­els, allow­ing more con­sumers with cred­it approvals.”

The lease trans­fer process does not impact a person’s cred­it score neg­a­tive­ly. In fact, the oppo­site occurs as lease com­pa­nies list the out­go­ing dri­ver as hav­ing com­plet­ed their pay­ment require­ments once the trans­fer is final­ized.

 

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