Continued increases this year for customer credit approval on lease transactions through the end of July are reported by Swapalease.com, with July reporting very good numbers .
Get the facts and figures on leasing approvals through July.
Swapalease.com reports continued increases this year for customer credit approval on lease transactions through the end of July. According to website data, total year-to-date credit approvals were 75.6% through July, up from 73.9% through the end of June and the highest cumulative average recorded so far this year.
Historical data show that 70% approval is considered healthy for the online car lease marketplace, which matches a person looking to exist a vehicle with a car shopper looking to take over a short-term lease. Customer credit approvals have continually increased since the beginning of 2011, and the current 75.6% approval rate compares to 61.6% year-to-date approvals through July 2012.
“Now that our credit approvals rate is resting near 75%, the majority of customers processing transactions are believed to be looking for upgrades to their previous vehicle,” said Scot Hall, Executive Vice President of Swapalease.com. “The health rate of consumer credit in many cases gives drivers the confidence to upgrade into a vehicle category that’s considered higher than their previous vehicle.”
In looking specifically at the July approvals rate, 80.6% of customers looking to take over a vehicle lease were approved by the incoming bank. This represents the second best month for approvals, behind the 88% approval rate Swapalease.com recorded during May. Credit is the lifeblood of leasing, and each interested car shopper must have their credit approved by the lease company holding the vehicle contract.