Loans and leases are continuing to increase in the market as financial institutions become more flexible. Vehicle leasing is in a different landscape than other loans, such as subprime. Lately, leasing has been seeing some healthy indicators. This year started out with the strongest credit health since the recession, according to credit approval rates from Swapalease.com.
According to Swapalease.com data, 77.3% of leasing customers were approved in April, up from 70% the previous month. 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.
“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.”