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Swapalease.com, the nation’s largest car lease marketplace, reports the latest year-to-date credit approvals average recorded at 72.7% in September, down slightly from a 74.5% approvals rate YTD in August. The average YTD approvals rate considered to be “healthy” is 70%, according to the company.
A new auto lease trend appears to have formed over the last three months, one that shows the approval rate slipping during the previous three months compared with the same time last year when the rate showed a slight increasing trend (see chart below). Swapalease.com executives say this trend is most likely the case because the company is processing 45.5% more applications this year compared with the same time last year.
“There are more drivers looking to change their vehicle today compared with this time last year, which is also reflected in the increased number of people shopping for a different car in the showrooms,” said Scot Hall, Executive Vice President of Swapalease.com. “We expect to see the overall approvals average shift a little during this process, as a large segment of these shoppers are still focused on improving their credit from the downturn.”
Credit is the lifeblood of vehicle leasing, and each incoming driver looking to take over a lease on the Swapalease.com marketplace must be approved by the car lease company. In reviewing approvals activity only, Swapalease.com has seen 39% more approvals when comparing the previous three months of 2013 with the same time in 2012, and 16.8% more approvals YTD in 2013 compared with the previous year.
Headquartered in Cincinnati, Ohio, Swapalease.com is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. More specifically Swapalease.com matches individuals who want to get out of their lease with people who are looking for short-term lease agreements. Prospective buyers can search the listings for the exact vehicle they want, and then register for a nominal fee, allowing them to use Swapalease.com’s safe online system to contact the prospective seller and close the deal.