National car lease marketplace Swapalease.com
says customer credit approvals based on U.S. Bank data jumped 27.3% in 2012 compared with approval rates from 2011. Consumer credit is the backbone of vehicle lease approvals, and the latest company data show a continued positive trend
since it last reported credit data in September.
Most notably, the last two months of 2012 saw significant credit approval rates jump, with 55% more approvals in December
compared with November. Credit declines from month-to-month shrank by -29% during the same time period. Furthermore, Swapalease.com recorded 240% more credit approvals
in December 2012 compared with December 2011.
“We continually monitor credit approval trends on the Swapalease.com marketplace to determine if the overall health of the economy is impacting car leasing,” said Scot Hall, Executive Vice President of Swapalease.com. “Looking ahead, it will be interesting to see if these approval rates dip back down once the increased payroll taxes take effect from the Fiscal Cliff negotiations.”
Additional U.S. Bank data for Swapalease.com shows customer credit declines shrank -32%
in the second half of 2012 compared with decline rates in the earlier part of the year. Car shoppers interested in assuming the remaining contract of a lease must have equal or better credit than the current lessee, according to U.S. Bank stipulations. Once approved, shoppers enjoy shorter-than-normal lease terms and assume a car lease without a down payment requirement.
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.