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Swapalease.com, the nation’s largest car lease marketplace, reports car lease credit applicants registered only a 50.0% approval rate for January, down slightly from December’s level (54.2%). A year ago, the approvals rate was 63.6% during the same month.
January’s approval rate was the lowest lease credit approval rate in the past three years. In 2016, the lowest lease credit approval rate was 54.2% in December. In 2015 and 2014 the lowest rates were 54.5% and 56.5% respectively.
The lease credit approvals rate is often similar to the rise in credit card accounts in the U.S. As more applicants file, the higher the chance for applicants to be denied. According to the American Bankers Association (ABA), credit card delinquencies increased to 2.74% of all accounts in the third quarter.
The report also said that auto loan delinquencies were also higher, up to 0.87% in the most recent quarter from 0.82% in the previous quarter, according to the ABA.
“As with many marketplaces currently we are constantly working with our lease company partners on all applicants looking to take over a lease,” said Scot Hall, Executive Vice President of Swapalease.com. “We anticipate that we’ll see continued volatility in the lease credit approvals rate as long as the economy remains healthy, and credit standards remain relatively loose.”
Swapalease.com matches a person wanting out of their existing vehicle lease contract with a car shopper looking to take over a short-term vehicle lease. The marketplace has several thousands of cars and trucks available for transfer to anywhere in the continental U.S.
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. For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit www.swapalease.com