CINCINNATI, OHIO — Swapalease.com, a car lease marketplace, reported this week that lease credit approvals in August reached 85.7%, the highest monthly level of 2014 and besting July’s rate of 81.0%.
August marked the second straight month lease approvals set a new 2014 high. After dipping into a year-to-date average low of 64.5% in June, the annual tally is now up to 68.5%. The company said it believes a rise in subprime car shoppers have weighed down the credit approvals rate in 2014, as more shoppers in this credit profile have applied for a lease.
The last three months has proven to be a turnaround for the year, as 73.8% of applicants have been approved over that time.
A new appetite for consumer borrowing appears to be driving additional interest in car lease shopping. The Wall Street Journal reports that consumer borrowing rose in July. Outstanding nonrevolving credit, which includes car and student loans, rose at a 10.6% rate to $2.4 trillion according to the report.
“In addition to our data, these figures indicate that the American economy could see continued growth in the balance of 2014,” said Scot Hall, executive vice president of Swapalease.com. “As a result, we expect to see a continued rise in lease applicants in the Swapalease.com marketplace. We will monitor the impact subprime customers have on the approval rate.”
Swapalease.com works to help subprime car shoppers elevate their credit profile through a program sponsored by ConsumerDirect.com. Once these shoppers revitalize their credit they can re-enter the Swapalease.com marketplace and reapply for a lease assumption.