CINCINNATI — May’s approval rate for leases fell to its lowest level since Swapalease began tracking it monthly in 2014, with lease credit applicants registering a 48.1% approval rate.
The car lease marketplace pointed to a higher-than-normal influx of applicants looking to take over higher end luxury leases, especially high-priced SUVs that come with payments in the $600s and $700s each month. Applicants for leases in this price range usually result in higher declines from applicants failing to meet the credit requirements of the lease company.
Year to date, the car lease credit approval rate has registered a monthly average of 61.1%, which compares to 67.7% for the same period last year. Over the last three months, the lease credit approval rate has averaged 62.1%.
“We’ve been tracking a rise in the number of people searching and attempting lease takeovers on higher-priced luxury SUVs recently,” said Scot Hall, executive vice president of Swapalease.com. “With a healthy economy and moderate fuel prices, we believe people are feeling confident in obtaining a higher monthly vehicle payment each month. Unfortunately, their attempts aren’t always successful, especially if their credit just doesn’t match the appetite for their desired vehicle.”
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.