CINCINNATI — Swapalease.com reports car lease credit applicants registered a 65% approval rate entering July, a drop from the 72.4% mark registered in May.
Analysts noted that, although lease origination activity at dealerships was down in Q1, lease takeover activity has remained strong, with many shoppers taking advantage of customizable terms offered through secondary marketplaces. They said shoppers are looking to take advantage of lease takeover benefits, such as shorter contract commitment time and budget-savvy savings. In most cases, the takeover requires zero down payment.
With a robust and stable economy, Swapalease.com continues to experience a growing number of applicants looking to take over another person’s lease. Since January, lease credit approval rates have remained above the 65% mark, showing a healthy approval range, according to the company’s executive vice president, Scot Hall.
“We continue to see a growing number of applicants with credit requirements to take over leases in the marketplace, most likely as a result of lower incentives offered by dealers,” Scot said. “There are a number of economic factors affecting dealership prices, and shoppers are searching for alternatives that will allow them to obtain the vehicle they desire at price points that were negotiated when dealer incentives were more prevalent.”