US Bank Data Shows 2012 Credit Approvals Jump by More Than 25 Percent From Previous Year
Swapalease.com highlighted Wednesday that customer credit approvals based on U.S. bank data jumped 27.3 percent in 2012 compared with approval rates from the previous year.
Most notably, the site pointed out that the last two months of last year saw significant credit approval rates jump with 55 percent more approvals in December compared with November.
Officials also said credit declines from month-to-month shrank by 29 percent during the same time period.
Furthermore, Swapalease.com recorded 240 percent more credit approvals in December of 2012 compared with December of 2011.
The site said consumer credit is the backbone of vehicle lease approvals, and the latest company data shows a continued positive trend since it last reported credit data in September.
“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.
“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,” Hall continued.
Additional U.S. bank data for Swapalease showed customer credit declines shrank 32 percent in the second half of 2012 compared with decline rates in the earlier part of the year.
The site explained 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 can enjoy shorter-than-normal lease terms and assume a vehicle lease without a down payment requirement.