Swapalease.com reported that applicants through its website registered a 68.8 percent approval rate during June, a significant rebound from May when only 48.1 percent were approved.
Officials explained the company saw less of an influx of shoppers applying for higher-end luxury leases, which often drives up non-approval rates.
Through the first six months of the year, 62.4 percent of transfer applicants have been approved, compared to 67.4 percent the same time a year ago. Swapalease.com noticed a higher number of lease applicants registered for leases with monthly payments between $400 to $599 monthly; which is a “healthier sweet spot” for applicants finding approvals based on credit qualifications.
Swapalease.com officials also say many vehicles in this price range continue to be in the luxury and entry-luxury categories, such as BMW 3-Series, Audi A4/A6 and Mercedes-Benz C-Class type vehicles. There is often a higher number of vehicles in this class, and a higher percentage of applicants find approvals from the lease company.
What’s more, smaller SUVs and crossovers continue to grow in volume in the marketplace, and even these vehicles come at a monthly price point that’s typically more prone to an applicant finding an approval.
“As our lease credit approvals have continued to experience volatility from month to month, we’re beginning to have a better understanding as to why,” said Scot Hall, executive vice president of Swapalease.com.
“We have a greater diverse set of cars and trucks in our marketplace today compared with five or ten years ago, and this means that we are experiencing more volatility in approvals from month to month depending on the volume and deals offered by certain tiers of vehicles,” Hall added.