Leasing sticker shock is pushing more consumers toward websites such as Swapalease.com to find the vehicle they want at the price within their budget.
And as a result, credit approvals at Swapalease.com are softening.
Site officials indicated vehicle lease credit applicants registered an approval rate of 65.9 percent in February, marking a decrease from the January rate of 67.6 percent.
According to Edmunds, consumers find themselves paying as much as 26 percent more than they did in 2016 and more than $1,600 over the life of the lease on average. Analysts explained in this previous Auto Remarketing report that record-high new-vehicle prices, weakening residuals and rising interest rates are causing the increases.
Further evidence of price pressure also came from Experian through its Q4 2018 State of the Automotive Finance Market report. Experian noted the average lease payment for a new vehicle originated during the fourth quarter came in at $448, up $18 year-over-year.
Turning back to what Swapalease.com had to share, February contained a slightly higher number of applicants with qualifications for taking over another person’s lease contract during the month, but a slightly lower approval rating. February saw a slight increase in approval ratings in comparison to February of last year when only 65.2 percent of lease applicants were approved.
“We are seeing an increase in the number of applicants looking to take over another person’s lease this month, which usually result in more non-approvals from people who do not have the credentials to take over a lease,” Swapalease.com executive vice president Scot Hall said in a news release.
“Shoppers are seeking alternative outlets like Swapalease.com to shop for new leases, knowing they can find a better deal than what is currently being offered at the dealership,” Hall added.