Lease credit approvals for March have tumbled again — below what Swapalease considers to be a healthy pace.
The online marketplace in the U.S. said that credit approvals dropped to just 60 per cent of lease transfer applicants, with the 2015 average off the average healthy pace at just 63.4 per cent.
Swapalease noted that lease credit volatility has manifested over the last six months, which it said can be attributed to trends, such as an increase in borrowing for student loans and a growing appetite to take over a lease.
According to recent data from the Federal Reserve in the U.S., consumer borrowing to lease and purchase cars and trucks surpassed new highs in February, fueling a record total of $3.343 trillion in credit balances, excluding mortgages.
Scott Hall, Executive Vice-President of Swapalease.com, commented in a written release: “When the overall volume of applicants continues to rise, it’s not uncommon to also find an increase in credit declines in the secondary market.”
He continued, “Much of this activity is the result of car shoppers turning to the secondary market after the initial and unsuccessful attempt to lease at the dealer.”
