Despite a healthy demand for leasing, credit approvals in the U.S. are at the lowest level for 2016, according to Swapalease.com.
The automotive lease marketplace said that car lease credit applicants registered a 58.3 per cent approval rate for July — the lowest single-month tally for 2016 so far. Last year approvals reached nearly 85 per cent in the same month, said Swapalease.
The monthly approval rate has dropped almost every month since February, when the rate reached 70 per cent. Over the last three months, the approval rate has been a little over 67 per cent.
“Lease rates at the dealership remain at an all-time high, and while overall sales of cars and trucks remain high, the industry looks to be in a peak period,” said Scot Hall, Executive Vice-President of Swapalease.com, in a written release.
“It will be prudent for the industry to pay close attention to other outside indicators, including credit health and credit availability as we move deeper into the year,” he added.
In Canada, debt delinquency rates have spiked in Alberta into the double digits while Ontario and British Columbia consumers are experiencing robust credit activity, according to the latest report from TransUnion Canada.
