Approvals for vehicle leases fell 14.5% to 54.3% in July from the prior month partly because an influx of students with lower credit scores applied for vehicle leases ahead of the college school year, reports Swaplease.com.
This dip in lease credit approvals continues to be attributed to several factors including a higher volume of lease applicants with less-than-stellar credit and a larger number of applicants looking for vehicles in higher-priced categories.
"Both the state of the economy and the increased number of applicants indicate that more consumers are ready to lease vehicles," said Scot Hall, executive vice president of Swapalease.com. "Unfortunately, their credit doesn't always reflect that readiness. As the economy continues to improve, giving more people the incentive to lease vehicles out of their reach, we expect to the number of declines to be higher than normal."
A year ago, the July approval rate was just slightly higher, reaching 57.7%. Overall, this year's credit approval numbers have been somewhat lower than previous years.