Swapalease credit approvals registered 65% entering July, a drop from the 72.4% approval rate registered in May, the company announced.
Although lease approvals are down during the month, lease takeover activity is still at a higher relative level than lease origination activity at dealerships.
Even as fewer people leased vehicles from dealerships during the first quarter, lease takeover activity at Swapalease has remained stable.
One of the factors contributing to stable takeover activity is the lack of down payment needed for a takeover, the company stated. The vehicles that are on Swapalease have already been leased from a dealership by another person, so the down payment, in most instances, has already been made by the original lessee.
Lease approval rates have remained above the 65% mark since January of this year, the company stated.