The decline came as a result of a higher-than-average number of applicants in January. More people looking to get into a lease during the month, allowed for a higher number of people to not qualify for a lease, according Swapalease.com.
Lease approval rates registered 57.8% in January, a roughly 4% drop from December, when lease approval rates were at 62%, according to Swapalease.com.
The decline came as a result of a higher-than-average number of applicants in January. More people looking to get into a lease during the month, allowed for a higher number of people to not qualify for a lease, according to the company.
“With holiday promotions and strong emphasis on luxury lease offers typically signaling heavy applicant volume in December, the marketplace saw a continuation of high volume applicants opening the New Year in January. With this higher volume comes a variety of credit histories, including more applicants with less-than-stellar credit approved by the banks.”
Even with the approval rate decline experienced in January, lease approval rates are still higher this year when compared to the last. Lease approval rates in January 2017 registered at 50%, nearly 8% lower than this year.
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Used financing increased 2.4% year-over-year and reached 55.15% in the third quarter of 2019.
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Several manufacturers offered attractive discounts and competitive pricing on compact cars and SUVs, while most luxury and full-size vehicle brands maintained their lease prices.
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Swapalease.com, a car lease marketplace, reports car lease credit applicants registered a 69.1% approval rate in July, a rise from the June rate of 65%.
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Federal Reserve Chairman Jerome Powell officially announced a widely expected cut to the federal funds rate yesterday, dropping the central bank's target by a quarter-point to 2%.
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