SOURCE: Swapalease.com

February 25, 2015 10:01 ET

2015 Lease Credit Approvals Begin the Year With Noticeable Improvements

Subprime Auto Loans Show Improvements; Remain a Challenging Environment for Lease Applicants

CINCINNATI, OH--(Marketwired - Feb 25, 2015) - Swapalease.com, the nation's largest car lease marketplace, reports lease credit approvals for January started out on a high note, with approvals finishing at 75.0% on the month. The jump in approvals illustrates the ongoing volatility in the indicator after January saw only 60.9% approvals.

"It's difficult to get a read on the clear direction for car lease credit approvals right now, but we believe in the overall picture we will continue to trend in an upward projection," said Scot Hall, Executive Vice President of Swapalease.com. "January has traditionally been a strong month for lease approvals, so we aren't terribly surprised that the number saw a bounce back from December and end-of-year levels."

Over the last three months, the auto lease credit approval rate has been slightly above average at 72.5%, compared with the overall 2014 rate that saw 69.0% approvals.

Several areas continue to present mild concern for Swapalease.com executives, including a growing number of younger car shoppers with student debt, as well as Millennials who may not have the right amount of credit history to qualify for a lease.

A third area Swapalease.com executives are monitoring is the volume of subprime shoppers entering the auto market. According to a recent report by Equifax, nearly four out of every ten approvals for car loans, credit cards and personal borrowing were given to subprime borrowers in 2014. And while the credit reporting agency shows that these borrowers are improving their credit scores three years after taking out their car loans, leasing remains a challenge for subprime customers.

A larger number of subprime customers have also entered the Swapalease.com market, with many seeing declines from banks that scrutinize their credit when applying to take over someone else's existing car lease contract.

About Swapalease.com:
Headquartered in Cincinnati, Ohio, Swapalease.com is the world's largest automotive lease marketplace and the pioneer in facilitating lease transfers online. For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit www.swapalease.com.

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