CINCINNATI, OH--(Marketwired - Mar 18, 2014) - Swapalease.com, the nation's largest car lease marketplace, reports lease credit approvals during the month of February were at 66.6%, down from the 70.5% level in January and 73.3% level in December of 2013. February's rate was the lowest since September of 2013, when the marketplace saw just 62.9% approvals from credit applicants.
So far in 2014 the car lease credit approvals rate stands at 68.3%, close to the level Swapalease.com considers "healthy" at 70.0%. Over the last twelve months, the credit approvals rate has averaged 71.8%. February is typically a lower-than-normal month, though, and last year's monthly figures were just 60.0% for approvals, a marked improvement from the same period a year ago.
One demographic that continues to weigh on Swapalease.com's lease credit approval rate comes from recent graduates. According to Automotive News, 37 million Americans carried student loan debt in early 2012. What's more, Finaid.org says student debt reached $1.17 trillion last week, up from $1 trillion in 2012. All of this debt is making it more difficult for grads and their families to qualify for a car loan.
"Our twelve-month average for lease credit approvals continues to trek above the 'healthy' benchmark, which shows the continued strength in the lease market," said Scot Hall, Executive Vice President for Swapalease.com. "Credit is the lifeblood of leasing, though, so we'll continue to keep a watchful eye on broader economic factors that could impact the monthly approval data."
Headquartered in Cincinnati, Ohio, Swapalease.com is the world's largest automotive lease marketplace and the pioneer in facilitating lease transfers online. More specifically Swapalease.com matches individuals who want to get out of their lease with people who are looking for short-term lease agreements. Prospective buyers can search the listings for the exact vehicle they want, and then register for a nominal fee, allowing them to use Swapalease.com's safe online system to contact the prospective seller and close the deal. For more information about Swapalease.com or how to exit your lease early, call 866-SWAPNOW or visit www.swapalease.com.