Lease transfer approvals in August nearly hit what Swapalease.com classifies as “healthy.”
The site reported on Wednesday that vehicle lease transfer credit applicants registered a 68.3 percent approval rate for August, just shy of that “healthy” mark that Swapalease.com pegs at 70 percent.
Analysts pointed out the credit approval rate for August saw a noticeable improvement from the previous month’s rate of just 54.3 percent. In more complete context, a year ago the approvals rate was much lower, reaching only 57.7 percent at this time last year.
Swapalease.com also mentioned the jump in approvals more than likely came before Hurricane Harvey affected Texas and surrounding regions. This increase in lease credit approvals is likely due to a rise in consumer confidence, which has remained strong in the current economy.
The consumer sentiment index rose to its highest level since January during August, according to the Consumer Confidence Survey.
“A boost in consumer confidence can have a positive impact on the automotive industry,” said Scot Hall, executive vice president of Swapalease.com. “August’s numbers are hopefully the beginning of an upward trend in the amount of lease credit approvals we will see for the rest of 2017.”
As an increasing number of Texas residents in particular look to replace their damaged or destroyed vehicles, Swapalease.com added that it will keep its eye on lease transfer activity in and around the surrounding region.