Demand for luxury models didn’t impact lease-transfer applications in December as much as the analyst team at Swapalease.com typically sees during the closing month of a year.
Swapalease.com on Wednesday reported vehicle-lease credit applicants registered a 62.0 percent approval rate for December. The reading decreased slightly from November’s rate of 67.5 percent.
Site analysts explained there is always a heavy emphasis on holiday promotions for luxury vehicles in December. More shoppers interested in these leases typically mean higher volumes of lease applicants, which also come with a higher number of applicants with a variety of credit standings, according to Swapalease.com.
Compared to lease credit approval numbers for the same month in past years, analysts explained a 62.0-percent approval rate is higher than the recent average.
Swapalease.com went on to pointed out that last year was volatile for lease credit approvals, especially compared with 2016 levels. Analysts noted 2017 saw higher volatility due to factors such as increased numbers of applicants, which can decrease the number of approvals, natural disasters disrupting normal leasing trends, and pockets of well-qualified shoppers with the appropriate credentials for lease takeovers that affected the credit approval rates.
“The increased interest in luxury vehicles around the holiday season means that fewer applicants are typically approved for leases,” said Scot Hall, executive vice president of Swapalease.com.
“Looking ahead to 2018, we have historically seen stronger lease credit approvals in the spring, and we are hopeful that trend continues this year,” Hall continued. “With auto sales falling slightly in 2017, many dealers and OEMs are expected to keep leasing at a healthy level, with plenty of promotions and aggressive pricing into 2018.”