CINCINNATI—A new breed of lease shopper may be propping up lease credit approvals—electric car drivers.
According to Swapalease.com, electric vehicle (EV) drivers are leasing at higher rates.
“We focus on the broader economy to see if there is a correlation with the lease credit approval rate,” said Scot Hall, EVP of Swapalease.com. “While this is an important indicator, we’re always looking to see if there are other reasons, such as different demographics leasing more or, as was the case earlier this year, the impact student loans may have on car shopping.”
Not only does Swapalease.com data reflect growing interest in leasing electric vehicles, a CNBCreport shows that EV drivers prefer leasing. In fact, almost 80% of all EVs in the U.S. are leased—far higher than lease rates for conventional cars.
Reports indicate reasons for EV leasing include concerns over the life of the car’s battery, a greater interest from these owners in driving cars with the latest technology, and eliminating worries over the electric car’s resale price.
Overall, Swapalease.com reported that lease credit approvals slipped to 75% mid-November, down slightly from the 80% mark reached entering October. Even with the change, the approvals rate on the year improved to 72.4%, a healthy mark for credit approvals, the company stated.
Over the last three months, the lease credit approvals rate has been among the highest Swapalease.com has ever seen at 80.4%. Auto market experts now say about one-third of all new car sales are leases, noting that Millennials are playing a growing in this segment, often leasing entry-level vehicles.