CINCINNATI—Lease credit approvals are beginning to bounce back after a dip in the numbers in late 2015, according to a new report.
Swapalease.com reports that auto lease credit approvals for February finished at 70%, an uptick from the January mark of 63.6%.
Swapalease.com said the latest data suggests the overall automotive industry may thrive this year as it did in 2015, producing record sales numbers and a high lease penetration rate (32%).
"Lease credit approvals are slowly starting to rise again after a mediocre couple of months," said Scot Hall, executive vice president of Swapalease.com. "Rising credit approvals means that this year might be another record year for the auto industry.”
Although lease credit approvals are increasing, the industry remains watchful of consumer confidence levels. Consumer confidence is down 14% from a year ago, making this the lowest level that analysts have seen in the past seven months. Despite the recent growth in lease credit approvals, the decline in consumer spending could be a factor that stands in the way of overall auto sales growth for 2016, the company said.