CINCINNATI—Car lease credit applicants registered a 68.3% approval rate for August, just shy of the “healthy” mark of 70%, reports Swapalease.com, which believes Hurricane Harvey something to do with the outcome.
The credit approval rate for August saw a noticeable improvement from last month’s rate of just 54.3%, the company stated.
“In more complete context, a year ago the approvals rate was much lower, reaching only 57.7% this time last year,” Swapalease.com said.
The jump in approvals more than likely came before Hurricane Harvey affected Texas and surrounding regions. This increase in lease credit approvals is also 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 the month of August according the Consumer Confidence Survey, Swapalease.com explained.
“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 said it is keeping its eyes on lease transfer activity in and around the surrounding region.
Swapalease.com matches a person wanting out of their existing vehicle lease contract with a car shopper looking to take over a short-term vehicle lease.