Lease approvals are on the rise in the U.S. as leases search for good deals.
More Americans are getting approved for leases, lured by some aggressive pricing by automakers; however, prices for most leases remain stable heading into the summer selling season.
The lease approval rate hit its highest number in 2018 at 70% last month, jumping from 67.3% in April, and well above the 57.8% at the start of the year. The approval rate was up in February and March, according to Swapalease.com.
“Lease credit approvals continue to show more stability as we move through spring and into the summer months,” said Scot Hall, Executive Vice President of Swapalease.com.
“We attribute much of this stability to an increased number of applicants who are shopping on the site and looking for attractive deals they may not be finding at dealerships. With a still strong economy, we’re seeing a larger number of credit-qualified applicants going through the system.”
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A sluggish May for automakers may have kickstarted a rush of incentives to keep the good times rolling for dealers.
The rise in approvals come as lease prices are leveling off. More than 55% of lease prices were unchanged between May and June. The lowest least price was for the Ford Focus at $149 a month. It is the only vehicle available for less than $150 a month. It was available for $179 in May.
Lower cost leases seem to be where most of the movement in prices is coming from. For example, the Chevrolet Cruze and the Volkswagen Jetta are now offered at less than $200 monthly. The Cruze is currently offered at $179 per month and the Jetta at $199.
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“We’re seeing prices stabilize on many leases entering summer, an indication that dealers were aggressive during spring and they’re looking to maintain these offers as we enter the summer months,” said Scot Hall, executive vice president of Wantalease.com.
“Consumers will continue to increasingly search for aggressive deals from small cars to large, luxury trucks and SUVs,” Hall added.
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In June, the Cadillac CTS 2.0 Rear Wheel Drive, which is currently listed for $489 per month, increased in price by 24.65% compared with last month. The Honda CR-V LX also saw a price jump of 19.66%, bringing the payments up to $259, followed by the Infiniti QX80, with an increase of 11.93% and monthly payments of $769.