Jun 10, 2013 Philip Burgess
Consumer credit scores are strengthening in the wake of the Great Recession, which is good news for America's auto lenders. Swapalease.com data showed that 77.3 percent of the leasing firm's customers were credit approved for loans during April. That number was up from 70 percent in March. The source stated that the current approval rate is the strongest seen since the economic downturn of recent years.
So far during 2013, 73.6 percent of the online leasing outlet's applicants were approved. In the first four months of 2012, only 57.5 percent of customers were successful in getting the green light for loans.
"The automotive industry has continued to grow in 2013, with new sales expected to be marginally higher than 2012 levels," said Scot Hall , executive vice president of Swapalease.com. "Above this, key economic factors such as continued job growth, low gas prices and a healing housing market have all helped personal credit levels, allowing more consumers with credit approvals."
Numbers from the Federal Reserve show that auto loan rates are growing in the United States, along with many other types of lending. During March, nonrevoloving credit lines - including car and student loans - increased by 5.9 percent.