News

Auto industry sees positive gains as credit approvals increase

Credit_CardRecent data from U.S. Bank revealed that credit approvals on Swapalease.com, a national car lease marketplace, increased by 23 percent from the last five months of last year.

Credit declines in January fell by 20 percent over the same period. Every consumer buyer on Swapalase.com must be credit-approved by a lender before a lease transfer takes place, The Auto Channel reports.

“We’re continuing to see a resilient economy bounce back from the recession of a few years ago,” Scot Hall, the executive vice president of Swapalease.com, said, according to The Auto Channel. “All eyes right now are on watching if the trend can continue following the payroll tax increase and the recent sequestration, two evens that still have negative consequences on consumer finances.”

Credit approvals in January were six percent lower than December, but credit declines also fell by 20 percent from December. Approval rates in January were also 60 percent higher year-over-year, and the number of customers also fell by 42.9 percent year-over-year.

The auto industry has seen some positive trends since the financial crisis. In January, non-revolving debt, which includes auto and student loans, rose by $16 billion, following an $18.3 billion gain in December. Sales of cars and light trucks totaled 15.2 million annually after 15.3 million in December, Money News reports.

Comments are closed.