MIAMI - (February 22, 2011) - LeaseTrader.com, the nation's most popular online car leasing marketplace, believes the environment for consumer credit may be getting healthier in analyzing its customer credit application data of first-time customers from the last quarter of 2010.
For the first time since the recession began, the company saw the rate of credit application approvals increase for first-time customers during the final quarter of 2010. Credit application approvals increased by 4.5 percent since the start of October and have continued in positive territory to begin 2011. To ensure the best possible experience for drivers looking to find an individual interested in assuming the remaining contract, LeaseTrader.com requires all car shoppers to verify creditworthiness before any contact is made.
"Having good credit is arguably the single most important factor in anyone's ability to lease a vehicle," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "We view this positive indication as key to the health of the overall leasing environment. It's one thing to offer great lease deals but you've got to have customers with good credit to sign on the dotted line."
Credit is analyzed differently when applying to take over a lease compared with credit analyzed to lease a new car at the dealership. In taking over a lease, the amount of credit a person has, combined with credit history, is analyzed to determine whether they can assume a lease. Unlike a dealership, a person's credit score is not analyzed to determine which category of pricing they qualify for when shopping for the best payment. The same person could have the credit to lease one vehicle in both scenarios but fail to qualify for the similar payment at the dealer level.