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olivLaw · US equity research

Credit Acceptance Corporation CACC

Personal Credit Institutions · SIC 6141 · Vertical: Personal Credit Institutions (SIC 6141)

498.68USD+3.75% · 1 dayClose 04 Nov 2026

Credit Acceptance provides auto financing through dealers to consumers with impaired or limited credit, making vehicle ownership possible for buyers who otherwise could not obtain financing. In 2026 the company kept growing its active dealer network even as unit volume eased, while expanding AI-enabled servicing.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Credit Acceptance Corporation (CACC) stock was 498.68 USD (+3.75% on the day), with market capitalisation 5.1 bn USD, P/E 16.3 on diluted EPS of 30.63 USD over the last 12 months, beta 1.22, 52-week range 411.04–657.20 USD. Latest reported quarter (Q3 2026): revenue of 594.6 m USD (+2.1% YoY), net income of -56.6 m USD (−152.3% YoY), diluted EPS -5.43 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
5.1 bn USD
shares as of 22 Oct 2026
P/E (TTM)
16.3
Diluted EPS TTM 30.63 · TTM to 30 Sept 2026
E/P (TTM)
6.14%
TTM to 30 Sept 2026
Dividend yield
unavailable
Beta (2y)
1.22
Volatility (1y) 43%
52-week range
411.04657.20

Price history

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Technical reading

RSI (14)
41.7
weak (30–45)
Bollinger (20, 2)
478.09 – 587.39
in the lower half of the band · %B 0.19 · band width 20.5%
SMA 50 / 200
557.42 / 538.17
mixed trend
MACD (12, 26, 9)
-15.50 / -10.46
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−6.1%−1.1%−5.1 pp—
3 months−15.8%−0.5%−15.4 pp—
6 months−7.6%+4.4%−12.0 pp—
Year to date+12.5%+12.3%+0.1 pp—
1 year+16.0%+13.5%+2.5 pp+5.4%
3 years+12.5%+76.4%−63.9 pp+142.3%
5 years−27.3%+63.7%−91.0 pp—
Max drawdown (1y)
−29.3%
06 Jul 2026 → 30 Oct 2026
Max drawdown (5y)
−45.0%
31 Dec 2021 → 05 Jan 2023
Compound annual growth (5y)
−6.2%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
594.6 m USD
+2.1% YoY
Net income
-56.6 m USD
−152.3% YoY
Diluted EPS
-5.43
−157.6% YoY
net / operating
-9.5% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue565.9 m571.1 m583.8 m582.4 m579.9 m580.0 m587.4 m594.6 m
Interest expense111.3 m114.7 m118.1 m116.3 m113.8 m108.4 m107.4 m107.2 m
Pre-tax income191.9 m141.7 m117.8 m148.9 m157.0 m175.0 m168.6 m-73.5 m
Income tax40.0 m35.4 m30.4 m40.7 m35.0 m39.2 m32.7 m-16.9 m
Net income151.9 m106.3 m87.4 m108.2 m122.0 m135.8 m135.9 m-56.6 m
Diluted EPS12.25 ≈8.667.429.4311.00 ≈12.4012.66-5.43
Operating cash flow306.2 m346.2 m139.7 m ≈299.4 m ≈269.3 m346.8 m309.5 m ≈335.5 m ≈
Capex700.0 k300.0 k300.0 k ≈600.0 k ≈400.0 k1.3 m1.6 m ≈1.4 m ≈
Share repurchases61.4 m164.4 m262.2 m ≈107.4 m ≈191.4 m178.9 m141.4 m ≈161.6 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 75 percentile of its own 40-quarter history (min 8.7, median 13.7, max 36.8; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue1.3 bn1.5 bn1.7 bn1.9 bn1.8 bn1.9 bn2.2 bn2.3 bn
Revenue YoY+15.8%+15.8%+12.1%+11.2%−1.3%+3.8%+13.7%+7.2%
Net income574.0 m656.1 m421.0 m958.3 m535.8 m286.1 m247.9 m423.9 m
Net income YoY+22.1%+14.3%−35.8%+127.6%−44.1%−46.6%−13.4%+71.0%
Diluted EPS29.3934.5723.4759.5239.3221.9919.8836.38
Diluted EPS YoY+22.3%+17.6%−32.1%+153.6%−33.9%−44.1%−9.6%+83.0%
net %44.6%44.1%25.2%51.6%29.2%15.0%11.5%18.3%
Free cash flow678.8 m785.5 m976.7 m1.1 bn1.2 bn1.2 bn1.1 bn1.1 bn

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
22.8 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
1.5 bn USD
Total assets
8.6 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
25.9%
ROA
4.8%
FCF margin
45.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
1.9 bn
2024
2.2 bn
2025
2.3 bn

SEC (XBRL)· 13 Feb 2026verified

Interest expense
2023
266.5 m
2024
419.5 m
2025
462.9 m

SEC (XBRL)· 13 Feb 2026verified

Pre-tax income
2023
367.6 m
2024
329.5 m
2025
565.4 m

SEC (XBRL)· 13 Feb 2026verified

Income tax
2023
81.5 m
2024
81.6 m
2025
141.5 m

SEC (XBRL)· 13 Feb 2026verified

Net income
2023
286.1 m
2024
247.9 m
2025
423.9 m

SEC (XBRL)· 13 Feb 2026verified

Diluted EPS
2023
21.99
2024
19.88
2025
36.38

SEC (XBRL)· 13 Feb 2026verified

Weighted average diluted shares
2023
13.0 m
2024
12.5 m
2025
11.7 m

SEC (XBRL)· 13 Feb 2026verified

Balance sheet · USD

Cash
2023
13.2 m
2024
343.7 m
2025
22.8 m

SEC (XBRL)· 13 Feb 2026verified

Property, plant & equipment, net
2023
46.5 m
2024
14.7 m
2025
12.6 m

SEC (XBRL)· 13 Feb 2026verified

Total assets
2023
7.6 bn
2024
8.9 bn
2025
8.6 bn

SEC (XBRL)· 13 Feb 2026verified

Accounts payable
2023
318.8 m
2024
315.8 m
2025
400.2 m

SEC (XBRL)· 05 May 2026verified

Total liabilities
2023
5.9 bn
2024
7.1 bn
2025
7.1 bn

SEC (XBRL)· 13 Feb 2026verified

Equity
2023
1.8 bn †
2024
1.7 bn †
2025
1.5 bn †

SEC (XBRL)· 13 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
1.2 bn
2024
1.1 bn
2025
1.1 bn

SEC (XBRL)· 13 Feb 2026verified

Capex
2023
4.0 m
2024
1.8 m
2025
1.6 m

SEC (XBRL)· 13 Feb 2026verified

Free cash flow
2023
1.2 bn ≈
2024
1.1 bn ≈
2025
1.1 bn ≈

SEC (XBRL)· 13 Feb 2026derived

Investing cash flow
2023
-1.4 bn
2024
-1.7 bn
2025
-674.3 m

SEC (XBRL)· 13 Feb 2026verified

Financing cash flow
2023
266.2 m
2024
957.3 m
2025
-724.6 m

SEC (XBRL)· 13 Feb 2026verified

Share repurchases
2023
202.6 m
2024
313.3 m
2025
725.4 m

SEC (XBRL)· 13 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
7.2%
computed by olivLawFY 2025
Revenue CAGR 3Y
8.1%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
6.8%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
71.0%
computed by olivLawFY 2025
Net income CAGR 3Y
-7.5%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
0.1%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
83.0%
computed by olivLawFY 2025
EPS CAGR 3Y
-2.6%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
9.2%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
-7.3%
computed by olivLawFY 2025

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
14.4%
computed by olivLawTTM to 30 Sept 2026
FCF margin
53.6%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
22.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
3.8%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
unavailable
input data missing
Quick ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
1.3 bn USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
4.7 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
1.3 bn USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
372.7%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
5.1 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
15.0x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
16.3x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
6.1%
computed by olivLawTTM to 30 Sept 2026
P/B
3.6x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
2.2x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
4.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
24.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
13.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 54.2% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

498.68 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 5.1 bn USD

Key indicators

Market capitalisation
5.1 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
16.3x
computed by olivLawTTM to 30 Sept 2026
P/B
3.6x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
22.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
14.4%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
7.2%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

19/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 22 Oct 2026
Source: SEC (XBRL)published 29 Oct 2026
verified 1827derived 126

Score by group

54% · Insufficient data

Estimated value range

Low
277.45
USD per share
Mid
387.69
USD per share
High
430.80
USD per share
Price: 498.68 USD
The price is above the range
Potential to the central value: -22.3% (value / price − 1)
Margin of safety: -28.6% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 277.45 – 430.80 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E277.45 – 430.80 (Mid 387.69)
    8 companies used · median multiple 12.7x · quartiles 9.1x – 14.1x
    AFRM, ATLC, BFH, ENVA, HAPN, NNI, RM, WRLD
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Personal Credit Institutions (SIC 6141)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 54.2% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality14.4%80 (vs peers)12%
FCF conversion · Quality372.7%100 (on a fixed band)12%
Revenue CAGR 3Y · Growth8.1%68 (on a fixed band)15%
EPS CAGR 3Y · Growth-2.6%0 (on a fixed band)15%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheetunavailableunavailable—
P/E (TTM) · Valuation16.3x13 (vs peers)19%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation24.9%100 (on a fixed band)15%
Shareholder yield (distributions) · Returns13.3%100 (on a fixed band)12%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/3 factors with a value
  • Growth34/100 · 2/2 factors with a value
  • Quality90/100 · 2/3 factors with a value
  • Returns· partial100/100 · 1/2 factors with a value
  • Valuation51/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

CREDIT ACCEPTANCE CORP (CACC). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 2.3 bn USD in 2025; YoY growth 7.2%; net margin 14.4%; ROE 22.7%.

The estimated value range is 277.45–430.80 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 387.69 USD, the price of 498.68 USD leaves a potential of -22.3% (value / price − 1) and a margin of safety of -28.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 54.2% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 14.4%
  • FCF conversion: 372.7%
  • FCF yield: 24.9%
  • Shareholder yield (distributions): 13.3%

What contradicts it

  • EPS CAGR 3Y: -2.6%
  • P/E (TTM): 16.3x
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Personal Credit Institutions (SIC 6141) · same industry (4-digit SIC) · compared with 8 companies

Multiples and returns vs the median

P/E
16.3x
vertical median 12.7x
above median (+28.6%)
EV/EBITDA
—
vertical median —
P/S
2.2x
vertical median 1.1x
above median (+105.4%)
P/B
3.6x
vertical median 1.2x
above median (+201.5%)
ROE
22.7%
vertical median 14.8%
above median (+53.0%)
Net margin
14.4%
vertical median 7.0%
above median (+106.9%)
EBIT margin
—
vertical median —
Revenue YoY
7.2%
vertical median 9.7%
below median (−26.2%)
Net debt/EBITDA
—
vertical median —
Dividend yield
—
vertical median 1.5%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
CACCCredit Acceptance Corp5.1 bn16.322.7%14.4%+7.2%+16% / +12%
AFRMAffirm Holdings, Inc.4.5 bn13.745.1%45.3%+32.2%+7% / +120%
ENVAEnova International, Inc.4.4 bn12.526.8%10.5%+18.6%+38% / +340%
BFHBread Financial Holdings, Inc.4.0 bn8.315.9%—−19.0%+55% / +273%
HAPNHappen, Inc.1.9 bn9.313.8%—−58.5%−8% / +165%
ATLCAtlanticus Holdings Corp1.5 bn12.824.3%5.8%+50.1%+69% / +223%
WRLDWorld Acceptance Corp751.2 m19.49.9%6.6%+3.7%+4% / +45%
RMRegional Management Corp.353.4 m8.012.6%7.0%+9.7%+4% / +79%
NNINelnet, Inc.—15.38.2%—unavailable−1% / +52%

1- and 3-year price returns: for CACC from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
331.76
Total return -33% · Per year -33%
585.53
Total return 17% · Per year 17%
880.62
Total return 77% · Per year 77%
3 years
345.96
Total return -31% · Per year -11%
684.72
Total return 37% · Per year 11%
1,127.22
Total return 126% · Per year 31%
5 years
360.76
Total return -28% · Per year -6%
800.71
Total return 61% · Per year 10%
1,442.89
Total return 189% · Per year 24%
What moves the 3-year price the most
  • Exit P/E± 171.18
  • Net margin± 119.83
  • Annual revenue growth± 95.05
  • Annual dilution± 10.07

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).

In brief

Credit Acceptance provides auto financing through dealers to consumers with impaired or limited credit, making vehicle ownership possible for buyers who otherwise could not obtain financing 1. In 2026 the company kept growing its active dealer network even as unit volume eased, while expanding AI-enabled servicing 23.

SWOT

Strengths

  • The company has a large network of active dealers, with record counts in 2025 and in the second quarter of 2026, giving it a steady flow of loans 123.
  • The collection forecasting model is built on many years of data and is adjusted monthly against actual portfolio performance 1.
  • The company has high available liquidity and has continued repurchasing shares, which points to disciplined capital allocation 13.

Weaknesses

  • Exposure to consumers with impaired credit makes losses more sensitive to an economic downturn 1.
  • Results depend on the accuracy of forecasts, and repeated corrections in recent years show initial estimates can be overtaken by events 12.
  • Geographic concentration of dealers in a few states limits diversification of loan volume 1.

Opportunities

  • If the June 2026 recovery in monthly volume is sustained, the company could return to loan volume growth 23.
  • Expanding AI tools in servicing and deal structuring could lower costs and raise operating efficiency 23.
  • The target dealer market is large, and the company can add dealers through its enrollment programs 1.

Threats

  • A recession, rising unemployment or falling vehicle values could increase delinquencies and losses 1.
  • Tariffs on imports could raise used car prices and reduce dealer origination of loans 1.
  • Changes to immigration rules for skilled workers could affect the company's ability to retain specialized engineering staff 1.

Risks

  • Accuracy of collection forecastshigh

    If forecasts of future collections prove inaccurate in aggregate, the financial position and results could be materially affected 1.

  • Intense competitionmedium

    Larger competitors with greater resources could limit the company's ability to keep volume and terms it wants 1.

  • Economic and auto market conditionshigh

    An economic slowdown could increase delinquencies, repossessions and losses, and collateral vehicle values could fall 1.

  • Reliance on third partiesmedium

    Dependence on outside administrators of ancillary products and on outsourced functions could disrupt operations 1.

  • Litigation and reputationmedium

    Negative publicity or litigation over the company's practices could damage relationships with dealers and consumers 12.

Investment thesis

What would need to be true (bull case)

  • If the recovery in monthly volume seen in June 2026 holds, the company could return to sustained growth in loans assigned 23.
  • The active dealer network has reached record levels, which could support volume over the long term 13.
  • AI-enabled servicing programs could reduce cost-to-serve and improve margins if the scale-up succeeds 2.

What would break the thesis

  • Repeated adjustments to collection forecasts show loan performance can fall short of initial estimates, which could reduce profitability 12.
  • Lower loan volume in 2025 and early 2026 could point to competitive pressure or weaker demand 12.
  • A recession or a weaker auto market could raise losses, especially for a portfolio built on higher-risk consumers 1.

What to watch

  • Trend in monthly unit loan volume after June 2026Q3 2026
  • Collection forecast adjustments for loans assigned from 2023 to 2026Q3 2026
  • Progress in scaling the AI call-center agent2026

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).

The business

Credit Acceptance Corporation offers dealers financing programs that let them sell vehicles to consumers regardless of credit history 1. Most Consumer Loans assigned to the company are made to people with impaired or limited credit histories, and in 2025 this group made up 79.5% of unit volume 1. The company says its programs also help consumers improve their credit scores, since it reports to the three national credit reporting agencies 1. Revenue comes mainly from finance charges, which were 92.4% of total revenue in 2025 1.

The business model rests on two programs. Under the Portfolio Program the company advances money to dealers in exchange for the right to service the loans, and the dealer later receives Dealer Holdback once the advance is recovered 1. Under the Purchase Program the company buys the loan from the dealer for a one-time payment and keeps all amounts collected 1. The company runs its own credit scoring and handles collections, repossession and remarketing of vehicles 1.

Segments

Single reportable segment

Credit Acceptance has one reportable segment, which represents its core business of financing solutions and related products for dealers 1.

Purchase Program

Under the Purchase Program the dealer receives a one-time payment at assignment and the company keeps all collections, so this program's results depend more on the initial collection forecast 1. Access is typically limited to dealers with a minimum loan volume or franchise dealers 1.

Market context

Activity is geographically concentrated: in 2025 the five largest states contained 29.2% of dealers, and the company expects a significant share of volume to keep coming from these states in the near term 1.

Trends

  • Improving profitabilitytailwind

    Net income rose in 2025 versus 2024, mainly because of a lower provision for credit losses and higher finance charges, and in the second quarter of 2026 the increase came from lower operating expenses and provision 12.

  • Forecast adjustmentsheadwind

    The company has made several adjustments to its forecasting model in recent years that reduced forecasted net cash flows, and further adjustments could affect provisions and results 12. For loans assigned in 2022 and 2023 forecasts stayed below initial levels, showing the model's sensitivity to payment behavior 12.

  • AI-enabled automationmixed

    The company is expanding AI use in customer service and in deal structuring for dealers, which could lower cost-to-serve and improve efficiency if the rollout proceeds as planned 23.

Competitive position

The company operates in a market served by banks, captive finance affiliates of automakers, credit unions, independent finance companies and buy here, pay here dealerships, many of which have greater financial resources 1. Competition is based on interest rate, quality of credit accepted, loan term flexibility and service quality for dealers and consumers 1.

The sources provided do not name individual publicly listed competitors, so the competitor list below describes competitor categories rather than specific companies 1.

  • Buy here, pay here dealerships

    Dealers that finance higher-risk customers themselves and compete directly for the same consumers 1.

  • Banks

    Banking institutions active in auto lending; the source does not identify individual banks 1.

  • Captive finance affiliates of automakers

    Finance arms of automobile manufacturers that have long-standing relationships with dealers 1.

  • Independent finance companies

    Public and private independent lenders offering auto loans to higher-risk consumers 1.

News & filings

In the press

The latest news item in our archive is from 23 Sept 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

  • Quarterly report29 Oct 2026
  • Current report29 Oct 2026
    Results of operations · Financial statements and exhibits
  • Current report21 Sept 2026
    Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
  • Current report18 Sept 2026
    Material agreement · Regulation FD disclosure · Financial statements and exhibits
  • Current report04 Sept 2026
    Departure or appointment of officers
  • Current report25 Aug 2026
    Material agreement · Creation of a direct financial obligation · Other events · Financial statements and exhibits
  • Quarterly report04 Aug 2026
  • Current report04 Aug 2026
    Results of operations · Financial statements and exhibits
  • Current report24 Jul 2026
    Departure or appointment of officers
  • Current report22 Jul 2026
    Departure or appointment of officers

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Credit Acceptance Corporation · 13 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Credit Acceptance Corporation · 04 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Credit Acceptance Corporation · 04 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.