CACC 📈 Credit Acceptance - Overview

Credit Acceptance Corporation operates as a specialized financial services company, providing financing programs and related products to independent and franchised automobile dealers across the United States. By advancing funds to these dealers, the company acquires the right to service the underlying consumer loans, effectively creating a revenue stream. This approach enables Credit Acceptance Corporation to collect payments from consumers and retain the amounts received, thus generating income.

The company's business model extends beyond financing, as it also engages in the reinsurance of vehicle service contracts sold to consumers by dealers on vehicles financed by Credit Acceptance Corporation. This reinsurance business adds another layer of revenue and risk management to the company's operations. With a focus on serving automobile dealers, the company has established itself as a key player in the consumer finance industry, particularly in the subprime lending space.

Founded in 1972, Credit Acceptance Corporation has a long history of providing financial services to the automotive industry. Headquartered in Southfield, Michigan, the company has developed a robust infrastructure to support its operations, including a website (https://www.creditacceptance.com) that provides information on its products and services. As a publicly traded company listed on the NASDAQ stock exchange (NASDAQ:CACC), Credit Acceptance Corporation's common stock (ISIN: US2253101016) is classified under the Consumer Finance sub-industry, reflecting its specialized focus on financing and related services for the automotive sector.