(CACC) Credit Acceptance - Ratings and Ratios

Credit Acceptance Corporation (NASDAQ:CACC) operates as a specialty consumer finance company, primarily serving the automotive industry in the United States. The company provides financing programs and related services to independent and franchised automobile dealers. Its core business involves advancing funds to dealers in exchange for the right to service underlying consumer loans, and purchasing consumer loans from dealers, retaining the amounts collected from consumers. Additionally, Credit Acceptance reinsures coverage under vehicle service contracts sold by dealers to consumers on vehicles financed through its programs. The company has been operational since its incorporation in 1972 and is headquartered in Southfield, Michigan.

As a leader in indirect automotive financing, Credit Acceptance focuses on non-prime consumers, offering dealers a platform to sell vehicles to customers who may not qualify for traditional financing. The companys business model generates revenue through interest and fees on consumer loans, as well as through its reinsurance activities. Its programs are designed to help dealers increase sales volumes and profitability by enabling the financing of vehicles for a broader range of customers. Credit Acceptance has established long-term relationships with its dealer network, which includes both independent and franchised dealerships across the U.S.