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Credit Acceptance Corp (NASDAQ: CACC) is a distinguished Michigan-based indirect finance company, operating since 1972. With a workforce that exceeds 1,300 employees, the company is dedicated to transforming lives through its innovative finance solutions. Credit Acceptance partners with car dealers across the United States to facilitate vehicle sales to customers, irrespective of their credit histories. This collaboration enables car dealers to sell more vehicles, while also offering individuals access to necessary transportation, thereby improving their quality of life.
The company experienced an impressive operating revenue of $723 million in 2014, which reflects its robust financial health and effective business model. Credit Acceptance's core revenue streams include finance charges, premiums from the reinsurance of vehicle service contracts, and various fees, with finance charges and servicing fees being the predominant sources.
Credit Acceptance's unique value proposition lies in its inclusive approach to financing, which garners repeat and referral sales. By catering to consumers who may not qualify for traditional financing, the company taps into a significant market segment, driving sustainable growth and profitability. Additionally, the company’s motto, “We change lives!” underscores its commitment to making a substantial impact on both dealers and customers.
Credit Acceptance's recent projects and achievements include the continued refinement of their Consumer Loan collection rates, with an emphasis on enhancing forecast accuracy and improving net cash flows. The latest data, as of December 31, 2023, highlights the company’s ongoing efforts to optimize its collection strategies, ensuring financial stability and operational excellence.
The company prides itself on fostering a supportive work environment that encourages team members to reach their fullest potential. Besides offering competitive benefits, progressive career opportunities, and a casual dress code, Credit Acceptance espouses values such as positivity, respect, insightfulness, directness, and earnestness in its operations and workplace culture.
Credit Acceptance Corporation (CACC) reported a consolidated net income of $242.1 million, or $13.56 per diluted share for Q3 2020, a notable increase from $165.4 million, or $8.73 per diluted share in Q3 2019. However, for the first nine months of 2020, net income dropped to $254.7 million, down from $494.2 million in 2019. The ongoing COVID-19 pandemic continues to impact demand, leading to a significant decline in loan volume, which fell 8.8% year-over-year in Q3. The company reverses a provision for credit losses of $29.8 million for Q3 2020, indicating uncertainty regarding future cash flows.
Credit Acceptance Corporation (Nasdaq: CACC) announced a successful completion of a $600 million asset-backed non-recourse secured financing. This financing involves contributing loans valued at approximately $750.1 million to a special purpose entity. The trust will issue three classes of notes, with an expected annualized cost of 1.8%. The financing will revolve for 24 months, after which it will amortize based on cash flows from the loans. The company will utilize the funds to repay outstanding debts while maintaining dealer relationships.
Credit Acceptance Corporation (CACC) announced that it will release its third quarter 2020 financial results on October 29, 2020, after market close. A webcast to discuss these results is scheduled for the same day at 5:00 p.m. ET. The company provides financing programs for automobile dealers, enabling them to sell vehicles to consumers with poor credit histories. Through these programs, consumers can improve their credit scores while accessing reliable vehicles. More details can be found on their official website.
Credit Acceptance Corporation (CACC) reported a consolidated net income of $96.4 million for Q2 2020, down 41.4% from $164.4 million in Q2 2019. For the first half of 2020, the income plummeted by 96.2%, amounting to $12.6 million compared to $328.8 million a year earlier. The company faced a significant decline in cash flows due to the COVID-19 pandemic, leading to $139.4 million in provisions for credit losses. However, adjusted net income increased slightly to $154.1 million for Q2 2020, reflecting a 2.2% rise year-over-year.
Credit Acceptance Corporation (Nasdaq: CACC) has been recognized by Crain’s Detroit Business as one of the 50 fastest-growing companies in the Detroit area, achieving an impressive ranking of #8, up from #10 last year. This accolade is based on revenue growth from 2016 to 2019. Additionally, the company garnered its sixth workplace award in 2020, including recognition from FORTUNE and Computerworld. Established in 1972, Credit Acceptance provides financing programs enabling auto dealers to sell to consumers with poor credit history, improving their credit scores and access to traditional financing.
Credit Acceptance Corporation (Nasdaq: CACC) has successfully completed a $481.8 million asset-backed non-recourse secured financing transaction. This involves contributing approximately $602.3 million in loans to a special purpose entity, which will issue three classes of notes. The financing is structured to revolve for 24 months at an expected annualized cost of around 2.0%. Credit Acceptance will retain 6.0% of the cash flows from the loans for servicing expenses, with the remaining cash allocated to principal and interest payments on the notes.
Credit Acceptance Corporation (CACC) will release its second quarter 2020 results on July 30, 2020, after market hours. A live webcast discussing these results is scheduled for the same day at 5:00 p.m. Eastern Time. This event can be accessed via the Investor Relations section of their website or by calling 877-303-2904. Since 1972, Credit Acceptance has provided financing options for consumers regardless of credit history through a network of automobile dealers, helping improve consumer credit scores and enable vehicle purchases.
Credit Acceptance Corporation (CACC) announced its annual shareholder meeting will be held virtually on July 15, 2020, at 8:00 a.m. ET due to COVID-19 health concerns. Shareholders of record as of May 21, 2020, can participate online via a designated Meeting Center. Physical attendance is not permitted. Those holding shares in street name must register in advance with a legal proxy. Proxy voting is encouraged prior to the meeting. The notice of the meeting change has been filed with the SEC, and details are available on the company’s website.
Credit Acceptance Corporation (CACC), based in Southfield, Michigan, has ranked #18 on IDG's Insider Pro and Computerworld 2020 Best Places to Work in IT for midsize companies. This recognition is part of an annual survey evaluating work environments for technology professionals, with input from the IT team influencing the ranking. Notably, this is the fifth award the company has received this year, including accolades such as FORTUNE 100 Best Companies to Work For. Credit Acceptance has been facilitating vehicle financing since 1972, helping consumers with poor credit access reliable vehicles.
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