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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 (Nasdaq: CACC) announced an extension of its $200 million revolving secured warehouse facility until September 1, 2024. This extension allows the company to maintain liquidity without any outstanding balance as of September 2, 2021. The financing programs offered by Credit Acceptance enable automobile dealers to sell vehicles to consumers with poor credit history, while also assisting these consumers in improving their credit scores. This initiative enhances vehicle access for a broader customer base and supports the overall business model.
Credit Acceptance Corporation (CACC) has resolved litigation with the Massachusetts Attorney General, concluding a contested matter while asserting no admission of liability. The company aims to continue offering financing programs in Massachusetts, helping consumers regardless of credit history. The settlement details were disclosed in a Form 8-K and the case filed in Suffolk Superior Court. Established in 1972, Credit Acceptance facilitates vehicle sales through a network of dealers, enhancing access to financing and improving customers' credit scores.
Credit Acceptance Corporation (CACC) reported a consolidated net income of $288.6 million, or $17.18 per diluted share for Q2 2021, a substantial increase from $96.4 million and $5.40 per diluted share in Q2 2020. Year-to-date, net income reached $490.7 million, compared to $12.6 million in 2020. Adjusted net income also rose, reflecting improved forecasted collection rates by $104.5 million. However, Consumer Loan assignment volume declined significantly by 28.7%, impacting overall performance due to low dealer inventories and rising used vehicle prices. The ongoing effects of the COVID-19 pandemic continue to influence business dynamics.
Credit Acceptance Corporation (CACC) announced its intention to release second quarter 2021 results on July 29, 2021, after market hours. A live webcast discussing these results is scheduled for the same day at 5:00 p.m. ET, available through the Investor Relations section of their website or by dialing 877-303-2904. The company has provided financing programs since 1972, empowering automobile dealers to sell to consumers with varying credit histories, thereby contributing to credit improvement opportunities for consumers.
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 for the eighth consecutive year, ranking 8th based on revenue growth from 2017 to 2020. This recognition highlights the company’s ability to sustain strong financial performance. Additionally, Credit Acceptance has received multiple workplace awards this year, reinforcing its reputation as a desirable employer in the financial services sector.
Credit Acceptance Corporation (CACC) has made headlines by ranking #8 in IDG’s Insider Pro and Computerworld 2021 Best Places to Work in IT for Midsize companies, climbing 10 spots from the previous year. This recognition follows a thorough evaluation of the company's nomination and feedback from its IT team. This is the fourth workplace award the company has received this year, also earning accolades as one of the Best Workplaces in Financial Services & Insurance for seven consecutive years, the 2021 Top Workplaces USA Award, and the 2021 Nevada Top Workplaces for two years running.
Credit Acceptance Corporation (Nasdaq: CACC) has completed a $450 million asset-backed non-recourse secured financing, contributing consumer loans valued at approximately $562.6 million to a special purpose entity. The financing involves three classes of notes, with an expected annualized cost of around 1.5%. The notes will revolve for 24 months before amortizing based on cash flows from the loans. The financing aims to reduce outstanding debt and support general corporate purposes. CACC will retain 4% of cash flows for servicing, while the remaining will cover interest and principal payments.
Credit Acceptance Corporation (CACC) reported consolidated net income of $202.1 million ($11.82 per diluted share) for Q1 2021, a significant recovery from a net loss of $83.8 million ($4.61 per diluted share) in Q1 2020. Adjusted net income was $164.8 million ($9.64 per diluted share), slightly down from $175.7 million ($9.66 per diluted share) year-over-year. The company recognized a $27.2 million contingent loss due to litigation settlement with Massachusetts. Despite improved cash flows and collections, uncertainties remain due to the ongoing impact of the COVID-19 pandemic.
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