Credit Acceptance Corporation

Business model

Credit Acceptance is an indirect lender that enables automobile dealers to finance vehicle sales for consumers, including those with impaired or limited credit histories. The company either acquires consumer loans originated by dealers or advances funds to dealers and then services the loans.

• Dealers originate consumer loans and assign them to Credit Acceptance.
• Credit Acceptance funds dealers and services the underlying consumer loans, or purchases the loans outright and retains collections.
• The company is the lender of record and secures collateral (vehicle titles) and the loans.

Programs

• Portfolio Program: Credit Acceptance advances funds to the dealer (Dealer Loan) and retains the right to service the underlying consumer loans. Funding is provided as an advance; dealer holdback payments depend on collections and performance.
• Purchase Program: Credit Acceptance buys consumer loans from the dealer (Purchased Loans) and retains all collections. Dealer receives a one-time payment at assignment.

Market and customers

• Target dealer network: Approximately 60,000 independent and franchised automobile dealers in the United States.
• Dealer enrollments: 5,605 (2023); 6,088 (2024); 5,752 (2025).
• Active dealers: 14,174 (2023); 15,463 (2024); 15,745 (2025).
• State breakdown: The filing provides consumer loan activity by state (dollar volume and number of active dealers). In 2025, total consumer loan assignments were $3,856.1 million across all states.

Five-state concentration (2025 consumer loan assignments)

• Michigan: $308.3 million (8.0%)
• Texas: $281.2 million (7.3%)
• Ohio: $241.1 million (6.3%)
• New Jersey: $244.9 million (6.4%)
• Florida: $168.2 million (4.4%)
• All other states: $2,612.4 million (67.6%)
• Total: $3,856.1 million (100.0%)

Financial characteristics and revenue composition

Revenue sources (percent of total revenue)

• Finance charges: 92.4% (2025); 92.2% (2024); 92.3% (2023)
• Premiums earned (vehicle service contracts, reinsurance, etc.): 4.1% (2025); 4.4% (2024); 4.2% (2023)
• Other income (ancillary product profit sharing, remarketing fees, interest, etc.): 3.5% (2025); 3.4% (2024); 3.5% (2023)

Unit and dollar volumes of consumer loan assignments

• 2025: Portfolio 74.2% of unit volume; Purchase 25.8% of unit volume. Dollar volumes: Portfolio 71.7%; Purchase 28.3%.
• 2024: Portfolio 78.7% of unit volume; Purchase 21.3% of unit volume. Dollar volumes: Portfolio 77.5%; Purchase 22.5%.
• 2023: Portfolio 74.0% of unit volume; Purchase 26.0% of unit volume. Dollar volumes: Portfolio 70.7%; Purchase 29.3%.

Operations and workforce

• Headquarters: Southfield, Michigan, in a 136,000 square foot building purchased in 1993.
• Work model: Remote-first strategy; majority of team members work remotely, with some on-site at headquarters. More than half of employees are located outside Michigan.
• Employees: 2,314 full- and part-time team members as of December 31, 2025.
• Dealer servicing and customer experience: Dealer Service Center handles loan applications, funding stipulations, and ongoing servicing. Risk-sharing and incentive structures align dealer and company objectives.
• Credit approval and funding: Credit Approval Processing System (CAPS) and dealer-integrator workflows enable quick approvals, custom loan structures, and electronic contract execution.

Risk profile and third-party relationships

• The company uses a risk-sharing model with dealers to incentivize underwriting quality and post-sale servicing.
• Specialized servicing operations handle delinquent loans, including repossession and remarketing.
• The firm relies on technology and third-party providers for ancillary products (vehicle service contracts and GAP), which creates performance and compliance considerations.
• Seasonality: Loan assignments and collections tend to peak in the first quarter.

Reporting and disclosures

Credit Acceptance publishes annual, quarterly, and current reports through its website and public filings (Form 10-K).