Credit Acceptance ( (CACC) ) has released its Q3 earnings. Here is a breakdown of the information Credit Acceptance presented to its investors.
Credit Acceptance Corporation, a Michigan-based company, provides innovative financing solutions enabling automobile dealers to sell vehicles to consumers with impaired or limited credit histories. In its latest earnings report for the third quarter of 2024, Credit Acceptance reported an increase in total revenue to $550.3 million, up from $478.6 million in the same period last year, driven by higher finance charges and premiums earned. However, net income for the nine months ending September 30, 2024, was significantly lower at $96.0 million compared to $192.5 million in the previous year, reflecting an increase in provision for credit losses and interest expenses. The company’s loan receivables grew to $11.2 billion, with a net balance of $7.8 billion after accounting for credit losses. Despite the increased provisions for credit losses, Credit Acceptance continues to expand its financing programs with a focus on enhancing dealer relationships and consumer credit improvement. Looking ahead, the management remains committed to maintaining its growth trajectory while adapting to market conditions and credit risk factors.
