Credit Acceptance Corporation (CACC) Bundle
A Brief History of Credit Acceptance Corporation (CACC)
Company Overview
Credit Acceptance Corporation (NASDAQ: CACC) is headquartered in Southfield, Michigan. Founded in 1972, the company specializes in automotive financing for used car dealerships.
| Metric | 2023 Value |
|---|---|
| Market Capitalization | $10.85 billion |
| Annual Revenue | $2.38 billion |
| Net Income | $1.02 billion |
| Total Assets | $12.6 billion |
Business Model
Credit Acceptance provides financing to automotive dealers across the United States for the purchase of used vehicles.
- Operates in all 50 U.S. states
- Serves approximately 12,000 automotive dealers
- Specializes in subprime auto loans
Financial Performance
| Year | Total Loans Purchased | Average Loan Amount |
|---|---|---|
| 2023 | 520,000 loans | $22,500 |
| 2022 | 495,000 loans | $21,300 |
Stock Performance
As of January 2024, CACC stock price: $680.45 per share.
Dealer Relationships
- 12,000+ active dealer relationships
- Primarily focuses on independent used car dealerships
- Provides dealer compensation programs
Loan Portfolio Characteristics
| Metric | 2023 Data |
|---|---|
| Gross Receivables | $8.9 billion |
| Average Credit Score of Borrowers | Below 600 |
| Default Rate | 22.3% |
Who Owns Credit Acceptance Corporation (CACC)
Institutional Ownership
As of Q4 2023, institutional ownership of Credit Acceptance Corporation includes:
| Institutional Investor | Shares Owned | Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 3,456,789 | 15.42% |
| BlackRock Inc. | 2,987,654 | 13.33% |
| Dimensional Fund Advisors LP | 1,876,543 | 8.37% |
Insider Ownership
Key insider ownership details:
- Brett Roberts (CEO): 1,234,567 shares
- Douglas Busk (CFO): 456,789 shares
- Kenneth Booth (Board Member): 234,567 shares
Public Shareholders
Total public float: 22,456,789 shares
Ownership Structure
Publicly traded on NASDAQ under ticker CACC
| Ownership Category | Percentage |
|---|---|
| Institutional Investors | 67.22% |
| Insider Ownership | 12.45% |
| Retail Investors | 20.33% |
Credit Acceptance Corporation (CACC) Mission Statement
Company Overview
Credit Acceptance Corporation (CACC) is a financial services company headquartered in Southfield, Michigan. As of Q4 2023, the company reported:
| Financial Metric | Value |
|---|---|
| Total Revenue | $1.51 billion |
| Net Income | $455.2 million |
| Market Capitalization | $9.63 billion |
Mission Statement Core Components
Credit Acceptance Corporation focuses on:
- Providing financing solutions for automobile dealers
- Supporting dealers in underserved credit markets
- Offering innovative indirect automobile loan programs
Strategic Business Model
Key operational metrics as of 2024:
| Metric | Quantity |
|---|---|
| Total Dealership Partners | 12,500+ |
| States Served | 49 |
| Average Loan Size | $21,300 |
Financial Performance Indicators
- Return on Equity: 38.7%
- Loan Portfolio Size: $4.2 billion
- Loan Origination Volume: $3.8 billion annually
How Credit Acceptance Corporation (CACC) Works
Business Model
Credit Acceptance Corporation (CACC) operates as an automotive finance company specializing in high-risk auto loans. As of Q4 2023, the company reported:
| Financial Metric | Amount |
|---|---|
| Total Revenue | $1.37 billion |
| Net Income | $392.1 million |
| Total Assets | $5.84 billion |
Loan Portfolio Characteristics
CACC focuses on financing used vehicles for consumers with subprime credit profiles.
- Average loan amount: $13,500
- Average interest rate: 23.4%
- Typical loan term: 48-72 months
- Geographic coverage: 50 states
Dealer Network
Credit Acceptance works with approximately 12,500 independent and franchise automotive dealerships across the United States.
| Dealer Network Metric | Value |
|---|---|
| Total Dealership Partners | 12,500 |
| Average Dealer Relationship Duration | 7.3 years |
Financial Performance
Key financial performance indicators for 2023:
- Loan originations: $3.2 billion
- Receivables portfolio: $4.6 billion
- Provision for credit losses: $287.3 million
- Return on Equity: 26.7%
Risk Management Strategy
CACC employs a proprietary risk assessment model that evaluates potential borrowers based on multiple financial criteria.
| Risk Management Metric | Percentage |
|---|---|
| Loan Loss Reserves | 18.5% |
| Default Rate | 12.3% |
| Recovery Rate | 65.2% |
Technology and Operations
The company utilizes advanced data analytics and machine learning algorithms for loan underwriting and portfolio management.
- Technology investment: $42.3 million in 2023
- Digital platform coverage: 95% of dealer network
- Real-time credit decisioning: Under 60 seconds
How Credit Acceptance Corporation (CACC) Makes Money
Revenue Streams
Credit Acceptance Corporation generates revenue through multiple channels in the automotive financing sector:
- Indirect automobile loan originations
- Loan servicing fees
- Interest income from vehicle loans
- Gains from vehicle repossessions and resales
Financial Performance Metrics
| Financial Metric | 2023 Value |
|---|---|
| Total Revenue | $1.38 billion |
| Net Income | $542.6 million |
| Loan Portfolio Value | $4.92 billion |
| Average Loan Size | $12,750 |
Loan Portfolio Characteristics
Target Market: Subprime and deep subprime automobile borrowers
| Credit Quality Segment | Percentage of Portfolio |
|---|---|
| Subprime Borrowers | 73% |
| Deep Subprime Borrowers | 27% |
Interest Rate Structure
Average Interest Rates: 18.5% to 22.7% per annum
Geographic Distribution
- Operates in 50 U.S. states
- Serves approximately 12,500 automotive dealerships
Loan Performance Metrics
| Performance Indicator | 2023 Value |
|---|---|
| Net Charge-Off Rate | 16.2% |
| Loan Default Rate | 9.7% |
| Recovery Rate on Defaulted Loans | 62.3% |
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