Subprime Lender Has Mixed Q3 Results

Credit Acceptance’s loan volume and value jumped in the third quarter while adjusted net income fell 19% year-over-year to $179 million.

The subprime auto lender, which increased the number of dealerships it works with, posted 71,937 loans, up 29%, representing a 32% increase in value.

The Michigan-based company added 959 dealerships to its roster, up 13% year-over-year.

But it lowered its forecast for collection rates on consumer loans assigned from 2019 through the end of this year, dropping forecasted cash flow from its loan portfolio by $85.4 million, or 0.9%.

Its net income dropped 65% to $86.8 million.

READ MORE: RouteOne Adds Flagship Credit Acceptance as an eContracting Finance Source

Originally posted on F&I and Showroom