The Industry's Leading Source For F&I, Sales And Technology

Top News

Credit Acceptance Announces Third Quarter 2007 Earnings

November 6, 2007

SOUTHFIELD, Mich. — Credit Acceptance Corporation announced consolidated net income of $14.7 million for the three months ended Sept. 30, 2007, compared to consolidated net income of $15.3 million for the same period in 2006. For the nine months ended Sept. 30, 2007, consolidated net income was $42.4 million, compared to consolidated net income of $50.1 million for the same period in 2006.

Income from continuing operations for the three months ended Sept. 30, 2007, was $13.5 million, compared to $15.4 million for the same period in 2006. For the nine months ended Sept. 30, 2007, income from continuing operations was $41.3 million, compared to $50.3 million for the same period in 2006.

Loan origination dollar volume declined 0.3 percent during the third quarter of 2007 as compared to the prior year same period. This decline follows four consecutive quarters of very rapid loan growth. The decline in loan origination volume was the result of lower volumes per dealer-partner, partially offset by an increase in the number of active dealer-partners. Average volume per dealer-partner declined as a result of reduced advance rates as compared to the prior-year period. Advance rates were reduced during the first six months of 2007 in order to increase the spread between the advance rate and the collection rate and reduce the risk of future advance losses.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  

CLOSE [X]

READ NEXT

First Advantage CREDCO Helps Auto Dealers Comply With Red Flag Ruling

For over a year, automotive dealers have been hearing about the proposed Red Flag Ruling, which would require them to establish and maintain an identity theft program. And for over a year, First Advantage CREDCO has been preparing their dealer customers with the tools they need to protect consumer identities and minimize fraud-related losses.