Subprime Lender Has Mixed Q3 Results
Credit Acceptance boosts loan volume, value but lowers collection rate forecast.
The lender added 959 dealerships to its roster, up 13% year-over-year.
IMAGE: Getty Images/Waldemarus
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.
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