Credit Acceptance Corporation (NASDAQ:CACC) is a specialty finance company that partners with franchised and independent auto dealers to underwrite and purchase retail installment contracts for consumers with limited access to traditional credit. By assuming the credit risk associated with these loans, the company enables dealers to offer financing solutions to credit-challenged borrowers, thereby expanding the pool of potential car buyers and facilitating higher vehicle sales volumes.
The company’s primary offerings include direct purchase programs, in which Credit Acceptance buys installment contracts from dealers at the point of sale, and dealer services that encompass underwriting guidelines, account servicing, and collections support. Credit Acceptance also provides ancillary products such as payment protection insurance to safeguard both consumers and dealers against unexpected events, and portfolio analytics to optimize credit decisioning. Its integrated technology platform automates much of the risk assessment and servicing process, helping to streamline operations and enhance portfolio performance.
Founded in 1972 and headquartered in Southfield, Michigan, Credit Acceptance has grown from a regional auto finance operation into one of the nation’s leading subprime indirect auto lenders. The company’s network spans all 50 states and the District of Columbia, serving a diverse array of franchised and independent dealerships. Over the decades, it has navigated evolving regulatory frameworks and credit cycles by refining its underwriting criteria, expanding its product suite, and investing in data-driven decision support tools to better manage risk.
Since 2016, Craig T. Deckelman has served as President and Chief Executive Officer, overseeing strategic initiatives aimed at enhancing operational efficiency and scaling the business across new markets. Under his leadership, Credit Acceptance has continued to invest in technology, talent, and analytics capabilities. The company’s senior management team brings extensive experience in auto finance, risk management, and financial services, positioning Credit Acceptance to maintain its competitive position in the subprime auto lending sector.
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