Secured Financing


Comments Closed

Credit Acceptance Announces: Certain Operating Results


(1)     New active dealers are dealers who
enrolled in our program and have received funding for their first
dealer loan or purchased loan from us during the period.

(2)     Attrition is measured according to
the following formula:  decrease in Consumer Loan unit volume
from dealers who have received funding for at least one dealer loan
or purchased loan during the comparable period of the prior year
but did not receive funding for any dealer loans or purchased loans
during the current period divided by prior year comparable period
Consumer Loan unit volume.

Notice to Investors

This release is for informational purposes only
and is not an offer to buy or the solicitation of an offer to sell
any shares of Credit Acceptances common stock.  The
solicitation of offers to buy Credit Acceptances common stock is
only being made pursuant to the Offer to Purchase and related
materials that Credit Acceptance has filed on Schedule TO with the
Securities and Exchange Commission (the
SEC).  Shareholders are urged to read Credit
Acceptances Tender Offer Statement on Schedule TO (the
Statement) filed with the SEC in connection with the tender
offer, which includes as exhibits the Offer to Purchase and the
related Letter of Transmittal, as well as any amendments or
supplements to the Statement when they become available, because
they contain important information.  Each of these
documents has been or will be filed with the SEC, and shareholders
may obtain them free of charge from the SEC at the SECs Website
(http://www.sec.gov/) or from Georgeson, Inc., the Information
Agent for the tender offer, toll free at (866) 729-6818.

Cautionary Statement Regarding
Forward-Looking Information

Statements in this release that are not historical facts, such
as those using terms like may, will, should, believe,
expect, anticipate, assume, forecast, estimate, intend,
plan, target and those regarding our future results, plans and
objectives, are forward-looking statements within the meaning of
the federal securities laws.  These forward-looking statements
represent our outlook only as of the date of this release. 
Actual results could differ materially from these forward-looking
statements since the statements are based on our current
expectations, which are subject to risks and uncertainties. 
Factors that might cause such a difference include, but are not
limited to, the factors set forth in Item 1A to our Form 10-K for
the year ended December 31, 2013, filed with the SEC on February
14, 2014, other risk factors discussed herein or listed from time
to time in our reports filed with the SEC and the following:

  • Our inability to accurately forecast and estimate the amount
    and timing of future collections could have a material adverse
    effect on results of operations.
  • We may be unable to execute our business strategy due to
    current economic conditions.
  • We may be unable to continue to access or renew funding sources
    and obtain capital needed to maintain and grow our business.
  • The terms of our debt limit how we conduct our business.
  • A violation of the terms of our asset-backed secured financing
    facilities or revolving secured warehouse facilities could have a
    materially adverse impact on our operations.
  • The conditions of the US and international capital markets
    may adversely affect lenders with which we have relationships,
    causing us to incur additional costs and reducing our sources of
    liquidity, which may adversely affect our financial position,
    liquidity and results of operations.
  • Our substantial debt could negatively impact our business,
    prevent us from satisfying our debt obligations and adversely
    affect our financial condition.
  • Due to competition from traditional financing sources and
    non-traditional lenders, we may not be able to compete
  • We may not be able to generate sufficient cash flows to service
    our outstanding debt and fund operations and may be forced to take
    other actions to satisfy our obligations under such debt.
  • Interest rate fluctuations may adversely affect our borrowing
    costs, profitability and liquidity.
  • Reduction in our credit rating could increase the cost of our
    funding from, and restrict our access to, the capital markets and
    adversely affect our liquidity, financial condition and results of
  • We may incur substantially more debt and other
    liabilities.  This could exacerbate further the risks
    associated with our current debt levels.
  • The regulation to which we are or may become subject could
    result in a material adverse effect on our business.
  • Adverse changes in economic conditions, the automobile or
    finance industries, or the non-prime consumer market could
    adversely affect our financial position, liquidity and results of
    operations, the ability of key vendors that we depend on to supply
    us with services, and our ability to enter into future financing
  • Litigation we are involved in from time to time may adversely
    affect our financial condition, results of operations and cash
  • Changes in tax laws and the resolution of uncertain income tax
    matters could have a material adverse effect on our results of
    operations and cash flows from operations.
  • Our dependence on technology could have a material adverse
    effect on our business.
  • Reliance on third parties to administer our ancillary product
    offerings could adversely affect our business and financial
  • We are dependent on our senior management and the loss of any
    of these individuals or an inability to hire additional team
    members could adversely affect our ability to operate
  • Our reputation is a key asset to our business, and our business
    may be affected by how we are perceived in the marketplace.
  • The concentration of automotive dealers that participate in our
    program in several states could adversely affect us.
  • Failure to properly safeguard confidential consumer information
    could subject us to liability, decrease our profitability and
    damage our reputation.
  • A small number of our shareholders have the ability to
    significantly influence matters requiring shareholder approval and
    such shareholders have interests which may conflict with the
    interests of other security holders.
  • Reliance on our outsourced business functions could adversely
    affect our business.
  • Natural disasters, acts of war, terrorist attacks and threats
    or the escalation of military activity in response to these attacks
    or otherwise may negatively affect our business, financial
    condition and results of operations.

Other factors not currently anticipated by management may also
materially and adversely affect our results of operations.  We
do not undertake, and expressly disclaim any obligation, to update
or alter our statements whether as a result of new information,
future events or otherwise, except as required by applicable

Description of Credit Acceptance

Since 1972, Credit Acceptance has offered
automobile dealers financing programs that enable them to sell
vehicles to consumers, regardless of their credit history. 
Our financing programs are offered through a nationwide network of
automobile dealers who benefit from sales of vehicles to consumers
who otherwise could not obtain financing; from repeat and referral
sales generated by these same customers; and from sales to
customers responding to advertisements for our product, but who
actually end up qualifying for traditional financing.

Without our financing programs, consumers are
often unable to purchase a vehicle or they purchase an unreliable
one.  Further, as we report to the three national credit
reporting agencies, an important ancillary benefit of our programs
is that we provide a significant number of our consumers with an
opportunity to improve their lives by improving their credit score
and move on to more traditional sources of financing.  Credit
Acceptance is publicly traded on the NASDAQ under the symbol
CACC.  For more information, visit creditacceptance.com.

CONTACT: Investor Relations: Douglas W. Busk
Senior Vice President and Treasurer
(248) 353-2700 Ext. 4432

Source: Credit Acceptance Corporation

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