Credit Acceptance Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Credit Acceptance Corp. has filed its annual 10-K report for the fiscal year 2023, detailing its financial performance and operations.</b>

AI Summary

CREDIT ACCEPTANCE CORP (CACC) filed a Annual Report (10-K) with the SEC on February 12, 2024. Credit Acceptance Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 25505 West Twelve Mile Road, Southfield, MI 48034-8334. Credit Acceptance Corp. is classified under SIC code 6141 (Personal Credit Institutions). The report was filed on February 12, 2024.

Why It Matters

For investors and stakeholders tracking CREDIT ACCEPTANCE CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Credit Acceptance Corp.'s financial health, operational strategies, and risk factors for the fiscal year 2023, which is crucial for investors and stakeholders to assess the company's performance and outlook. As a personal credit institution, the details within this filing are important for understanding the company's position in the lending market, its underwriting practices, and its ability to manage credit risk, especially concerning contracts with lower FICO scores.

Risk Assessment

Risk Level: medium — CREDIT ACCEPTANCE CORP shows moderate risk based on this filing. The company operates in the personal credit industry, which is subject to regulatory scrutiny and economic fluctuations that could impact its loan portfolio and profitability.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Credit Acceptance Corp.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-12 — Filing Date (Date filed)
• 1934 Act — SEC Act (Securities Exchange Act of 1934)
• 000-20202 — SEC File Number (SEC file number)

Key Players & Entities

• CREDIT ACCEPTANCE CORP (company) — Filer name
• 25505 WEST TWELVE MILE ROAD (address) — Business address
• SOUTHFIELD (location) — Business address city
• MI (location) — Business address state
• 48034-8334 (postal_code) — Business address zip
• 6141 (sic_code) — Standard Industrial Classification

Forward-Looking Statements

• Credit Acceptance Corp will continue to focus on its core business of consumer loan assignments. (CREDIT ACCEPTANCE CORP) — high confidence, target: 2024-12-31

FAQ

Industry Context

Credit Acceptance Corp. operates within the personal credit institutions sector, providing financing for consumers, often those with less-than-perfect credit.

Regulatory Implications

As a financial institution, Credit Acceptance Corp. is subject to various federal and state regulations governing lending practices, consumer protection, and financial reporting.

What Investors Should Do

1. Analyze the company's revenue streams and growth strategies for 2023.
2. Examine the company's debt levels and equity structure.
3. Review any disclosed risk factors related to the company's operations and the broader economic environment.

Key Dates

• 2024-02-12: 10-K Filing — Annual report filed for fiscal year 2023

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year 2023, following previous filings for earlier periods.

Filing Documents

• cacc-20231231.htm (10-K) — 3776KB
• cacc-20231231xex21.htm (EX-21) — 20KB
• cacc-20231231xex23.htm (EX-23) — 3KB
• cacc-20231231xex31a.htm (EX-31.1) — 11KB
• cacc-20231231xex31b.htm (EX-31.2) — 11KB
• cacc-20231231xex32a.htm (EX-32.1) — 7KB
• cacc-20231231xex32b.htm (EX-32.2) — 7KB
• cacc-20231231xex97.htm (EX-97) — 33KB
• cacc-20231231_g1.gif (GRAPHIC) — 111KB
• image_0a.jpg (GRAPHIC) — 74KB
• 0000885550-24-000030.txt (&nbsp;) — 18895KB
• cacc-20231231.xsd (EX-101.SCH) — 98KB
• cacc-20231231_cal.xml (EX-101.CAL) — 92KB
• cacc-20231231_def.xml (EX-101.DEF) — 418KB
• cacc-20231231_lab.xml (EX-101.LAB) — 943KB
• cacc-20231231_pre.xml (EX-101.PRE) — 669KB
• cacc-20231231_htm.xml (XML) — 4684KB

Business

Business 3 1A.

Risk Factors

Risk Factors 14 1B. Unresolved Staff Comments 23 1 C . Cybersecurity 23 2.

Properties

Properties 24 3.

Legal Proceedings

Legal Proceedings 25 4. Mine Safety Disclosures 25 PART II 5. Market for Registrant ' s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 6. [Reserved] 27 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 45 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 46 9. Changes in and Disagreements W ith Accountants on Accounting and Financial Disclosure 98 9A.

Controls and Procedures

Controls and Procedures 98 9B. Other Information 100 9 C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 100 PART III 10. Directors, Executive Officers and Corporate Governance 100 11.

Executive Compensation

Executive Compensation 100 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 100 13. Certain Relationships and Related Transactions , and Director Independence 101 14. Principal Accounting Fees and Services 101 PART IV 15. Exhibits and Financial Statement Schedules 101 16. Form 10-K Summary 111

Signatures

Signatures 112 2 PART I

BUSINESS

ITEM 1. BUSINESS General Since 1972, Credit Acceptance Corporation (referred to as the "Company", "Credit Acceptance", "we", "our" or "us") has offered financing programs that enable automobile dealers 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 financing programs, but who actually end up qualifying for traditional financing. Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance was founded to collect retail installment contracts (referred to as "Consumer Loans") originated by automobile dealerships owned by Donald Foss, our founder. During the 1980s, we began to market this service to non-affiliated dealers and, at the same time, began to offer dealers a non-recourse cash payment (referred to as an "advance") against anticipated future collections on Consumer Loans serviced for that dealer. We refer to automobile dealers who participate in our programs and who share our commitment to changing consumers' lives as "Dealers." Upon enrollment in our financing programs, the Dealer enters into a Dealer servicing agreement with us that defines the legal relationship between Credit Acceptance and the Dealer. The Dealer servicing agreement assigns the responsibilities for administering, servicing, and collecting the amounts due on Consumer Loans from the Dealers to us. We are an indirect lende