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Credit Acceptance Corp
Credit Acceptance Corp funds subprime auto buyers through 10,000+ dealers, holding a $7.6B loan portfolio since 1972.
Credit Acceptance Corp
Donald Foss founded Credit Acceptance in 1972 in Southfield, Michigan, initially as a dealership that financed its own customers. By the 1990s, the company had shifted entirely to an indirect lending model, providing capital and software to independent and franchised auto dealers to fund subprime buyers who traditional banks turn down. Foss took the company public in 1992, and today it operates as a publicly traded specialty finance company with 2,287 employees. Credit Acceptance extends dealer loans secured by vehicle inventory and purchases retail installment contracts from dealers under a portfolio profit-sharing program. Dealers retain a portion of the receivables' performance, aligning incentives on collections. The firm covers the full credit spectrum but focuses on consumers with FICO scores below 650. Its active dealer network spans all 50 states, with portfolio concentrations in Texas, Florida, and California. The company holds no bank charter and funds operations through asset-backed securitizations and revolving credit facilities — recent ABS issuances include a $500 million deal in March 2024. Total GAAP assets stood at $8.0 billion as of March 2024, including $7.6 billion in consumer loans. The firm maintains no physical branches and relies on a centralized servicing operation in Michigan. Adjacent vehicles include a co-sponsored foundation, the Credit Acceptance Foundation, which funds community programs. CEO Kenneth Booth has led the company since 2021, and CFO Jay Martin joined in 2023 from an FP&A leadership role. Credit Acceptance remains one of the few publicly listed pure-play subprime auto finance companies, giving allocators daily liquidity alongside exposure to consumer credit risk. Unlike private lenders, its performance is disclosed quarterly, and its stock serves as a de facto proxy for the health of America's nonprime consumer. The firm's survival since 1972 — through multiple credit cycles — evidences a durable underwriting and servicing framework.
General information
Firm type
Asset Manager
Year founded
1972
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Southfield
Corporate office
Southfield, MI, United States
Principals
Kenneth Booth
Chief Executive Officer & President
Donald Foss
Founder
Jay Martin
Chief Financial Officer
Sector focus
Frequently asked questions
How does Credit Acceptance Corp source its loans?
The firm partners with more than 10,000 franchised and independent auto dealers across the U.S. Dealers submit consumer applications through an online platform, where Credit Acceptance's proprietary scoring model makes near-instant underwriting decisions. The company does not lend directly to consumers but purchases contracts from dealers, who are financially incentivized to refer buyers across the full credit spectrum.
What is the company's portfolio profit-sharing model?
When Credit Acceptance purchases a retail installment contract from a dealer, it pays an upfront advance and sets aside a dealer holdback. As the consumer makes payments, the dealer receives a share of the portfolio's performance — typically 20% of collected amounts. If the loan performs worse than forecast, the dealer's holdback absorbs some of the loss, aligning the dealer's underwriting discipline with the company's risk appetite.
How does Credit Acceptance fund its loan portfolio?
The company uses a combination of asset-backed securitizations and revolving credit lines from a syndicate of commercial banks. It periodically issues bonds backed by pools of auto receivables, with recent transactions rated by Fitch and Moody's. This funding model allows Credit Acceptance to grow originations without taking traditional deposits.
What regulatory risks does Credit Acceptance face?
As a non-bank consumer lender, the firm is subject to state-level lending laws and enforcement by the Consumer Financial Protection Bureau and the Federal Trade Commission. In 2023, it reached a $27 million settlement with the Massachusetts Attorney General over debt-collection practices. Since 2022, the CFPB has been engaged in ongoing litigation with the company regarding alleged violations of consumer protection laws.
How does Credit Acceptance perform across credit cycles?
The firm has operated through multiple recessions since 1972. Its collection model relies on aggressive servicing, including early contact with delinquent borrowers and the use of GPS tracking and remote disabling technology. During the 2008-2009 recession, the company remained profitable, and during the 2020 pandemic, loan performance held up better than many peers due to strong used-car values supporting collateral.
Who are Credit Acceptance's competitors?
Direct competitors include Santander Consumer USA, Exeter Finance, and Westlake Financial, as well as captives of subprime-specialist dealerships like DriveTime. The company also competes with credit unions and community banks in deep subprime, though those lenders typically avoid the lowest credit tiers.
Is Credit Acceptance structured as a family office or an operating business?
Credit Acceptance is a publicly traded corporation listed on the Nasdaq under the ticker CACC. Founder Donald Foss retired from the board in 2020 and has since divested most of his equity. The firm operates as a specialty finance company, not a family office, though its early history was tied exclusively to Foss's own dealership.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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