The following is a summary of the Credit Acceptance Corporation (CACC) Q2 2024 Earnings Call Transcript:

Financial Performance:

• The company adjusted forecasted net cash flows with a $147 million adjustment, affecting loans originated in 2022, 2023, and first half of 2024.

• Experienced strong growth in Q2 with highest ever unit and dollar volume, growing loan unit and dollar volume by 20.9% and 16.3%, respectively.

• Loan portfolio reached a new high of $8.6 billion.

• Revenue yield reported at 19.6% and loan asset yield at 17.7% for the quarter.

Business Progress:

• Added 1,080 new dealers in the quarter, reaching the largest number of active dealers ever for a Q2 with 10,736 active dealers.

• Initiated new go-to-market approaches and continued significant investments in technology to modernize operations and enhance product offerings for dealers and consumers.

Opportunities:

• Maintained a disciplined approach to underwriting standards during fluctuating market conditions, which positions the company to take advantage of more favorable market conditions.

Risks:

• The 2022 vintage loans underperformed expectations, with expected similar trends in 2023 and 2024 vintages, potentially leading to future forecast adjustments.

More details: Credit Acceptance IR

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