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CACC

Credit Acceptance Corporation

Every pitch and position made on this ticker, across every competition and newsletter issue in the archive.

Times pitched
6
Long / short
2 / 4
Avg. return
+1395.5%
Verdicts
Worked 4 Inconclusive 2
pitch Spring 2018
short inconclusive Newsletter

Non-bank lenders, including Credit Acceptance, are facing significant challenges as delinquencies approach 2009 highs despite low unemployment. The decline in used car prices and the erosion of compet

pitch Spring 2018
Steve Cao, Tyler Redd, CFA, Winter Li, CFA
short -89.5% worked Newsletter

Credit Acceptance is facing declining loan-level returns and increasing provisions for credit losses, which will negatively impact its earnings. The company is under-provisioned compared to peers, and

pitch Spring 2018
Steve
short -89.5% worked Newsletter

Credit Acceptance Corporation is recommended as a short due to projected EPS decline driven by flat growth in new loan originations, a declining yield, and increased provisions for credit losses. With

pitch Spring 2018
Steve Cao ’19, Winter Li ’19, and Tyler Redd ’19
short -88.1% worked Newsletter

The team believes that Credit Acceptance Corporation's business model is unsustainable due to increasing regulatory scrutiny and potential defaults in the auto loan market, leading to a decline in its

position Winter 2018
DP
long +5848.9% worked Newsletter

Credit Acceptance is a lender of last resort for consumers with poor credit looking to buy cars. The company has a unique model that aligns its interests with car dealers, allowing it to effectively m

position Spring 2017
Cliff Sosin
long inconclusive Newsletter

Credit Acceptance Corp. is part of a portfolio that focuses on subprime lending, which is often misunderstood. The company plays a crucial role in providing financing options to individuals who may no