CACC
Financial ServicesCredit Acceptance Corporation · Financial - Credit Services · $6B
What is Credit Acceptance Corporation?
Credit Acceptance Corporation is a specialty auto finance company that partners with independent and franchised car dealers across the United States. Rather than lending directly to consumers, it works through a dealer network to make vehicle ownership accessible to a broad range of credit profiles.
Credit Acceptance generates revenue through two primary channels: advancing money to dealers in exchange for the right to service the underlying consumer loans, and purchasing those consumer loans outright. In both cases, the company collects payments from consumers over time. It also reinsures vehicle service contracts sold by dealers on financed vehicles, adding a complementary revenue stream tied to its core financing business.
Founded in 1972 and headquartered in Southfield, Michigan, Credit Acceptance has built decades of experience in the subprime auto lending space.
- Dealer financing programs for independent and franchised auto dealers
- Consumer loan purchasing and servicing
- Vehicle service contract reinsurance
- Portfolio program advances to dealer partners
Is CACC a Good Stock to Buy?
UQS Score rates CACC as Good overall, reflecting a mixed but meaningful profile across its five quality pillars.
The Quality pillar stands out as the clearest strength — Credit Acceptance has historically demonstrated disciplined underwriting and the ability to generate consistent returns within a niche lending model. The Valuation pillar is rated Attractive, suggesting the market may not be fully pricing in the company's underlying business quality relative to peers.
The Risk pillar is rated Weak, which is a meaningful flag for investors — the subprime auto lending model carries elevated credit and regulatory exposure that can amplify losses during economic downturns. Moat and Growth are both Neutral, indicating limited competitive differentiation and modest expansion expectations.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does CACC pay dividends?
No — Credit Acceptance Corporation does not currently pay a dividend.
Credit Acceptance does not currently pay a dividend. For a specialty finance company operating in subprime auto lending, retaining capital supports loan portfolio growth and provides a cushion against credit cycle volatility. Investors seeking income will need to look elsewhere, but those focused on capital allocation efficiency may find the reinvestment model worth examining.
When does CACC report earnings?
Credit Acceptance reports earnings on a quarterly cadence, consistent with standard practice for US-listed financial services companies.
Quarterly results for CACC tend to reflect shifts in loan origination volumes, consumer delinquency trends, and reserve adjustments — all of which can move meaningfully with broader credit conditions. The company's performance narrative is closely tied to how its dealer network and consumer base respond to the economic environment.
For the most recent quarter's results and guidance commentary, visit Credit Acceptance Corporation's investor relations page directly.
CACC Price History
-0.9% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Credit Acceptance Corporation?
Based on Credit Acceptance Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
CACC Long-term Outlook
The fundamental outlook for Credit Acceptance is shaped by its Neutral Growth profile and Weak Risk rating. While the business model has proven durable across multiple credit cycles, near-term trajectory depends heavily on consumer credit health and regulatory developments in the subprime auto space. The Attractive Valuation label suggests the current price may already reflect a degree of caution, leaving room for upside if credit conditions stabilize.
Growth drivers
- Expansion of the dealer partner network across underserved markets
- Continued demand for subprime auto financing as credit access remains uneven
- Vehicle service contract reinsurance as a complementary, recurring revenue stream
Key risks
- Rising consumer delinquencies and charge-offs in a weakening credit environment
- Heightened regulatory scrutiny of subprime auto lending practices
- Valuation re-rating risk if credit losses exceed current market expectations
CACC vs Peers
Credit Acceptance operates in a specialized corner of financial services, and its competitive set spans direct lenders and capital market participants with overlapping exposure to consumer credit.
Blue Owl focuses on direct lending to middle-market businesses rather than consumer auto loans, representing a different credit risk profile within specialty finance.
Carlyle operates as a broad alternative asset manager, with fixed-income instruments reflecting a very different capital structure and investor base than CACC's equity.
Navient's roots are in student loan servicing, making it a consumer finance peer but with a structurally distinct borrower base and regulatory environment.
Frequently Asked Questions
What does Credit Acceptance Corporation do?
Credit Acceptance Corporation partners with independent and franchised auto dealers to provide financing for consumers who may not qualify for traditional loans. It either advances money to dealers and services the resulting loans, or purchases those loans outright. The company also reinsures vehicle service contracts on financed vehicles.
Does CACC pay dividends?
No, Credit Acceptance does not currently pay a dividend. The company retains earnings to support its loan portfolio and manage capital through credit cycles. Investors prioritizing income distributions would need to look at other financial services names.
When does CACC report earnings?
Credit Acceptance reports on a quarterly basis, in line with standard US-listed company practice. Exact dates vary each quarter — check the company's investor relations page for the most current schedule and recent filings.
Is CACC a good stock to buy?
UQS Score rates CACC as Good overall. The Quality pillar is Strong and Valuation is Attractive, but the Risk pillar is rated Weak — a meaningful consideration given the company's subprime lending exposure. Whether it fits your portfolio depends on your risk tolerance and investment goals. The full pillar breakdown is available to Pro members.
Is CACC overvalued?
Based on the UQS Valuation pillar, CACC is currently rated Attractive — meaning the market price may not fully reflect the company's underlying quality characteristics relative to peers. That said, valuation alone does not determine suitability, especially given the Weak Risk rating.
How does CACC compare to its competitors?
Credit Acceptance occupies a distinct niche in subprime auto finance, which differs meaningfully from peers like Blue Owl Capital's middle-market lending or Navient's student loan focus. Its dealer-centric model and reinsurance operations give it a somewhat differentiated revenue structure within the broader specialty finance landscape.
What is CACC's market cap bracket?
Credit Acceptance Corporation is classified as a mid-cap company. This places it in a tier where institutional coverage exists but the stock may receive less attention than large-cap financial services names, potentially contributing to its Attractive valuation rating.
Who founded Credit Acceptance Corporation?
Credit Acceptance Corporation was founded in 1972 and has been headquartered in Southfield, Michigan throughout its history. For detailed founding history and leadership background, the company's official about page and public filings are the most reliable sources.
Is CACC a long-term quality investment?
From a long-term quality perspective, the UQS framework rates CACC as Good, with a Strong Quality pillar indicating durable business characteristics. However, the Weak Risk pillar reflects structural vulnerabilities in subprime lending that can become pronounced during economic stress. Long-term suitability depends on how an investor weighs those competing signals.
What is the main competitive advantage of Credit Acceptance Corporation?
Credit Acceptance's primary advantage lies in its deeply embedded dealer relationships and its proprietary underwriting model built over decades in subprime auto finance. This institutional knowledge of non-prime borrower behavior is difficult to replicate quickly, though the UQS Moat pillar rates this advantage as Neutral — suggesting it is present but not dominant.
What sector does CACC belong to?
CACC operates in the Financial Services sector, specifically within specialty consumer finance. Its focus on subprime auto lending through a dealer network distinguishes it from traditional banks, insurance companies, and broader asset managers within the same sector.
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Pro Analysis
CACC — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| Sep 25, 2026 | 11.8 | 0.0 | 47.0 | 0.0 | 0.0 | 0.0 | -53.1 |
| Aug 3, 2026 | 64.9 | 92.4 | 47.0 | 51.6 | 41.8 | 89.4 | +0.1 |
| Aug 1, 2026 | 64.8 | 92.4 | 47.0 | 51.6 | 41.8 | 89.4 | -0.1 |
| Jul 28, 2026 | 64.9 | 92.4 | 47.0 | 51.6 | 41.8 | 89.8 | 0.0 |
| Jul 25, 2026 | 64.9 | 92.4 | 47.0 | 51.6 | 41.8 | 89.4 | +0.3 |
| Jul 24, 2026 | 64.6 | 92.4 | 47.0 | 51.6 | 41.8 | 87.5 | +0.3 |
| Jul 23, 2026 | 64.3 | 92.4 | 47.0 | 51.6 | 41.8 | 85.9 | -0.1 |
| Jul 22, 2026 | 64.4 | 92.4 | 47.0 | 51.6 | 41.8 | 86.2 | 0.0 |
| Jul 21, 2026 | 64.4 | 92.4 | 47.0 | 51.6 | 41.8 | 86.4 | +0.2 |
| Jul 18, 2026 | 64.2 | 92.4 | 47.0 | 51.6 | 41.8 | 84.9 | -0.1 |
CACC — Pillar Breakdown
Quality
— 0.0/100 (25%)Credit Acceptance Corporation currently shows below-average quality metrics, suggesting challenges with profitability.
Ability to convert revenue into operating profit.
Free cash flow relative to market value.
Growth
— 0.0/100 (20%)Credit Acceptance Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Analyst consensus for future revenue growth.
Risk
— 0.0/100 (15%)Credit Acceptance Corporation presents elevated risk with concerns around leverage or financial stability.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 0.0/100 (15%)Credit Acceptance Corporation appears expensively valued relative to its fundamentals and growth prospects.
Moat
— 47/100 (25%)Credit Acceptance Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CACC.
Score Composition
Financial Data
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How is the CACC UQS Score Calculated?
The UQS (Unified Quality Score) for Credit Acceptance Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Credit Acceptance Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Credit Acceptance Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.