On this page of StockholderLetter.com we present the latest annual shareholder letter from CREDIT ACCEPTANCE CORP — ticker symbol CACC. Reading current and past CACC letters to shareholders can bring important insights into the investment thesis.

 •  4/24/2025 Letter Continued (Full PDF)
 •  4/21/2023 CACC Stockholder Letter
 •  4/25/2024 CACC Stockholder Letter
 •  More "Credit Services & Lending" Category Stockholder Letters
 •  CACC Benford's Law Stock Score = 86

CACC Shareholder/Stockholder Letter Transcript:

2024
Annual Report

We make vehicle ownership
possible by providing
innovative financing solutions
that enable automobile
dealers to sell vehicles to
consumers regardless of their
credit history.

2024 Annual Report | Shareholder Letter
Former Credit Acceptance
customer Vivien described
the moment she was
approved for financing as
   awesome    and a turning
point in her life. With
a reliable vehicle, she
regained her independence.
With increased sales
and stable cash flow
from Credit Acceptance,
Integrity Auto opened a
second, larger location
and continued to grow
through repeat customers
and referrals.
Nicole, a Credit Acceptance
Workplace hero, loves her role
training team members on
the importance of accurately
reporting to the three major
credit bureaus. Our credit
reporting provides consumers
the opportunity to build or
rebuild their credit.
1

2024 Annual Report | Shareholder Letter
Shareholder letter
A message from our Chief Executive Officer
Background
For more than 50 years, Credit Acceptance Corporation1 has made vehicle ownership possible by
providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers
regardless of their credit history. We provide our nationwide network of dealers the ability to sell a
vehicle to a consumer who, without us, they might otherwise have had to turn away.
The auto finance market is large and fragmented, with $1.5 trillion in outstanding loan balances as
of December 31, 2024. We compete with banks, credit unions, auto finance companies affiliated
with auto manufacturers, independent auto finance companies, and    buy here, pay here    dealers.
Our value proposition in the market is unique for two reasons. First, consumers are not denied the
opportunity to purchase a vehicle based on their credit history. Vehicles are necessary in most areas
of the country. By providing access to credit,2 we make it possible for consumers to purchase vehicles
needed to maintain or find better employment, attend school, access health care, and buy more
affordable groceries and other necessities. Second, for most of the vehicle sales we finance, the
dealer shares in the cash flows from the loan after the loan is assigned to us.3 Dealers receive 80% of
collections throughout the life of a loan. This compensation plan is a critical element of our success
as it creates an alignment of interests between Credit Acceptance, the dealer, and the consumer.
Through Credit Acceptance, the dealer directly benefits if the consumer   s loan is repaid and the
consumer builds or rebuilds their credit. Our program incentivizes the dealer to sell a quality vehicle at
a price the customer can afford and that will last at least the term of the loan.
Our customers are individuals like Vivien H. from Dundalk, Maryland. Vivien is an elementary school
assistant, a role that requires her to consistently and timely show up for children with disabilities and
special needs. After totaling her vehicle in an accident, she was left without reliable transportation.
She initially relied on others for rides to work, a situation that quickly became unreliable and
stressful. She needed a new vehicle, but worried about her ability to secure financing due to her
poor credit history. Her fears were confirmed when she was turned down for financing multiple
times. Discouraged but not defeated, she found a dealership who approved her to finance a vehicle
through Credit Acceptance. Vivien described the moment she was approved for financing as
   awesome    and a turning point in her life. With a reliable vehicle, she regained her independence.
1 I also refer to Credit Acceptance Corporation as    Credit Acceptance   ,    the Company   ,    we   , or    us    throughout this letter.
2 Our company, like most of our competitors, is an indirect auto finance company, which means the financing contract is originated by the
auto dealer and immediately assigned to us in exchange for compensation.
3 The transaction between the dealer and the consumer is not a loan, but instead something called a    retail installment contract.    However,
for simplicity and to conform to the language commonly used in the industry and used in our disclosures, I will refer in this letter to retail
installment contracts as    loans    and to indirect auto finance companies as    lenders.   
2

2024 Annual Report | Shareholder Letter
Vivien   s car ownership journey was not without challenges. After financing her vehicle, she
experienced an injury that required multiple surgeries and physical therapy, disrupting her ability to
work steadily. Throughout this challenging period, she worked with Credit Acceptance to establish
manageable payment plans, helping her regain financial stability. When it comes time to finance
another vehicle, Vivien plans to use Credit Acceptance again, knowing she would be supported by a
team that listens and puts her at ease, even in the face of unexpected difficulties.
3



 4/24/2025 Letter Continued (Full PDF)