Trump announces 100% chip tariff as Apple ups U.S. investment
SOUTHFIELD, Michigan - Credit Acceptance Corporation (NASDAQ:CACC), a $6 billion market cap auto finance company with a strong financial health score according to InvestingPro, announced Friday it has extended its $75.0 million revolving secured warehouse facility by two years, pushing the revolving cessation date from September 30, 2026, to September 30, 2028.
The auto finance company also secured improved terms on the facility, with the interest rate decreasing from the Secured Overnight Financing Rate (SOFR) plus 210 basis points to SOFR plus 185 basis points. Additionally, the servicing fee has been reduced from 6.0% to 4.0% of collections on the underlying consumer loans.
No other material changes were made to the facility’s terms, according to the company’s statement. Credit Acceptance reported that as of Friday, it did not have any outstanding balance under this facility.
Credit Acceptance specializes in providing auto financing solutions through a nationwide network of automobile dealers, focusing on consumers who might otherwise struggle to secure traditional vehicle financing.
The information was disclosed in a company press release.
In other recent news, Credit Acceptance Corporation reported its first-quarter earnings for 2025, revealing an earnings per share (EPS) of $9.35, which missed the analyst forecast of $9.66. However, the company surpassed revenue expectations, reporting $571.1 million against a forecast of $570.97 million. The loan portfolio reached a record $9.1 billion, marking a 10% increase year-over-year. Additionally, shareholders elected six directors to serve until the 2026 annual meeting and approved the compensation of named executive officers on an advisory basis. Grant Thornton LLP was ratified as the independent registered public accounting firm for the fiscal year 2025. Credit Acceptance Corporation continues to invest in technology and innovation, despite facing challenges such as economic volatility and increased competition. The company expressed caution regarding potential impacts from inflation, tariffs, and vehicle price fluctuations. Analysts noted that the company maintains a conservative cash position while continuing investments in technology and operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.