In This Article:
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Loan Portfolio: Record high of $8.9 billion, adjusted basis increase of 15% from last year.
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Market Share: 6.1% year-to-date through November in the core segment of used vehicles financed by subprime consumers, up from 4.8% in 2023.
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Contracts Financed: 78,911 contracts for dealers and consumers during the quarter.
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Collections: $1.3 billion collected overall during the quarter.
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Portfolio Profit Paid: $65 million paid in portfolio profit to dealers.
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Active Dealers: 10,149 dealers, the largest number ever for the fourth quarter.
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New Dealers: 902 new dealers added during the quarter.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Collections improved sequentially this quarter, with only the 2022 vintage underperforming expectations.
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The loan portfolio reached a new record high of $8.9 billion, an adjusted increase of 15% from last year.
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Market share in the core segment of used vehicles financed by subprime consumers increased to 6.1% year-to-date through November, compared to 4.8% for the same period in 2023.
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Credit Acceptance Corp (NASDAQ:CACC) financed 78,911 contracts for dealers and consumers, collected $1.3 billion overall, and paid $65 million in portfolio profit to dealers.
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The company received five workplace awards during the quarter, contributing to a total of 13 awards for 2024, the most ever received in a single year.
Negative Points
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Growth slowed significantly during the quarter, despite it being the second highest Q4 unit and dollar volume ever.
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Volume per dealer declined by about 3.7% compared to Q4 2023, indicating a potentially more competitive environment.
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The 2022 vintage continued to underperform expectations, contributing to a small decline of 0.3% or $31 million in forecasted net cash flows.
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General and administrative expenses saw a large sequential decline, primarily due to volatility in legal expenses.
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The company's scorecard change in Q3 resulted in lower advance rates, impacting growth.
Q & A Highlights
Q: Could you expand on the comments about the slowing growth and how much of that is due to changes you made versus changes in the environment or competition? A: Jay Martin, CFO: It's difficult to pinpoint exactly. Our volume per dealer declined by about 3.7% compared to Q4 2023, which might indicate a competitive environment. However, we also changed our scorecard, complicating the attribution. Despite this, Q4 2024 was our second-highest unit dollar volume ever, so we feel positive about our position.