F&I

Credit Acceptance resets loss outlook

The subprime lender posted a $56.6M GAAP loss after a new forecasting method cut expected cash flows on 2022–2026 loans by 2.5% ($291.2M). Adjusted EPS still rose to $13.01, unit volume jumped 37.7%, and active dealers hit a record 12,093. It also settled a multistate probe and the New York attorney general's suit with no added charges, per Credit Acceptance. The revision lowers expected collections on existing loans even as the lender grows originations.

Possible industry effect: Dealers should watch funding terms, without assuming this forecast change means a new credit policy.

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