The following is a summary of the Credit Acceptance Corporation (CACC) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Credit Acceptance Corporation reported a modest decline in forecasted net cash flows by 0.6% or $62.8 million due to underperforming loan vintages from 2021 to 2024.

• The company experienced strong growth with its highest Q3 unit and dollar volume ever, growing loan unit volume by 17.7% and dollar volume by 12.2%.

• The loan portfolio reached a record high of $8.9 billion, up 18.6% from Q3 2023.

Business Progress:

• The company financed 95,670 contracts during the quarter, reflecting its commitment to providing access to vehicles for consumers with less-than-prime credit.

• Continued investment in technology to enhance services for dealers and consumers, highlighting the improvement of key technology architecture and operational processes.

Opportunities:

• Growth opportunities exist in maintaining underwriting standards and capitalizing on market conditions which have turned more favorable, enabling better positioning if the access to capital becomes more restricted.

Risks:

• The company's financial estimates have been revised down consistently over six quarters, casting uncertainty on future profitability and operational performance particularly as the economic environment remains volatile.

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