Editor's notes: The road ahead for this car lender: a sharp cyclical downturn, characterized by declining revenues and profits, and a potential 43% decline in fair value.
If you have less than perfect credit and have bought a car in the last 20 years, you may have had a loan with Credit Acceptance Corporation (CACC), one of the largest providers of sub-prime auto finance to independent auto dealerships in the nation.
Credit Acceptance, whose mission is to "...help change the lives of consumers who do not qualify for conventional automobile financing by helping them obtain quality transportation...," was formed in the early 1970s as a captive finance company for used car dealerships owned by Donald Foss, its current Chairman. In the 1980s, Credit Acceptance began making its financing programs available to non-affiliated dealerships and, since 2002, has more than quintupled its dealership distribution network...
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