Credit Acceptance Corporation is a high-quality franchise with a wide economic moat, 36% net margins, a Piotroski score of 8 out of 9, and three consecutive earnings beats — the business fundamentals are strong. However, the stock has moved past its take-profit target, the momentum score has slipped below the minimum threshold, and 25% of the float remains short, creating a binary setup where the original entry thesis has been fulfilled and fresh capital faces an unattractive entry.
Thesis pillars
- High Short Interest Binary Risk→Stable
- High Leverage Limits Cushion→Stable
- Wide Moat Durable Franchise→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 13, 2026
Credit Acceptance Corporation (CACC) Stock Analysis
Range Bound setup
Financial Services · Credit Services
Wait for pullback to $514.22. Price sits above the model's entry target of $514.22; the risk/reward becomes favorable on a pullback. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 4.0): -1.5.
Credit Acceptance Corporation provides auto financing programs through a nationwide network of ~60,000 dealers, enabling vehicle sales to consumers regardless of credit history; 79.5% of 2025 loan volume involved borrowers with FICO below 650 or no score. Finance charges —... Read more
Wait for pullback to $514.22. Price sits above the model's entry target of $514.22; the risk/reward becomes favorable on a pullback. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 4.0): -1.5. Chart setup: RSI 51 mid-range, Bollinger mid-band. Earnings today. Wait until post-earnings. Score 6.8/10, moderate confidence.
Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: aggressive.
About Credit Acceptance Corporation
About Credit Acceptance Corporation
Credit Acceptance Corporation sourced $3.9 billion in Consumer Loan Assignments from 15,745 active dealers during 2025, with 79.5% of that volume involving borrowers with FICO scores below 650 or no FICO score. The company operates in a single reportable segment in the United States, generating 92.4% of total revenue from finance charges — primarily interest income on consumer loans — with vehicle service contract reinsurance premiums accounting for another 4.1%.
Credit Acceptance earns revenue through two programs. Under the Portfolio Program (74.2% of 2025 unit volume), the company advances money to dealers against anticipated future collections on consumer loans; after the advance is recovered, dealers receive a portion of collections as Dealer Holdback, aligning dealer incentives with collection quality, with a 20% servicing fee charged on all collections. Under the Purchase Program (25.8% of 2025 unit volume), the company purchases consumer loans outright with a one-time payment to the dealer. A wholly-owned subsidiary, VSC Re Company, reinsures vehicle service contracts sold through dealers, generating the 4.1% premium revenue share. The company's proprietary credit scoring system forecasts expected collection rates for each loan at assignment by evaluating credit bureau attributes, application data, vehicle information, and transaction structure, with performance monitored monthly. Competitors include buy-here-pay-here dealerships, banks, credit unions, captive finance affiliates, and independent finance companies.
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Credit cycle exposure is the defining structural risk for Credit Acceptance. The 10-K notes that in periods of economic slowdown or recession, delinquencies, defaults, repossessions, and losses may increase on consumer loans, and declining used-vehicle prices may weaken collateral coverage and increase loss severity. The company's entire revenue base depends on accurately forecasting collection rates on a portfolio where 79.5% of 2025 volume carried FICO scores below 650 or no score; if aggregate forecasts prove inaccurate, both finance charge income recognition and the allowance for credit losses would be materially affected. Tariff-driven increases in used car prices could further suppress dealer origination volumes by reducing consumer demand for automobiles.
See also: Financial Services · Credit Services
From Credit Acceptance Corporation's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-10-29Recent Developments — Credit Acceptance Corporation
Latest news
- NEWS Credit Acceptance (CACC) Stock Still Looks Below Fair Value As Caution Lingers - finance.yahoo.com — finance.yahoo.com neutral
- NEWS Credit Acceptance (CACC) Stock Still Looks Below Fair Value As Caution Lingers - Yahoo Finance — Yahoo Finance neutral
- NEWS Credit Acceptance (CACC) Could Be 11% Below Fair Value As Leadership Changes Take Shape - Yahoo Finance — Yahoo Finance negative
- NEWS Credit Acceptance (CACC) Could Be 11% Below Fair Value As Leadership Changes Take Shape - finance.yahoo.com — finance.yahoo.com positive
- NEWS A Look at Credit Acceptance Corp (CACC) After 3.1% Decline -- GF Value $611.88 vs Price $500.62 - GuruFocus — GuruFocus negative
Generated 2026-10-29T11:53:50Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicfive largest states10-K Item 1A: 'our five largest states...contained 29.2% of Dealers...significant amounts of Consumer Loan assignments will continue to be generated by Dealers in these five states'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $514.22. Price sits above the model's entry target of $514.22; the risk/reward becomes favorable on a pullback. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 4.0): -1.5. Chart setup: RSI 51 mid-range, Bollinger mid-band. Earnings today. Wait until post-earnings. Analyst target $507.17 reached (−6.9%), stop $491.35 (−10.9%), A.R:R -1.0:1. Score 6.8/10, moderate confidence.
Analyst target $507.17 reached (−6.9% from $544.90); no take-profit level is published. Analyst target $507.17 reached (−6.9%), stop $491.35 (−10.9%), A.R:R -1.0:1. Stop-loss: $491.35.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 4.0): -1.5.
Credit Acceptance Corporation trades at a P/E of 12.0 (forward 9.9). TrendMatrix value score: 7.8/10. Verdict: Buy (Wait for Entry).
8 analysts cover CACC with a consensus score of 2.4/5. Average price target: $597.
What does Credit Acceptance Corporation do?Credit Acceptance Corporation provides auto financing programs through a nationwide network of ~60,000 dealers,...
Credit Acceptance Corporation provides auto financing programs through a nationwide network of ~60,000 dealers, enabling vehicle sales to consumers regardless of credit history; 79.5% of 2025 loan volume involved borrowers with FICO below 650 or no score. Finance charges — primarily interest income — accounted for 92.4% of fiscal 2025 revenue across $3.9 billion in consumer loan assignments.