Credit Acceptance closed a $500 million asset‑backed, non‑recourse financing on November 13, 2025. The deal transferred $625.2 million of consumer‑loan assets to a special‑purpose entity that issued three classes of notes, with 4 % of the cash flows earmarked for servicing and the remaining 96 % applied to principal, interest, and other financing costs.
The financing’s average annualized cost is approximately 5.1 %, the lowest for Credit Acceptance since late 2021. For context, a $400 million deal in March 2025 carried a 5.6 % cost, while a $300 million transaction in December 2024 was priced at 6.3 %. The decline in funding costs reflects the current low‑rate environment and the company’s strong credit profile, allowing it to secure cheaper capital than in recent years.
Proceeds will be used to retire higher‑cost outstanding debt, thereby reducing interest expense and improving the company’s balance‑sheet profile. The transaction also preserves the dealer‑centric model: contractual relationships and dealer holdback rights remain intact, ensuring continued dealer incentives and partnership stability.
The deal was negotiated amid a backdrop of historically low federal funds rates and a tightening of the Fed’s policy stance, which has compressed borrowing costs for high‑quality issuers. Credit Acceptance’s ability to lock in a 5.1 % rate demonstrates market confidence in its loan portfolio and its disciplined risk management practices.
From a strategic perspective, the financing expands unused borrowing capacity to roughly $2 billion on the company’s revolving credit facilities, providing liquidity for future growth initiatives and a buffer against potential credit market volatility. The transaction also reinforces the firm’s conservative capital structure, supporting its goal of delivering consistent economic profit while maintaining flexibility for dealer‑centric expansion.
Treasurer Jay Brinkley noted, “This is our 60th term securitization since 1998 and the lowest‑cost transaction since late 2021, underscoring our strong credit profile and the market’s confidence in our loan portfolio.”
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.