Credit Acceptance Corporation announced its second quarter 2025 financial results on July 31, 2025, reporting consolidated net income of $87.4 million, or $7.42 per diluted share. Adjusted net income for the quarter was $100.8 million, or $8.56 per diluted share. These figures represent a decrease compared to the prior quarter and prior year.
The company experienced significant declines in Consumer Loan assignment volumes, with unit volumes decreasing by 14.6% and dollar volumes by 18.8% compared to the same period in the prior year. This decline was primarily due to a decrease in the average advance paid, resulting from a decrease in the average size of Consumer Loans assigned. The number of active dealers also declined by 0.8%.
Forecasted collection rates improved for 2025 vintages but declined for Consumer Loans assigned in 2022 through 2024, indicating persistent underperformance in recent loan cohorts. During Q2 2025, Credit Acceptance applied an adjustment to its forecasting methodology for a segment of 2024 Consumer Loans, which reduced forecasted net cash flows by $18.6 million and increased the provision for credit losses by $16.5 million.
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