Hey Buddy, Want To Finance A Used Car?

Published on:
12 September 2006 at 10:18 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00000855-hey-buddy-want-to-finance-a-used-car/

The 1990s was a decade of expansion for subprime lenders. It also was a decade of lower credit standards, which sent more than a few lenders out of business.

Those still standing, including Credit Acceptance Corp. (NasdaqNM: CACC), look to avoid a similar fate by learning from the mistakes of their failed comrades.

Credit Acceptance provides auto loans through a nationwide network of car dealers, called dealer-partners.

The company counted 957 dealer-partners in the third quarter, up from 724 the prior year. Third-quarter earnings rose 45% from the prior year to 32 cents a share. Sales gained 20% to $43.2 million.

It was the second straight quarter of double-digit revenue growth after sales declined five of the previous six quarters.

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