Credit Acceptance Loan Volume Down 44%
(Jalponik) Credit Acceptance, which is engaged in the nasty business that is subprime auto lending, issued a strange filing last week to the Securities and Exchange Commission. It disclosed, voluntarily, that Credit Acceptance’s loan volume was down 44.3 percent in May compared to last year, a startlingly high number.
It’s not clear why Credit Acceptance made the disclosure; it’s possible that it merely wanted to warn shareholders of some coming bumps in the road. But, as Crain’s Detroit Business teased out, the steep drop in auto loans is almost certainly tied to the global chip shortage, which has shut down car factories and made the used car market go haywire.
