SOUTHFIELD, MI - Credit Acceptance (NASDAQ:CACC) Corporation (NASDAQ:CACC), a provider of financing programs for automobile purchases, has announced the extension of its $100 million asset-backed non-recourse secured financing, known as Term ABS 2021-1.
The financing, originally set to cease revolving on December 16, 2024, will now continue until February 17, 2026, following a recent amendment. No other significant changes to the terms of the financing were reported.
The extended financing allows Credit Acceptance to continue its operations in offering financing programs that cater to automobile dealers and their customers, including those with poor credit histories. This extension is expected to support the company's ongoing efforts to facilitate vehicle sales for consumers who may otherwise face challenges in securing financing.
Credit Acceptance has been operational since 1972 and is recognized for its programs that not only enable dealers to sell vehicles to a broader range of consumers but also offer the opportunity for customers to improve their credit scores. The company's financing options are available through a nationwide network of automobile dealers and are designed to help consumers who might not qualify for traditional financing methods.
The company emphasizes that its programs contribute to consumer credit improvement by reporting to the three national credit reporting agencies, potentially assisting consumers in moving towards more conventional financing options in the future.
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