CREDIT ACCEPTANCE CORP Q4 FY2024 earnings call

• Collections improved sequentially with only the 2022 vintage underperforming; other vintages were stable. - Growth slowed but was still the second highest Q4 unit and dollar volume ever. - Loan portfolio at $8.9 billion adjusted, up 15% from last year. - Market share in core segment was 6.1% YTD through November vs 4.8% in 2023. - Slower growth likely impacted by Q3 scorecard change leading to lower advance rates. - Made progress on product innovation and go-to-market approach, modernizing technology architecture. - Received 5 workplace awards in 2024, totaling 13 for the year. - Team members raised money and collected food for food banks, packed 106,000 meals during holiday season.

The loan portfolio is at a new record high of $8.9 billion on an adjusted basis, up 15% from last year. In the core segment of used vehicles financed by subprime consumers, the market share year-to-date through November was 6.1% compared to 4.8% in the same period of 2023. Forecasted net cash flows declined by a small 0.3% or $31 million.

• Forecasted net cash flows declined by 0.3% or $31 million. - Growth slowed but Q4 2024 was second highest in used dollar volume ever. - Financial results will be more heavily weighted on 2023 and 2024 cohorts as 2022 cohort is less material. - Forecast was stable on 2023 and 2024 cohorts.

• Forward-looking statements subject to risks and uncertainties beyond control, including those in the cautionary statement. - Impact of Q3 scorecard change on advance rates and growth. - Performance of 2022 vintage and its impact on financial results during volatile economic periods.

Q: Expand on slowing growth and causes?

A: Volume per dealer declined 3.7% vs Q4 2023, hard to attribute to competition or scorecard change exactly; Q4 2024 was second highest in used dollar volume ever Q: What drives adjusted yield up with collections down?

A: Yield from business written in subsequent period increased overall yield, offsetting decline in forecasted collections Q: When was scorecard change made?

A: Scorecard changes made during Q3, likely to take full effect in September Q: Thoughts on excess capital due to capital markets activity?

A: Solid cash position, being conservative going into election-related unknowns in capital markets, feeling good for busy origination time