Credit Acceptance Corp. reported net income of $65.1 million, or $2.75 per diluted share, for the three months ending Sept. 30. That compares with $52.9 million, or $2.12 per diluted share, for the same quarter last year.
CAC’s loan portfolio totaled $2.4 billion as of Sept. 30, up 15% year over year. The number of active dealers hit 4,573 at quarter’s end, up 18% from the 3,874 active dealers in 3Q12.
During an earnings call yesterday, CEO Brett Roberts said the company currently has 228 sales reps. The plan is to reach 250, but “we’re not going to see that in the near future,” he said, according to a transcript available at SeekingAlpha.com. For now, the company is backfilling some positions. “Because we increased the size of the sales force so rapidly, there is a little bit of attrition going on,” he said.
Meanwhile, Roberts expects increased productivity from the existing sales team.
Steve, I am not sure I follow you. I agree people need cars. I was really awakened to this plight at a Federal Reserve meeting on auto finance last year. At that meeting, there were studies presented that showed people without cars literally had worse health, because they could not travel to medical care with the same expeditiousness as people with cars. That’s an unfortunately reality of our car-centric nation, and it must be addressed at the government level.
However, Steve, if you want people to have cars, do you not want lenders to extend credit for cars, even at a high rate? Or am I not understanding your comment (which is probably the case).
WOW!, That’s an increase of 699 active dealers year over year, or an average increase of 58 active dealers every month, almost 2 each day. How many other lenders can claim anything close to that. This is testimony that is dificult to ignore.
I am proud to be a Market Area Manager for CAC!
Thank You,
Steve Cortes