Press Releases

Credit Acceptance Corporaton Reports Second Quarter Earnings of $6,153,000 OR $.14 per Diluted Share Southfield, Michigan – July 19, 2000 – Credit Acceptance Corporation (Nasdaq: CACC) announced today that consolidated net income for the quarter ended June 30, 2000, was $6,153,000 or $.14 per diluted share compared to $5,148,000 or $.11 per diluted share for the same period in 1999 representing 19.5% and 27.3% increases in net income and earnings per share, respectively. The prior year results exclude a one-time after-tax gain of $8,960,000 from the sale of a subsidiary and a $337,000 after-tax asset write down. Including the one-time gain and asset write down, consolidated net income for the quarter ended June 30, 1999 was $13,771,000 or $.30 per diluted share.

Cash collections on installment contracts receivable, as a percent of average gross installment contracts receivable, were 29.9% for the six months ended June 30, 2000 compared with 29.3% for the same period in 1999. The Company’s average annualized yield on its installment contract portfolio improved to 14.1% for the six months ended June 30, 2000 from 12.7% for the same period in 1999. The improvement in the average yield resulted from a decrease in the percentage of installment contracts which were in non-accrual status to 20.0% as of June 30, 2000 from 25.9% for the same period in 1999.

The Company’s consolidated originations totaled $145,187,000 and $322,701,000 for the three and six months ended June 30, 2000 compared with $136,477,000 and $264,403,000 for the same periods in 1999, representing an increase of 6.4% and 22.1% for the three and six month periods, respectively.

The Company’s North American operations originated $96,999,000 and $232,312,000 in new installment contracts for the three and six months ended June 30, 2000 compared with $105,805,000 and $220,116,000 for the same periods in 1999, representing a decrease of (8.3%) and an increase of 5.5% for the three and six month periods, respectively.

The Company’s United Kingdom operations originated $37,526,000 and $67,681,000 in new installment contracts for the three and six month periods ended June 30, 2000 compared to $29,322,000 and $42,857,000 for the same periods in 1999, representing an increase of 28.0% and 57.9% for the three and six month periods, respectively.

Originations for the Company’s automobile leasing operations were $10,662,000 and $22,708,000 for the three and six months ended June 30, 2000 compared with $1,350,000 and $1,430,000 for the same periods in 1999. The Company reported a net income on its automobile leasing operations of $52,000 for the quarter ended June 30, 2000 compared with a net loss of ($95,000) for the same period in 1999. The Company began originating operating leases of used vehicles during the first quarter of 1999.

Credit Acceptance Corporation is a specialized financial services company which provides funding, receivables management, collection, sales training and related products and services to automobile dealers selling vehicles to consumers with limited access to traditional sources of consumer credit.

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