SOUTHFIELD, Mich. — As the lender announced an extension of
its revolving secured warehouse facility, Credit Acceptance reported that its
unit volume softened in the first quarter despite a 21.2-percent jump in the
number of active dealers.

The company indicated that its first-quarter unit volume dipped
by 2.9 percent year-over-year. The volume figure softened because the volume
per active dealer also declined 20.1 percent.

"We believe the decline in volume per dealer is the result
of increased competition," Credit Acceptance officials said. "We increased
advance rates in April and September, which positively impacted unit volume
while reducing the return on capital we expect to earn on new assignments. 

"We believe these advance rate increases had a positive
impact on economic profit as we believe the positive impact of the increased
volume exceeded the negative impact of the reduced return on capital," they
continued.

Credit Acceptance indicated that it originated 57,105 loans
during the first quarter, down from 58,796 contracts in the same period of
2012. The company's contingent of active dealers rose to 4,355, up from 3,594 a
year earlier.

But as mentioned previously, that average volume per those
active dealerships decreased. Credit Acceptance said the volume dipped to 13.1
loans from 16.4 loans during the first quarter of 2012.

Update on Share Repurchase Program

During the first quarter pursuant to its share repurchase
program, Credit Acceptance indicated it repurchased 530,795 shares of its
outstanding common stock at a total cost of approximately $59.0 million,
excluding commissions paid. 

As of March 21, the company had 23,587,496 shares of common
stock outstanding. Credit Acceptance noted that it did not repurchase any more shares
by the end of the month despite management having authorization to repurchase
1,003,417 shares of common stock.

"Unless terminated earlier by resolution of the board, the
share repurchase program will expire when we have repurchased all shares authorized
for repurchase thereunder," officials said.

Extension of Revolving Secured Warehouse Facility

In other company news, Credit Acceptance also extended the
date on which its $75.0 million revolving secured warehouse facility will cease
to revolve from Feb. 19, 2014 to April 5, 2016.

Officials explained the interest rate on borrowings under
the facility has been decreased from LIBOR plus 275 basis points to LIBOR plus
225 basis points.

There were no other material changes to the terms of the facility,
according to the company.

As of last Friday, Credit Acceptance had $37.6 million
outstanding under the facility.

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