SOUTHFIELD, Mich. — As loan unit and dollar volumes jumped
by double digits year-over-year, Credit Acceptance Corp. also produced a 23-percent
increase in consolidated net income during the third quarter.

Credit Acceptance's consolidated net income came in at $65.1
million or $2.75 per diluted share for the quarter that ended Sept. 30. A year
earlier, the figure settled at $52.9 million or $2.12 per diluted share.

Through the first nine months of this year, the company's consolidated
net income rose to $187.2 million or $7.78 per diluted share, up from $159.8
million or $6.22 per diluted share Credit Acceptance posted during the first
three quarters of last year.

As mentioned, Credit Acceptance reported that its unit and
dollar volumes increased 11.0 percent and 15.9 percent, respectively, during
the third quarter. The number of active dealers grew 18.0 percent while average
volume per active dealer declined 6.0 percent, according to the company.

Credit Acceptance originated 49,762 loans through 4,573
active dealers during Q3. A year earlier, the company worked with 3,874 active
dealers to originate 44,845 vehicle contracts.

"We believe the decline in volume per dealer is the result
of increased competition," Credit Acceptance officials said. "In addition, we
believe a delay in federal income tax refunds in the current year contributed
to both the decline in unit and dollar volumes during the first quarter of 2013
and the increase in unit and dollar volumes during the second quarter of 2013."

Chief executive officer Brett Roberts elaborated about why
the volume of loans coming from active dealer softened a bit in the third quarter
when Credit Acceptance conducted a conference call with investment analysts
last week.

"It's tough to say. There are lots of things that affect
loan volume," Roberts said according to a transcript of the call posted by
SeekingAlpha.com. "As you pointed out, volume per dealer declined, as it has,
for the quarters preceding this quarter but it declined at a less rapid pace.

"The number of dealers increased but not as rapidly as it
had in the past, and that combination produced a little better outcome in the
third quarter," he continued. "If you remember, the second quarter was assisted
a little bit by the delayed tax season, so we think that you're right, that the
third quarter does represent a bit of a change in the trend line."

Credit Acceptance Announces Completes $197.8 Million
Asset-Backed Financing

In other company news, Credit Acceptance completed $197.8
million asset-backed non-recourse secured financing.

Pursuant to this
transaction, the company said it contributed loans having a net book value of
approximately $250.1 million to a wholly-owned special purpose entity which
will transfer the loans to a trust, which will issue three classes of notes:

 Note Class  Amount  Average
Life		  Price  Interest
Rate
 A  $153,000,000  2.49
years		  99.97749%  1.50%
 B  $44,800,000  3.21
years		  99.97183%  2.26%
 C  $2,300,000  3.29
years		    

The Class C Note does not bear interest and is being
retained by Credit Acceptance.

Company officials highlighted the financing will accomplish
a trio of objectives:

—Have an expected annualized cost of approximately 2.1
percent including the initial purchaser's fees and other costs

—Revolve for 24 months after which it will amortize based
upon the cash flows on the contributed loans

—Be used by Credit Acceptance to repay outstanding
indebtedness

"We will receive 6.0 percent of the cash flows related to
the underlying consumer loans to cover servicing expenses," company officials
said. "The remaining 94.0 percent, less amounts due to dealers for payments of
dealer holdback, will be used to pay principal and interest on the notes as
well as the ongoing costs of the financing.

"The financing is structured so as not to affect our
contractual relationships with our dealers and to preserve the dealers' rights
to future payments of dealer holdback," they continued.

The notes have not been and will not be registered under the
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements,"
officials went on to say.

"This news release does not and will not constitute an offer
to sell or the solicitation of an offer to buy the notes. This news release is
being issued pursuant to and in accordance with Rule 135c under the Securities
Act of 1933," they added.

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