SOUTHFIELD, Mich. — Triggered by a 5-percent uptick in loan
unit volume, Credit Acceptance Corp. posted a gain in consolidated net income
during the third quarter.

The company determined its consolidated net income came in
at $53.0 million or $2.12 per diluted share for the quarter that ended Sept. 30.
In the same quarter a year earlier, Credit Acceptance generated consolidated
net income of $50.0 million or $1.91 per diluted share.

For the first nine months of this year, the company said its
consolidated net income totaled $159.8 million or $6.22 per diluted share, up
from the same period of 2011 when Credit Acceptance posted $138.0 million or
$5.19 per diluted share.

Looking at the company's third-quarter adjusted net income,
a non-GAAP financial measure, officials said the figure came in higher than a
year earlier, $55.6 million or $2.23 per diluted share as compared to $49.1
million or $1.88 per diluted share.

Credit Acceptance's adjusted net income for the first nine
months of the year totaled $158.9 million or $6.18 per diluted share, up from $142.7
million or $5.37 per diluted share during the same span last year.

Officials tabulated that the company originated 44,845 loans
during the third quarter, up 5.4 percent from the 42,542 contracts Credit
Acceptance generated a year earlier.

The company's number of active dealers grew 26.6 percent to
3,874. However, Credit Acceptance indicated the average volume per active
dealer declined 16.5 percent during the quarter.

"We believe the decline in volume per dealer is the result
of increased competition," company officials said. "We increased advance rates
in April and September, which positively impacted unit and dollar volumes 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
dollar volume exceeded the negative impact of the reduced return on capital,"
they continued.

Credit Acceptance noted that unit volume in October 31 alone
increased by 13.3 percent as compared to the same month last year. The company acknowledged
the rise was positively impacted by two additional business days as there were 23
business days last month compared to 21 business days in October of 2011.


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