Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of Principal Debt Outstanding

Debt consists of the following:

(In millions)	As of September 30, 2019
	Principal Outstanding		Unamortized Debt Issuance Costs			Unamortized Discount			Carrying Amount
Revolving secured line of credit (1)	$	52.2	$	—		$	—		$	52.2
Secured financing (2)	3,244.1		(15.8		)	—			3,228.3
Senior notes	950.0		(8.9		)	(0.9		)	940.2
Mortgage note	11.5		—			—			11.5
Total debt	$	4,257.8	$	(24.7	)	$	(0.9	)	$	4,232.2
(In millions)	As of December 31, 2018
	Principal Outstanding		Unamortized Debt Issuance Costs			Unamortized Discount			Carrying Amount
Revolving secured line of credit (1)	$	171.9	$	—		$	—		$	171.9
Secured financing (2)	3,108.7		(16.0		)	—			3,092.7
Senior notes	550.0		(4.5		)	(1.1		)	544.4
Mortgage note	11.9		—			—			11.9
Total debt	$	3,842.5	$	(20.5	)	$	(1.1	)	$	3,820.9

(1) Excludes deferred debt issuance costs of $3.5 million and $2.9 million as of September 30, 2019 and December 31, 2018, respectively, which are included in other assets.

(2) Warehouse facilities and Term ABS.

Schedule of General Information of Financing Transaction

General information for each of our financing transactions in place as of September 30, 2019 is as follows:

(Dollars in millions)
Financings	Wholly-owned Subsidiary	Maturity Date		Financing Amount		Interest Rate as of    September 30, 2019
Revolving Secured Line of Credit	n/a	06/22/2022		$	340.0	At our option, either LIBOR plus 187.5 basis points or the prime rate plus 87.5 basis points
Warehouse Facility II (1)	CAC Warehouse Funding Corp. II	07/12/2022	(2)	400.0		LIBOR plus 175 basis points (3)
Warehouse Facility IV (1)	CAC Warehouse Funding LLC IV	07/26/2022	(2)	300.0		LIBOR plus 200 basis points (3)
Warehouse Facility V (1)	CAC Warehouse Funding LLC V	08/17/2021	(4)	100.0		LIBOR plus 190 basis points (3)
Warehouse Facility VI (1)	CAC Warehouse Funding LLC VI	09/30/2022	(2)	75.0		LIBOR plus 200 basis points
Warehouse Facility VII (1)	CAC Warehouse Funding LLC VII	12/17/2020	(5)	150.0		Commercial paper rate plus 200 basis points (3)
Warehouse Facility VIII (1)	CAC Warehouse Funding LLC VIII	07/26/2022	(2)	200.0		LIBOR plus 190 basis points (3)
Term ABS 2016-3 (1)	Credit Acceptance Funding LLC 2016-3	10/15/2018	(2)	350.0		Fixed rate
Term ABS 2017-1 (1)	Credit Acceptance Funding LLC 2017-1	02/15/2019	(2)	350.0		Fixed rate
Term ABS 2017-2 (1)	Credit Acceptance Funding LLC 2017-2	06/17/2019	(2)	450.0		Fixed rate
Term ABS 2017-3 (1)	Credit Acceptance Funding LLC 2017-3	10/15/2019	(2)	350.0		Fixed rate
Term ABS 2018-1 (1)	Credit Acceptance Funding LLC 2018-1	02/17/2020	(2)	500.0		Fixed rate
Term ABS 2018-2 (1)	Credit Acceptance Funding LLC 2018-2	05/15/2020	(2)	450.0		Fixed rate
Term ABS 2018-3 (1)	Credit Acceptance Funding LLC 2018-3	08/17/2020	(2)	398.3		Fixed rate
Term ABS 2019-1 (1)	Credit Acceptance Funding LLC 2019-1	02/15/2021	(2)	402.5		Fixed rate
Term ABS 2019-2 (1)	Credit Acceptance Funding LLC 2019-2	08/15/2022	(6)	500.0		Fixed rate
2021 Senior Notes	n/a	02/15/2021		300.0		Fixed rate
2023 Senior Notes	n/a	03/15/2023		250.0		Fixed rate
2026 Senior Notes	n/a	03/15/2026		400.0		Fixed rate
Mortgage Note	Chapter 4 Properties, LLC	08/06/2023		12.0		LIBOR plus 150 basis points

(1) Financing made available only to a specified subsidiary of the Company.

(2) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets.

(3) Interest rate cap agreements are in place to limit the exposure to increasing interest rates.

(4) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on August 17, 2023 will be due on that date.

(5) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 17, 2022 will be due on that date.

(6) Represents the revolving maturity date. The Company has the option to redeem and retire the indebtedness after the revolving maturity date. If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets.

Schedule of Additional Information Related to Debt Instruments

Additional information related to the amounts outstanding on each facility is as follows:

(In millions)	For the Three Months Ended   September 30,				For the Nine Months Ended   September 30,
	2019		2018		2019		2018
Revolving Secured Line of Credit
Maximum outstanding principal balance	$	193.3	$	153.9	$	282.9	$	265.4
Average outstanding principal balance	71.1		22.2		80.1		44.8
Warehouse Facility II
Maximum outstanding principal balance	201.0		201.0		201.0		201.0
Average outstanding principal balance	126.7		4.4		102.8		4.4
Warehouse Facility IV
Maximum outstanding principal balance	—		—		100.0		99.0
Average outstanding principal balance	—		—		1.5		0.7
Warehouse Facility V
Maximum outstanding principal balance	35.0		97.3		35.0		99.0
Average outstanding principal balance	3.4		2.1		1.2		1.4
Warehouse Facility VI
Maximum outstanding principal balance	—		—		—		75.0
Average outstanding principal balance	—		—		—		0.5
Warehouse Facility VII
Maximum outstanding principal balance	50.0		100.0		101.5		150.0
Average outstanding principal balance	23.9		2.2		9.4		10.4
Warehouse Facility VIII
Maximum outstanding principal balance	75.0		—		75.0		—
Average outstanding principal balance	12.7		—		12.7		—

Summary of Debt

(Dollars in millions)	As of
	September 30, 2019			December 31, 2018
Revolving Secured Line of Credit
Principal balance outstanding	$	52.2		$	171.9
Amount available for borrowing (1)	287.8			178.1
Interest rate	3.89		%	4.38		%
Warehouse Facility II
Principal balance outstanding	$	—		$	—
Amount available for borrowing (1)	400.0			400.0
Loans pledged as collateral	—			—
Restricted cash and cash equivalents pledged as collateral	1.0			1.0
Interest rate	—		%	—		%
Warehouse Facility IV
Principal balance outstanding	$	—		$	—
Amount available for borrowing (1)	300.0			250.0
Loans pledged as collateral	—			—
Restricted cash and cash equivalents pledged as collateral	1.0			1.0
Interest rate	—		%	—		%
Warehouse Facility V
Principal balance outstanding	$	—		$	—
Amount available for borrowing (1)	100.0			100.0
Loans pledged as collateral	—			—
Restricted cash and cash equivalents pledged as collateral	1.0			1.0
Interest rate	—		%	—		%
Warehouse Facility VI
Principal balance outstanding	$	—		$	—
Amount available for borrowing (1)	75.0			75.0
Loans pledged as collateral	—			—
Restricted cash and cash equivalents pledged as collateral	—			0.1
Interest rate	—		%	—		%
Warehouse Facility VII
Principal balance outstanding	$	—		$	—
Amount available for borrowing (1)	150.0			150.0
Loans pledged as collateral	—			—
Restricted cash and cash equivalents pledged as collateral	1.0			1.0
Interest rate	—		%	—		%
Warehouse Facility VIII
Principal balance outstanding	$	—		$	—
Amount available for borrowing (1)	200.0			—
Loans pledged as collateral	—			—
Restricted cash and cash equivalents pledged as collateral	—			—
Interest rate	—		%	—		%
Term ABS 2016-1
Principal balance outstanding	$	—		$	125.3
Loans pledged as collateral	—			320.8
Restricted cash and cash equivalents pledged as collateral	—			29.6
Interest rate	—		%	4.41		%

Term ABS 2016-2
Principal balance outstanding	$	—		$	184.5
Loans pledged as collateral	—			335.0
Restricted cash and cash equivalents pledged as collateral	—			28.3
Interest rate	—		%	3.20		%
Term ABS 2016-3
Principal balance outstanding	$	102.5		$	300.6
Loans pledged as collateral	254.3			392.7
Restricted cash and cash equivalents pledged as collateral	26.2			30.7
Interest rate	3.29		%	2.59		%
Term ABS 2017-1
Principal balance outstanding	$	181.3		$	350.0
Loans pledged as collateral	331.1			429.8
Restricted cash and cash equivalents pledged as collateral	29.5			30.9
Interest rate	2.98		%	2.78		%
Term ABS 2017-2
Principal balance outstanding	$	359.5		$	450.0
Loans pledged as collateral	482.6			548.4
Restricted cash and cash equivalents pledged as collateral	40.8			39.4
Interest rate	2.77		%	2.72		%
Term ABS 2017-3
Principal balance outstanding	$	350.0		$	350.0
Loans pledged as collateral	424.5			426.1
Restricted cash and cash equivalents pledged as collateral	33.0			28.6
Interest rate	2.88		%	2.88		%
Term ABS 2018-1
Principal balance outstanding	$	500.0		$	500.0
Loans pledged as collateral	609.1			614.5
Restricted cash and cash equivalents pledged as collateral	46.4			41.8
Interest rate	3.24		%	3.24		%
Term ABS 2018-2
Principal balance outstanding	$	450.0		$	450.0
Loans pledged as collateral	550.5			552.2
Restricted cash and cash equivalents pledged as collateral	40.2			36.3
Interest rate	3.68		%	3.68		%
Term ABS 2018-3
Principal balance outstanding	$	398.3		$	398.3
Loans pledged as collateral	498.6			578.8
Restricted cash and cash equivalents pledged as collateral	35.1			33.6
Interest rate	3.72		%	3.72		%
Term ABS 2019-1
Principal balance outstanding	$	402.5		$	—
Loans pledged as collateral	491.0			—
Restricted cash and cash equivalents pledged as collateral	34.1			—
Interest rate	3.53		%	—		%

Term ABS 2019-2
Principal balance outstanding	$	500.0		$	—
Loans pledged as collateral	642.0			—
Restricted cash and cash equivalents pledged as collateral	40.1			—
Interest rate	3.13		%	—		%
2021 Senior Notes
Principal balance outstanding	$	300.0		$	300.0
Interest rate	6.125		%	6.125		%
2023 Senior Notes
Principal balance outstanding	$	250.0		$	250.0
Interest rate	7.375		%	7.375		%
2026 Senior Notes
Principal balance outstanding	$	400.0		$	—
Interest rate	6.625		%	—		%
Mortgage Note
Principal balance outstanding	$	11.5		$	11.9
Interest rate	3.73		%	3.85		%

(1) Availability may be limited by the amount of assets pledged as collateral.

Summary of Term ABS Financings

The table below sets forth certain additional details regarding the outstanding Term ABS financings:

(Dollars in millions)
Term ABS Financings	Close Date	Net Book Value of Loans Contributed at Closing		Revolving Period
Term ABS 2016-3	October 27, 2016	$	437.8	Through October 15, 2018
Term ABS 2017-1	February 23, 2017	437.8		Through February 15, 2019
Term ABS 2017-2	June 29, 2017	563.2		Through June 17, 2019
Term ABS 2017-3	October 26, 2017	437.6		Through October 15, 2019
Term ABS 2018-1	February 22, 2018	625.1		Through February 17, 2020
Term ABS 2018-2	May 24, 2018	562.6		Through May 15, 2020
Term ABS 2018-3	August 23, 2018	500.1		Through August 17, 2020
Term ABS 2019-1	February 21, 2019	503.1		Through February 15, 2021
Term ABS 2019-2	August 28, 2019	625.1		Through August 15, 2022