Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Principal Debt Outstanding

Debt consists of the following:

(In millions)	As of March 31, 2020
	Principal Outstanding		Unamortized Debt Issuance Costs			Unamortized Discount			Carrying Amount
Revolving secured line of credit (1)	$	79.9	$	—		$	—		$	79.9
Secured financing (2)	3,974.4		(16.8		)	—			3,957.6
Senior notes	800.0		(10.8		)	—			789.2
Mortgage note	11.1		—			—			11.1
Total debt	$	4,865.4	$	(27.6	)	$	—		$	4,837.8
(In millions)	As of December 31, 2019
	Principal Outstanding		Unamortized Debt Issuance Costs			Unamortized Discount			Carrying Amount
Revolving secured line of credit (1)	$	—	$	—		$	—		$	—
Secured financing (2)	3,355.6		(15.9		)	—			3,339.7
Senior notes	1,201.8		(13.2		)	(0.8		)	1,187.8
Mortgage note	11.3		—			—			11.3
Total debt	$	4,568.7	$	(29.1	)	$	(0.8	)	$	4,538.8

(1) Excludes deferred debt issuance costs of $2.8 million and $3.2 million as of March 31, 2020 and December 31, 2019, 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 March 31, 2020 is as follows:

(Dollars in millions)
Financings	Wholly-owned Subsidiary	Maturity Date		Financing Amount		Interest Rate as of    March 31, 2020
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	12/16/2021	(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 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
Term ABS 2019-3 (1)	Credit Acceptance Funding LLC 2019-3	11/15/2021	(2)	351.7		Fixed rate
Term ABS 2020-1 (1)	Credit Acceptance Funding LLC 2020-1	02/15/2022	(2)	500.0		Fixed rate
2024 Senior Notes	n/a	12/31/2024		400.0		Fixed rate
2026 Senior Notes	n/a	03/15/2026		400.0		Fixed rate
Mortgage Note (1)	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 16, 2023 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   March 31,
	2020		2019
Revolving Secured Line of Credit
Maximum outstanding principal balance	$	268.2	$	276.4
Average outstanding principal balance	85.2		88.4
Warehouse Facility II
Maximum outstanding principal balance	201.0		201.0
Average outstanding principal balance	20.4		93.0
Warehouse Facility IV
Maximum outstanding principal balance	—		100.0
Average outstanding principal balance	—		4.4
Warehouse Facility V
Maximum outstanding principal balance	50.0		—
Average outstanding principal balance	8.2		—
Warehouse Facility VI
Maximum outstanding principal balance	—		101.5
Average outstanding principal balance	—		2.3
Warehouse Facility VII
Maximum outstanding principal balance	100.0		—
Average outstanding principal balance	21.7		—
Warehouse Facility VIII
Maximum outstanding principal balance	49.0		—
Average outstanding principal balance	7.6		—

Summary of Debt

(Dollars in millions)	As of
	March 31, 2020			December 31, 2019
Revolving Secured Line of Credit
Principal balance outstanding	$	79.9		$	—
Amount available for borrowing (1)	260.1			340.0
Interest rate	2.87		%	—		%
Warehouse Facility II
Principal balance outstanding	$	201.0		$	—
Amount available for borrowing (1)	199.0			400.0
Loans pledged as collateral	248.9			—
Restricted cash and cash equivalents pledged as collateral	4.8			1.0
Interest rate	3.33		%	—		%
Warehouse Facility IV
Principal balance outstanding	$	—		$	—
Amount available for borrowing (1)	300.0			300.0
Loans pledged as collateral	—			—
Restricted cash and cash equivalents pledged as collateral	1.0			1.0
Interest rate	—		%	—		%
Warehouse Facility V
Principal balance outstanding	$	50.0		$	—
Amount available for borrowing (1)	50.0			100.0
Loans pledged as collateral	63.2			—
Restricted cash and cash equivalents pledged as collateral	2.3			1.0
Interest rate	3.48		%	—		%
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	—			—
Interest rate	—		%	—		%
Warehouse Facility VII
Principal balance outstanding	$	100.0		$	—
Amount available for borrowing (1)	50.0			150.0
Loans pledged as collateral	123.8			—
Restricted cash and cash equivalents pledged as collateral	3.4			1.0
Interest rate	3.64		%	—		%
Warehouse Facility VIII
Principal balance outstanding	$	49.0		$	—
Amount available for borrowing (1)	151.0			200.0
Loans pledged as collateral	64.0			—
Restricted cash and cash equivalents pledged as collateral	2.2			—
Interest rate	2.82		%	—		%
Term ABS 2016-3
Principal balance outstanding	$	—		$	51.8
Loans pledged as collateral	—			219.5
Restricted cash and cash equivalents pledged as collateral	—			23.5
Interest rate	—		%	3.60		%

Term ABS 2017-1
Principal balance outstanding	$	66.8		$	120.9
Loans pledged as collateral	248.5			292.8
Restricted cash and cash equivalents pledged as collateral	27.4			26.1
Interest rate	3.36		%	3.19		%
Term ABS 2017-2
Principal balance outstanding	$	202.9		$	277.2
Loans pledged as collateral	357.3			426.7
Restricted cash and cash equivalents pledged as collateral	37.2			35.1
Interest rate	2.94		%	2.83		%
Term ABS 2017-3
Principal balance outstanding	$	238.6		$	303.2
Loans pledged as collateral	332.6			393.0
Restricted cash and cash equivalents pledged as collateral	31.6			29.3
Interest rate	2.98		%	2.91		%
Term ABS 2018-1
Principal balance outstanding	$	463.6		$	500.0
Loans pledged as collateral	570.0			609.5
Restricted cash and cash equivalents pledged as collateral	48.3			43.8
Interest rate	3.26		%	3.24		%
Term ABS 2018-2
Principal balance outstanding	$	450.0		$	450.0
Loans pledged as collateral	528.7			550.4
Restricted cash and cash equivalents pledged as collateral	43.4			37.6
Interest rate	3.68		%	3.68		%
Term ABS 2018-3
Principal balance outstanding	$	398.3		$	398.3
Loans pledged as collateral	469.8			487.7
Restricted cash and cash equivalents pledged as collateral	37.8			32.3
Interest rate	3.72		%	3.72		%
Term ABS 2019-1
Principal balance outstanding	$	402.5		$	402.5
Loans pledged as collateral	473.0			490.2
Restricted cash and cash equivalents pledged as collateral	36.7			31.9
Interest rate	3.53		%	3.53		%
Term ABS 2019-2
Principal balance outstanding	$	500.0		$	500.0
Loans pledged as collateral	642.0			628.5
Restricted cash and cash equivalents pledged as collateral	45.2			38.6
Interest rate	3.13		%	3.13		%
Term ABS 2019-3
Principal balance outstanding	$	351.7		$	351.7
Loans pledged as collateral	515.4			428.6
Restricted cash and cash equivalents pledged as collateral	36.4			27.2
Interest rate	2.56		%	2.56		%

Term ABS 2020-1
Principal balance outstanding	$	500.0		$	—
Loans pledged as collateral	836.9			—
Restricted cash and cash equivalents pledged as collateral	49.5			—
Interest rate	2.18		%	—		%
2021 Senior Notes
Principal balance outstanding	$	—		$	151.8
Interest rate	—		%	6.125		%
2023 Senior Notes
Principal balance outstanding	$	—		$	250.0
Interest rate	—		%	7.375		%
2024 Senior Notes
Principal balance outstanding	$	400.0		$	400.0
Interest rate	5.125		%	5.125		%
2026 Senior Notes
Principal balance outstanding	$	400.0		$	400.0
Interest rate	6.625		%	6.625		%
Mortgage Note
Principal balance outstanding	$	11.1		$	11.3
Interest rate	3.08		%	3.21		%

(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 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
Term ABS 2019-3	November 21, 2019	439.6		Through November 15, 2021
Term ABS 2020-1	February 20, 2020	625.1		Through February 15, 2022