8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): March 10, 2006

CREDIT ACCEPTANCE CORPORATION
__________________________________________
(Exact name of registrant as specified in its charter)

Michigan	000-20202	38-1999511
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
25505 West Twelve Mile Road, Suite 3000, Southfield, Michigan		48034-8339
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 248-353-2700

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On March 10, 2006, Credit Acceptance Corporation (the "Company"), issued a press release announcing operational data for the two months ended February 28, 2006. The press release is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

99.1 Press Release dated March 10, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CREDIT ACCEPTANCE CORPORATION
March 10, 2006	By:	/s/ Kenneth S. Booth
		Name: Kenneth S. Booth
		Title: Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	Press Release dated March 10, 2006

EX-99.1

Silver Triangle Building
25505 West Twelve Mile Road, Suite 3000
Southfield, MI 48034-8339
(248) 353-2700
www.creditacceptance.com

NEWS RELEASE

FOR IMMEDIATE RELEASE

Date: March 10, 2006

Investor Relations: Douglas W. Busk
Treasurer
(248) 353-2700 Ext. 4432
IR@creditacceptance.com

Pink Sheets Symbol: CACC

CREDIT ACCEPTANCE ANNOUNCES OPERATING RESULTS FOR THE FIRST TWO MONTHS OF 2006

Southfield, Michigan – March 10, 2006 – Credit Acceptance Corporation (Pink Sheets: CACC) (the “Company”) announced certain operating results for the first two months of 2006. The operational data set forth in this press release is for informational purposes to be used by investors in making decisions about whether to tender shares in the Company’s previously announced modified Dutch auction tender offer. Results for the two months ended February 28, 2006 compared to the same two months in 2005 include the following:

• Consumer Loan unit volume increased 12.0%.

• The number of active dealer-partners increased 33.8%.

• Consumer Loan unit volume per active dealer-partner decreased 16.2%.

Dealer-Partner Enrollments and Volume

The number of active dealer-partners is a function of new dealer-partner enrollments and attrition. Active dealer-partners are dealer-partners who submit at least one loan during the period. The following table summarizes active dealer-partners and corresponding unit volume for the two months ended February 28, 2006:

	Two Months Ended February 28, 2006								Two Months Ended February 28, 2005
	Dealer-Partners			Unit Volume			Average		Dealer-Partners			Unit Volume			Average
Production from two months ended December 31 of the prior year		1,256			11,963			9.5		978			10,611			10.8
Attrition (1)		(131	)		(326	)		2.5		(74	)		(142	)		1.9
Volume change from dealer-partners active in both periods		n/a			6,412			n/a		n/a			5,922			n/a
Current period volume from dealer-partners active both periods		1,125			18,049			16.0		904			16,391			18.1
New dealer-partners (2)		150			1,004			6.7		87			723			8.3
Restarts (3)		114			381			3.3		47			232			4.9
Current period production		1,389			19,434			14.0		1,038			17,346			16.7

(1) Dealer-partner attrition is measured according to the following formula: dealer-partners active during the prior period who become inactive in the current period.

(2) Excludes new dealer-partners that have enrolled in the Company’s program, but have not submitted at least one loan during the period.

(3) Restarts are previously active dealer-partners that were inactive during the prior period who became active during the current period.

Loan Portfolio Performance

The following table compares the Company’s forecast of Consumer Loan collection rates for loans accepted by year in the United States as of February 28, 2006 with the forecast as of December 31, 2005:

	February 28, 2006			December 31, 2005
Loan Origination Year	Forecasted Collection %			Forecasted Collection %			Variance
1995		54.9	%		54.9	%		0.0	%
1996		55.0	%		55.0	%		0.0	%
1997		58.3	%		58.3	%		0.0	%
1998		67.6	%		67.7	%		(0.1	%)
1999		72.7	%		72.7	%		0.0	%
2000		73.2	%		73.2	%		0.0	%
2001		67.4	%		67.2	%		0.2	%
2002		70.4	%		70.3	%		0.1	%
2003		74.3	%		74.0	%		0.3	%
2004		73.4	%		72.9	%		0.5	%
2005		74.9	%		73.6	%		1.3	%

During the two months ended February 28, 2006, collection rates were generally consistent with the Company’s expectations.

Cautionary Statement Regarding Forward Looking Information

Certain statements in this release that are not historical facts, such as those using terms like “believes,” “expects,” “anticipates,” “assumes,” “forecasts,” “estimates” and those regarding the Company’s future results, plans and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent the Company’s outlook only as of the date of this release. While the Company believes that its forward-looking statements are reasonable, actual results could differ materially since the statements are based on current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include the following:

• the Company’s potential inability to accurately forecast and estimate the amount and timing of future collections,

• increased competition from traditional financing sources and from non-traditional lenders,

• the unavailability of funding at competitive rates of interest,

• the Company’s potential inability to continue to obtain third party financing on favorable terms,

• the Company’s potential inability to generate sufficient cash flow to service its debt and fund its future operations,

• adverse changes in applicable laws and regulations,

• adverse changes in economic conditions,

• adverse changes in the automobile or finance industries or in the non-prime consumer finance market,

• the Company’s potential inability to maintain or increase the volume of automobile loans,

• an increase in the amount or severity of litigation against the Company,

• the loss of key management personnel or the inability to hire qualified personnel,

• the effect of natural disasters, terrorist attacks and other potential disasters or attacks; and

• various other factors discussed in the Company’s reports filed with the Securities and Exchange Commission.

Other factors not currently anticipated by management may also materially and adversely affect the Company’s results of operations. The Company does not undertake, and expressly disclaims any obligation, to update or alter its statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Description of Credit Acceptance Corporation

Since 1972, Credit Acceptance has provided auto loans to consumers, regardless of their credit history. Our product is offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our product, but who actually end up qualifying for traditional financing.

Without our product, consumers may be unable to purchase a vehicle or they may purchase an unreliable one, or they may not have the opportunity to improve their credit standing. As we report to the three national credit reporting agencies, a significant number of our customers improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Pink Sheets under the symbol CACC. For more information, visit www.creditacceptance.com.