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): May 24, 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 7.01 Regulation FD Disclosure.

Credit Acceptance Corporation is furnishing materials, included as Exhibit 99.1 to this report and incorporated herein by reference, which were prepared for inclusion on its investor relations website. Credit Acceptance Corporation is not undertaking to update these materials. This report should not be deemed an admission as to the materiality of any information contained in these materials.

The information furnished in this report shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

99.1 Materials added to website on or about May 24, 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
May 25, 2006	By:	/s/ Douglas W. Busk
		Name: Douglas W. Busk
		Title: Treasurer

Exhibit Index

Exhibit No.	Description
99.1	Materials added to website on or about May 24, 2006.

EX-99.1

1. Loans per active dealer partner were 28.3 in the 1st quarter of 04, 23.2 in the 1st quarter of 05 and 19.4 in the 1st quarter of 06. With your unlevered after-tax return on capital approaching the mid teens combined with better than expected collection rates in this year’s first quarter, have you considered increasing the advance rate again to increase the loans per active dealer partner? I completely understand and agree with not chasing unprofitable business as you discuss in the annual report. But your profitability and collection rates appear to have improved over the last couple of years.

We spend a lot of time thinking about the optimal mix of price (of which advance rate is the primary component), credit policy and volume. We are very clear that our objective is to produce as much economic profit as possible. In theory, we could increase economic profit through an advance rate increase if unit volume were to increase enough to offset the decrease in per unit profitability.

However, an across the board advance rate change, similar to the one we implemented in March of 2005 is not currently in our plans. Rather, we are implementing a process for adjusting the advance rate on a more targeted and more frequent basis. We believe this new process, once implemented, will take better advantage of data we have accumulated over time and allow us to better calibrate our advance rate to current market conditions.

2. You mention in the annual report that you intend to continue to make improvements to your program, so that you can write as much profitable business per dealer-partner as the market allows. Could you elaborate on what type of improvements? Where do you feel you are today in terms of writing as much business as the market allows? Are you doing everything you can today, are you 1/2 way there, etc.?

We currently think about “improvements” as falling into one of three general categories: (1) better execution of current core processes (sales, loan servicing and originations), (2) changes to our program (the combination of pricing and policy), and (3) changes that will make our program easier to use for our dealer-partner (including changes to our internet based origination system). We think about improvement as a continuous process and one that is not anywhere close to being fully developed.