Credit Acceptance Corporation (CACC): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le monde dynamique du financement automobile, Credit Acceptance Corporation (CACC) navigue dans un paysage complexe de défis réglementaires, de perturbation technologique et de comportements de consommation. Cette analyse complète du pilon déracine les facteurs externes complexes qui façonnent l'approche stratégique de l'entreprise, révélant comment les pressions politiques, les incertitudes économiques, les transformations sociétales, les innovations technologiques, les complexités juridiques et les considérations environnementales se croisent pour définir l'écosystème commercial de la CACC. Plongez profondément dans une exploration nuancée qui va au-delà de l'analyse au niveau de la surface, découvrant les moteurs critiques qui détermineront l'avenir de cet acteur pivot sur le marché des prêts à la consommation.

Credit Acceptance Corporation (CACC) - Analyse du pilon: facteurs politiques

Examen réglementaire sur les pratiques de prêt automobile aux subprimes

En 2024, le Consumer Financial Protection Bureau (CFPB) a augmenté les enquêtes sur les pratiques de prêt automobile à risque. 87 plaintes officielles ont été déposées contre les institutions de prêt automobile au T1 2024.

Agence de réglementation	Nombre d'enquêtes	Domaine de mise au point
Cfpb	87	Prêts automobiles à risque
Bureaux du procureur général	42	Protection des consommateurs

Législation potentielle de protection fédérale et d'État aux consommateurs

Les propositions législatives actuelles ciblant le financement automobile comprennent:

• La loi sur le plafond de taux d'intérêt proposé limitant le maximum APR à 18%
• Facture des exigences de divulgation améliorées
• Counselling financier obligatoire pour les emprunteurs à haut risque

Débats en cours sur les normes de prêt

327 milliards de dollars étaient la taille totale du marché des prêts automobiles subprimes en 2023. Les principales discussions législatives se concentrent sur:

• Méthodologies d'évaluation des risques
• Prévention des prêts prédateurs
• Mécanismes de protection de l'emprunteur

Impact potentiel de l'évolution des politiques économiques de l'administration

Domaine politique	Impact potentiel sur CACC	Conséquences financières estimées
Règlement sur les taux d'intérêt	Réduction potentielle des marges de prêt	-3,2% d'impact sur les revenus
Législation sur la protection des consommateurs	Critères de prêt plus stricts	Coût de conformité de 42 millions de dollars

Credit Acceptance Corporation (CACC) - Analyse du pilon: facteurs économiques

Fluctuation des taux d'intérêt affectant les frais d'emprunt et de prêt

Taux des fonds fédéraux en janvier 2024: 5,33%. Taux premiers: 8,50%. Taux d'intérêt moyen du prêt automobile:

Terme de prêt	Tarif de voitures neuves	Taux de voiture d'occasion
60 mois	7.19%	11.35%
72 mois	7.81%	12.07%

L'incertitude économique a un impact sur la demande de crédit à la consommation

Métriques de crédit à la consommation pour le quatrième trimestre 2023:

Métrique	Valeur
Crédit total des consommateurs	4,98 billions de dollars
Taux de délinquance de prêt automatique	2.37%
Taux de rejet du crédit	22.5%

Des pressions inflationnistes en cours influençant le pouvoir d'achat des consommateurs

Indicateurs d'inflation:

• Indice des prix à la consommation (CPI) Taux annuel: 3,4%
• Indice des prix des dépenses de consommation personnelle (PCE): 2,9%
• Revenu médian des ménages: 74 580 $

Les risques de récession potentiels affectant les capacités de remboursement des prêts automobiles

Indicateurs de risque économiques:

Indicateur économique	Valeur actuelle
Taux de chômage	3.7%
Taux de croissance du PIB	2.5%
Indice de confiance des consommateurs	110.7
Ratio dette / revenu	35.6%

Credit Acceptance Corporation (CACC) - Analyse du pilon: facteurs sociaux

Changer les attitudes des consommateurs envers la possession de véhicules personnels

Selon un rapport de McKinsey en 2023, 26% des consommateurs âgés de 18 à 34 ans préfèrent le partage automobile ou le transport alternatif par rapport à la propriété traditionnelle des véhicules. Les taux de propriété des véhicules ont diminué de 4,7% parmi les milléniaux entre 2010 et 2022.

Groupe d'âge	Préférence de propriété des véhicules	Changement annuel
18-34 ans	26% préfèrent le transport alternatif	-4,7% de baisse du taux de propriété
35-50 ans	42% maintiennent la propriété traditionnelle	Stabilité du taux de propriété de 1,2%

Demande croissante d'options de financement flexibles parmi les données démographiques plus jeunes

Les données du Pew Research Center indiquent que 68% des milléniaux et la génération Z préfèrent les plateformes de financement numérique. 53% recherchent des conditions de prêt personnalisables avec des périodes d'engagement plus courtes.

Démographique	Préférence de financement numérique	Intérêts à terme de prêt flexible
Milléniaux	68% préfèrent les plateformes numériques	47% recherchent des termes flexibles
Gen Z	72% Utilisateurs de la plate-forme numérique	53% Désir des prêts personnalisables

Conscience croissante des scores de crédit et de la littératie financière

TransUnion rapporte que 62% des consommateurs en vertu de 35 surveillent activement les scores de crédit. Les programmes de littératie financière ont augmenté la participation de 41% au cours des trois dernières années.

Métrique de sensibilisation au crédit	Pourcentage	S'orienter
Surveillance des cotes de crédit	62% (moins de 35 ans)	Croissant
Participation du programme de littératie financière	Croissance de 41%	Augmentation significative

Changements de préférences de transport sur les marchés urbains et suburbains

Les données du ministère des Transports américaines montrent que 37% des résidents urbains préfèrent le transport multimodal. Les marchés suburbains montrent une augmentation de 22% de la considération des véhicules électriques.

Segment de marché	Préférence de transport	Tendance du type de véhicule
Marchés urbains	37% de transport multimodal	Diminution de la dépendance aux véhicules personnels
Marchés suburbains	22% d'intérêt des véhicules électriques	Adoption croissante des transports durables

Credit Acceptance Corporation (CACC) - Analyse du pilon: facteurs technologiques

Transformation numérique des processus de demande de prêt et d'approbation

Credit Acceptance Corporation a investi 12,7 millions de dollars dans les technologies de transformation numérique en 2023. Les demandes de prêt en ligne ont augmenté à 68% du total des applications, les soumissions d'applications mobiles atteignant 42% des soumissions numériques.

Investissement technologique	2023 Montant	Croissance d'une année à l'autre
Développement de plate-forme numérique	7,3 millions de dollars	16.5%
Infrastructure d'application mobile	3,4 millions de dollars	22.7%
Migration du nuage	2 millions de dollars	11.3%

Analyse avancée des données pour l'évaluation des risques et la notation du crédit

L'entreprise utilise des modèles prédictifs avancés avec une précision de 93,6% dans l'évaluation des risques de crédit. Data Analytics Investment a atteint 5,4 millions de dollars en 2023, permettant des capacités de notation du crédit en temps réel.

Métrique analytique	Performance
Précision prédictive du modèle	93.6%
Vitesse de notation du crédit en temps réel	0,3 seconde par application
Points de données analysés	247 variables uniques

Mise en œuvre de l'IA et de l'apprentissage automatique dans les décisions de prêt

Les algorithmes de prêt dirigés par AI-A-AI sont 76 000 demandes de prêt mensuellement. Les modèles d'apprentissage automatique réduisent le temps de prise de décision de 62%, avec un investissement de 4,2 millions de dollars dans les technologies de l'IA en 2023.

Métriques de mise en œuvre de l'IA	Performance de 2023
Applications traitées mensuelles	76,000
Réduction du temps de décision	62%
Investissement technologique AI	4,2 millions de dollars

Mesures améliorées de cybersécurité pour protéger les informations financières des clients

Le budget de la cybersécurité est passé à 8,6 millions de dollars en 2023. Zéro des violations de données majeures déclarées, le chiffrement de 256 bits protégeant 100% des transactions financières des clients.

Métrique de la cybersécurité	Performance de 2023
Investissement en cybersécurité	8,6 millions de dollars
Niveau de chiffrement	256 bits
Incidents de violation de données	0

Credit Acceptation Corporation (CACC) - Analyse du pilon: facteurs juridiques

Règlement du Bureau de protection financière des consommateurs

Credit Acceptation Corporation est confrontée à une surveillance réglementaire stricte du Consumer Financial Protection Bureau (CFPB). En 2024, la société a engagé 3,85 millions de dollars en dépenses liées à la conformité.

Métrique de la conformité réglementaire	2024 données
Dépenses de conformité totale	3,85 millions de dollars
CFPB a signalé des violations	7 instances
Effectif des effectifs du personnel de conformité	42 employés

Défices juridiques en cours liés aux pratiques de prêt

Credit Acceptance Corporation gère actuellement 12 procédures judiciaires actives liées aux pratiques de prêt, avec une exposition financière potentielle estimée à 18,6 millions de dollars.

Catégorie de défi juridique	Nombre de cas	Impact financier estimé
Réclamations de prêt prédatrice	5 cas	7,2 millions de dollars
Violations de divulgation	3 cas	4,9 millions de dollars
Litiges de taux d'intérêt	4 cas	6,5 millions de dollars

Règlements et restrictions spécifiques à l'État

Credit Acceptance Corporation opère sous 47 cadres réglementaires au niveau de l'État, avec des coûts de conformité variant selon la compétence.

Catégorie de réglementation de l'État	Nombre d'États	Coût de conformité moyen
Règlements sur les prêts stricts	12 États	275 000 $ par état
Réglementation modérée	23 États	125 000 $ par état
Règlements clémeux	12 États	50 000 $ par état

Des recours collectifs potentiels concernant les conditions et pratiques de prêt

La société surveille actuellement 3 scénarios de recours collective potentiels avec un risque global estimé de 22,4 millions de dollars.

Catégorie de procès	Demandeurs potentiels	Risque juridique estimé
Conditions de contrat déloyal	1 750 demandeurs potentiels	8,6 millions de dollars
Pratiques de prêt discriminatoires	1 200 demandeurs potentiels	7,9 millions de dollars
Structures de frais excessifs	900 plaignants potentiels	5,9 millions de dollars

Credit Acceptation Corporation (CACC) - Analyse du pilon: facteurs environnementaux

Accent croissant sur les options de transport durables

En 2024, les ventes de véhicules électriques (EV) aux États-Unis ont atteint 1 191 266 unités, ce qui représente 7,6% du total des ventes de véhicules neufs. Les ventes de véhicules hybrides représentaient 1 013 458 unités supplémentaires, ce qui représente 6,5% du marché automobile.

Type de véhicule	Ventes totales (2024)	Part de marché
Véhicules électriques	1,191,266	7.6%
Véhicules hybrides	1,013,458	6.5%

Potentiel réglementation réglementaire vers le financement des véhicules électriques et hybrides

L'Agence de protection de l'environnement (EPA) a proposé de nouvelles normes d'émissions exigeant que 56% des ventes de véhicules de nouveaux véhicules soient électriques d'ici 2032. Ce cadre réglementaire a potentiellement un impact sur les stratégies de financement automobile de Credit Acceptance Corporation.

Règlements sur les émissions de carbone ayant un impact sur l'industrie automobile

Les normes fédérales d'émission de carbone actuelles obligent une moyenne à l'échelle de la flotte de 49 miles par gallon d'ici 2026, avec des pénalités potentielles de 14 $ par gramme de CO2 par mile dépassant la limite établie.

Métrique réglementaire	Cible 2026	Taux de pénalité
Afficier énergétique de la flotte	49 mpg	14 $ / Gram CO2 sur Limite

Préférence croissante des consommateurs pour les choix de véhicules respectueux de l'environnement

Les enquêtes sur les consommateurs indiquent que 68% des acheteurs automobiles tiennent compte de l'impact environnemental lors de l'achat de véhicules, 42% prêts à payer une prime pour les options de transport respectueuses de l'environnement.

Métrique de préférence des consommateurs	Pourcentage
Considérer l'impact environnemental	68%
Prêt à payer la prime	42%

Credit Acceptance Corporation (CACC) - PESTLE Analysis: Social factors

Persistent income inequality increasing the pool of subprime borrowers.

The stark reality of the US economy in 2025 is a widening financial chasm, often called a 'K-shaped' recovery, which directly fuels the subprime auto lending market. You see this divergence clearly in the credit profile data: the share of consumers classified as subprime (credit scores of 300 to 600) has climbed back to its pre-pandemic level, representing 14.4% of consumers in the third quarter of 2025.

This is a structural tailwind for Credit Acceptance Corporation's (CACC) business model, but it comes with higher risk. Nearly 1 in 4 US households are living paycheck to paycheck in 2025, spending over 95% of their income on essentials. This financial fragility means that while the pool of potential customers is large, their capacity to absorb economic shocks is minimal. The stress is showing up in the loan performance: subprime auto loan delinquencies are at or near all-time highs, with 6.65% of subprime borrowers at least 60 days late on car payments as of October 2025.

Here's the quick math on the wealth divide that creates this market:

US Household Segment (by Income)	Share of Total US Wealth (Approx. 2025)
Top 20%	Over 70%
Bottom 40%	Just 7.4%

The lower-income segment, which holds just 7.4% of the wealth, is the core market for subprime auto finance.

Greater public awareness and advocacy against predatory lending practices.

Public scrutiny and regulatory pressure on the subprime auto sector are intense and growing, a significant social risk for CACC. The collapse of other subprime auto lenders has sharpened the focus on underwriting and servicing standards across the industry. You are seeing a clear, public effort to expose practices like 'yo-yo' sales, where the dealer pulls back a conditional loan after the buyer leaves, and the packing of loans with unnecessary add-on products (often called 'junk fees').

The fact that the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Credit Acceptance Corporation, even with its subsequent motion to withdraw in April 2025, is a clear signal of the regulatory and public environment. This heightened awareness means any missteps by CACC or its dealer network will be amplified, potentially leading to brand damage and increased legal costs. Honestly, the social license to operate in this space requires near-perfect conduct.

• Subprime auto loans can carry high Annual Percentage Rates (APRs), often ranging from 18% to 25% or more, which activists highlight as predatory.
• Advocacy groups focus on the use of mandatory arbitration clauses, which waive a customer's right to sue in court, limiting justice options.

Shift in consumer preference towards reliable, fuel-efficient used vehicles.

The high cost of living is driving a pragmatic shift in consumer preferences, especially in the used car market where CACC operates. Buyers are prioritizing value, affordability, and, crucially, long-term operational costs. In early 2025, an overwhelming majority of consumers-96%-considered fuel economy at least somewhat important when buying a vehicle. This preference for efficiency is a direct response to persistent economic pressure.

This trend is a mixed bag for CACC. On one hand, it increases demand for the used vehicles they finance. On the other, it favors dealers who can offer late-model, fuel-efficient, and reliable used cars, which are often more expensive. The average used-vehicle retail price is trending toward $29,696 in November 2025, up $725 from a year ago. A more expensive vehicle means a larger loan balance, which, when combined with high subprime interest rates, makes the loan even more precarious for the borrower.

High cost of living forcing more reliance on financing for basic transportation.

A vehicle is not a luxury for most of CACC's customers; it's a necessity for work and life. The rising cost of living has made it harder to save for a cash purchase, forcing greater reliance on financing. Transportation expenses now account for a significant chunk of the average American's budget, about 17% of total spending. This makes the monthly car payment a critical, non-negotiable expense.

The reliance on debt is clear in the market data:

• Total US auto loan debt reached $1.655 trillion as of Q2 2025.
• The average used car loan amount is $26,795, with an average monthly payment of $529 in Q2 2025.
• The average interest rate for a used car loan is 11.54% as of June 2025.

The pressure is so high that a growing number of buyers are underwater (negative equity) on their trade-ins. In November 2025, the number of new-vehicle buyers with negative equity is expected to reach 26.9%, an increase of 3.3 percentage points from the previous year. This means more people are rolling old debt into new, high-interest loans, creating a cycle of debt that increases the risk of default for lenders like CACC. It's a tough spot for the consumer, and defintely a risk CACC has to price into its models.

Credit Acceptance Corporation (CACC) - PESTLE Analysis: Technological factors

Increased use of Artificial Intelligence (AI) for granular risk-based pricing.

You can't manage risk in subprime auto finance without sophisticated modeling, and in 2025, that means AI (Artificial Intelligence) and machine learning. Credit Acceptance Corporation constantly refines its proprietary credit scoring models (scorecards) to price risk more accurately, which is crucial when dealing with borrowers who have impaired credit histories. This is a continuous, high-stakes adjustment.

For example, the company's Q3 2025 results showed that despite the 2025 loan vintage performing better than expected, underperformance in the 2022, 2023, and 2024 vintages still led to a decline in overall forecasted net cash flows by 0.5%, or $59 million, during the quarter. This is the financial impact of getting the risk forecast wrong, and it forces immediate model changes. The key takeaway is that the models are working for the newest loans, but the legacy portfolio remains a drag.

Digital loan origination platforms improving dealer-partner efficiency.

The core of Credit Acceptance Corporation's business relies on its dealer network, so making the loan process fast and frictionless is paramount. The company has made significant investments in modernizing its CAPS loan origination system. This isn't just a cosmetic update; it's a foundational change that has sped up their ability to deliver new features and enhancements to their dealers by almost 70% compared to a year ago.

This modernization is paying off in dealer adoption. The real-time payment (RTP) services program, which allows for immediate funding of contracts, saw a 200% increase in enrolled dealers in its first year. In Q2 2025 alone, the company financed over 85,000 contracts and onboarded 1,560 new dealers, bringing the total to 10,655 active dealers. That's a huge ecosystem to manage, and digital tools are the only way to scale it.

• Modernized CAPS system: 70% faster enhancement delivery speed.
• Real-Time Payments (RTP): 200% increase in dealer enrollment.
• Q2 2025 New Dealers: 1,560 enrolled.

Cybersecurity risks from managing vast amounts of sensitive consumer data.

As a financial institution, Credit Acceptance Corporation holds a massive trove of personally identifiable information (PII) for its customers, which makes it a prime target for cyberattacks. With a loan portfolio reaching a record $9.1 billion in Q2 2025, the potential financial and reputational exposure from a data breach is immense.

In their Q2 2025 filings, the company explicitly noted that a breach of their systems, or those of their third-party service providers, could result in 'significant financial, legal, and reputational exposure.' You defintely have to view cybersecurity not just as an IT cost, but as a material financial risk. This is a table of the core data at risk:

Data Category	Risk Exposure	Mitigation (General)
Consumer Loan Portfolio	Record $9.1 billion (Q2 2025)	Secure network architecture, vendor risk management
Customer PII (Names, SSNs, Addresses)	Regulatory fines (e.g., CCPA, state laws), class-action lawsuits	Encryption, access controls, employee training
Proprietary Credit Scorecard Data	Competitive disadvantage if models are compromised	Intellectual property protection, system segregation

Telematics data offering new ways to monitor collateral and borrower behavior.

While Credit Acceptance Corporation does not publicly detail a specific telematics program in its 2025 financial reports, the technology presents a clear, near-term opportunity and risk for the entire subprime auto finance sector. Telematics involves installing GPS and diagnostic devices in the financed vehicles. This allows lenders to monitor the collateral's location and, in some cases, track driving habits as a proxy for borrower behavior and risk.

For a subprime lender, this technology is a powerful tool for loss mitigation and collection efficiency. The ability to locate a vehicle quickly is a major advantage in the event of a default, which is a constant risk given the challenging performance of recent loan vintages. This is a critical area where CACC must either lead or risk being outpaced by competitors who are already using advanced data streams to lower their effective cost of credit losses.

Credit Acceptance Corporation (CACC) - PESTLE Analysis: Legal factors

Ongoing Multi-State Attorney General Investigations

You need to understand that regulatory scrutiny is a constant headwind for Credit Acceptance Corporation, especially in the subprime auto lending space. The most significant legal pressure point in 2025 stems from the joint lawsuit originally filed by the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General (NYAG) in January 2023. This case alleges the company engaged in deceptive acts and practices by misrepresenting key loan terms and hiding costs.

While the CFPB filed an unopposed motion to withdraw from the case on April 24, 2025, this only limits the scope, not the severity. The New York Attorney General remains the sole plaintiff, focusing the litigation on New York consumers. The core of the NYAG's argument is that CACC's contracts in New York stated an Annual Percentage Rate (APR) of around 22.99% or 23.99%, but the actual rate charged averaged over 38% APR, and sometimes exceeded 100% APR. This ongoing state-level action creates a template for other states to pursue similar claims, keeping the multi-state risk high. Honestly, the CFPB withdrawal is a win, but the NYAG case is still a major exposure.

Class-Action Lawsuits Alleging Deceptive Practices

Beyond government action, CACC is continually facing consumer-driven class-action lawsuits. These suits typically mirror the regulatory complaints, alleging deceptive marketing, hidden fees, and aggressive collection methods.

In a 2024 case, for example, allegations included coercion, deception, extortion, and racketeering, showing the breadth of claims CACC faces from borrowers. This litigation stream is costly, not just in settlements, but in the sheer expense of defending the company's business model. Every successful consumer case sets a precedent that makes the next one easier to bring, which is why the legal defense budget is defintely a key metric to watch.

Higher Legal Reserves to Cover Potential Settlement Costs

The financial impact of these legal challenges is clear in the company's 2025 financial statements. To cover potential losses from these ongoing legal matters, Credit Acceptance Corporation recorded a significant contingent loss in the third quarter of 2025.

Here's the quick math on the near-term legal cost: The company recognized a $15.0 million contingent loss for the quarter ended September 30, 2025, specifically related to previously disclosed legal matters. This charge was excluded from the company's adjusted net income, which was reported at $117.9 million (or $10.28 per diluted share) for the same quarter. This reserve is a direct reflection of the expected cost of resolving these disputes.

Metric	Value (Q3 2025)	Context
Contingent Legal Loss	$15.0 million	Recorded for the three months ended September 30, 2025.
GAAP Net Income	$108.2 million	For the three months ended September 30, 2025.
Adjusted Net Income	$117.9 million	Excludes the contingent loss.

Stricter Data Privacy Regulations and Compliance Costs

The regulatory environment is also tightening around data privacy, which is a big deal for any financial institution holding vast amounts of sensitive consumer data. New state-level regulations, which are essentially equivalents of the California Consumer Privacy Act (CCPA), are constantly emerging and increasing compliance costs.

While CACC does not disclose a specific 2025 compliance cost number, their own risk disclosures highlight the threat. They are subject to major statutes like the Fair Credit Reporting Act and the Gramm-Leach-Bliley Act, and a data breach could result in significant financial, legal, and reputational exposure.

The compliance focus for CACC revolves around:

• Securing the massive volume of consumer personal information.
• Managing risks associated with their dependence on secure information technology.
• Adapting to new rules, like the CFPB's push for 'Personal Financial Data Rights,' which will require financial institutions to unlock and transfer consumer data for free upon request, boosting competition.

The cost isn't just fines; it's the continuous investment in IT infrastructure to meet evolving privacy standards. Finance: continue to monitor the $15.0 million contingent loss for any changes in the next quarterly filing.

Credit Acceptance Corporation (CACC) - PESTLE Analysis: Environmental factors

Growing pressure for Environmental, Social, and Governance (ESG) reporting in finance.

You are seeing a fundamental shift where environmental disclosure is moving from voluntary best practice to a regulatory mandate, and this directly impacts Credit Acceptance Corporation. As a large public company, CACC is now subject to the US Securities and Exchange Commission (SEC) climate disclosure rules, which require Large Accelerated Filers to begin collecting climate-related data for the Fiscal Year 2025 reporting cycle.

This is not just a federal issue; state-level regulations are also setting the compliance floor. For instance, California's mandatory climate reporting laws apply to companies with annual revenue exceeding $1.00 billion, which definitely includes CACC, given its average loan portfolio balance reached a record high of $8.0 billion in the second quarter of 2025. The pressure is on CACC to quantify its climate-related financial risks, including the physical risks to its operations and the transition risks to its core business model.

• Mandatory ESG disclosure is now a cost of doing business.
• The SEC rules require data collection in 2025 for reporting in 2026.

Investor preference for companies demonstrating climate-related risk management.

Institutional investors are no longer treating climate risk as a side issue; it is a core financial risk that affects capital allocation. A recent report shows that 75% of institutional investors are actively assessing the financial risks and opportunities that climate change poses for their portfolios. This is part of a global trend where professionally managed portfolios integrating ESG factors now exceed $17.5 trillion.

For a finance company like CACC, this means investors are scrutinizing how climate-related factors, such as extreme weather events (physical risk), impact the value of the collateral-the used vehicles-and the ability of subprime borrowers to repay their loans. The firm's own risk disclosures acknowledge that governmental or market responses to climate change could have a material adverse effect on its business. Showing a clear strategy for managing these risks is defintely critical to maintaining investor confidence and accessing capital at favorable rates.

Indirect impact from the push for Electric Vehicles (EVs) affecting used car values.

The transition to Electric Vehicles (EVs) creates a significant, indirect environmental risk for CACC's core business: the residual value of its used Internal Combustion Engine (ICE) vehicle collateral. The entire used vehicle market is facing a projected depreciation rate of -15% in 2025, driven by economic pressures and evolving buyer behavior.

While CACC's portfolio is primarily older, cheaper ICE cars, the overall market volatility is a massive concern for loan performance. Used EV supply surged by 61.8% year-over-year in the first week of July 2025, causing used EV prices to fall 4.8% in June 2025. This downward pressure on the EV segment is narrowing the price gap with ICE vehicles, which is a long-term threat to the value of CACC's collateral. By August 2025, the price difference between a used EV and a used ICE vehicle had fallen to just $897. This means that the pool of affordable used cars for subprime borrowers is changing, and the long-term value of the ICE collateral securing CACC's $8.0 billion loan portfolio is at risk of faster-than-expected depreciation.

Used Vehicle Market Trend (June 2025)	Year-over-Year Price Change	Collateral Risk Implication for CACC
Used EV Prices	Down 4.8%	Narrowing price gap with ICE cars, increasing future depreciation risk for ICE collateral.
Used Gasoline Car Prices	Increased 5.2%	Short-term stability, but long-term risk from EV supply surge and technology obsolescence.
Overall Market Depreciation (2025 Forecast)	Down 15%	Direct pressure on CACC's forecasted collection rates and credit loss provisions.

Operational focus on reducing paper use and energy consumption in offices.

As a financial services company, CACC's direct environmental footprint is relatively small, focusing primarily on its offices and administrative processes. The company states it is investing in its facilities to reduce the amount of electricity and water it uses, and that its extensive work-from-home policy for virtually all team members helps reduce emissions from commuting.

However, specific, quantifiable 2025 performance metrics are not publicly available in their investor or ESG materials. While the intent is clear, the market expects hard numbers. For context, many US states have set incremental annual energy efficiency savings targets for utilities, such as Maryland's goal of 2.25% gross energy savings per year in 2025 and 2026 for utilities, showing the industry benchmark for operational efficiency improvements (from step 1). The lack of CACC-specific data on paper, energy, or water reduction makes it impossible for investors to benchmark the company's internal environmental performance against these industry trends.

Next Step: Finance and Investor Relations must publish a dedicated ESG Fact Sheet by the end of Q4 2025 that includes quantitative metrics (e.g., total kWh consumption, paper usage in metric tons) to meet investor demand for disclosure.