# EDGAR Filing Document

**Accession Number:** 0000885550
**File Stem:** 0000885550-26-000047
**Filing Date:** 2026-2
**Character Count:** 647672
**Document Hash:** 526425fd94470533b37c32d22a72d9bd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000885550-26-000047.hdr.sgml**: 20260213

**ACCESSION NUMBER**: 0000885550-26-000047

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 118

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260213

**DATE AS OF CHANGE**: 20260213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CREDIT ACCEPTANCE CORP
- **CENTRAL INDEX KEY:** 0000885550
- **STANDARD INDUSTRIAL CLASSIFICATION:** PERSONAL CREDIT INSTITUTIONS [6141]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 381999511
- **STATE OF INCORPORATION:** MI
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-20202
- **FILM NUMBER:** 26634196

**BUSINESS ADDRESS:**
- **STREET 1:** 25505 WEST TWELVE MILE ROAD
- **CITY:** SOUTHFIELD
- **STATE:** MI
- **ZIP:** 48034-8334
- **BUSINESS PHONE:** 2483532700

**MAIL ADDRESS:**
- **STREET 1:** 25505 WEST TWELVE MILE ROAD
- **CITY:** SOUTHFIELD
- **STATE:** MI
- **ZIP:** 48034-8334

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CREDIT ACCEPTANCE CORPORATION
- **DATE OF NAME CHANGE:** 19930328

?xml version='1.0' encoding='ASCII'? cacc-20251231

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 10-K** 

(Mark One)

---

| | |
|:---|:---|
| **☑** | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

**&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal year ended December 31, 2025** 

**OR**

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**&nbsp;&nbsp;&nbsp;&nbsp;For the transition period from ______ to ________**

**Commission file number 000-20202** 

**CREDIT ACCEPTANCE CORPORATION**

*(Exact name of registrant as specified in its charter)*

---

| | | |
|:---|:---|:---|
| **Michigan** | **Michigan** | **38-1999511** |
| *(State or other jurisdiction of incorporation or organization)* | *(State or other jurisdiction of incorporation or organization)* | *(I.R.S. Employer Identification No.)* |
| **25505 W. Twelve Mile Road** | **25505 W. Twelve Mile Road** | |
| **Southfield,** | **Michigan** | **48034-8339** |
| *(Address of principal executive offices)* | *(Address of principal executive offices)* | *(Zip Code)* |

---

Registrant's telephone number, including area code: **(248) 353-2700** 

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $.01 par value | CACC | The Nasdaq Stock Market LLC |

---

Securities registered pursuant to section 12(g) of the Act:

**None**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes 🗹 No □

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes □ No 🗹

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes 🗹 No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes 🗹 No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Large accelerated filer | **☑** | Accelerated filer | **☐** | Non-accelerated filer | **☐** | Smaller reporting company | **☐** | Emerging growth company | **☐** |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. **☐** 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes **☐** No 🗹

The aggregate market value of 5,579,827 shares of the registrant's common stock held by non-affiliates on June 30, 2025 was approximately $2,842.5 million. For purposes of this computation, all officers, directors and 10% beneficial owners of the registrant are assumed to be affiliates. Such determination should not be deemed an admission that such officers, directors and beneficial owners are, in fact, affiliates of the registrant.

At February 6, 2026, there were 10,747,682 shares of the registrant's common stock issued and outstanding.

**DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the registrant's definitive proxy statement pertaining to the registrant's 2026 annual meeting of shareholders (the "Proxy Statement") to be filed pursuant to Regulation 14A are incorporated herein by reference into Part III of this Annual Report on Form 10-K (this "Form 10-K").

------

**CREDIT ACCEPTANCE CORPORATION**

**YEAR ENDED DECEMBER 31, 2025** 

**INDEX TO FORM 10-K**

---

| | | |
|:---|:---|:---|
| **Item** | **Description** | **Page** |
| | **PART I** | |
| [1.](#i687b0c1a0c454573b67518d6a549de43_13) | [Business](#i687b0c1a0c454573b67518d6a549de43_13) | [3](#i687b0c1a0c454573b67518d6a549de43_13) |
| [1A.](#i687b0c1a0c454573b67518d6a549de43_16) | [Risk Factors](#i687b0c1a0c454573b67518d6a549de43_16) | [14](#i687b0c1a0c454573b67518d6a549de43_16) |
| [1B.](#i687b0c1a0c454573b67518d6a549de43_19) | [Unresolved Staff Comments](#i687b0c1a0c454573b67518d6a549de43_19) | [24](#i687b0c1a0c454573b67518d6a549de43_19) |
| [1](#i687b0c1a0c454573b67518d6a549de43_19)[C](#i687b0c1a0c454573b67518d6a549de43_19)[.](#i687b0c1a0c454573b67518d6a549de43_19) | Cybersecurity | [24](#i687b0c1a0c454573b67518d6a549de43_19) |
| [2.](#i687b0c1a0c454573b67518d6a549de43_25) | [Properties](#i687b0c1a0c454573b67518d6a549de43_25) | [25](#i687b0c1a0c454573b67518d6a549de43_25) |
| [3.](#i687b0c1a0c454573b67518d6a549de43_28) | [Legal Proceedings](#i687b0c1a0c454573b67518d6a549de43_28) | [26](#i687b0c1a0c454573b67518d6a549de43_28) |
| [4.](#i687b0c1a0c454573b67518d6a549de43_31) | [Mine Safety Disclosures](#i687b0c1a0c454573b67518d6a549de43_31) | [26](#i687b0c1a0c454573b67518d6a549de43_31) |
|  | **PART II** |  |
| [5.](#i687b0c1a0c454573b67518d6a549de43_37) | [Market for Registrant](#i687b0c1a0c454573b67518d6a549de43_37)'[s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#i687b0c1a0c454573b67518d6a549de43_37) | [27](#i687b0c1a0c454573b67518d6a549de43_37) |
| [6.](#i687b0c1a0c454573b67518d6a549de43_40) | [\[Reserved\]](#i687b0c1a0c454573b67518d6a549de43_40) | [28](#i687b0c1a0c454573b67518d6a549de43_40) |
| [7.](#i687b0c1a0c454573b67518d6a549de43_52) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#i687b0c1a0c454573b67518d6a549de43_52) | [29](#i687b0c1a0c454573b67518d6a549de43_43) |
| [7A.](#i687b0c1a0c454573b67518d6a549de43_55) | [Quantitative and Qualitative Disclosures About Market Risk](#i687b0c1a0c454573b67518d6a549de43_55) | [45](#i687b0c1a0c454573b67518d6a549de43_55) |
| [8.](#i687b0c1a0c454573b67518d6a549de43_58) | [Financial Statements and Supplementary Data](#i687b0c1a0c454573b67518d6a549de43_58) | [46](#i687b0c1a0c454573b67518d6a549de43_58) |
| [9.](#i687b0c1a0c454573b67518d6a549de43_130) | [Changes in and Disagreements](#i687b0c1a0c454573b67518d6a549de43_130)[W](#i687b0c1a0c454573b67518d6a549de43_130)[ith Accountants on Accounting and Financial Disclosure](#i687b0c1a0c454573b67518d6a549de43_130) | [97](#i687b0c1a0c454573b67518d6a549de43_130) |
| [9A.](#i687b0c1a0c454573b67518d6a549de43_133) | [Controls and Procedures](#i687b0c1a0c454573b67518d6a549de43_133) | [97](#i687b0c1a0c454573b67518d6a549de43_133) |
| [9B.](#i687b0c1a0c454573b67518d6a549de43_136) | [Other Information](#i687b0c1a0c454573b67518d6a549de43_136) | [99](#i687b0c1a0c454573b67518d6a549de43_136) |
| [9](#i687b0c1a0c454573b67518d6a549de43_133)[C](#i687b0c1a0c454573b67518d6a549de43_133)[.](#i687b0c1a0c454573b67518d6a549de43_133) | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | [99](#i687b0c1a0c454573b67518d6a549de43_136) |
|  | **PART III** |  |
| [10.](#i687b0c1a0c454573b67518d6a549de43_145) | [Directors, Executive Officers and Corporate Governance](#i687b0c1a0c454573b67518d6a549de43_145) | [99](#i687b0c1a0c454573b67518d6a549de43_145) |
| [11.](#i687b0c1a0c454573b67518d6a549de43_148) | [Executive Compensation](#i687b0c1a0c454573b67518d6a549de43_148) | [99](#i687b0c1a0c454573b67518d6a549de43_148) |
| [12.](#i687b0c1a0c454573b67518d6a549de43_151) | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#i687b0c1a0c454573b67518d6a549de43_151) | [100](#i687b0c1a0c454573b67518d6a549de43_151) |
| [13.](#i687b0c1a0c454573b67518d6a549de43_154) | [Certain Relationships and Related Transactions](#i687b0c1a0c454573b67518d6a549de43_154)[,](#i687b0c1a0c454573b67518d6a549de43_154)[and Director Independence](#i687b0c1a0c454573b67518d6a549de43_154) | [100](#i687b0c1a0c454573b67518d6a549de43_154) |
| [14.](#i687b0c1a0c454573b67518d6a549de43_157) | [Principal Accounting Fees and Services](#i687b0c1a0c454573b67518d6a549de43_157) | [100](#i687b0c1a0c454573b67518d6a549de43_157) |
|  | **PART IV** |  |
| [15.](#i687b0c1a0c454573b67518d6a549de43_163) | [Exhibits](#i687b0c1a0c454573b67518d6a549de43_163)[and](#i687b0c1a0c454573b67518d6a549de43_163)[Financial Statement Schedules](#i687b0c1a0c454573b67518d6a549de43_163) | [100](#i687b0c1a0c454573b67518d6a549de43_163) |
| 16. | Form 10-K Summary | [112](#i687b0c1a0c454573b67518d6a549de43_166) |
|  | [Signatures](#i687b0c1a0c454573b67518d6a549de43_169) | [113](#i687b0c1a0c454573b67518d6a549de43_169) |

---

------

**PART I**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS**

**General**

Credit Acceptance Corporation (referred to as the "Company", "Credit Acceptance", "we", "our" or "us") makes vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers, regardless of their credit history. Our financing programs are 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 financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing.

Credit Acceptance was founded in 1972 to collect retail installment contracts (referred to as "Consumer Loans") originated by automobile dealerships owned by Donald Foss, our founder. During the 1980s, we began to market this service to non-affiliated dealers and, at the same time, began to offer dealers a non-recourse cash payment (referred to as an "advance") against anticipated future collections on Consumer Loans serviced for that dealer.

We refer to automobile dealers who participate in our programs and who share our desire to provide an opportunity to consumers to improve their lives as "Dealers." Upon enrollment in our financing programs, the Dealer enters into a Dealer servicing agreement with us that defines the legal relationship between Credit Acceptance and the Dealer. The Dealer servicing agreement assigns the responsibilities for administering, servicing, and collecting the amounts due on Consumer Loans from the Dealers to us. We are an indirect lender from a legal perspective, meaning the Consumer Loan is originated by the Dealer and assigned to us.

The majority of the Consumer Loans assigned to us are made to consumers with impaired or limited credit histories. The following table shows the percentage of Consumer Loans assigned to us with either FICO<sup>®</sup> scores below 650 or no FICO<sup>®</sup> scores:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|<br>**Consumer Loan Assignment Volume** | **2025** | **2024** | **2023** |
| Percentage of total unit volume with either FICO<sup>®</sup> scores below 650 or no FICO<sup>®</sup> scores | 79.5% | 80.6% | 80.9% |

---

**Business Segment Information**

We currently operate in one reportable segment which represents our core business of offering innovative financing solutions and related products and services that enable Dealers to sell vehicles to consumers regardless of their credit history. For information regarding our one reportable segment and related disclosures, see <u>[Note 14](#i687b0c1a0c454573b67518d6a549de43_121)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

------

**Principal Business**

We offer Dealers financing programs that enable them to sell vehicles to consumers, regardless of their credit history. We have two programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, we advance money to Dealers (referred to as a "Dealer Loan") in exchange for the right to service the underlying Consumer Loans. Under the Purchase Program, we buy the Consumer Loans from the Dealers (referred to as a "Purchased Loan") and keep all amounts collected from the consumer. Dealer Loans and Purchased Loans are collectively referred to as "Loans." The following table shows the percentage of Consumer Loans assigned to us under each of the programs for each of the last three years:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Unit Volume** | **Unit Volume** | **Dollar Volume (1)** | **Dollar Volume (1)** |
|<br>**For the Years Ended December 31,** | **Portfolio Program** | **Purchase Program** | **Portfolio Program** | **Purchase Program** |
| 2023 | 74.0% | 26.0% | 70.7% | 29.3% |
| 2024 | 78.7% | 21.3% | 77.5% | 22.5% |
| 2025 | 74.2% | 25.8% | 71.7% | 28.3% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program. Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included.

<u>Portfolio Program</u>

As payment for the vehicle, the Dealer generally receives the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a down payment from the consumer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a cash advance from us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• after the advance balance (cash advance and related Dealer Loan fees and costs) has been recovered by us, the cash from payments made on the Consumer Loan, net of certain collection costs and our servicing fee ("Dealer Holdback").

We record the amount advanced to the Dealer as a Dealer Loan, which is classified within Loans receivable in our consolidated balance sheets. Cash advanced to the Dealer is automatically assigned to the Dealer's open pool of advances. Dealers make an election as to how many Consumer Loans (either 50 or 100) will be assigned to an open pool before it is closed, and subsequent advances are assigned to a new pool. Unless we receive a request from the Dealer to keep a pool open, we automatically close each pool based on the Dealer's election. All advances within a Dealer's pool are secured by the future collections on the related Consumer Loans assigned to the pool. For Dealers with more than one pool, the pools are cross-collateralized so the performance of other pools is considered in determining eligibility for Dealer Holdback. We perfect our security interest with respect to the Dealer Loans by obtaining control or taking possession of the Consumer Loans, which list us as lien holder on the vehicle title.

The Dealer servicing agreement provides that collections received by us during a calendar month on Consumer Loans assigned by a Dealer are applied on a pool-by-pool basis as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• first, to reimburse us for certain collection costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• second, to pay us our servicing fee, which generally equals 20% of collections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• third, to reduce the aggregate advance balance and to pay any other amounts due from the Dealer to us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fourth, to the Dealer as payment of Dealer Holdback.

If the collections on Consumer Loans from a Dealer's pool are not sufficient to repay the advance balance and any other amounts due to us, the Dealer will not receive Dealer Holdback. Certain events may also result in Dealers forfeiting their rights to Dealer Holdback, including becoming inactive before assigning 100 Consumer Loans.

Dealers have an opportunity to receive an accelerated Dealer Holdback payment each time a pool of Consumer Loans is closed. The amount paid to the Dealer is calculated using a formula that considers the number of Consumer Loans assigned to the pool and the related forecasted collections and advance balance.

------

Since typically the combination of the advance and the consumer's down payment provides the Dealer with a cash profit at the time of sale, the Dealer's risk in the Consumer Loan is limited. We cannot demand repayment of the advance from the Dealer except in the event the Dealer is in default of the Dealer servicing agreement. Advances are made only after the consumer and Dealer have signed a Consumer Loan contract, we have received the executed Consumer Loan contract and supporting documentation in either physical or electronic form, and we have approved all of the related stipulations for funding.

For accounting purposes, the transactions described under the Portfolio Program are not considered to be loans to consumers. Instead, our accounting reflects that of a lender to the Dealer. The classification as a Dealer Loan for accounting purposes is primarily a result of (1) the Dealer's financial interest in the Consumer Loan and (2) certain elements of our legal relationship with the Dealer.

<u>Purchase Program</u>

The Purchase Program differs from the Portfolio Program in that the Dealer receives a one-time payment from us at the time of assignment to purchase the Consumer Loan instead of a cash advance at the time of assignment and future Dealer Holdback payments. For accounting purposes, the transactions described under the Purchase Program are considered to be originated by the Dealer and then purchased by us.

<u>Program Enrollment</u>

Dealers are granted access to the Portfolio Program upon enrollment. Access to the Purchase Program is typically only granted to Dealers that meet one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assigned at least 50 Consumer Loans under the Portfolio Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• franchise dealership; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• independent dealership that meets certain criteria upon enrollment.

<u>Revenue Sources</u>

Credit Acceptance derives its revenues from the following principal sources:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• finance charges, which are comprised of: (1) interest income earned on Loans; (2) administrative fees earned from ancillary products; (3) program fees charged to Dealers under the Portfolio Program; (4) Consumer Loan assignment fees charged to Dealers; and (5) direct origination costs incurred on Dealer Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• premiums earned on the reinsurance of vehicle service contracts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other income, which primarily consists of ancillary product profit sharing, remarketing fees, and interest. For additional information, see <u>[Note 8](#i687b0c1a0c454573b67518d6a549de43_103)</u> to the consolidated financial statements contained in Item 8 to this Form 10-K, which is incorporated herein by reference.

The following table sets forth the percent relationship to total revenue of each of these sources:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|<br>**Percent of Total Revenue** | **2025** | **2024** | **2023** |
| Finance charges | 92.4% | 92.2% | 92.3% |
| Premiums earned | 4.1% | 4.4% | 4.2% |
| Other income | 3.5% | 3.4% | 3.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 100.0% | 100.0% | 100.0% |

---

------

<u>Operations</u>

*Sales and Marketing*. Our target market is approximately 60,000 independent and franchised automobile dealers in the United States. We have market area managers located throughout the United States that market our programs to prospective Dealers, enroll new Dealers, and support active Dealers. The number of Dealer enrollments and active Dealers for each of the last three years are presented in the table below:

---

| | | |
|:---|:---|:---|
| **For the Years Ended December 31,** | **Dealer Enrollments** | **Active Dealers (1)** |
| 2023 | 5605 | 14174 |
| 2024 | 6088 | 15463 |
| 2025 | 5752 | 15745 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Active Dealers are Dealers who have received funding for at least one Loan during the period.

Once Dealers have enrolled in our programs, the market area managers work closely with the newly enrolled Dealers to help them successfully launch our programs within their dealerships. Market area managers also provide active Dealers with ongoing support and consulting focused on improving the Dealers' success on our programs, including assistance with increasing the volume and performance of Consumer Loan assignments.

*Dealer Servicing Agreement.* As a part of the enrollment process, a new Dealer is required to enter into a Dealer servicing agreement with Credit Acceptance that defines the legal relationship between Credit Acceptance and the Dealer. The Dealer servicing agreement assigns the responsibilities for administering, servicing, and collecting the amounts due on Consumer Loans from the Dealers to us. Under the typical Dealer servicing agreement, a Dealer represents that it will only assign Consumer Loans to us that satisfy criteria established by us, meet certain conditions with respect to their binding nature and the status of the security interest in the purchased vehicle, and comply with applicable state and federal laws and regulations.

The typical Dealer servicing agreement may be terminated by us or by the Dealer upon written notice. We may terminate the Dealer servicing agreement immediately in the case of an event of default by the Dealer. Events of default include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Dealer's refusal to allow us to audit its records relating to the Consumer Loans assigned to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Dealer, without our consent, is dissolved; merges or consolidates with an entity not affiliated with the Dealer; or sells a material part of its assets outside the course of its business to an entity not affiliated with the Dealer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the appointment of a receiver for, or the bankruptcy or insolvency of, the Dealer.

While a Dealer can cease assigning Consumer Loans to us at any time without terminating the Dealer servicing agreement, if the Dealer elects to terminate the Dealer servicing agreement or in the event of a default, we have the right to require that the Dealer immediately pay us:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any unreimbursed collection costs on Dealer Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any unpaid advances and all amounts owed by the Dealer to us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a termination fee equal to 15% of the then outstanding amount of the Consumer Loans assigned to us.

Upon receipt of such amounts in full, we reassign the Consumer Loans and our security interest in the financed vehicles to the Dealer.

In the event of a termination of the Dealer servicing agreement by us, we may continue to service Consumer Loans assigned by the Dealer to us prior to termination in the normal course of business without charging a termination fee.

*Consumer Loan Assignment.* Once a Dealer has enrolled in our programs, the Dealer may begin assigning Consumer Loans to us. For legal purposes, a Consumer Loan is considered to have been assigned to us after the following has occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the consumer and Dealer have signed a Consumer Loan contract; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have received the executed Consumer Loan contract and supporting documentation in either physical or electronic form.

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For accounting and financial reporting purposes, a Consumer Loan is considered to have been assigned to us after the following has occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Consumer Loan has been legally assigned to us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have made a funding decision and generally have provided funding to the Dealer in the form of either an advance under the Portfolio Program or one-time purchase payment under the Purchase Program.

A Consumer Loan is originated by the Dealer when a consumer enters into a contract with the Dealer that sets forth the terms of the agreement between the consumer and the Dealer for the payment of the purchase price of the vehicle. The amount of the Consumer Loan consists of the total principal and interest that the consumer is required to pay over the term of the Consumer Loan. Consumer Loans are written on a contract form provided or approved by us. Although the Dealer is named in the Consumer Loan contract, the Dealer generally does not have legal ownership of the Consumer Loan for more than a moment, and we, not the Dealer, are listed as lien holder on the vehicle title. Consumers are obligated to make payments on the Consumer Loan directly to us, and any failure to make such payments will result in our pursuing payment through collection efforts.

Consumer Loans submitted to us for assignment are processed either through our Credit Approval Processing System ("CAPS") or via an integration we have with aggregators used by Dealers to submit credit application information to various finance sources. Each of these processes allow Dealers to submit a consumer's credit application to us and receive a response. Each process allows Dealers to: (1) receive a quick approval from us; (2) interact with our proprietary credit scoring system to optimize the structure of each transaction prior to delivery; and (3) create, electronically execute, and print legally compliant Consumer Loan documents. All responses include the amount of funding (advance for a Dealer Loan or purchase price for a Purchased Loan), as well as any stipulations required for funding. The amount of funding is determined using a formula which considers a number of factors, including the timing and amount of cash flows expected on the related Consumer Loan and our target profitability at the time the Consumer Loan is submitted to us for assignment. The estimated future cash flows are determined based upon our proprietary credit scoring system, which considers numerous variables, including attributes contained in the consumer's credit bureau report, data contained in the consumer's credit application, the structure of the proposed transaction, vehicle information, and other factors, to calculate a composite credit score that corresponds to an expected collection rate. Our proprietary credit scoring system forecasts the collection rate based upon the historical performance of Consumer Loans in our portfolio that share similar characteristics. The performance of our proprietary credit scoring system is evaluated monthly by comparing projected to actual Consumer Loan performance. Adjustments are made to our proprietary credit scoring system as necessary. For additional information on adjustments to forecasted collection rates, please see the Critical Accounting Estimates section in Item 7 of this Form 10-K, which is incorporated herein by reference.

While a Dealer can submit any legally compliant Consumer Loan to us for assignment, the decision whether to provide funding to the Dealer and the amount of any funding is made solely by us. Through our Dealer Service Center, we perform all significant functions relating to the processing of the Consumer Loan applications and bear certain costs of Consumer Loan assignment, including the cost of assessing the adequacy of Consumer Loan documentation, the cost of compliance with our underwriting guidelines, and the cost of verifying employment, residence, and other information provided by the Dealer.

We audit Consumer Loan files for compliance with our underwriting guidelines on a daily basis in order to assess whether Dealers are operating in accordance with the terms and conditions of the Dealer servicing agreement. We occasionally identify breaches of the Dealer servicing agreement, and, depending upon the circumstances, and at our discretion, we may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• change pricing or charge the Dealer fees for future Consumer Loan assignments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reassign the Consumer Loans back to the Dealer and require repayment of the related advances and/or purchase payments; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• terminate our relationship with the Dealer.

Consumer Loans that have been assigned to us can be reassigned back to the Dealer at the Dealer's discretion as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual Consumer Loan may be reassigned within 180 days of assignment, in which case we require repayment of the related advance or purchase payment and, if requested more than 90 days after assignment, payment of a fee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all Consumer Loans assigned under the Portfolio Program may be reassigned through termination of the Dealer servicing agreement, as described under "Dealer Servicing Agreement," above.

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Our business model allows us to share the risk and reward of collecting on the Consumer Loans with the Dealers, more so with the Portfolio Program than the Purchase Program. Such sharing is intended to motivate the Dealer to assign better quality Consumer Loans, follow our underwriting guidelines, comply with various legal regulations, meet our credit compliance requirements, and provide appropriate service and support to the consumer after the sale. In addition, our Dealer Service Center works closely with Dealers to assist them in resolving any documentation deficiencies or funding stipulations. We believe this arrangement causes the interests of the Dealer, the consumer, and us to all be aligned.

We measure various criteria for each Dealer against other Dealers in their geographic area as well as the top performing Dealers. Dealers are assigned a Dealer rating based upon the performance of their Consumer Loans in both the Portfolio Program and Purchase Program as well as other criteria. The Dealer rating is one of the factors used to determine the amount paid to Dealers as an advance or to acquire a Purchased Loan. We provide each Dealer under the Portfolio Program with a monthly statement summarizing all activity that occurred on its Consumer Loan assignments.

*Servicing.* Our largest group of representatives services Consumer Loans that are in the early stages of delinquency. Our representatives work with consumers to attempt to develop a solution that will help them avoid becoming further past due and get them current where possible. We utilize a variety of methods to attempt to contact the consumer or to remind them of upcoming scheduled payments, including phone calls, email, text messaging, mail, and mobile notifications.

The decision to repossess a vehicle is based on policy-based criteria. When a Consumer Loan is approved for repossession, we continue to service the Consumer Loan while it is being assigned to a third-party repossession service provider, who works on a contingency fee basis. Once a vehicle has been repossessed, the consumer can redeem the vehicle, whereupon the vehicle is returned to the consumer in exchange for paying off the Consumer Loan balance; or, where appropriate or if required by law, the vehicle is returned to the consumer and the consumer is permitted to continue with the Consumer Loan in exchange for a payment or series of payments which eliminates the past due balance. If the consumer elects not to regain possession of the vehicle after repossession, the vehicle is sold at a wholesale automobile auction. Prior to sale, the vehicle is typically inspected by a representative at the auction who provides repair and reconditioning recommendations. Alternatively, our remarketing representatives may inspect the vehicle directly. Our remarketing representatives then authorize any repair and reconditioning work in order to maximize the net sale proceeds at auction.

If the vehicle sale proceeds are not sufficient to satisfy the balance owing on the Consumer Loan, we may offer the consumer the opportunity to settle any outstanding balance for less than the amount owed. At this point, the Consumer Loan is serviced by either: (1) our internal collection team, in the event the consumer is willing to make payments on the full or partial deficiency balance; or (2) where permitted by law, our external collection team, if it is believed that legal action will be successful in reducing or eliminating the deficiency balance owing on the Consumer Loan. Our external collection team may assign Consumer Loans to third-party collection attorneys who work on a contingency fee basis.

Representatives service Consumer Loans through our servicing platform, which consists of the following two systems:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The collection system, which assigns Consumer Loans to representatives through a predictive dialer and records all collection activity, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• details of phone conversations with the consumer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collection letters sent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• promises to pay;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• broken promises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• payment history;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• repossession orders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• collection attorney activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The servicing system, which maintains a record of all transactions relating to Consumer Loan assignments and is a primary source of data utilized to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determine the outstanding balance of the Consumer Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• forecast future collections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• analyze the profitability of our program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluate our proprietary credit scoring system.

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**Ancillary Products**

We provide Dealers the ability to offer vehicle service contracts to consumers through our relationships with Third-Party Providers ("TPPs"). A vehicle service contract provides the consumer protection by paying for the repair or replacement of certain components of the vehicle in the event of a mechanical failure. The retail price of the vehicle service contract is included in the principal balance of the Consumer Loan. The wholesale cost of the vehicle service contract is paid to the TPP, net of an administrative fee retained by us. We recognize our fee as finance charges on a level-yield basis over the life of the related Loan. The difference between the wholesale cost and the retail price to the consumer is paid to the Dealer as a commission. Under the Portfolio Program, the wholesale cost of the vehicle service contract and the commission paid to the Dealer are charged to the Dealer's advance balance. TPPs process claims on vehicle service contracts that are underwritten by third-party insurers. We bear the risk of loss for claims on certain vehicle service contracts that are reinsured by us. We market the vehicle service contracts directly to Dealers. Our agreement with one of our TPPs allows us to receive profit sharing payments depending on the performance of the vehicle service contracts.

Our wholly owned subsidiary VSC Re Company ("VSC Re") is engaged in the business of reinsuring coverage under vehicle service contracts sold to consumers by Dealers on vehicles indirectly financed by us. VSC Re currently reinsures vehicle service contracts that are offered through one of our TPPs. Vehicle service contract premiums, which represent the selling price of the vehicle service contract to the consumer, less fees and certain administrative costs, are contributed to trust accounts controlled by VSC Re. These premiums are used to fund claims covered under the vehicle service contracts. VSC Re is a bankruptcy remote entity. As such, our exposure to fund claims is limited to the trust assets controlled by VSC Re and our net investment in VSC Re.

We provide Dealers the ability to offer Guaranteed Asset Protection ("GAP") to consumers through our relationships with TPPs. GAP provides the consumer protection by paying the difference between the loan balance and the amount covered by the consumer's insurance policy in the event of a total loss of the vehicle due to severe damage or theft. The retail price of GAP is included in the principal balance of the Consumer Loan. The wholesale cost of GAP is paid to the TPP, net of an administrative fee retained by us. We recognize our fee as finance charges on a level-yield basis over the life of the related Loan. The difference between the wholesale cost and the retail price to the consumer is paid to the Dealer as a commission. Under the Portfolio Program, the wholesale cost of GAP and the commission paid to the Dealer are charged to the Dealer's advance balance. TPPs process claims on GAP contracts that are underwritten by third-party insurers. Our agreement with one of our TPPs allow us to receive profit sharing payments depending on the performance of the GAP contracts.

Under the Purchase Program, we provide Dealers that meet certain criteria the ability to offer vehicle service contracts and GAP to consumers through the Dealers' relationships with TPPs. The retail price of the vehicle service contract and/or GAP is included in the principal balance of the Consumer Loan and is paid to the Dealer. Under this arrangement, we do not receive an administrative fee, and the Dealers' TPPs process claims.

**Competition**

The market for consumers who do not qualify for conventional automobile financing is large and highly competitive. The market is currently served by "buy here, pay here" dealerships, banks, captive finance affiliates of automobile manufacturers, credit unions, and independent finance companies both publicly and privately owned. Many of these companies are much larger and have greater resources than us. We compete on the basis of the level of service provided by our Dealer Service Center and sales personnel. In addition, we compete by offering a profitable and efficient method for Dealers to finance consumers who would be more difficult or less profitable to finance through other methods.

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**Customer and Geographic Concentrations**

The following tables provide information regarding the five states that were responsible for the largest dollar volume of Consumer Loan assignments and the related number of active Dealers during 2025, 2024, and 2023:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
| (Dollars in millions) | **Consumer Loan Assignments** | **Consumer Loan Assignments** | **Active Dealers (2)** | **Active Dealers (2)** |
|  | **Dollar Volume (1)** | **% of Total** | **Number** | **% of Total** |
| Michigan | $308.3 | 8.0% | 854 | 5.4% |
| Texas | 281.2 | 7.3% | 1377 | 8.7% |
| Ohio | 241.1 | 6.3% | 1062 | 6.7% |
| New Jersey | 244.9 | 6.4% | 397 | 2.5% |
| Florida | 168.2 | 4.4% | 924 | 5.9% |
| All other states | 2612.4 | 67.6% | 11131 | 70.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $3856.1 | 100.0% | 15745 | 100.0% |
|  | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
| (Dollars in millions) | **Consumer Loan Assignments** | **Consumer Loan Assignments** | **Active Dealers (2)** | **Active Dealers (2)** |
|  | **Dollar Volume (1)** | **% of Total** | **Number** | **% of Total** |
| Michigan | $372.4 | 8.1% | 861 | 5.6% |
| Texas | 327.9 | 7.1% | 1295 | 8.4% |
| New Jersey | 303.5 | 6.6% | 386 | 2.5% |
| Ohio | 269.5 | 5.8% | 1024 | 6.6% |
| Florida | 233.7 | 5.1% | 873 | 5.6% |
| All other states | 3111.4 | 67.3% | 11024 | 71.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $4618.4 | 100.0% | 15463 | 100.0% |
|  | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
| (Dollars in millions) | **Consumer Loan Assignments** | **Consumer Loan Assignments** | **Active Dealers (2)** | **Active Dealers (2)** |
|  | **Dollar Volume (1)** | **% of Total** | **Number** | **% of Total** |
| Michigan | $326.3 | 7.9% | 833 | 5.9% |
| Texas | 272.5 | 6.6% | 1170 | 8.3% |
| Ohio | 245.2 | 5.9% | 986 | 7.0% |
| New Jersey | 238.2 | 5.7% | 357 | 2.5% |
| Tennessee | 216.0 | 5.2% | 569 | 4.0% |
| All other states | 2849.6 | 68.7% | 10259 | 72.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $4147.8 | 100.0% | 14174 | 100.0% |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program. Payments of Dealer Holdback and accelerated Dealer Holdback are not included.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Active Dealers are Dealers who have received funding for at least one Loan during the year.

No single Dealer's Loans receivable balance accounted for more than 10% of total Loans receivable balance as of December 31, 2025 or 2024.

**Seasonality**

Our business is seasonal with peak Consumer Loan assignments and collections occurring during the first quarter of the year. This seasonality has a material impact on our interim results, as we are required to recognize a significant provision for credit losses expense at the time of assignment. For additional information, see <u>[Note 2](#i687b0c1a0c454573b67518d6a549de43_85)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

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**Regulation**

Our business is subject to laws and regulations, including the Truth in Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, prohibitions against unfair, deceptive, and abusive acts and practices, and various other state and federal laws and regulations. These laws and regulations, among other things, require licensing and qualification; limit interest rates, fees, and other charges associated with the Consumer Loans assigned to us; require specified disclosures by Dealers to consumers; govern the sale and terms of ancillary products; and define the rights to repossess and sell collateral. Failure to comply with these laws or regulations could have a material adverse effect on us by, among other things, limiting the jurisdictions in which we may operate, restricting our ability to realize the value of the collateral securing the Consumer Loans, making it more costly or burdensome to do business, or resulting in potential liability. The volume of new or modified laws and regulations, and new interpretations of existing laws and regulations, has increased in recent years. From time to time, enactment and interpretations of legislation and regulations increase the cost of doing business, limit or expand permissible activities, or affect the competitive balance among financial services providers. Proposals to change the laws and regulations governing the operations and taxation of financial institutions and financial services providers are frequently made in the U.S. Congress, in state legislatures, and by various regulatory agencies. Such changes in laws and regulations, or the interpretation of such laws and regulations, may change our operating environment in substantial and unpredictable ways and may have a material adverse effect on our business.

We are subject to supervision by the Consumer Financial Protection Bureau (the "Bureau"). The Bureau has rulemaking and enforcement authority over certain non-depository institutions, including us. The Bureau is specifically authorized, among other things, to take actions to prevent companies providing consumer financial products or services and their service providers from engaging in unfair, deceptive, or abusive acts or practices in connection with consumer financial products and services, and to issue rules requiring enhanced disclosures or consumer access to information for consumer financial products or services. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), the Bureau also may restrict the use of pre-dispute mandatory arbitration clauses in contracts between covered persons and consumers for a consumer financial product or service. The Bureau also has authority to interpret, enforce, and issue regulations implementing enumerated consumer laws, including certain laws that apply to our business. The Dodd-Frank Act and regulations promulgated thereunder may affect our cost of doing business, may limit or expand our permissible activities, may affect the competitive balance within our industry and market areas, and could have a material adverse effect on us.

In addition to the Bureau, other state and federal agencies have the ability to regulate aspects of our business. For example, the Dodd-Frank Act provides a mechanism for state attorneys general to investigate us. Separately, state attorneys general and certain state regulators have authority under their respective rules and laws, to investigate and/or regulate aspects of our business. In addition, the Federal Trade Commission has jurisdiction to investigate aspects of our business. We expect that regulatory investigations of our business by both state and federal agencies will continue and that the results of these investigations could have a material adverse impact on us.

*Ongoing Regulatory Matters*

Regulatory matters to which we are a party include the following matters, in each case the eventual scope, duration, and outcome of which we cannot predict at this time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On May 7, 2019, we received a subpoena from the Consumer Frauds and Protection Bureau of the Office of the New York State Attorney General, relating to the Company's origination and collection policies and procedures in the state of New York. After May 7, 2019 through April 30, 2021, we received additional subpoenas from the Office of the New York State Attorney General relating to the Company's origination, collection, and securitization practices. On November 19, 2020 and August 23, 2022, we received letters from the Office of the New York State Attorney General indicating that it may commence litigation against the Company asserting violations of New York Executive Law § 63(12) and New York General Business Law §§ 349 and 352 et seq. and applicable federal laws, including but not limited to claims that the Company engaged in unfair and deceptive trade practices in auto lending, debt collection, and asset-backed securitizations in the State of New York in violation of the Dodd-Frank Act, New York Executive Law § 63(12), the New York Martin Act, and New York General Business Law § 349. See the description below of the lawsuit commenced by the Office of the New York State Attorney General on January 4, 2023.

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On April 22, 2019, we received a civil investigative demand from the Bureau seeking, among other things, certain information relating to the Company's origination and collection of Consumer Loans, TPPs, and credit reporting. After April 22, 2019 through March 7, 2022, we received additional subpoenas from the Bureau. On December 6, 2021, we received a Notice and Opportunity to Respond and Advise letter from the Staff of the Office of Enforcement ("Staff") of the Bureau, stating that the Staff was considering whether to recommend that the Bureau take legal action against the Company for alleged violations of the Consumer Financial Protection Act of 2010 (the "CFPA") in connection with the Company's consumer loan origination practices. See the description below of the lawsuit commenced by the Bureau on January 4, 2023.

On January 4, 2023, the Office of the New York State Attorney General and the Bureau jointly filed a complaint in the United States District Court for the Southern District of New York alleging that the Company engaged in deceptive practices, fraud, illegality, and securities fraud in violation of New York Executive Law § 63(12) and New York General Business Law §§ 349 and 352, and that the Company engaged in deceptive and abusive acts and provided substantial assistance to a covered person or service provider in violation of the CFPA, 12 U.S.C. § 5531 and 12 U.S.C. § 5536(a)(1)(B). The complaint seeks injunctive relief, an accounting of all consumers for whom the Company provided financing, restitution, damages, disgorgement, civil penalties, and payment of costs. On March 14, 2023, the Company filed a motion to dismiss the complaint. On August 7, 2023, the court stayed the action pending the U.S. Supreme Court's decision in *Consumer Financial Protection Bureau v. Community Financial Services Association of America Ltd*., No. 22-448 ("CFSA"). On July 1, 2024, the court lifted the stay in view of the decision in CFSA and requested revised briefing on the Company's motion to dismiss that would address the intervening legal developments and sharpen the issues for resolution. As of October 29, 2024, the Company's motion to dismiss has been fully briefed. The Company intends to vigorously defend itself in this matter. On April 24, 2025, the Bureau filed an unopposed motion to withdraw as plaintiff, and on April 29, 2025, the court granted that motion and ordered that the Bureau is no longer a plaintiff in the litigation. In September 2025, we made an offer to jointly settle this matter and the multi-state matter discussed below on terms that included, among other things, a proposed cash payment of $45.0 million. In January 2026, we reached preliminary alignment with representatives of the agencies involved in this matter and the multi-state matter discussed below on certain material terms of a potential settlement of those legal matters, including a potential cash payment by us of $75.5 million. Discussions with respect to resolution of those matters are ongoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 18, 2016, we received a subpoena from the Attorney General of the State of Maryland, relating to the Company's repossession and sale policies and procedures in the state of Maryland. On April 3, 2020, we received a subpoena from the Attorney General of the State of Maryland relating to the Company's origination and collection policies and procedures in the state of Maryland. On August 11, 2020, we received a subpoena from the Attorney General of the State of Maryland restating most of the requests contained in the March 18, 2016 and April 3, 2020 subpoenas, making additional requests, and expanding the inquiry to include 41 other states (Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin) and the District of Columbia. Also on August 11, 2020, we received from the Attorney General of the State of New Jersey a subpoena that is essentially identical to the August 11, 2020 Maryland subpoena, both as to substance and as to the jurisdictions identified. The Company has been informed that the State of Kansas, the State of Texas, and the State of Iowa have withdrawn from the multi-state investigation. In September 2025, we made an offer to jointly settle this matter and the New York Attorney General matter discussed above on terms that included, among other things, a proposed cash payment of $45.0 million. In January 2026, we reached preliminary alignment with representatives of the agencies involved in this matter and the New York Attorney General matter discussed above on certain material terms of a potential settlement of those legal matters, including a potential cash payment by us of $75.5 million. Discussions with respect to resolution of those matters are ongoing.

In addition, governmental regulations that would deplete the supply of used vehicles, such as environmental protection regulations governing emissions or fuel consumption, could have a material adverse effect on us.

Dealers must also comply with credit and trade practice statutes and regulations. Failure of Dealers to comply with these statutes and regulations could result in consumers having rights of rescission and other remedies that could have a material adverse effect on us.

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The sale of vehicle service contracts and GAP by Dealers in connection with Consumer Loans assigned to us from Dealers is also subject to state laws and regulations. As we are the holder of the Consumer Loans that may, in part, finance these products, some of these state laws and regulations may apply to our servicing and collection of the Consumer Loans. Although these laws and regulations do not significantly affect our business, there can be no assurance that insurance or other regulatory authorities in the jurisdictions in which these products are offered by Dealers will not seek to regulate or restrict the operation of our business in these jurisdictions. Any regulation or restriction of our business in these jurisdictions could materially adversely affect the income received from these products.

We believe that we maintain all material licenses and permits required for our current operations and are in substantial compliance with all applicable laws and regulations. Our agreements with Dealers provide that the Dealer shall indemnify us with respect to any loss or expense we incur as a result of the Dealer's failure to comply with applicable laws and regulations.

**Team Members**

Our team members are organized into four operating functions as follows:

*Servicing*. The servicing function includes team members that are responsible for servicing Consumer Loans. The majority of these team members are responsible for collection activities on delinquent Consumer Loans.

*Originations.* The originations function includes team members that are responsible for enrolling new Dealers and supporting active Dealers. Originations also includes team members responsible for processing new Consumer Loan assignments.

*Engineering, Analytics, Marketing, and Product Management*. This function consists of team members that are responsible for innovating, transforming, enhancing, modernizing, and optimizing our product for Dealers and consumers.

*Support*. The support function includes team members that are responsible for corporate legal and compliance, human resources, and finance.

The following table presents team members by operating function:

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| | | | |
|:---|:---|:---|:---|
| | **Number of Team Members<br>as of December 31,** | **Number of Team Members<br>as of December 31,** | **Number of Team Members<br>as of December 31,** |
|<br>**Operating Function** | **2025** | **2024** | **2023** |
| Servicing | 799 | 937 | 877 |
| Originations | 588 | 578 | 533 |
| Engineering, Analytics, Marketing, and Product Management | 542 | 512 | 420 |
| Support | 385 | 404 | 402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 2314 | 2431 | 2232 |

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As of December 31, 2025, we had 2,314 full- and part-time team members. Our team members have no union affiliations, and we believe our relationship with our team members is in good standing. We strive to create a work environment that is pleasant, professional, and free from intimidation, hostility, or other offenses that may interfere with work performance. All team members complete non-discrimination and anti-harassment training, promoting a safe and inclusive work environment.

The vast majority of our team members work remotely from locations within the United States, with more than half of our team members located outside of Michigan. Our remote-first work environment allows us to take advantage of the national talent pool and hire the most qualified team members. We believe our workplace supports an inclusive culture due to our practices of maintaining open and transparent communication and fostering a climate in which all team members are welcome to speak up and contribute. We engage in initiatives that encourage our team members to generate concrete actions that we can take together to enhance the environment of inclusion, a sense of belonging, and acceptance of others to make our culture and our Company stronger. We believe these factors naturally contribute to the diversity of our workforce.

We place great importance on listening to our team members, as we believe that "the people doing the work know the most about it." We encourage participation in periodic anonymous surveys to gain honest feedback about our workplace from our team members, and we use this feedback to generate ideas for improvement. Our Company's culture attracts talented people and enables them to perform to their potential. We have been honored to receive many workplace awards in recent years.

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**Available Information**

Our internet address is *creditacceptance.com*. We make available free of charge on our internet web site our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (the "SEC").

**ITEM 1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS**

***<u>Industry, Operational, and Macroeconomic Risks</u>***

**Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.**

The majority of the Consumer Loans assigned to us are made to individuals with impaired or limited credit histories. Consumer Loans made to these individuals generally entail a higher risk of delinquency, default, and repossession, and higher losses than loans made to consumers with better credit. Since most of our revenue and cash flows from operations are generated from these Consumer Loans, our ability to accurately forecast Consumer Loan performance is critical to our business and financial results. At the time of assignment, we forecast future expected cash flows from the Consumer Loan. Based on these forecasts, which include estimates for wholesale vehicle prices in the event of vehicle repossession and sale, we make an advance or one-time purchase payment to the related Dealer at a level designed to maximize economic profit, a non-GAAP financial measure. We continue to forecast the expected collection rate for each Consumer Loan subsequent to assignment. These forecasts also serve as a critical assumption in our accounting for recognizing finance charge income and determining our allowance for credit losses. Please see the Critical Accounting Estimates – Finance Charge Revenue & Allowance for Credit Losses section in Item 7 of this Form 10-K, which is incorporated herein by reference. Actual cash flows from any individual Consumer Loan are often different from cash flows estimated at the time of assignment. There can be no assurance that our forecasts will be accurate or that Consumer Loan performance will be as expected. In periods with changing economic conditions, accurately forecasting the performance of Consumer Loans is more difficult. In the event that our forecasts are not accurate in the aggregate, our financial position, liquidity, and results of operations could be materially adversely affected.

**Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.**

The automobile finance market for consumers who do not qualify for conventional automobile financing is large and highly competitive. The market is served by a variety of companies, including "buy here, pay here" dealerships. The market is also currently served by banks, captive finance affiliates of automobile manufacturers, credit unions, and independent finance companies both publicly and privately owned. Many of these companies are much larger and have greater financial resources than are available to us, and many have long-standing relationships with automobile dealerships. Providers of automobile financing have traditionally competed based on the interest rate charged, the quality of credit accepted, the flexibility of loan terms offered, and the quality of service provided to dealers and consumers. We may be unable to compete successfully in the automobile finance market or, due to the intense competition in this market, our results of operations, cash flows, and financial condition may be adversely affected as we adjust our business in response to competitive pressures. Increasing advance rates on Loans has the impact of reducing the return on capital we expect to earn on Loans. Additionally, if we are unsuccessful in maintaining and expanding our relationships with Dealers, we may be unable to accept Consumer Loans in the volume and on the terms that we anticipate.

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**Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.**

We are subject to general economic conditions which are beyond our control. During periods of economic slowdown or recession, delinquencies, defaults, repossessions, and losses may increase on our Consumer Loans, and Consumer Loan prepayments, which historically have been lower in periods with less availability of consumer credit, may decline. These periods are also typically accompanied by decreased consumer demand for automobiles and declining values of automobiles securing outstanding Consumer Loans, which weakens collateral coverage and increases the amount of loss in the event of default. Significant increases in the inventory of used automobiles during periods of economic recession may also depress the prices at which repossessed automobiles may be sold or delay the timing of these sales. Additionally, inflation, higher gasoline prices, the deferral or resumption of student loan payments, increased focus on climate-related initiatives and regulation, declining stock market values, unstable real estate values, resets of adjustable rate mortgages to higher interest rates, increasing unemployment levels, general availability of consumer credit, tariffs, or other factors that impact consumer confidence or disposable income could increase loss frequency and decrease consumer demand for automobiles as well as weaken collateral values of automobiles. Imposition of or increases in tariffs on U.S. imports could result in higher used car prices in the United States, leading to decreased Dealer origination of Consumer Loans and a decline in Consumer Loan assignments to us. Because our business is focused on consumers who do not qualify for conventional automobile financing, the actual rates of delinquencies, defaults, repossessions, and losses on our Consumer Loans could be higher than those experienced in the general automobile finance industry, and could be more dramatically affected by a general economic downturn.

We rely on Dealers to originate Consumer Loans for assignment under our programs. High levels of Dealer attrition, due to a general economic downturn or otherwise, could materially adversely affect our operations. In addition, we rely on vendors to provide us with services we need to operate our business. Any disruption in our operations due to the untimely or discontinued supply of these services could substantially adversely affect our operations. Finally, during an economic slowdown or recession, our servicing costs may increase without a corresponding increase in finance charge revenue. Any sustained period of increased delinquencies, defaults, repossessions, or losses or increased servicing costs could also materially adversely affect our financial position, liquidity, and results of operations and our ability to enter into future financing transactions.

Technological advancements or changes to trends in the automobile industry such as new autonomous driving technologies or car- and ride-sharing programs could decrease consumer demand for automobiles. Decreased consumer demand for automobiles could negatively impact demand for our financing programs as well as weaken collateral values of automobiles, which could materially adversely affect our financial position, liquidity, and results of operations.

**Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.**

We have relationships with TPPs to administer vehicle service contracts and GAP underwritten by third-party insurers and indirectly financed by us. We depend on these TPPs to evaluate and pay claims in an accurate and timely manner. If our relationships with these TPPs were modified, disrupted, or terminated, we would need to obtain these services from an alternative administrator or provide them using our internal resources. We may be unable to replace these TPPs with a suitable alternative in a timely and efficient manner on terms we consider acceptable, or at all. In the event we were unable to effectively administer our ancillary products offerings, we may need to eliminate or suspend our ancillary product offerings from our future business, we may experience a decline in the performance of our Consumer Loans, our reputation in the marketplace could be undermined, and our financial position, liquidity, and results of operations could be adversely affected.

**We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.**

As of December 31, 2025, our senior management averaged 15 years of experience with us. Our success is dependent upon the management and the leadership skills of this team. In addition, competition from other companies to hire our team members possessing the necessary skills and experience required could contribute to an increase in team member turnover. The loss of any of these individuals or an inability to attract and retain additional qualified team members could adversely affect us. There can be no assurance that we will be able to retain our existing senior management or attract additional qualified team members.

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**Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.**

Our reputation is a key asset to our business. Our ability to attract consumers through Dealers is highly dependent upon external perceptions of our level of service, trustworthiness, business practices, and financial condition. Negative publicity regarding these matters could damage our reputation among existing and potential consumers and Dealers, which could make it difficult for us to attract new consumers and Dealers and maintain existing Dealers. Adverse developments with respect to our industry may also, by association, negatively impact our reputation or result in greater regulatory or legislative scrutiny or litigation against us.

**An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.**

Contagious-disease outbreaks or other public health emergencies could cause a deterioration in the U.S. economy and our industry, disruptions in our workforce, decreases in collections from our consumers, declines in Consumer Loan assignments, or extended periods of economic or supply chain disruptions. Financial market disruptions that occur as a result of contagious-disease outbreaks or other public health emergencies could reduce our ability to access capital or our consumers' ability to repay past or future Consumer Loans and could negatively affect our liquidity and results of operations. A future contagious-disease outbreak or other public health emergency could materially adversely affect our business, financial condition, liquidity, and results of operations and also intensify the risks described in the other risk factors disclosed in this Form 10-K.

**The concentration of Dealers in several states could adversely affect us.**

Dealers are located throughout the United States. During the year ended December 31, 2025, our five largest states (measured by advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program) contained 29.2% of Dealers. While we believe we have a diverse geographic presence, for the near term, we expect that significant amounts of Consumer Loan assignments will continue to be generated by Dealers in these five states due to the number of Dealers in these states and currently prevailing economic, demographic, regulatory, competitive, and other conditions in these states. Changes to conditions in these states could lead to an increase in Dealer attrition or a reduction in demand for our service that could materially adversely affect our financial position, liquidity, and results of operations.

**Reliance on our outsourced business functions could adversely affect our business.**

We outsource certain business functions to third-party service providers, which increases our operational complexity and decreases our control. We rely on these service providers to provide a high level of service and support, which subjects us to risks associated with inadequate or untimely service. In addition, if these outsourcing arrangements were not renewed or were terminated or the services provided to us were otherwise disrupted, we would have to obtain these services from an alternative provider or provide them using our internal resources. We may be unable to replace, or be delayed in replacing these sources and there is a risk that we would be unable to enter into a similar agreement with an alternate provider on terms that we consider favorable or in a timely manner. In the future, we may outsource additional business functions. If any of these or other risks related to outsourcing were realized, our financial position, liquidity, and results of operations could be adversely affected.

**Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.**

A portion of our engineering team is composed of foreign nationals whose ability to work for us depends on maintaining the necessary H-1B visas. The H-1B visa category allows U.S. employers to hire qualified foreign nationals to perform services in specialty occupations that require the attainment of at least a bachelor's degree or its equivalent. Our ability to hire and retain these foreign nationals and their ability to remain and work in the United States are affected by various laws and regulations, including limitations on the number of available H-1B visas, which the U.S. government allocates by lottery. Changes in the laws or regulations affecting the availability, allocation, and/or cost of H-1B visas, eligibility for the H-1B visa category, or otherwise affecting the admission or retention of skilled foreign nationals by U.S. employers, or any increase in demand for H-1B visas relative to the limited supply of those visas, may adversely affect our ability to hire or retain foreign engineering personnel and may, as a result, increase our operating costs and impair our business operations.

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**We may be unable to execute our business strategy due to current economic conditions.**

Our financial position, liquidity, and results of operations depend on management's ability to execute our business strategy. Key factors involved in the execution of our business strategy include achieving our desired Consumer Loan assignment volume, continued and successful use of CAPS and other internet-based credit application processing systems and pricing strategy, the use of effective credit risk management techniques and servicing strategies, continued investment in technology to support operating efficiency, and continued access to funding and liquidity sources. Although our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital and infrastructure constraints, there can be no assurance that this strategy will have its intended effect. Please see the Consumer Loan Volume section in Item 7 of this Form 10-K, which is incorporated herein by reference. Our failure or inability to execute any element of our business strategy could materially adversely affect our financial position, liquidity, and results of operations.

**Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.**

Natural disasters, climate change, military conflicts, acts of war, terrorist attacks, and the escalation of military activity in response to terrorist attacks or otherwise may have negative and significant effects, such as imposition of increased security measures, changes in applicable laws, economic and financial market disruptions, loss of lives, damage to infrastructure, and job losses. These types of events or developments and their consequences may have an adverse effect on the economy in general, including diminished liquidity and credit availability, reduced consumer confidence, disruptions to energy and food supplies, decreased economic growth, higher unemployment rates, increased inflation, and political and social upheaval. The consequences of these types of events or developments could reduce used-car sales and demand for our product, impair the performance of our Loan portfolio, limit our access to capital, and intensify other risk factors disclosed in this Form 10-K, including cybersecurity-related risks. Moreover, the potential for future military conflicts and terrorist attacks, natural disasters, and escalating effects of climate change, and the national and international responses to these threats, could affect our business in ways that cannot be predicted. The effect of any of these events, developments, or threats could have a material adverse effect on our business, financial condition, and results of operations.

**Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.**

Governments have become increasingly focused on the effects of climate change and related environmental issues. How governments act to mitigate climate and related environmental risks, as well as associated changes in the behavior and preferences of businesses and consumers, could have an adverse effect on our business and results of operations. A decline in demand for gasoline-powered automobiles, such as could occur due to regulatory restrictions or a shift in consumer preference toward electric vehicles, could decrease the value of gasoline-powered vehicles securing outstanding Consumer Loans, which would weaken collateral coverage and increase the amount of loss in the event of default. Further, we may be compelled to change our business practices or our operational processes, and we could have less access to capital or face a higher cost of capital, because of climate- or environmental-driven changes in applicable law or due to related political, social, or market pressure. It is possible as well that changes in climate and related environmental risks, perceptions of them, and governmental responses to them may occur more rapidly than our ability to adapt without disrupting our business, which could have a material adverse effect on our financial position and results of operations.

**A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.**

As of December 31, 2025, based on filings made with the SEC and other information made available to us, Allan V. Apple beneficially owned 20.9% of our common stock, Prescott General Partners LLC and its affiliates beneficially owned 20.7% of our common stock, Jill Foss Watson beneficially owned 15.8% of our common stock, and John P. Neary beneficially owned 8.0% of our common stock (representing, collectively, beneficial ownership of 45.3% of our common stock, after taking into account those shares reported as beneficially owned by more than one of these shareholders). As a result, these shareholders are able to significantly influence matters presented to shareholders, including the election and removal of directors, the approval of significant corporate transactions, such as any reclassification, reorganization, merger, consolidation, or sale of all or substantially all of our assets, and the control of our management and affairs, including executive compensation arrangements. Their interests may conflict with the interests of our other security holders.

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The beneficial ownership reported by Mr. Apple and Mr. Neary includes, in each case, beneficial ownership in their capacity as trustees of shares held in a marital trust established by our late founder, Donald Foss, and representing 8.0% of our common stock as of December 31, 2025. The shares in the trust are subject to the terms of a shareholder agreement, entered into by Mr. Foss on January 3, 2017. Under the terms of that agreement that became applicable to the trustees of the trust upon Mr. Foss's death on August 14, 2022, until the final adjournment of the Company's 2026 annual meeting of shareholders, the shares in the trust are to be voted in accordance with the recommendation of the Company's Board of Directors with respect to election and removal of directors, certain routine matters, and any other proposal to be submitted to the Company's shareholders with respect to any extraordinary transaction providing for the acquisition of all of the Company's outstanding common stock.

***<u>Capital and Liquidity Risks</u>***

**We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.**

We use debt financing to maintain and grow our business. We currently utilize the following primary forms of debt financing: (1) a revolving secured line of credit facility; (2) revolving secured warehouse ("Warehouse") facilities; (3) asset-backed secured financings ("Term ABS financings"); and (4) senior notes. We cannot guarantee that the revolving secured line of credit facility or the Warehouse facilities will continue to be available beyond their current maturity dates, on acceptable terms, or at all, or that we will be able to obtain additional financing on acceptable terms or at all. The availability of additional financing will depend on a variety of factors such as market conditions, the general availability of credit, our financial position, our results of operations, and the capacity for additional borrowing under our existing financing arrangements. If our various financing alternatives were to become limited or unavailable, we may be unable to maintain or grow Consumer Loan volume at the level that we anticipate and our operations could be materially adversely affected.

**The terms of our debt limit how we conduct our business.**

The agreements that govern our debt contain covenants that restrict our ability to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• incur and guarantee debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pay dividends or make other distributions on or redeem or repurchase our stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• make investments or acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• create liens on our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sell assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• merge with or into other companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enter into transactions with stockholders and other affiliates.

Some of our debt agreements also impose requirements that we maintain specified financial measures not in excess of, or not below, specified levels. In particular, our revolving credit facility and warehouse facilities require, among other things, that we maintain (i) as of the end of each fiscal quarter, a ratio of consolidated funded debt less unrestricted cash and cash equivalents to consolidated tangible net worth at or below a specified maximum and (ii) as of the end of each fiscal quarter, a ratio of consolidated income available for fixed charges for the period of four consecutive fiscal quarters most recently ended to consolidated fixed charges, as defined in the agreements, for that period of not less than a specified minimum. These covenants limit the manner in which we can conduct our business and could prevent us from engaging in favorable business activities or financing future operations and capital needs and impair our ability to successfully execute our strategy and operate our business.

A breach of any of the covenants in our debt instruments would result in an event of default thereunder if not promptly cured or waived. Any continuing default would permit the creditors to accelerate the related debt, which could also result in the acceleration of other debt containing a cross acceleration or cross default provision. In addition, an event of default under our revolving credit facility or warehouse facilities would permit the lenders thereunder to terminate all commitments to extend further credit under such facilities. Furthermore, if we were unable to repay the amounts due and payable under our revolving credit facility or other secured debt, the lenders thereunder could cause the collateral agent to proceed against the collateral securing that debt. In the event our creditors accelerate the repayment of our debt, there can be no assurance that we would have sufficient assets to repay that debt, and our financial condition, liquidity, and results of operations would suffer.

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**A violation of the terms of our Term ABS financings or Warehouse facilities could have a material adverse impact on our operations.**

Under our Term ABS financings and our Warehouse facilities, (1) we have various obligations and covenants as seller, servicer, and custodian of the Loans conveyed thereunder and in our individual capacity and (2) the special purpose subsidiaries to which we convey Loans have various obligations and covenants. A violation of any of these obligations or covenants in any of our Term ABS financings or our Warehouse facilities by us or the special purpose subsidiaries, respectively, may result in an early termination of the revolving period, repurchase or indemnification obligations on our part, and the termination of our servicing rights (and, accordingly, the loss of servicing fees), and may further result in amounts outstanding under such Term ABS financings and Warehouse facilities becoming immediately due and payable. In addition, the violation of any financial covenant under our revolving secured line of credit facility is an event of default or termination event under certain of our Term ABS financings and our Warehouse facilities.

The occurrence of any of the events described in the immediately-preceding paragraph could have a material adverse effect on our financial position, liquidity, and results of operations.

**Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.**

We have a substantial amount of debt, which could have negative consequences, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain additional financing for Consumer Loan assignments, working capital, debt refinancing, or other purposes could be impaired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a substantial portion of our cash flows from operations will be dedicated to paying principal and interest on our debt, reducing funds available for other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be vulnerable to interest rate increases, as some of our borrowings, including those under our revolving credit facility and Warehouse facilities, bear interest at variable rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we could be more vulnerable to adverse developments in our industry or in general economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be restricted from taking advantage of business opportunities or making strategic acquisitions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be limited in our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate.

**We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.**

Our ability to make payments of principal and interest on indebtedness will depend in part on our cash flows from operations, which are subject to economic, financial, competitive, and other factors beyond our control. We cannot assure you that we will maintain a level of cash flows from operations sufficient to permit us to meet our debt service obligations. If we are unable to generate sufficient cash flows from operations to service our debt, we may be required to sell assets, refinance all or a portion of our existing debt, or obtain additional financing. There can be no assurance that any refinancing will be possible or that any asset sales or additional financing can be completed on acceptable terms or at all.

**Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.**

Our profitability may be directly affected by the level of and fluctuations in interest rates, whether caused by changes in economic conditions or other factors, which affect our borrowing costs. Our profitability and liquidity could be materially adversely affected during any period of higher interest rates. We monitor the interest rate environment and employ strategies designed to partially mitigate the impact of increases in interest rates. We can provide no assurance, however, that our strategies will mitigate the impact of increases in interest rates.

**Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.**

Credit rating agencies evaluate us, and their ratings of our debt and creditworthiness are based on a number of factors. These factors include our financial strength and other factors not entirely within our control, including conditions affecting the financial services industry generally. As the financial services industry and the financial markets periodically face difficulties, there can be no assurance that we will maintain our current ratings. Failure to maintain those ratings could, among other things, adversely limit our access to the capital markets and affect the cost and other terms upon which we are able to obtain financing.

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**We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.**

We may be able to incur substantial additional debt in the future. Although the terms of our debt instruments contain restrictions on our ability to incur additional debt, these restrictions are subject to exemptions that could permit us to incur a substantial amount of additional debt. In addition, our debt instruments do not prevent us from incurring liabilities that do not constitute indebtedness as defined for purposes of those debt instruments. If new debt or other liabilities are added to our current debt levels, the risks associated with our having substantial debt could intensify.

**The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations.**

Periodically, there has been uncertainty in the global capital markets and the overall economy. Such uncertainty can result in disruptions in the financial sector and affect lenders with which we have relationships. Disruptions in the financial sector may increase our exposure to credit risk and adversely affect the ability of lenders to perform under the terms of their lending arrangements with us. Failure by our lenders to perform under the terms of our lending arrangements could cause us to incur additional costs that may adversely affect our liquidity, financial condition, and results of operations. There can be no assurance that future disruptions in the financial sector will not occur that could have similar adverse effects on our business.

***<u>Technology and Cybersecurity Risks</u>***

**Our dependence on technology could have a material adverse effect on our business.**

All Consumer Loans submitted to us for assignment are processed either through CAPS or via an integration we have with aggregators used by Dealers to submit credit application information to various finance sources. Our Consumer Loan servicing platform is also technology based. We rely on these systems to record and process significant amounts of data quickly and accurately. Our systems, and those of our third-party service providers, are dependent upon computer and telecommunications equipment, software systems, and internet access. The temporary or permanent loss of any components of these systems through hardware failures, software errors, operating malfunctions, the vulnerability of the internet, or otherwise could interrupt our business operations and harm our business.

Although Company systems and systems of third party service providers are subject to risks from cybersecurity threats and incidents, these have not materially affected the Company, including its business strategy, results of operations, or financial condition, though there can be no assurance that cybersecurity threats and incidents will not have a material adverse effect on us in the future.

We rely on a variety of measures to protect our technology and proprietary information, including copyrights and a comprehensive information security program. However, these measures may not prevent misappropriation or infringement of our intellectual property or proprietary information, which would adversely affect us. In addition, our competitors or other third parties may allege that our proprietary systems, processes, or technologies infringe their intellectual property rights.

Our ability to integrate computer and telecommunications technologies into our business is essential to our success. Computer and telecommunications technologies are evolving rapidly and, as a result, may be characterized by short product life cycles. We may not be successful in anticipating, managing, or adopting technological changes on a timely basis. While we believe that our existing information systems are sufficient to meet our current demands and continued expansion, our future growth may require additional investment in these systems. We cannot assure that adequate capital resources will be available to us at the appropriate time.

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**We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.**

We and our third-party service providers face ongoing threats to our systems and data and occasionally experience cyberattacks and other security incidents. Numerous national finance companies have disclosed security breaches involving sophisticated cyber-attacks, including ransomware, that were not recognized or detected until after such companies had been affected, notwithstanding the preventive measures such companies had in place. Further, the rapid evolution and increased adoption of artificial intelligence ("AI") technologies, increased sophistication and activities of organized crime, hackers, terrorists, activists, and other external parties may increase our level of cybersecurity risk. Additionally, our increased use of mobile and cloud technologies could heighten these and other operational risks by increasing our attack surface, and any failure by mobile or cloud technology service providers to adequately safeguard their systems and prevent cyber-attacks could disrupt our operations and result in misappropriation, corruption, or loss of confidential or propriety information. The security measures we have implemented to protect against cybersecurity incidents, or those of our third-party service providers, may not always prevent or mitigate the impact of a cybersecurity incident, and there can be no assurance that future efforts to prevent or mitigate a cybersecurity incident will be effective either. As a result, our computer systems, software, and networks, as well as those of our third-party service providers, are vulnerable to unauthorized access, computer viruses, malware attacks, and other events that could have a security impact beyond our control, and information we transmit and receive may be vulnerable to interception, misuse, or mishandling. Cybersecurity incidents, including such occurrences that compromise information processed by, stored in, or transmitted through our computer systems and networks, or those of our third-party service providers, or that cause interruptions or malfunctions in our or our service providers' operations could result in losses, loss of business by us and loss of confidence in us, consumer and Dealer dissatisfaction, significant litigation, regulatory exposures, and harm to our reputation, any of which could have a material adverse impact on our business, financial condition, and results of operations.

While we have not been materially affected by cybersecurity incidents to date, we may be required to expend significant additional resources in the future to enhance our security controls, modify our protective measures, investigate the circumstances surrounding cybersecurity incidents, and implement mitigation and remediation measures in response to cybersecurity incidents and new or more sophisticated threats, as well as in response to new regulations related to cybersecurity. Cybersecurity incidents may result in our being subject to fines, penalties, litigation (including securities fraud class action lawsuits) and regulatory investigation costs and settlements and other financial losses, which could have a material adverse effect on our business, financial condition, and results of operations.

**Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.**

Our systems permit origination and assignment of Consumer Loans in electronic form. We have engaged a TPP to facilitate the process of creating, establishing control of, and storing electronic contracts in a manner that enables us to perfect our ownership or security interest in the electronic contracts by satisfying the requirements for "control" of electronic chattel paper under the Uniform Commercial Code.

Although the law governing the perfection of ownership and security interests in electronic contracts was enacted in 2001, the statutory requirements for the relevant control arrangements have not been meaningfully tested in court. In addition, market practices regarding control of electronic contracts are still developing. As a result, there is a risk that the systems employed by us or any TPP to maintain control of the electronic contracts may not be sufficient as a matter of law to give us a perfected ownership or security interest in the Consumer Loans evidenced by electronic contracts. In addition, technological failure, including failure in the security or access restrictions with respect to the systems, and operational failure, such as the failure to implement and maintain adequate internal controls and procedures, could also affect our ability to obtain or maintain a perfected ownership or security interest in the Consumer Loans evidenced by electronic contracts (or the priority of such interests). Our failure or inability to perfect our ownership or security interest in the Consumer Loans could materially adversely affect our financial position, liquidity, and results of operations.

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**Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.**

In the ordinary course of our business, we collect and store sensitive data on our computer networks. This sensitive data includes our proprietary business information and personally identifiable information of our consumers and team members. The secure processing, maintenance, and transmission of this information is critical to our operations and business strategy.

If third parties or our team members are able to breach our network security or the network security of a third party that we share information with or otherwise are able to misappropriate our consumers' and team members' personal information, or if we give third parties or our team members improper access to our consumers' and team members' personal information, we could be subject to liability. This liability could include identity theft or other similar fraud-related claims. This liability could also include claims for other misuses or losses of personal information, including for unauthorized marketing purposes. Other liabilities could include claims alleging misrepresentation of our privacy and data security practices. Moreover, the loss of confidential customer personal information could harm our reputation, result in the loss of business, and subject us to liability under laws that protect personal information, resulting in increased costs, loss of revenues and substantial penalties. For instance, the California Consumer Privacy Act of 2018, as amended ("CCPA"), provides for enhanced consumer protections for California residents and statutory fines for data security breaches or other CCPA violations.

We rely on encryption and authentication technology licensed from third parties to provide the security and authentication necessary to secure online transmission of confidential consumer and team member information, which can include personal information. Advances in computer capabilities, new discoveries in the field of cryptography, advancements in AI, or other events or developments may result in a compromise or breach of the algorithms that we use to protect sensitive consumer transaction data. A party who is able to circumvent our security measures could misappropriate proprietary information or cause interruptions in our operations. We may be required to expend capital and other resources to protect against, or alleviate problems caused by, security breaches or other cybersecurity incidents. Although we have experienced occasional cybersecurity incidents that have not had a material effect on our business, financial condition, or results of operations, there can be no assurance that a cyber-attack, security breach, or other cybersecurity incident will not have a material adverse effect on us in the future. Our security measures are designed to protect against security breaches, but our failure to prevent security breaches could subject us to liability, decrease our profitability, and damage our reputation.

**The development and use of artificial intelligence presents risks and challenges that may adversely impact our business.**

We, or TPPs, third-party service providers, automobile dealers who participate in our programs, or other third parties with which we transact or have business relationships, may develop or incorporate AI technology in certain business processes, services, or products. The development and use of AI presents several potential risks and challenges to our business. The implementation by us of AI technologies may require significant additional investments in infrastructure, personnel, and training. There can be no assurance that such investments will yield the anticipated benefits or that we will be able to successfully integrate AI into our existing systems and processes without disruption. We may not be able to effectively implement or keep pace with evolutions in AI or other technology-driven products and services as quickly or with the same degree of success as our competitors. Failure to successfully keep pace with technological change affecting the financial services industry could harm our ability to maintain and expand our relationships with Dealers and otherwise adversely affect our business and our ability to compete successfully in the automobile finance market.

The legal and regulatory environment relating to AI is complex and rapidly evolving in the United States and includes both regulatory frameworks targeting AI specifically and other laws and regulations related to such matters as intellectual property, privacy, consumer protection, and employment, among others, applicable to the use of AI. These evolving laws and regulations could affect our approach to AI technology and any implementation of AI technology that we may pursue and could result in significant compliance costs and risk of non-compliance.

AI models may produce output or take action that is incorrect, that reflects biases included in the data on which they are trained, that results in the release of private, confidential, or proprietary information, that infringes on the intellectual property rights of others, or that is otherwise harmful. The limited transparency of AI models increases the challenges associated with assessing the proper operation of AI models, understanding and monitoring the capabilities of AI models, reducing erroneous output of AI models, eliminating bias in AI models, and complying with relevant regulations. Further, we may rely on AI models developed by third parties, and, to that extent, would be dependent in part on the manner in which those third parties develop and train their models, which could expose us to risks arising from the inclusion of any unauthorized material in the training data for their models and the effectiveness of the steps these third parties have taken to limit the risks associated with the output of their models, matters over which we may have limited visibility.

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Whether or not we are otherwise able successfully to manage the implementation of AI in our business and address the competitive challenges AI could pose to our business, any failure by TPPs, our third-party service providers, Dealers, or other third parties with which we transact or have business relationships to adhere to our AI policies, or otherwise to use AI in an appropriate manner, could result in legal or regulatory violations, jeopardize our intellectual property rights or those of other parties, or expose us to cybersecurity threats, any of which could adversely affect our business and result in our sustaining reputational, technical, or competitive harm.

Any of these risks could expose us to liability or adverse legal or regulatory consequences and harm our reputation and the public perception of our business or the effectiveness of our security measures.

***<u>Legal and Regulatory Risks</u>***

**Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.**

As a result of the consumer-oriented nature of the industry in which we operate and uncertainties with respect to the application of various laws and regulations in some circumstances, we are subject to various consumer claims, litigation, and regulatory investigations seeking damages, fines, and statutory penalties, based upon, among other things, usury, disclosure inaccuracies, wrongful repossession, violations of bankruptcy stay provisions, certificate of title disputes, fraud, and breach of contract. As the assignee of Consumer Loans originated by Dealers, we may also be named as a co-defendant in lawsuits filed by consumers principally against Dealers. We may also have disputes and litigation with Dealers. The claims may allege, among other theories of liability, that we breached the Dealer servicing agreement. We may also have disputes and litigation with vendors and other third parties. The claims may allege, among other theories of liability, that we breached a license agreement or contract. The damages, fines, and penalties that may be claimed by consumers, regulatory agencies, Dealers, vendors, or other third parties in these types of matters can be substantial. The relief requested by plaintiffs varies but may include requests for compensatory, statutory, and punitive damages and injunctive relief, and plaintiffs may seek treatment as purported class actions or they may file individual arbitration demands for which arbitration providers may request separate filing fees. A significant judgment against us in connection with any litigation or arbitration or the requirement to pay filing fees for a large number of individual arbitration demands could have a material adverse effect on our financial position, liquidity, and results of operations.

For a description of significant litigation to which we are a party, see <u>[Note 15](#i687b0c1a0c454573b67518d6a549de43_124)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

**Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.**

We are subject to income tax in many of the various jurisdictions in which we operate. Increases in statutory income tax rates and other adverse changes in applicable law in these jurisdictions could have an adverse effect on our results of operations. In the ordinary course of business, there are transactions and calculations where the ultimate tax determination is uncertain. At any one time, multiple tax years are subject to audit by various taxing jurisdictions. We provide reserves for potential payments of tax to various tax authorities related to uncertain tax positions. Please see the Critical Accounting Estimates – Uncertain Tax Positions section in Item 7 of this Form 10-K, which is incorporated herein by reference. We adjust these liabilities as a result of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. Such payments could have a material adverse effect on our results of operations and cash flows from operations.

**The regulations to which we are or may become subject could result in a material adverse effect on our business.**

Reference should be made to Item 1. Business "Regulation" for a discussion of regulatory risk factors.

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**ITEM 1B.&nbsp;&nbsp;&nbsp;&nbsp;UNRESOLVED STAFF COMMENTS**

None.

**ITEM 1C.&nbsp;&nbsp;&nbsp;&nbsp;CYBERSECURITY**

The Company partners with third-party service providers and employs processes to assess, identify, and manage material risks from cybersecurity threats arising from the use of such third-party service providers. Our latest assessment attempted to identify vulnerabilities in our network and systems from external, internal, and social engineering perspectives. Our cybersecurity practices (including with respect to third-party service providers) have been assessed to represent a level of maturity consistent with industry best practices.

Risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected the Company, including its business strategy, results of operations, and financial condition. For more information about these risks, see the disclosure under the heading "Technology and Cybersecurity Risks" in Part I, Item 1A. Risk Factors.

Our board of directors oversees the Company's risk management process, including cybersecurity risks, directly and through its committees. The audit committee of the Company's board of directors provides structured oversight of the Company's risk management program, which focuses on the most significant short-, intermediate-, and long-term risks the Company faces. The Company has an information security compliance committee (the "Committee") that consists of the members of the Company's compliance committee, which reports to our board of directors, and at least three members of Company management. The Committee is responsible for overseeing the development and upkeep of written policies and procedures aimed at safeguarding the Company's information systems and the nonpublic information stored within them. In addition, the Committee plays a crucial role in the governance of the cybersecurity risk management process. This involves collaborating with third-party industry experts and the Company's internal audit team to conduct risk assessments of the Company's information security program (the "Program"). The assessments encompass an evaluation of the Company's adherence to the Program, including the elements of the Program that are dictated by relevant laws, regulations, and the Company's information security manual. Furthermore, the Company conducts periodic cybersecurity assessments and preparedness analyses, supervised by our Vice President, Engineering – Security, Compliance, and Trust, who maintains a CRISC certification, has more than twenty years of experience in information security, risk management, and regulatory compliance in the financial services industry, and serves as our designated Chief Information Security Officer ("CISO").

At least annually, our internal audit team conducts a formal risk assessment and develops an audit plan that identifies, assesses, and prioritizes risks that include cybersecurity. The results of the risk assessment and the proposed audit plan are communicated to various leaders within the Company as well as the audit committee of our board of directors for input. The audit plan is reassessed throughout the year, and the plan is subject to modification by our internal audit team, e.g., based on such considerations as changes to resources, business operations, and internal or external risk factors. The CISO also issues an annual written report to our board of directors on the Program and material cybersecurity risks.

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The Company takes a risk-based approach to cybersecurity and has implemented cybersecurity policies throughout its operations that are designed to address cybersecurity threats and incidents. In particular, the Company has adopted and maintains written policies and procedures for the protection of Company's information systems and nonpublic information stored on those systems, which are based on the Company's risk assessment and that address all other specific topics as may be required by applicable laws and regulations. The Company requires all team members with access to any of its information systems, including contractors, to complete social engineering, cybersecurity, and compliance training programs annually.

The Program includes processes to coordinate and facilitate the implementation of information security best practices and services throughout the Company and to comply with applicable cybersecurity requirements under federal and state laws and regulations, including, but not limited to, the Gramm-Leach-Bliley Act, the Health Insurance Portability and Accountability Act of 1996, and the New York State Department of Financial Services Cybersecurity Requirements for Financial Services Companies, 23 NYCRR 500. The Program is based on the Company's risk assessment and designed to perform in accordance with applicable laws and regulations.

The Company has established and maintains a comprehensive information security incident management plan (the "Plan") that allows the Company to respond quickly and effectively to cybersecurity threats and cybersecurity incidents, including cybersecurity breaches, in accordance with applicable laws and regulations.

The Company routinely engages third-party industry experts to work in conjunction with our internal audit team in performing risk assessments of the Program and the Plan and of the Company's execution of the Program and the Plan.

The CISO, in coordination with the information security managers, is responsible for leading the assessment and management of cybersecurity risks. The Company's information security team has extensive experience in information security and previous information security work experience in several industries, including defense, manufacturing, and financial services. The CISO reports to our board of directors and senior management on cybersecurity threats.

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTIES**

Our headquarters is located in Southfield, Michigan, in an office building we purchased in 1993, which includes approximately 136,000 square feet of space. To take advantage of the national talent pool and to maximize team member satisfaction, we utilize a "remote first" strategy. While remote work has become the primary experience for most of our team members, some team members, due to the nature of their responsibilities, continue to work primarily on site at our headquarters. Additionally, we have various on-site meetings, events, and team building activities for which in-person attendance is encouraged. Therefore, we continue to have a need for office space.

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**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS**

In the normal course of business and as a result of the consumer-oriented nature of the industry in which we operate, we and other industry participants are frequently subject to various consumer claims, litigation, and regulatory investigations seeking damages, fines, and statutory penalties. The claims allege, among other theories of liability, violations of state, federal, and foreign truth-in-lending, credit availability, credit reporting, consumer protection, warranty, debt collection, insurance, and other consumer-oriented laws and regulations, including claims seeking damages under the Telephone Consumer Protection Act ("TCPA"), for alleged physical and mental harm relating to the repossession and sale of consumers' vehicles and other debt collection activities. As the assignee of Consumer Loans originated by Dealers, we may also be named as a co-defendant in lawsuits filed by consumers principally against Dealers. We may also have disputes and litigation with Dealers. The claims may allege, among other theories of liability, that we breached the Dealer servicing agreement. We may also have disputes and litigation with vendors and other third parties. The claims may allege, among other theories of liability, that we breached a license agreement or contract. The damages, fines, and penalties that may be claimed by consumers, regulatory agencies, Dealers, vendors, or other third parties in these types of matters can be substantial. The relief requested by plaintiffs varies but may include requests for compensatory, statutory, and punitive damages and injunctive relief, and plaintiffs may seek treatment as purported class actions or they may file individual arbitration demands for which arbitration providers may request separate filing fees. An adverse ultimate disposition in any action to which we are a party or otherwise subject, or the requirement to pay filing fees for a large number of individual arbitration demands, could have a material adverse impact on our financial position, liquidity, and results of operations.

For a description of significant litigation to which we are a party, see <u>[Note 15](#i687b0c1a0c454573b67518d6a549de43_124)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES**

Not applicable.

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**PART II**

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES**

**Market Information**

Our common stock is traded on The Nasdaq Global Select Market<sup>®</sup> under the symbol "CACC."

**Holders**

As of February 6, 2026, we had approximately 50 shareholders of record of our common stock.

**Stock Performance Graph**

The following graph compares the percentage change in the cumulative total shareholder return on our common stock during the five-year period ended December 31, 2025 with the cumulative total return on the NASDAQ Composite Index and a peer group index based upon approximately 100 companies included in the Dow Jones U.S. Financial Services Index. The comparison assumes that $100 was invested on December 31, 2020 in our common stock and in the foregoing indices and assumes the reinvestment of dividends.

![TRP GIF Final.gif](cacc-20251231_g1.gif)

Source: Zacks Investment Research, Inc. Used with permission. All rights reserved. Copyright 1980-2026.

Index Data: Copyright Nasdaq, Inc. Used with permission. All rights reserved.

Index Data: Copyright S&P Dow Jones Indices LLC. Used with permission. All rights reserved.

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**Stock Repurchases**

The following table summarizes our stock repurchases for the three months ended December 31, 2025:

**ISSUER PURCHASES OF EQUITY SECURITIES**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares Purchased** | | **Average Price Paid per Share (1)** | **Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)** | **Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2)** |
| October 1 through October 31, 2025 | 107303 | (3) | $462.53 | 105735 | 2055332 |
| November 1 through November 30, 2025 | 295228 | (4) | 441.25 | 294566 | 1760766 |
| December 1 through December 31, 2025 | 22274 | (5) | 443.48 |  | 1760766 |
|  | 424805 |  | 446.74 | 400301 |  |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)Average price paid per share excludes excise tax. Our share repurchases in excess of issuances are subject to a 1% excise tax, which is recognized as part of the cost basis of the shares acquired in the consolidated statements of shareholders' equity.

&nbsp;&nbsp;&nbsp;&nbsp;(2)On August 21, 2023, our board of directors authorized the repurchase by us from time to time of up to two million shares of our common stock (the "August 2023 Authorization"). The August 2023 Authorization, which was announced on August 24, 2023, does not have a specified expiration date. On September 29, 2025, our board of directors authorized the repurchase by us from time to time of up to two million shares of our common stock (the "September 2025 Authorization") in addition to the prior authorizations by our board of directors. The September 2025 Authorization, which was announced on September 30, 2025, does not have a specified expiration date. Repurchases under the August 2023 Authorization and the September 2025 Authorization may be made in the open market, through privately negotiated transactions, through block trades, pursuant to trading plans adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934 or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Includes 1,568 shares of common stock released to us by team members as payment of tax withholdings upon the settlement of restricted stock units in common stock.

&nbsp;&nbsp;&nbsp;&nbsp;(4)Includes 662 shares of common stock released to us by team members as payment of tax withholdings upon the settlement of restricted stock units in common stock.

&nbsp;&nbsp;&nbsp;&nbsp;(5)Consists of shares of common stock released to us by team members as payment of tax withholdings upon the settlement of restricted stock units in common stock and the vesting of restricted stock units.

**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;[RESERVED]**

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**ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

**Overview**

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers, regardless of their credit history. Our financing programs are 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 financing programs, but who actually end up qualifying for traditional financing.

For the year ended December 31, 2025, consolidated net income was $423.9 million, or $36.38 per diluted share, compared to $247.9 million, or $19.88 per diluted share, for the same period in 2024. The increase in consolidated net income was primarily due to a decrease in provision for credit losses and an increase in finance charges, partially offset by an increase in operating expenses. Our results for the year ended December 31, 2025 included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $8.0 billion average balance of our Loan portfolio, which represented a 5.7% increase from 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** A 12.6% and 16.5% year-over-year decline in Consumer Loan unit and dollar volumes, respectively, as compared to 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $169.5 million, or 1.5%, decrease in forecasted net cash flows from our Loan portfolio, which represented a smaller decrease compared to 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $725.4 million in the repurchase of approximately 1,514,000 shares, or 12.6% of the shares outstanding at the beginning of the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** The enrollment of 5,752 new Dealers, with 15,745 active Dealers during 2025, which is our highest ever number of active Dealers in a calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $230.8 million in Dealer Holdback and accelerated Dealer Holdback payments to Dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $74.2 million contingent loss related to previously disclosed legal matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $1.7 billion in unrestricted cash and cash equivalents and unused and available revolving lines of credit as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 12 workplace awards, including reaching #34 on Great Place to Work<sup>®</sup> and *Fortune* magazine's 100 Best Companies to Work For<sup>®</sup> list and #2 on the 2025 Top Workplaces USA list in the 1,000-2,499 employee company size category.

For the year ended December 31, 2024, consolidated net income was $247.9 million, or $19.88 per diluted share, compared to $286.1 million, or $21.99 per diluted share, for the same period in 2023. The decrease in consolidated net income was primarily due to increases in interest expense and provision for credit losses, partially offset by an increase in finance charges. Our results for the year ended December 31, 2024 included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $7.5 billion average balance of our Loan portfolio, which represented a 13.6% increase from 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** A 16.1% and 11.3% year-over-year growth in Consumer Loan unit and dollar volumes, respectively, as compared to 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $314.0 million, of 3.1%, decrease in forecasted net cash flows from our Loan portfolio, which represented a larger decrease compared to 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increase in our cost of debt from 5.5% to 7.2%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $313.3 million in the repurchase of approximately 590,000 shares, or 4.7% of the shares outstanding at the beginning of the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** The enrollment of 6,088 new Dealers, with 15,463 active Dealers during 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $300.2 million in Dealer Holdback and accelerated Dealer Holdback payments to Dealers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** $23.7 million loss during the second quarter of 2024 related to the sale of one of our two office buildings. The building was sold to reduce excess office space and eliminate the associated annual operating costs of approximately $2.1 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** 13 workplace awards, including reaching #39 on Great Place to Work<sup>®</sup> and *Fortune* magazine's 100 Best Companies to Work For<sup>®</sup> list and #9 on the 2024 Top Workplaces USA list in the 1,000-2,499 employee company size category.

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**Critical Success Factors**

Critical success factors include our ability to accurately forecast Consumer Loan performance, access capital on acceptable terms, and maintain or grow Consumer Loan volume at the level and on the terms that we anticipate, with the objective to maximize economic profit over the long term. Economic profit is a non-GAAP financial measure we use to evaluate our financial results and determine profit-sharing for team members. We also use economic profit as a framework to evaluate business decisions and strategies. Economic profit measures how efficiently we utilize our total capital, both debt and equity, and is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business.

**Consumer Loan Metrics**

At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related Dealer at a price designed to maximize economic profit.

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of December 31, 2025, with the aggregated forecasts as of December 31, 2024, as of December 31, 2023, and at the time of assignment, segmented by year of assignment:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Forecasted Collection Percentage as of (1)** | **Forecasted Collection Percentage as of (1)** | **Forecasted Collection Percentage as of (1)** | **Forecasted Collection Percentage as of (1)** | **Current Forecast Variance from** | **Current Forecast Variance from** | **Current Forecast Variance from** |
|<br>**Consumer Loan Assignment Year** | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** | **Initial<br>Forecast** | **December 31, 2024** | **December 31, 2023** | **Initial<br>Forecast** |
| 2016 | 63.9% | 63.9% | 63.8% | 65.4% | 0.0% | 0.1% | -1.5% |
| 2017 | 64.8% | 64.7% | 64.7% | 64.0% | 0.1% | 0.1% | 0.8% |
| 2018 | 65.5% | 65.5% | 65.5% | 63.6% | 0.0% | 0.0% | 1.9% |
| 2019 | 67.2% | 67.2% | 66.9% | 64.0% | 0.0% | 0.3% | 3.2% |
| 2020 | 68.0% | 67.7% | 67.6% | 63.4% | 0.3% | 0.4% | 4.6% |
| 2021 | 63.8% | 63.8% | 64.5% | 66.3% | 0.0% | -0.7% | -2.5% |
| 2022 | 59.3% | 60.2% | 62.7% | 67.5% | -0.9% | -3.4% | -8.2% |
| 2023 | 63.3% | 64.3% | 67.4% | 67.5% | -1.0% | -4.1% | -4.2% |
| 2024 | 65.3% | 66.5% |  | 67.2% | -1.2% |  | -1.9% |
| 2025 | 67.2% |  |  | 67.0% |  |  | 0.2% |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.

For the year ended December 31, 2025, forecasted collection rates improved for Consumer Loans assigned in 2020 and 2025, declined for Consumer Loans assigned in 2022 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented.

For the year ended December 31, 2024, forecasted collection rates improved for Consumer Loans assigned in 2019, declined for Consumer Loans assigned in 2021 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented.

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The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted Dealer Holdback payments) are shown in the following table:

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| | | |
|:---|:---|:---|
| (Dollars in millions) | **Decrease in Forecasted Net Cash Flows** | **Decrease in Forecasted Net Cash Flows** |
| **For the Years Ended December 31,** | **Total Loans** | **% Change from Forecast at Beginning of Period** |
| 2023 | $(206.3) | -2.3% |
| 2024 | (314.0) | -3.1% |
| 2025 | (169.5) | -1.5% |

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The decreases in forecasted net cash flows for the years ended December 31, 2025, 2024, and 2023, were composed of ordinary decreases in forecasted net cash flows and the following adjustments applied to our forecasting methodology:

During the second quarter of 2025, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2024. Consumer Loans assigned in 2024 prior to the implementation of our scorecard adjustment during the third quarter of 2024 had underperformed relative to the forecast adjustment we implemented during the second quarter of 2024. Accordingly, in the second quarter of 2025, we applied an adjustment to that segment of the Consumer Loans assigned in 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2025 reduced forecasted net cash flows by $18.6 million, or 0.2%, and increased provision for credit losses by $16.5 million.

During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024. Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters. Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022. During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics. Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2024 reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased provision for credit losses by $127.5 million.

During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. We had experienced a decrease in Consumer Loan prepayments to below-average levels and, as a result, slowed our forecasted net cash flow timing. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of the adjustment to our forecasting methodology during the second quarter of 2023 reduced forecasted net cash flows by $44.5 million, or 0.5%, and increased provision for credit losses by $71.3 million.

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The following table presents information on Consumer Loan assignments for each of the last 10 years:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Average** | **Average** | **Average** | **Total Assignment Volume** | **Total Assignment Volume** |
|<br> **Consumer Loan Assignment Year** | **Consumer Loan (1)** | **Advance (2)** | **Initial Loan Term <br>(in months)** | **Unit Volume** | **Dollar Volume (2)<br>(in millions)** |
| 2016 | $18218 | $7976 | 53 | 330710 | $2635.5 |
| 2017 | 20230 | 8746 | 55 | 328507 | 2873.1 |
| 2018 | 22158 | 9635 | 57 | 373329 | 3595.8 |
| 2019 | 23139 | 10174 | 57 | 369805 | 3772.2 |
| 2020 | 24262 | 10656 | 59 | 341967 | 3641.2 |
| 2021 | 25632 | 11790 | 59 | 268730 | 3167.8 |
| 2022 | 27242 | 12924 | 60 | 280467 | 3625.3 |
| 2023 | 27025 | 12475 | 61 | 332499 | 4147.8 |
| 2024 | 26497 | 11961 | 61 | 386126 | 4618.4 |
| 2025 | 25423 | 11428 | 60 | 337411 | 3856.1 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program. Payments of Dealer Holdback and accelerated Dealer Holdback are not included.

The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at Loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of December 31, 2025, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both Dealer Loans and Purchased Loans.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Forecasted Collection % as of** | **Forecasted Collection % as of** | | **Spread % as of** | **Spread % as of** | |
|<br>**Consumer Loan Assignment Year** | **December 31, 2025** | **Initial Forecast** |<br>**Advance % (1)** | **December 31, 2025** | **Initial Forecast** |<br>**% of Forecast<br>Realized (2)** |
| 2016 | 63.9% | 65.4% | 43.8% | 20.1% | 21.6% | 99.7% |
| 2017 | 64.8% | 64.0% | 43.2% | 21.6% | 20.8% | 99.6% |
| 2018 | 65.5% | 63.6% | 43.5% | 22.0% | 20.1% | 99.3% |
| 2019 | 67.2% | 64.0% | 44.0% | 23.2% | 20.0% | 98.6% |
| 2020 | 68.0% | 63.4% | 43.9% | 24.1% | 19.5% | 96.9% |
| 2021 | 63.8% | 66.3% | 46.0% | 17.8% | 20.3% | 92.5% |
| 2022 | 59.3% | 67.5% | 47.4% | 11.9% | 20.1% | 81.7% |
| 2023 | 63.3% | 67.5% | 46.2% | 17.1% | 21.3% | 65.3% |
| 2024 | 65.3% | 67.2% | 45.1% | 20.2% | 22.1% | 43.5% |
| 2025 | 67.2% | 67.0% | 45.0% | 22.2% | 22.0% | 15.2% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program as a percentage of the initial balance of the Consumer Loans. Payments of Dealer Holdback and accelerated Dealer Holdback are not included.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Presented as a percentage of total forecasted collections.

------

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2021 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate as of December 31, 2025 and the advance rate ranges from 11.9% to 24.1% for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spreads with respect to 2022 and 2023 Consumer Loans have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2025 Consumer Loans relative to 2024 Consumer Loans as of December 31, 2025 was primarily a result of Consumer Loan performance, as the performance of 2025 Consumer Loans has exceeded our initial estimates while the performance of 2024 Consumer Loans has been lower than our initial estimates.

The following table compares our forecast of aggregate Consumer Loan collection rates as of December 31, 2025 with the forecasts at the time of assignment, for Dealer Loans and Purchased Loans separately:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Dealer Loans** | **Dealer Loans** | **Dealer Loans** | **Purchased Loans** | **Purchased Loans** | **Purchased Loans** |
| | **Forecasted Collection Percentage as of (1)** | **Forecasted Collection Percentage as of (1)** | | **Forecasted Collection Percentage as of (1)** | **Forecasted Collection Percentage as of (1)** | |
|<br> **Consumer Loan Assignment Year** | **December 31, 2025** | **Initial <br>Forecast** |<br>**Variance** | **December 31, 2025** | **Initial <br>Forecast** |<br>**Variance** |
| 2016 | 63.2% | 65.1% | -1.9% | 66.2% | 66.5% | -0.3% |
| 2017 | 64.1% | 63.8% | 0.3% | 66.4% | 64.6% | 1.8% |
| 2018 | 64.9% | 63.6% | 1.3% | 66.8% | 63.5% | 3.3% |
| 2019 | 66.9% | 63.9% | 3.0% | 67.9% | 64.2% | 3.7% |
| 2020 | 67.8% | 63.3% | 4.5% | 68.4% | 63.6% | 4.8% |
| 2021 | 63.6% | 66.3% | -2.7% | 64.4% | 66.3% | -1.9% |
| 2022 | 58.5% | 67.3% | -8.8% | 61.3% | 68.0% | -6.7% |
| 2023 | 62.1% | 66.8% | -4.7% | 66.8% | 69.4% | -2.6% |
| 2024 | 64.1% | 66.3% | -2.2% | 69.9% | 70.7% | -0.8% |
| 2025 | 65.7% | 65.5% | 0.2% | 71.9% | 71.5% | 0.4% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The forecasted collection rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.

------

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of December 31, 2025 for Dealer Loans and Purchased Loans separately. All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Dealer Loans** | **Dealer Loans** | **Dealer Loans** | **Purchased Loans** | **Purchased Loans** | **Purchased Loans** |
|<br> **Consumer Loan Assignment Year** | **Forecasted Collection % (1)** | **Advance % (1)(2)** | **Spread %** | **Forecasted Collection % (1)** | **Advance % (1)(2)** | **Spread %** |
| 2016 | 63.2% | 42.1% | 21.1% | 66.2% | 48.6% | 17.6% |
| 2017 | 64.1% | 42.1% | 22.0% | 66.4% | 45.8% | 20.6% |
| 2018 | 64.9% | 42.7% | 22.2% | 66.8% | 45.2% | 21.6% |
| 2019 | 66.9% | 43.1% | 23.8% | 67.9% | 45.6% | 22.3% |
| 2020 | 67.8% | 43.0% | 24.8% | 68.4% | 45.5% | 22.9% |
| 2021 | 63.6% | 45.1% | 18.5% | 64.4% | 47.7% | 16.7% |
| 2022 | 58.5% | 46.4% | 12.1% | 61.3% | 50.1% | 11.2% |
| 2023 | 62.1% | 44.8% | 17.3% | 66.8% | 49.8% | 17.0% |
| 2024 | 64.1% | 44.1% | 20.0% | 69.9% | 48.9% | 21.0% |
| 2025 | 65.7% | 43.2% | 22.5% | 71.9% | 50.4% | 21.5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)The forecasted collection rates and advance rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program as a percentage of the initial balance of the Consumer Loans. Payments of Dealer Holdback and accelerated Dealer Holdback are not included.

Although the advance rate on Purchased Loans is higher as compared to the advance rate on Dealer Loans, Purchased Loans do not require us to pay Dealer Holdback.

The spread as of December 31, 2025 on 2025 Dealer Loans was 22.5%, as compared to a spread of 20.0% on 2024 Dealer Loans. The increase was primarily a result of Consumer Loan performance, as the performance of 2025 Dealer Loans has exceeded our initial estimates while the performance of 2024 Dealer Loans has been lower than our initial estimates.

The spread as of December 31, 2025 on 2025 Purchased Loans was 21.5%, as compared to a spread of 21.0% on 2024 Purchased Loans, reflecting the net impact of two offsetting factors. Consumer Loan performance increased the spread from 2024 to 2025, as the performance of 2025 Purchased Loans has exceeded our initial estimates while the performance of 2024 Purchased Loans has been lower than our initial estimates. This impact of Consumer Loan performance was partially offset by the impact of a lower initial spread on 2025 Purchased Loans, due to the advance rate increasing by a greater margin than the initial forecast in our Purchased Loan portfolio.

**Access to Capital**

Our strategy for accessing capital on acceptable terms needed to maintain and grow the business is to: (1) maintain consistent financial performance; (2) maintain modest financial leverage; and (3) maintain multiple funding sources. Our funded debt to equity ratio was 4.2 to 1 as of December 31, 2025. We currently utilize the following primary forms of debt financing: (1) our revolving secured line of credit facility; (2) Warehouse facilities; (3) Term ABS financings; and (4) senior notes.

------

**Consumer Loan Volume**

The following table summarizes changes in Consumer Loan assignment volume in each of the last three years as compared to the same period in the previous year:

---

| | | |
|:---|:---|:---|
| | **Year over Year Percent Change** | **Year over Year Percent Change** |
|<br>**For the Year Ended December 31,** | **Unit Volume** | **Dollar Volume (1)** |
| 2023 | 18.6% | 14.4% |
| 2024 | 16.1% | 11.3% |
| 2025 | -12.6% | -16.5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program. Payments of Dealer Holdback and accelerated Dealer Holdback are not included.

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs and (2) the amount of capital available to fund new Loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

During 2025, unit and dollar volumes declined 12.6% and 16.5%, respectively, as the number of active Dealers increased 1.8% while average unit volume per active Dealer declined 14.4%. Dollar volume declined by more than unit volume in 2025 primarily due to a decrease in the average size of Consumer Loans assigned, which resulted in a decrease in the average advance paid.

During 2024, unit and dollar volumes increased 16.1% and 11.3%, respectively, as the number of active Dealers increased 9.1% while average volume per active Dealer increased 6.4%. Dollar volume increased less than unit volume in 2024 due to decreases in the average advance rate and the average size of Consumer Loans assigned, which resulted in a decrease in the average advance paid. Unit volume for 2024 was the highest unit volume in our history.

The following table summarizes the changes in Consumer Loan unit volume and active Dealers:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2024** | **% Change** | **2024** | **2023** | **% Change** |
| Consumer Loan unit volume | 337411 | 386126 | -12.6% | 386126 | 332499 | 16.1% |
| Active Dealers (1) | 15745 | 15463 | 1.8% | 15463 | 14174 | 9.1% |
| Average volume per active Dealer | 21.4 | 25.0 | -14.4% | 25.0 | 23.5 | 6.4% |
| Consumer Loan unit volume from Dealers active both periods | 300460 | 350638 | -14.3% | 339361 | 304779 | 11.3% |
| Dealers active both periods | 10938 | 10938 |  | 10637 | 10637 |  |
| Average volume per Dealer active both periods | 27.5 | 32.1 | -14.3% | 31.9 | 28.7 | 11.3% |
| Consumer Loan unit volume from Dealers <u>not</u> active both periods  | 36951 | 35488 | 4.1% | 46765 | 27720 | 68.7% |
| Dealers <u>not</u> active both periods | 4807 | 4525 | 6.2% | 4826 | 3537 | 36.4% |
| Average volume per Dealer <u>not</u> active both periods | 7.7 | 7.8 | -1.3% | 9.7 | 7.8 | 24.4% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Active Dealers are Dealers who have received funding for at least one Consumer Loan during the period.

------

The following table provides additional information on the changes in Consumer Loan unit volume and active Dealers:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2024** | **% Change** | **2024** | **2023** | **% Change** |
| Consumer Loan unit volume from new active Dealers | 35018 | 43985 | -20.4% | 43985 | 46741 | -5.9% |
| New active Dealers (1) | 4285 | 4330 | -1.0% | 4330 | 4070 | 6.4% |
| Average volume per new active Dealer | 8.2 | 10.2 | -19.6% | 10.2 | 11.5 | -11.3% |
| Attrition (2) | -9.2% | -8.3% |  | -8.3% | -7.3% |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)New active Dealers are Dealers who enrolled in our program and have received funding for their first Loan from us during the period.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from Dealers who have received funding for at least one Loan during the comparable period of the prior year but did not receive funding for any Loans during the current period divided by prior year comparable period Consumer Loan unit volume.

Consumer Loans are assigned to us as either Dealer Loans through the Portfolio Program or Purchased Loans through the Purchase Program. The following table shows the percentage of Consumer Loans assigned to us under each of the programs for each of the last three years:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Unit Volume** | **Unit Volume** | **Dollar Volume (1)** | **Dollar Volume (1)** |
|<br>**For the Years Ended December 31,** | **Portfolio Program** | **Purchase Program** | **Portfolio Program** | **Purchase Program** |
| 2023 | 74.0% | 26.0% | 70.7% | 29.3% |
| 2024 | 78.7% | 21.3% | 77.5% | 22.5% |
| 2025 | 74.2% | 25.8% | 71.7% | 28.3% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program. Payments of Dealer Holdback and accelerated Dealer Holdback are not included.

As of December 31, 2025 and 2024, the net Dealer Loans receivable balance was 72.1% and 72.3%, respectively, of the total net Loans receivable balance.

**Results of Operations**

The following is a discussion of our 2025 and 2024 results of operations and income statement data on a consolidated basis, including year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

The net Loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a Loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the Dealer. We believe the economics of our business are best exhibited by recognizing net Loan income on a level-yield basis over the life of the Loan based on expected future net cash flows. Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a significant provision for credit losses expense at the time of the Loan's assignment to us for contractual net cash flows we do not expect to realize; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. For additional information, see <u>[Note 2](#i687b0c1a0c454573b67518d6a549de43_85)</u> and <u>[Note 5](#i687b0c1a0c454573b67518d6a549de43_94)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

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***Year Ended December 31, 2025 Compared to Year Ended December 31, 2024***

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| | | | | |
|:---|:---|:---|:---|:---|
| (Dollars in millions, except per share data) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **Revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance charges | $2141.8 | $1992.7 | $149.1 | 7.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums earned | 95.6 | 96.1 | (0.5) | -0.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 79.8 | 73.6 | 6.2 | 8.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 2317.2 | 2162.4 | 154.8 | 7.2% |
| **Costs and expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and wages | 337.1 | 309.2 | 27.9 | 9.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 161.4 | 97.9 | 63.5 | 64.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 101.4 | 94.4 | 7.0 | 7.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 599.9 | 501.5 | 98.4 | 19.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses on forecast changes | 338.3 | 493.8 | (155.5) | -31.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses on new Consumer Loan assignments | 277.8 | 320.9 | (43.1) | -13.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision for credit losses | 616.1 | 814.7 | (198.6) | -24.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 462.9 | 419.5 | 43.4 | 10.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for claims | 71.7 | 73.5 | (1.8) | -2.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 1.2 |  | 1.2 | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of building |  | 23.7 | (23.7) | -100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 1751.8 | 1832.9 | (81.1) | -4.4% |
| Income before provision for income taxes | 565.4 | 329.5 | 235.9 | 71.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 141.5 | 81.6 | 59.9 | 73.4% |
| Net income | $423.9 | $247.9 | $176.0 | 71.0% |
| Net income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $37.02 | $20.12 | $16.90 | 84.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $36.38 | $19.88 | $16.50 | 83.0% |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 11451578 | 12323261 | (871683) | -7.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 11650773 | 12469283 | (818510) | -6.6% |

---

*Finance Charges.* The increase of $149.1 million, or 7.5%, was the result of increases in the average net Loans receivable balance and the average yield on our Loan portfolio, as follows:

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| | | | |
|:---|:---|:---|:---|
| (Dollars in millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **Change** |
| Average net Loans receivable balance | $7956.3 | $7530.7 | $425.6 |
| Average yield on our Loan portfolio | 26.9% | 26.5% | 0.4% |

---

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The following table summarizes the impact each component had on the overall increase in finance charges for the year ended December 31, 2025:

---

| | |
|:---|:---|
| (In millions)<br>**Impact on finance charges:** | **For the Year Ended December 31, 2025** |
| Due to an increase in the average net Loans receivable balance | $112.6 |
| Due to an increase in the average yield | 36.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total increase in finance charges | $149.1 |

---

The increase in the average net Loans receivable balance was primarily due to the dollar volume of new Consumer Loan assignments exceeding the principal collected on Loans receivable. The increase in the average yield of our Loan portfolio was primarily due to higher contractual yields on more recent Consumer Loan assignments.

*Operating Expenses*. The increase of $98.4 million, or 19.6%, was primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increase in general and administrative expense of $63.5 million, or 64.9%, primarily due to an increase in legal expenses, which included a $74.2 million contingent loss recognized during 2025, compared to a $8.4 million contingent loss recognized during 2024, both related to previously disclosed legal matters as to which we have recognized cumulative contingent losses of $82.6 million through 2025. The cumulative amount reflects, among other things, preliminary alignment between us and representatives of the agencies involved in the previously disclosed multi-state and New York Attorney General legal matters on certain material terms of a potential settlement of those legal matters, including a potential cash payment by us of $75.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An increase in salaries and wages expense of $27.9 million, or 9.0%, primarily due to increases in (i) the number of team members in Engineering as we are investing in our business with the goal of increasing the speed at which we enhance our product for Dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.

*Provision for Credit Losses*. The decrease of $198.6 million, or 24.4%, was primarily due to a decrease in provision for credit losses on forecast changes.

We recognize provision for credit losses on new Consumer Loan assignments for contractual net cash flows that are not expected to be realized at the time of assignment. We also recognize provision for credit losses on forecast changes in the amount and timing of expected future net cash flows subsequent to assignment. The following table summarizes the provision for credit losses for each of these components:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| **Provision for Credit Losses** | **2025** | **2024** | **Change** |
| Forecast changes | $338.3 | $493.8 | $(155.5) |
| New Consumer Loan assignments | 277.8 | 320.9 | (43.1) |
| Total | $616.1 | $814.7 | $(198.6) |

---

The decrease in provision for credit losses related to forecast changes was primarily due to a smaller decline in Consumer Loan performance during 2025 compared to 2024.

During 2025, we decreased our estimate of future net cash flows by $169.5 million, or 1.5%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect lower-than-expected Consumer Loan prepayments, which remained below historical averages. The $169.5 million decrease in forecasted net cash flows for the year ended December 31, 2025 was composed of an ordinary decrease in forecasted net cash flows of $150.9 million, or 1.3%, and an adjustment applied to our forecasting methodology, which upon implementation, reduced forecasted net cash flows by $18.6 million, or 0.2%, and increased our provision for credit losses by $16.5 million. Consumer Loans assigned in 2024 prior to the implementation of our scorecard adjustment during the third quarter of 2024 had underperformed relative to the forecast adjustment we implemented during the second quarter of 2024. Accordingly, during the second quarter of 2025, we applied an adjustment to that segment of the Consumer Loans assigned in 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends.

------

During 2024, we decreased our estimate of future net cash flows by $314.0 million, or 3.1%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments, which remained below historical averages. The $314.0 million decrease in forecasted net cash flows for the year ended December 31, 2024 was composed of an ordinary decrease in forecasted net cash flows of $166.8 million, or 1.7%, and an adjustment applied to our forecasting methodology during the second quarter of 2024, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased our provision for credit losses by $127.5 million. Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters. Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022. During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics. Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends.

For additional information, see <u>[Note 5](#i687b0c1a0c454573b67518d6a549de43_94)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

The decrease in provision for credit losses related to new Consumer Loan assignments was primarily due to a 12.6% decrease in Consumer Loan assignment unit volume.

*Interest.* The increase in interest expense of $43.4 million, or 10.3%, was primarily due to an increase in our average outstanding debt balance.

The following table presents the change in interest expense, average outstanding debt balance, and average cost of debt for the year ended December 31, 2025 as compared to the year ended December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
| (Dollars in millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **Change** |
| Interest expense | $462.9 | $419.5 | $43.4 |
| Average outstanding debt balance | 6448.9 | 5849.7 | 599.2 |
| Average cost of debt | 7.2% | 7.2% | —% |

---

*Loss on Sale of Building.* For the year ended December 31, 2024, we recognized a loss on the sale of a building of $23.7 million. For additional information, see <u>[Note 6](#i687b0c1a0c454573b67518d6a549de43_97)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

*Provision for Income Taxes.* For the year ended December 31, 2025, the effective income tax rate increased to 25.0% from 24.8% as compared with the year ended December 31, 2024. The increase was primarily due to an increase in state income taxes due to a revision of deferred tax estimates during 2025 and a reduction in excess tax benefits due to an increase in pre-tax income in 2025, partially offset by a decrease in non-deductible executive compensation expense.

For additional information, see <u>[Note 10](#i687b0c1a0c454573b67518d6a549de43_109)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

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**Critical Accounting Estimates**

Our consolidated financial statements are prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we review our accounting policies, assumptions, estimates, and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP.

Our significant accounting policies are discussed in <u>[Note 2](#i687b0c1a0c454573b67518d6a549de43_85)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. We believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results, and involve a high degree of subjective or complex judgment, and the use of different estimates or assumptions could produce materially different financial results.

<u>Finance Charge Revenue & Allowance for Credit Losses</u>

*Nature of Estimates Required.* We estimate the amount and timing of future collections and Dealer Holdback payments. These estimates impact Loans receivable and allowance for credit losses on our balance sheet and finance charges and provision for credit losses on our income statement.

*Assumptions and Approaches Used.* On January 1, 2020, we adopted Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, which is known as the current expected credit loss model, or CECL. For additional information regarding the adoption impact of CECL, see <u>[Note 2](#i687b0c1a0c454573b67518d6a549de43_85)</u> and <u>[Note 5](#i687b0c1a0c454573b67518d6a549de43_94)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

We recognize finance charges under the interest method such that revenue is recognized on a level-yield basis over the life of the Loan. We calculate finance charges on a monthly basis by applying the effective interest rate of the Loan to the net carrying amount of the Loan (Loan receivable less the related allowance for credit losses). For Consumer Loans assigned on or subsequent to January 1, 2020, the effective interest rate is based on contractual future net cash flows. Consumer Loans assigned prior to January 1, 2020 are no longer material to our consolidated financial statements.

The outstanding balance of the allowance for credit losses of each Loan represents the amount required to reduce the net carrying amount of Loans (Loans receivable less allowance for credit losses) to the present value of expected future net cash flows discounted at the effective interest rate. Expected future net cash flows for Dealer Loans are comprised of expected future collections on the assigned Consumer Loans, less any expected future Dealer Holdback payments. Expected future net cash flows for Purchased Loans are comprised of expected future collections on the assigned Consumer Loans.

Expected future collections are forecasted for each individual Consumer Loan based on the historical performance of Consumer Loans with similar characteristics, adjusted for recent trends in payment patterns. Our forecast of expected future collections includes estimates for prepayments and post-contractual-term cash flows. Unless the consumer is no longer contractually obligated to pay us, we forecast future collections on each Consumer Loan for a 120 month period after the origination date. Expected future Dealer Holdback payments are forecasted for each individual Dealer based on the expected future collections and current advance balance of each Dealer Loan.

We monitor and evaluate Consumer Loan performance on a monthly basis by comparing our current forecasted collection rates to our initial expectations. We use a statistical model that considers a number of credit quality indicators to estimate the expected collection rate for each Consumer Loan at the time of assignment. The credit quality indicators considered in our model include attributes contained in the consumer's credit bureau report, data contained in the consumer's credit application, the structure of the proposed transaction, vehicle information, and other factors. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. Since all known, significant credit quality indicators have already been factored into our forecasts and pricing, we are not able to use any specific credit quality indicators to predict or explain variances in actual performance from our initial expectations. Any variances in performance from our initial expectations are the result of Consumer Loans performing differently from historical Consumer Loans with similar characteristics. We periodically adjust our statistical pricing model for new trends that we identify through our evaluation of these forecasted collection rate variances.

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During the second quarter of 2025, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2024. Consumer Loans assigned in 2024 prior to the implementation of our scorecard adjustment during the third quarter of 2024 had underperformed relative to the forecast adjustment we implemented during the second quarter of 2024. Accordingly, in the second quarter of 2025, we applied an adjustment to that segment of the Consumer Loans assigned in 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2025 reduced forecasted net cash flows by $18.6 million, or 0.2%, and increased provision for credit losses by $16.5 million.

During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024. Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters. Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022. During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics. Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2024 reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased provision for credit losses by $127.5 million.

During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. We had experienced a decrease in Consumer Loan prepayments to below-average levels and, as a result, slowed our forecasted net cash flow timing. The below-average levels of Consumer Loan prepayments continued through the fourth quarter of 2023. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of the adjustment to our forecasting methodology during the second quarter of 2023 reduced forecasted net cash flows by $44.5 million, or 0.5%, and increased provision for credit losses by $71.3 million.

Our provision for credit losses for the year ended December 31, 2025, included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $277.8 million provision for credit losses on new Consumer Loan assignments, which reduced consolidated net income by $208.4 million, or $17.89 per diluted share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $338.3 million provision for credit losses on forecast changes related to changes in the amount and timing of expected future net cash flows, which reduced consolidated net income by $253.7 million, or $21.78 per diluted share.

Our provision for credit losses for the year ended December 31, 2024, included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $320.9 million provision for credit losses on new Consumer Loan assignments, which reduced consolidated net income by $247.1 million, or $19.82 per diluted share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $493.8 million provision for credit losses on forecast changes related to changes in the amount and timing of expected future net cash flows, which reduced consolidated net income by $380.2 million, or $30.49 per diluted share.

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*Key Factors.* Variances in the amount and timing of future net cash flows from current estimates could materially impact earnings in future periods. A 1% decline in the forecasted future net cash flows on Loans as of December 31, 2025 would have reduced 2025 consolidated net income by approximately $56.4 million.

During periods of economic slowdown or recession, delinquencies, defaults, repossessions, and losses may increase on our Consumer Loans, and Consumer Loan prepayments, which historically have been lower in periods with less availability of consumer credit, may decline. These periods are also typically accompanied by decreased consumer demand for automobiles and declining values of automobiles securing outstanding Consumer Loans, which weakens collateral coverage and increases the amount of a loss in the event of default. Significant increases in the inventory of used automobiles during periods of economic recession may also depress the prices at which repossessed automobiles may be sold or delay the timing of these sales. Additionally, inflation, higher gasoline prices, the deferral or resumption of student loan payments, increased focus on climate-related initiatives and regulation, declining stock market values, unstable real estate values, resets of adjustable rate mortgages to higher interest rates, increasing unemployment levels, general availability of consumer credit, tariffs, or other factors that impact consumer confidence or disposable income could increase loss frequency and decrease consumer demand for automobiles as well as weaken collateral values of automobiles. Because our business is focused on consumers who do not qualify for conventional automobile financing, the actual rates of delinquencies, defaults, repossessions, and losses on our Consumer Loans could be higher than those experienced in the general automobile finance industry and could be more dramatically affected by a general economic downturn.

<u>Premiums Earned</u>

*Nature of Estimates Required.* We estimate the pattern of future claims on vehicle service contracts. These estimates impact accounts payable and accrued liabilities on our balance sheet and premiums earned on our income statement.

*Assumptions and Approaches Used.* Premiums from the reinsurance of vehicle service contracts are recognized over the life of the policy in proportion to the expected costs of servicing those contracts. Expected costs are determined based on our historical claims experience. In developing our cost expectations, we stratify our historical claims experience into groupings based on contractual term, as this characteristic has led to different patterns of cost incurrence in the past. We will continue to update our analysis of historical costs under the vehicle service contract program as appropriate, including the consideration of other characteristics that may have led to different patterns of cost incurrence, and revise our revenue recognition timing for any changes in the pattern of our expected costs as they are identified.

*Key Factors.* Variances in the pattern of future claims from our current estimates would impact the timing of premiums recognized in future periods. A 10% change in premiums earned for the year ended December 31, 2025 would have affected 2025 consolidated net income by approximately $7.2 million.

<u>Contingencies</u>

*Nature of Estimates Required.* We estimate the likelihood of adverse judgments against us and any resulting damages, fines, or statutory penalties owed. These estimates impact accounts payable and accrued liabilities on our balance sheet and are general and administrative expenses on our income statement.

*Assumptions and Approaches Used.* With assistance from our legal counsel, we determine if the likelihood of an adverse judgment for various claims, litigation, and regulatory investigations is remote, reasonably possible, or probable. To the extent we believe an adverse judgment is probable and the amount of the judgment is estimable, we recognize a liability. For information regarding current actions to which we are a party, see <u>[Note 15](#i687b0c1a0c454573b67518d6a549de43_124)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

*Key Factors.* Negative variances in the ultimate disposition of claims and litigation outstanding from current estimates could result in additional expense in future periods.

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<u>Uncertain Tax Positions</u>

*Nature of Estimates Required.* We estimate the impact of an uncertain income tax position on the income tax return. These estimates impact income taxes receivable and accounts payable and accrued liabilities on our balance sheet and provision for income taxes on our income statement.

*Assumptions and Approaches Used.* We follow a two-step approach for recognizing uncertain tax positions. First, we evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more-likely-than-not that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. Second, for positions that we determine are more-likely-than-not to be sustained, we recognize the tax benefit as the largest benefit that has a greater than 50% likelihood of being sustained. We establish a reserve for uncertain tax positions liability that is comprised of unrecognized tax benefits and related interest. We adjust this liability in the period in which an uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position, or more information becomes available.

*Key Factors.* To the extent we prevail in matters for which a liability has been established or are required to pay amounts in excess of our established liability, our effective income tax rate in future periods could be materially affected.

**Liquidity and Capital Resources**

We need capital to maintain and grow our business. Our primary sources of capital are cash flows from operating activities, collections of Consumer Loans, and borrowings under: (1) our revolving secured line of credit facility; (2) Warehouse facilities; (3) Term ABS financings; and (4) senior notes. There are various restrictive covenants to which we are subject under each financing arrangement, and we were in compliance with those covenants as of December 31, 2025. For information regarding these financings and the covenants included in the related documents, see <u>[Note 9](#i687b0c1a0c454573b67518d6a549de43_106)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

We endeavor to run our business conservatively, with a large margin of safety in Loan pricing in the aggregate, low leverage on the balance sheet, and significant unused availability on our revolving credit facilities. Our forecasting models have performed best during relatively stable economic periods but have been less accurate during periods of volatility like we have experienced in recent years. Since forecasting collection rates is challenging, our business model is designed to produce acceptable returns in the aggregate even if Loan performance is worse than forecasted. When needed, we have made adjustments to our forecasts on both new and existing Loans, and our recent forecasts incorporate underperformance of post-pandemic vintages. We have also reduced advance rates to the Dealer on more recent vintages, which we believe increases the margin of safety in our business. Based on our estimates as of December 31, 2025 , total forecasted collections for the portfolio were $12.2 billion, which provides $4.5 billion of cushion to our lenders after considering $1.3 billion of estimated interest and operating expenses and $6.4 billion of outstanding debt.

Since 1998, we have completed 60 term securitizations totaling $17.1 billion of debt issued. We believe our securitization trusts contain a significant margin of safety for investors, including structural features such as overcollateralization, subordination, and reserve accounts to protect our investors against credit risk. Our securitization trusts have paid timely interest and principal of all maturing securities in full and have never experienced an early amortization event, event of default, or other adverse event that would cause early or late repayment. Our securitization transactions are generally structured to withstand a 35% decline in the forecasted collection rate before the most junior bond is at risk of taking a principal loss. Accordingly, we believe future net cash flows from collateral securing our outstanding securitization debt are more than sufficient to repay all future obligations of our outstanding securitization trusts.

On February 28, 2025, we issued $500.0 million of 6.625% senior notes due 2030 (the "2030 senior notes"). We used a portion of the net proceeds from the 2030 senior notes to redeem all of the $400.0 million outstanding principal amount of our 6.625% senior notes due 2026 (the "2026 senior notes"). We used the remaining net proceeds from the 2030 senior notes for general corporate purposes. During the first quarter of 2025, we recognized a pre-tax loss on extinguishment of debt of $1.2 million related to the redemption of the 2026 senior notes.

On March 27, 2025, we completed a $400.0 million Term ABS financing, which was used to repay outstanding indebtedness and for general corporate purposes. The financing has an expected average annualized cost of 5.6% (including upfront fees and other costs), and it will revolve for 24 months, after which it will amortize based upon the cash flows on the underlying Loans.

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On June 24, 2025, we extended the maturity of our revolving secured line of credit facility from June 22, 2027 to June 22, 2028.

On July 11, 2025, we extended the date on which our $75.0 million Warehouse Facility VI will cease to revolve from September 30, 2026 to September 30, 2028. The interest rate on borrowings under the facility was decreased from the Secured Overnight Financing Rate ("SOFR") plus 210 basis points to SOFR plus 185 basis points. The servicing fee was also decreased from 6.0% to 4.0% of collections on the underlying consumer loans.

On July 30, 2025, we extended the date on which our $300.0 million Warehouse Facility IV will cease to revolve from December 29, 2026 to July 30, 2028. The interest rate on borrowings under the facility was decreased from the Secured Overnight Financing Rate plus 221.4 basis points to SOFR plus 205 basis points.

On September 19, 2025, we extended the date on which our $200.0 million Warehouse Facility VIII will cease to revolve from September 21, 2026 to September 19, 2028. The interest rate on borrowings under the facility was decreased from SOFR plus 225 basis points to SOFR plus 185 basis points.

On November 13, 2025, we completed a $500.0 million Term ABS financing, which was used to repay outstanding indebtedness and for general corporate purposes. The financing has an expected average annualized cost of 5.1% (including upfront fees and other costs), and it will revolve for 24 months, after which it will amortize based upon the cash flows on the underlying Loans.

On January 15, 2026, we extended the date on which our $100.0 million Term ABS 2021-1 financing will cease to revolve from February 17, 2026 to January 18, 2028. The interest rate on borrowings under the financing was decreased from SOFR plus 220 basis points to SOFR plus 140 basis points.

Cash and cash equivalents decreased to $22.8 million as of December 31, 2025 from $343.7 million as of December 31, 2024. As of December 31, 2025 and December 31, 2024, we had $1,627.7 million and $1,734.9 million, respectively, in unused and available lines of credit. Our total balance sheet indebtedness as of December 31, 2025 and 2024 was $6,353.9 million and $6,352.9 million, respectively.

A summary as of December 31, 2025 of our material financial obligations requiring future repayments is as follows:

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| | | | |
|:---|:---|:---|:---|
| (In millions) | **Payments Due as of December 31, 2025** | **Payments Due as of December 31, 2025** | **Payments Due as of December 31, 2025** |
|  | **In less than <br>12 months** | **In 12 months <br>or more** | **Total** |
| Long-term debt, including current maturities (1) | $2181.4 | $4206.5 | $6387.9 |
| Dealer Holdback (2) | 88.2 | 493.7 | 581.9 |
| Operating lease obligations (3) | 1.3 | 1.2 | 2.5 |
| Purchase obligations (4) | 5.2 | 18.7 | 23.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total financial obligations | $2276.1 | $4720.1 | $6996.2 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)The amounts presented consist solely of principal and do not reflect deferred debt issuance costs of $33.9 million and unamortized debt discount of $0.1 million. We are also obligated to make interest payments at the applicable interest rates, as discussed in <u>[Note 9](#i687b0c1a0c454573b67518d6a549de43_106)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference. Based on the actual principal amounts outstanding under our revolving secured line of credit facility, our Warehouse facilities, our Term ABS financings, and our senior notes as of December 31, 2025, the forecasted principal amounts outstanding on all other debt, and the actual interest rates in effect as of December 31, 2025, interest is expected to be approximately $350.8 million during 2026; $208.7 million during 2027; and $164.6 million during 2028 and thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;(2)We have contractual obligations to pay Dealer Holdback to Dealers. Payments of Dealer Holdback are contingent upon the receipt of consumer payments and the repayment of advances. The amounts presented represent our forecast as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(3)A lease liability of $2.1 million is recognized within accounts payable and accrued liabilities in our consolidated balance sheet as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(4)Purchase obligations consist primarily of contractual obligations related to our information system needs.

Based upon anticipated cash flows, management believes that cash flows from operations and our various financing alternatives will provide sufficient financing for debt maturities and for future operations. Our ability to borrow funds may be impacted by economic and financial market conditions. If the various financing alternatives were to become limited or unavailable to us, our operations and liquidity could be materially and adversely affected.

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**Market Risk**

We are exposed primarily to market risks associated with movements in interest rates. Our policies and procedures prohibit the use of financial instruments for speculative purposes.

*Interest Rate Risk.* We rely on various sources of financing, some of which contain floating rates of interest and expose us to risks associated with increases in interest rates. Assuming that we maintain a level amount of floating rate debt, an increase in interest rates may result in higher interest expense for our floating rate debt facilities. From time to time, we may manage that risk through the use of derivatives such as interest rate caps.

As of December 31, 2025, we had $107.3 million of floating rate debt outstanding under our revolving secured lines of credit, without interest rate protection. For every 100-basis-point increase in interest rates on our revolving secured lines of credit, annual after-tax earnings would decrease by approximately $0.8 million, assuming we maintain a level amount of floating rate debt.

As of December 31, 2025, we had an interest rate cap agreement outstanding to manage the interest rate risk on Warehouse Facility V. However, as of December 31, 2025, there was no floating rate debt outstanding under this facility.

As of December 31, 2025, we did not have a balance outstanding under Warehouse Facility II, Warehouse Facility IV, Warehouse Facility VI, and Warehouse VIII, which do not have interest rate protection.

As of December 31, 2025, we had $100.0 million in floating rate debt outstanding under Term ABS 2021-1, without interest rate protection. For every 100-basis-point increase in interest rates on Term ABS 2021-1, annual after-tax earnings would decrease by approximately $0.8 million, assuming we maintain a level amount of floating rate debt.

As of December 31, 2025, we had $300.0 million in floating rate debt outstanding under Term ABS 2022-2, without interest rate protection. For every 100-basis-point increase in interest rates on Term ABS 2022-2, annual after-tax earnings would decrease by approximately $2.3 million, assuming we maintain a level amount of floating rate debt.

**New Accounting Updates Not Yet Adopted**

See <u>[Note 2](#i687b0c1a0c454573b67518d6a549de43_85)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference, for information concerning the following new accounting updates and the impact of the implementation of these updates on our financial statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disaggregation of Income Statement Expenses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Targeted Improvements to the Accounting for Internal-Use Software

**Forward-Looking Statements**

We make forward-looking statements in this report and may make such statements in future filings with the SEC. We may also make forward-looking statements in our press releases or other public or shareholder communications. Our forward-looking statements are subject to risks and uncertainties and include information about our expectations and possible or assumed future results of operations. When we use any of the words "may," "will," "should," "believe," "expect," "anticipate," "assume," "forecast," "estimate," "intend," "plan," "target," or similar expressions, we are making forward-looking statements.

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. These forward-looking statements represent our outlook only as of the date of this report. While we believe that our forward-looking statements are reasonable, actual results could differ materially since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of this Form 10-K, which is incorporated herein by reference, and the risks and uncertainties discussed elsewhere in this Form 10-K and in our other reports filed or furnished from time to time with the SEC.

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**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

The information called for by Item 7A is incorporated herein by reference from the information in Item 7 under the caption "Market Risk" in this Form 10-K.

**ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

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| | |
|:---|:---|
| | **Page** |
| Report of Independent Registered Public Accounting Firm (PCAOB ID Number 248) | [47](#i687b0c1a0c454573b67518d6a549de43_61) |
| Consolidated Balance Sheets as of December 31, 2025 and 2024 | [49](#i687b0c1a0c454573b67518d6a549de43_64) |
| Consolidated Statements of Income for the years ended December 31, 2025, 2024, and 2023 | [50](#i687b0c1a0c454573b67518d6a549de43_67) |
| Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024, and 2023 | [51](#i687b0c1a0c454573b67518d6a549de43_70) |
| Consolidated Statements of Shareholders' Equity for the years ended December 31, 2025, 2024, and 2023 | [52](#i687b0c1a0c454573b67518d6a549de43_73) |
| Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024, and 2023 | [53](#i687b0c1a0c454573b67518d6a549de43_76) |
| Notes to Consolidated Financial Statements | [54](#i687b0c1a0c454573b67518d6a549de43_79) |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Board of Directors and Shareholders

Credit Acceptance Corporation

**Opinion on the financial statements**

We have audited the accompanying consolidated balance sheets of Credit Acceptance Corporation (a Michigan corporation) and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in the *2013 Internal Control—Integrated Framework* issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"), and our report dated February 13, 2026 expressed an unqualified opinion.

**Basis for opinion** 

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical audit matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Finance Charge Revenue and Allowance for Credit Losses*

As described further in Notes 2 and 5 to the consolidated financial statements, the Company recorded $2,141.8 million in finance charge revenue for the period ended December 31, 2025 and an allowance for credit losses of $3,602.3 million on loans receivable of $11,511.5 million for a net carrying amount of loan receivables of $7,909.2 million as of December 31, 2025. Finance charge revenue is determined by applying the effective interest rate to the net carrying amount of the loan receivable. The effective interest rate is based on contractual future net cash flows. The allowance for credit losses is then estimated by discounting the expected future net cash flows at the same effective interest used in determining finance charge revenue. Expected future net cash flows are estimated using a statistical model that considers a number of credit quality indicators to derive the amount of those expected future net cash flows. We identified finance charge revenue and allowance for credit losses as a critical audit matter.

The principal consideration for our determination that finance charge revenue and allowance for credit losses is a critical audit matter is the high degree of estimation uncertainty in management's modeling of expected future net cash flows. Management's statistical model used to determine expected future net cash flows required complex auditor judgment to evaluate the reasonableness of the outcomes of the model and the involvement of those with specialized skill and knowledge.

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Our audit procedures related to the finance charge revenue and allowance for credit losses included the following, among others:

• We tested the design and operating effectiveness of management's review control over model performance variances including actual and expected future net cash flows.

• We tested the design and operating effectiveness of management's review control over the statistical model used to determine expected future net cash flows which verifies the statistical model is operating as intended.

• For a selection of loans, we agreed certain loan specific credit quality indicators used in the statistical model to source documents in order to recalculate the expected future net cash flows at loan origination produced by the statistical model.

• We involved those with specialized skill and knowledge to assess the conceptual soundness of the statistical model's design and management's validation of the design used to reasonably determine estimated future net cash flows.

• For a selection of loans, we validated the application of the regression curve applied to the selected loan in the statistical model by recomputing the amount of future net cash flows produced by the statistical model for the selected loan.

/s/ GRANT THORNTON LLP

We have served as the Company's auditor since 2005.

Southfield, Michigan

February 13, 2026

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**CONSOLIDATED BALANCE SHEETS**

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| | | |
|:---|:---|:---|
| (Dollars in millions, except per share data) | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| **ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $22.8 | $343.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents | 477.9 | 501.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted securities available for sale | 106.2 | 106.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable  | 11511.5 | 11289.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | (3602.3) | (3438.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net | 7909.2 | 7850.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 12.6 | 14.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | 67.2 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 35.8 | 34.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $8631.7 | $8854.6 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY:** |  |  |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $400.2 | $315.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving secured lines of credit | 107.3 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financing | 5158.8 | 5361.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior notes | 1087.8 | 991.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes, net | 354.0 | 319.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable |  | 117.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 7108.1 | 7105.0 |
| **Commitments and Contingencies - See <u>[Note 15](#i687b0c1a0c454573b67518d6a549de43_124)</u>** |  |  |
| **Shareholders' Equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value, 80,000,000 shares authorized, 10,680,143 and<br>12,048,151 shares issued and outstanding as of December 31, 2025 and <br>December 31, 2024, respectively | 0.1 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in capital | 403.3 | 335.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 1119.2 | 1414.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 1.0 | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Shareholders' Equity | 1523.6 | 1749.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Shareholders' Equity | $8631.7 | $8854.6 |

---

See accompanying notes to consolidated financial statements.

------

**CONSOLIDATED STATEMENTS OF INCOME**

---

| | | | |
|:---|:---|:---|:---|
| (Dollars in millions, except per share data) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| **Revenue:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance charges | $2141.8 | $1992.7 | $1755.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums earned | 95.6 | 96.1 | 79.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 79.8 | 73.6 | 66.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 2317.2 | 2162.4 | 1901.9 |
| **Costs and expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and wages | 337.1 | 309.2 | 280.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 161.4 | 97.9 | 87.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 101.4 | 94.4 | 91.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 599.9 | 501.5 | 459.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses on forecast changes | 338.3 | 493.8 | 413.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses on new Consumer Loan assignments | 277.8 | 320.9 | 322.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision for credit losses | 616.1 | 814.7 | 736.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 462.9 | 419.5 | 266.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for claims | 71.7 | 73.5 | 70.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 1.2 |  | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of building |  | 23.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 1751.8 | 1832.9 | 1534.3 |
| Income before provision for income taxes | 565.4 | 329.5 | 367.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 141.5 | 81.6 | 81.5 |
| Net income | $423.9 | $247.9 | $286.1 |
| Net income per share: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $37.02 | $20.12 | $22.09 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $36.38 | $19.88 | $21.99 |
| Weighted average shares outstanding: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 11451578 | 12323261 | 12953424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 11650773 | 12469283 | 13010735 |

---

See accompanying notes to consolidated financial statements.

------

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Net income | $423.9 | $247.9 | $286.1 |
| Other comprehensive income, net of tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on securities, net of tax | 1.3 | 0.7 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income | 1.3 | 0.7 | 1.9 |
| Comprehensive income | $425.2 | $248.6 | $288.0 |

---

See accompanying notes to consolidated financial statements.

------

**CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (Dollars in millions) | **Common Stock** | **Common Stock** |  |  |  |  |
|  | **Number of Shares** | **Amount** | **Paid-In Capital** | **Retained Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Total Shareholders' Equity** |
| Balance, January 1, 2023 | 12756885 | $0.1 | $245.7 | $1381.1 | $(2.9) | $1624.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 286.1 |  | 286.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | 1.9 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 39.1 |  |  | 39.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (409317) |  | (11.0) | (191.6) |  | (202.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted stock units settled in common stock | 159205 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options exercised | 15624 |  | 5.2 |  |  | 5.2 |
| Balance, December 31, 2023 | 12522397 | 0.1 | 279.0 | 1475.6 | (1.0) | 1753.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 247.9 |  | 247.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | 0.7 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 45.0 |  |  | 45.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (588025) |  | (4.5) | (308.8) |  | (313.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted stock units settled in common stock | 68003 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options exercised | 45776 |  | 15.6 |  |  | 15.6 |
| Balance, December 31, 2024 | 12048151 | 0.1 | 335.1 | 1414.7 | (0.3) | 1749.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 423.9 |  | 423.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | 1.3 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 50.7 |  |  | 50.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (1513838) |  | (6.0) | (719.4) |  | (725.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted stock units settled in common stock | 76411 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options exercised | 69419 |  | 23.5 |  |  | 23.5 |
| Balance, December 31, 2025 | 10680143 | $0.1 | $403.3 | $1119.2 | $1.0 | $1523.6 |

---

See accompanying notes to consolidated financial statements.

------

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| **Cash Flows From Operating Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $423.9 | $247.9 | $286.1 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 616.1 | 814.7 | 736.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 3.6 | 6.7 | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 23.0 | 21.1 | 17.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for deferred income taxes | 34.6 | (70.4) | (38.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 50.7 | 45.0 | 39.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 1.2 |  | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of building |  | 23.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (0.2) | 0.8 | 0.6 |
| &nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable and accrued liabilities | 82.9 | 6.8 | 49.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in income taxes receivable | (63.0) | 0.1 | 4.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in income taxes payable | (117.2) | 36.2 | 78.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in other assets | (1.0) | 5.3 | 18.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 1054.6 | 1137.9 | 1203.8 |
| **Cash Flows From Investing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of restricted securities available for sale | (43.3) | (59.0) | (43.3) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of restricted securities available for sale | 33.4 | 36.9 | 15.8 |
| &nbsp;&nbsp;&nbsp;Maturities of restricted securities available for sale | 12.2 | 9.3 | 8.5 |
| &nbsp;&nbsp;&nbsp;Principal collected on Loans receivable | 3411.9 | 3208.9 | 3036.8 |
| &nbsp;&nbsp;&nbsp;Advances to Dealers | (2764.8) | (3578.3) | (2933.7) |
| &nbsp;&nbsp;&nbsp;Purchases of Consumer Loans | (1091.3) | (1040.1) | (1214.1) |
| &nbsp;&nbsp;&nbsp;Accelerated payments of Dealer Holdback | (50.7) | (59.0) | (46.9) |
| &nbsp;&nbsp;&nbsp;Payments of Dealer Holdback | (180.1) | (241.2) | (235.9) |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1.6) | (1.8) | (4.0) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of building |  | 3.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (674.3) | (1721.1) | (1416.8) |
| **Cash Flows From Financing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings under revolving secured lines of credit | 2121.1 | 6125.9 | 7431.9 |
| &nbsp;&nbsp;&nbsp;Repayments under revolving secured lines of credit | (2013.9) | (6205.0) | (7383.6) |
| &nbsp;&nbsp;&nbsp;Proceeds from secured financing | 1402.0 | 3619.4 | 2762.0 |
| &nbsp;&nbsp;&nbsp;Repayments of secured financing | (1613.1) | (2246.6) | (2519.8) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of senior notes | 500.0 |  | 600.0 |
| &nbsp;&nbsp;&nbsp;Repayment of senior notes | (400.0) |  | (400.0) |
| &nbsp;&nbsp;&nbsp;Payments of debt issuance costs and debt extinguishment costs | (19.8) | (21.7) | (33.3) |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock | (725.4) | (313.3) | (202.6) |
| &nbsp;&nbsp;&nbsp;Proceeds from stock options exercised | 23.5 | 15.6 | 5.2 |
| &nbsp;&nbsp;&nbsp;Other | 1.0 | (17.0) | 6.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | (724.6) | 957.3 | 266.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | (344.3) | 374.1 | 53.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 845.0 | 470.9 | 417.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents and restricted cash and cash equivalents, end of period | $500.7 | $845.0 | $470.9 |
| **Supplemental Disclosure of Cash Flow Information:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for interest | $438.4 | $393.4 | $242.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for income taxes, net of refunds | $279.3 | $103.7 | $31.9 |

---

See accompanying notes to consolidated financial statements.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1. &nbsp;&nbsp;&nbsp;&nbsp;DESCRIPTION OF BUSINESS**

*Principal Business.* Credit Acceptance Corporation (referred to as the "Company", "Credit Acceptance", "we", "our" or "us") makes vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers, regardless of their credit history. Our financing programs are 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 financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing.

We refer to automobile dealers who participate in our programs and who share our desire to provide an opportunity to consumers to improve their lives as "Dealers." Upon enrollment in our financing programs, the Dealer enters into a Dealer servicing agreement with us that defines the legal relationship between Credit Acceptance and the Dealer. The Dealer servicing agreement assigns the responsibilities for administering, servicing, and collecting the amounts due on retail installment contracts (referred to as "Consumer Loans") from the Dealers to us. We are an indirect lender from a legal perspective, meaning the Consumer Loan is originated by the Dealer and assigned to us.

The majority of the Consumer Loans assigned to us are made to consumers with impaired or limited credit histories. The following table shows the percentage of Consumer Loans assigned to us with either FICO<sup>®</sup> scores below 650 or no FICO<sup>®</sup> scores:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|<br>**Consumer Loan Assignment Volume** | **2025** | **2024** | **2023** |
| Percentage of total unit volume with either FICO<sup>®</sup> scores below 650 or no FICO<sup>®</sup> scores | 79.5% | 80.6% | 80.9% |

---

We have two programs: the Portfolio Program and the Purchase Program. Under the Portfolio Program, we advance money to Dealers (referred to as a "Dealer Loan") in exchange for the right to service the underlying Consumer Loans. Under the Purchase Program, we buy the Consumer Loans from the Dealers (referred to as a "Purchased Loan") and keep all amounts collected from the consumer. Dealer Loans and Purchased Loans are collectively referred to as "Loans." The following table shows the percentage of Consumer Loans assigned to us as Dealer Loans and Purchased Loans for each of the last three years:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Unit Volume** | **Unit Volume** | **Dollar Volume (1)** | **Dollar Volume (1)** |
|<br>**For the Years Ended December 31,** | **Dealer Loans** | **Purchased Loans** | **Dealer Loans** | **Purchased Loans** |
| 2023 | 74.0% | 26.0% | 70.7% | 29.3% |
| 2024 | 78.7% | 21.3% | 77.5% | 22.5% |
| 2025 | 74.2% | 25.8% | 71.7% | 28.3% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program. Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included.

<u>Portfolio Program</u>

As payment for the vehicle, the Dealer generally receives the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a down payment from the consumer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a non-recourse cash payment ("advance") from us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• after the advance balance (cash advance and related Dealer Loan fees and costs) has been recovered by us, the cash from payments made on the Consumer Loan, net of certain collection costs and our servicing fee ("Dealer Holdback").

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

We record the amount advanced to the Dealer as a Dealer Loan, which is classified within Loans receivable in our consolidated balance sheets. Cash advanced to the Dealer is automatically assigned to the Dealer's open pool of advances. Dealers make an election as to how many Consumer Loans (either 50 or 100) will be assigned to an open pool before it is closed, and subsequent advances are assigned to a new pool. Unless we receive a request from the Dealer to keep a pool open, we automatically close each pool based on the Dealer's election. All advances within a Dealer's pool are secured by the future collections on the related Consumer Loans assigned to the pool. For Dealers with more than one pool, the pools are cross-collateralized so the performance of other pools is considered in determining eligibility for Dealer Holdback. We perfect our security interest with respect to the Dealer Loans by obtaining control or taking possession of the Consumer Loans, which list us as lien holder on the vehicle title.

The Dealer servicing agreement provides that collections received by us during a calendar month on Consumer Loans assigned by a Dealer are applied on a pool-by-pool basis as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• first, to reimburse us for certain collection costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• second, to pay us our servicing fee, which generally equals 20% of collections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• third, to reduce the aggregate advance balance and to pay any other amounts due from the Dealer to us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fourth, to the Dealer as payment of Dealer Holdback.

If the collections on Consumer Loans from a Dealer's pool are not sufficient to repay the advance balance and any other amounts due to us, the Dealer will not receive Dealer Holdback. Certain events may also result in Dealers forfeiting their rights to Dealer Holdback, including becoming inactive before assigning 100 Consumer Loans.

Dealers have an opportunity to receive an accelerated Dealer Holdback payment each time a pool of Consumer Loans is closed. The amount paid to the Dealer is calculated using a formula that considers the number of Consumer Loans assigned to the pool and the related forecasted collections and advance balance.

Since typically the combination of the advance and the consumer's down payment provides the Dealer with a cash profit at the time of sale, the Dealer's risk in the Consumer Loan is limited. We cannot demand repayment of the advance from the Dealer except in the event the Dealer is in default of the Dealer servicing agreement. Advances are made only after the consumer and Dealer have signed a Consumer Loan contract, we have received the executed Consumer Loan contract and supporting documentation in either physical or electronic form, and we have approved all of the related stipulations for funding.

For accounting purposes, the transactions described under the Portfolio Program are not considered to be loans to consumers. Instead, our accounting reflects that of a lender to the Dealer. The classification as a Dealer Loan for accounting purposes is primarily a result of (1) the Dealer's financial interest in the Consumer Loan and (2) certain elements of our legal relationship with the Dealer.

<u>Purchase Program</u>

The Purchase Program differs from the Portfolio Program in that the Dealer receives a one-time payment from us at the time of assignment to purchase the Consumer Loan instead of a cash advance at the time of assignment and future Dealer Holdback payments. For accounting purposes, the transactions described under the Purchase Program are considered to be originated by the Dealer and then purchased by us.

<u>Program Enrollment</u>

Dealers are granted access to the Portfolio Program upon enrollment. Access to the Purchase Program is typically only granted to Dealers that meet one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assigned at least 50 Consumer Loans under the Portfolio Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• franchise dealership; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• independent dealership that meets certain criteria upon enrollment.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**2.&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Principles of Consolidation**

The consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany transactions have been eliminated. Our primary subsidiaries as of December 31, 2025 are: Buyer's Vehicle Protection Plan, Inc. ("BVPP"), Vehicle Remarketing Services, Inc. ("VRS"), VSC Re Company ("VSC Re"), CAC Warehouse Funding LLC II, CAC Warehouse Funding LLC IV, CAC Warehouse Funding LLC V, CAC Warehouse Funding LLC VI, CAC Warehouse Funding LLC VIII, Credit Acceptance Funding LLC 2019-2, Credit Acceptance Funding LLC 2021-1, Credit Acceptance Funding LLC 2022-1, Credit Acceptance Funding LLC 2022-2, Credit Acceptance Funding LLC 2022-3, Credit Acceptance Funding LLC 2023-1, Credit Acceptance Funding LLC 2023-2, Credit Acceptance Funding LLC 2023-3, Credit Acceptance Funding LLC 2023-5, Credit Acceptance Funding LLC 2024-A, Credit Acceptance Funding LLC 2024-1, Credit Acceptance Funding LLC 2024-2, Credit Acceptance Funding LLC 2024-3, Credit Acceptance Funding LLC 2024-B, Credit Acceptance Funding LLC 2025-1, and Credit Acceptance Funding LLC 2025-2.

**Business Segment Information**

We currently operate in one reportable segment which represents our core business of offering innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. For information regarding our one reportable segment and related entity wide disclosures, see <u>[Note 14](#i687b0c1a0c454573b67518d6a549de43_121)</u> to the consolidated financial statements.

**Use of Estimates**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The accounts which are subject to significant estimation include the allowance for credit losses, finance charge revenue, premiums earned, contingencies, and uncertain tax positions. Actual results could materially differ from those estimates.

**Cash and Cash Equivalents and Restricted Cash and Cash Equivalents**

Cash equivalents consist of readily marketable securities with original maturities at the date of acquisition of three months or less. As of December 31, 2025 and 2024, we had $22.3 million and $342.7 million, respectively, in cash and cash equivalents that were not insured by the Federal Deposit Insurance Corporation ("FDIC").

Restricted cash and cash equivalents consist of cash pledged as collateral for secured financings and cash held in a trust for future vehicle service contract claims. As of December 31, 2025 and 2024, we had $473.6 million and $497.0 million, respectively, in restricted cash and cash equivalents that were not insured by the FDIC.

The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents reported in our consolidated balance sheets to the total shown in our consolidated statements of cash flows:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** | **2023** |
| Cash and cash equivalents | $22.8 | $343.7 | $13.2 |
| Restricted cash and cash equivalents | 477.9 | 501.3 | 457.7 |
| Total cash and cash equivalents and restricted cash and cash equivalents | $500.7 | $845.0 | $470.9 |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**Restricted Securities Available for Sale**

Restricted securities available for sale consist of amounts held in a trust for future vehicle service contract claims. We determine the appropriate classification of our investments in debt securities at the time of purchase and reevaluate such determinations at each balance sheet date. Debt securities for which we do not have the intent or ability to hold to maturity are classified as available for sale, and stated at fair value with unrealized gains and losses, net of income taxes included in the determination of comprehensive income and reported as a component of shareholders' equity.

**Loans Receivable and Allowance for Credit Losses**

*Consumer Loan Assignment.* For legal purposes, a Consumer Loan is considered to have been assigned to us after the following has occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the consumer and Dealer have signed a Consumer Loan contract; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have received the executed Consumer Loan contract and supporting documentation in either physical or electronic form.

For accounting and financial reporting purposes, a Consumer Loan is considered to have been assigned to us after the following has occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Consumer Loan has been legally assigned to us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have made a funding decision and generally have provided funding to the Dealer in the form of either an advance under the Portfolio Program or one-time purchase payment under the Purchase Program.

*Portfolio Segments and Classes.* Our Loan portfolio consists of two portfolio segments: Dealer Loans and Purchased Loans. Our determination is based on the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have two financing programs: the Portfolio Program and the Purchase Program. We are considered to be a lender to Dealers for Consumer Loans assigned under the Portfolio Program and a purchaser of Consumer Loans assigned under the Purchase Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Portfolio Program and the Purchase Program have different levels of risk in relation to credit losses. Under the Portfolio Program, the impact of negative variances in Consumer Loan performance is mitigated by Dealer Holdback and the cross-collateralization of Consumer Loan assignments. Under the Purchase Program, we are impacted by the full amount of negative variances in Consumer Loan performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business model is narrowly focused on Consumer Loan assignments from one industry with expected cash flows that are significantly lower than the contractual cash flows owed to us due to credit quality. We do not believe that it is meaningful to disaggregate our Loan portfolio beyond the Dealer Loans and Purchased Loans portfolio segments.

Each portfolio segment consists of one class of Consumer Loan assignments, which is Consumer Loans originated by Dealers to finance purchases of vehicles and related ancillary products predominantly by consumers with impaired or limited credit histories. Our determination is based on the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All of the Consumer Loans assigned to us have similar risk characteristics in relation to the categorization of borrowers, type of financing receivable, industry sector, and type of collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We only accept Consumer Loan assignments from Dealers located within the United States.

*Recognition and Measurement Policy.* On January 1, 2020, we adopted Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, which is known as the current expected credit loss model, or CECL. Loans outstanding prior to the adoption date are no longer material to our consolidated financial statements. Consumer Loans assigned to us on or subsequent to January 1, 2020 are accounted for as originated financial assets ("Originated Method").

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

Under the Originated Method, at the time of assignment, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• calculate the effective interest rate based on contractual future net cash flows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• record a Loan receivable equal to the advance paid to the Dealer under the Portfolio Program or purchase price paid to the Dealer under the Purchase Program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• record an allowance for credit losses equal to the difference between the initial Loan receivable balance and the present value of expected future net cash flows discounted at the effective interest rate. The initial allowance for credit losses is recognized as provision for credit losses expense.

The effective interest rate and initial allowance for credit losses are significantly higher for Consumer Loans assigned under the Purchase Program than for Consumer Loans assigned under the Portfolio Program, as contractual net cash flows exceed expected net cash flows by a significantly greater margin under the Purchase Program. Under the Purchase Program, we retain all contractual collections that exceed our initial expectations. Under the Portfolio Program, contractual collections that exceed our initial expectations are substantially offset by additional Dealer Holdback payments.

Under the Originated Method, for each reporting period subsequent to assignment, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recognize finance charge revenue using the effective interest rate that was calculated at the time of assignment based on contractual future net cash flows; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adjust the allowance for credit losses so that the net carrying amount of each Loan equals the present value of expected future net cash flows discounted at the effective interest rate. The adjustment to the allowance for credit losses is recognized as either provision for credit losses expense or a reversal of provision for credit losses expense.

*Loans Receivable*. Amounts advanced to Dealers for Consumer Loans assigned under the Portfolio Program are recorded as Dealer Loans and are aggregated by Dealer for purposes of recognizing revenue and measuring credit losses. Amounts paid to Dealers for Consumer Loans assigned under the Purchase Program are recorded as Purchased Loans and, for purposes of recognizing revenue and measuring credit losses, are not aggregated.

The outstanding balance of each Loan included in Loans receivable is comprised of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cash paid to the Dealer (or to third-party ancillary product providers on the Dealer's behalf) for the Consumer Loan assignment (advance under the Portfolio Program or one-time purchase payment under the Purchase Program);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• finance charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Dealer Holdback payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accelerated Dealer Holdback payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recoveries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfers in;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• less: collections (net of certain collection costs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• less: write-offs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• less: transfers out.

Under the Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer's outstanding Dealer Loan balance and the related allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs. We aggregate these Purchased Loans by Dealer for purposes of recognizing revenue and measuring credit losses.

*Allowance for Credit Losses.* The outstanding balance of the allowance for credit losses of each Loan represents the amount required to reduce the net carrying amount of Loans (Loans receivable less allowance for credit losses) to the present value of expected future net cash flows discounted at the effective interest rate. Expected future net cash flows for Dealer Loans are comprised of expected future collections on the assigned Consumer Loans, less any expected future Dealer Holdback payments. Expected future net cash flows for Purchased Loans are comprised of expected future collections on the assigned Consumer Loans.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

Expected future collections are forecasted for each individual Consumer Loan based on the historical performance of Consumer Loans with similar characteristics, adjusted for recent trends in payment patterns. Our forecast of expected future collections includes estimates for prepayments, which historically have been lower in periods with less availability of consumer credit, and post-contractual-term cash flows. Unless the consumer is no longer contractually obligated to pay us, we forecast future collections on each Consumer Loan for a 120 month period after the origination date. Expected future Dealer Holdback payments are forecasted for each individual Dealer based on the expected future collections and current advance balance of each Dealer Loan.

We fully write off the outstanding balance of a Loan and the related allowance for credit losses once we are no longer forecasting any expected future net cash flows on the Loan. Under our partial write-off policy, we write off the amount of the outstanding balance of a Loan and the related allowance for credit losses, if any, that exceeds 200% of the present value of expected future net cash flows on the Loan, as we deem this amount to be uncollectable.

*Credit Quality.* The majority of the Consumer Loans assigned to us are made to individuals with impaired or limited credit histories. Consumer Loans made to these individuals generally entail a higher risk of delinquency, default, and repossession and higher losses than loans made to consumers with better credit. Since most of our revenue and cash flows are generated from these Consumer Loans, our ability to accurately forecast Consumer Loan performance is critical to our business and financial results. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on these forecasts, an advance or one-time purchase payment is made to the related Dealer at a price designed to maximize our economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested.

We monitor and evaluate the credit quality of Consumer Loans on a monthly basis by comparing our current forecasted collection rates to our initial expectations. We use a statistical model that considers a number of credit quality indicators to estimate the expected collection rate for each Consumer Loan at the time of assignment. The credit quality indicators considered in our model include attributes contained in the consumer's credit bureau report, data contained in the consumer's credit application, the structure of the proposed transaction, vehicle information, and other factors. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. Since all known, significant credit quality indicators have already been factored into our forecasts and pricing, we are not able to use any specific credit quality indicators to predict or explain variances in actual performance from our initial expectations. Any variances in performance from our initial expectations are a result of Consumer Loans performing differently from historical Consumer Loans with similar characteristics. We periodically adjust our statistical pricing model for new trends that we identify through our evaluation of these forecasted collection rate variances.

When overall forecasted collection rates underperform our initial expectations, the decline in forecasted collections has a more adverse impact on the profitability of the Purchased Loans than on the profitability of the Dealer Loans. For Purchased Loans, the decline in forecasted collections is absorbed entirely by us. For Dealer Loans, the decline in the forecasted collections is substantially offset by a decline in forecasted payments of Dealer Holdback.

*Methodology Changes.* During the second quarter of 2025, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2024. During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024. During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. For additional information, see <u>[Note 5](#i687b0c1a0c454573b67518d6a549de43_94)</u>. For the three year period ended December 31, 2025, we did not make any other methodology changes for Loans that had a material impact on our financial statements.

**Property and Equipment**

Purchases of property and equipment are recorded at cost. Depreciation is provided on a straight-line basis over the estimated useful life of the asset. Estimated useful lives are generally as follows: buildings – 40 years, building improvements – 10 years, data processing equipment – 3 years, software – 5 years, and office furniture and equipment – 7 years. The cost of assets sold or retired and the related accumulated depreciation are removed from the balance sheet at the time of disposition and any resulting gain or loss is included in operations. Maintenance, repairs, and minor replacements are charged to operations as incurred; major replacements and improvements are capitalized. We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

Costs incurred during the application development stage of software developed for internal use are capitalized and generally depreciated on a straight-line basis over five years. Costs incurred to maintain existing software are expensed as incurred. For additional information regarding our property and equipment, see <u>[Note 6](#i687b0c1a0c454573b67518d6a549de43_97)</u> to the consolidated financial statements.

**Deferred Debt Issuance Costs**

Deferred debt issuance costs associated with secured financings and senior notes are included as a deduction from the carrying amount of the related debt liability, and deferred debt issuance costs associated with our revolving secured line of credit facility are included in other assets. Expenses associated with the issuance of debt instruments are capitalized and amortized as interest expense over the term of the debt instrument using the effective interest method for asset-backed secured financings ("Term ABS financings") and senior notes and the straight-line method for lines of credit and revolving secured warehouse ("Warehouse") facilities. For additional information regarding deferred debt issuance costs, see <u>[Note 9](#i687b0c1a0c454573b67518d6a549de43_106)</u> to the consolidated financial statements.

**Finance Charges**

*Sources of Revenue.* Finance charges is comprised of: (1) interest income earned on Loans; (2) administrative fees earned from ancillary products; (3) program fees charged to Dealers under the Portfolio Program; (4) Consumer Loan assignment fees charged to Dealers; and (5) direct origination costs incurred on Dealer Loans.

We provide Dealers the ability to offer vehicle service contracts to consumers through our relationships with Third-Party Providers ("TPPs"). A vehicle service contract provides the consumer protection by paying for the repair or replacement of certain components of the vehicle in the event of a mechanical failure. The retail price of the vehicle service contract is included in the principal balance of the Consumer Loan. The wholesale cost of the vehicle service contract is paid to the TPP, net of an administrative fee retained by us. The difference between the wholesale cost and the retail price to the consumer is paid to the Dealer as a commission. Under the Portfolio Program, the wholesale cost of the vehicle service contract and the commission paid to the Dealer are charged to the Dealer's advance balance. TPPs process claims on vehicle service contracts that are underwritten by third-party insurers. We bear the risk of loss for claims on certain vehicle service contracts that are reinsured by us. We market the vehicle service contracts directly to Dealers.

We provide Dealers the ability to offer Guaranteed Asset Protection ("GAP") to consumers through our relationships with TPPs. GAP provides the consumer protection by paying the difference between the loan balance and the amount covered by the consumer's insurance policy in the event of a total loss of the vehicle due to severe damage or theft. The retail price of GAP is included in the principal balance of the Consumer Loan. The wholesale cost of GAP is paid to the TPP, net of an administrative fee retained by us. The difference between the wholesale cost and the retail price to the consumer is paid to the Dealer as a commission. Under the Portfolio Program, the wholesale cost of GAP and the commission paid to the Dealer are charged to the Dealer's advance balance. TPPs process claims on GAP contracts that are underwritten by third-party insurers.

Program fees represent monthly fees charged to Dealers for access to our Credit Approval Processing System ("CAPS"); administration, servicing, and collection services offered by us; documentation related to or affecting our program; and all tangible and intangible property owned by Credit Acceptance. We charge a monthly fee of $599 to Dealers participating in the Portfolio Program and we collect it from future Dealer Holdback payments.

*Recognition Policy.* We recognize finance charges under the interest method such that revenue is recognized on a level-yield basis over the life of the Loan. We calculate finance charges on a monthly basis by applying the effective interest rate of the Loan to the net carrying amount of the Loan (Loan receivable less the related allowance for credit losses). The effective interest rate is based on contractual future net cash flows.

We report the change in the present value of credit losses attributable to the passage of time as a reduction to finance charges. Accordingly, we allocate finance charges recognized on each Loan between the Loan receivable and the related allowance for credit losses. The amount of finance charges allocated to the Loan receivable is equal to the effective interest rate applied to the Loans receivable balance. The reduction of finance charges allocated to the allowance for credit losses is equal to the effective interest rate applied to the allowance for credit losses balance.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**Reinsurance**

Our wholly owned subsidiary VSC Re is engaged in the business of reinsuring coverage under vehicle service contracts sold to consumers by Dealers on vehicles indirectly financed by us. VSC Re currently reinsures vehicle service contracts that are offered through one of our TPPs. Vehicle service contract premiums, which represent the selling price of the vehicle service contract to the consumer, less fees and certain administrative costs, are contributed to a trust account controlled by VSC Re. These premiums are used to fund claims covered under the vehicle service contracts. VSC Re is a bankruptcy remote entity. As such, our exposure to fund claims is limited to the trust assets controlled by VSC Re and our net investment in VSC Re.

Premiums from the reinsurance of vehicle service contracts are recognized over the life of the policy in proportion to expected costs of servicing those contracts. Expected costs are determined based on our historical claims experience. Claims are expensed through a provision for claims in the period the claim was incurred. Capitalized acquisition costs are comprised of premium taxes and are amortized as general and administrative expense over the life of the contracts in proportion to premiums earned.

We have consolidated the trust within our financial statements based on our determination of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *We have a variable interest in the trust.* We have a residual interest in the assets of the trust, which is variable in nature, given that it increases or decreases based upon the actual loss experience of the related service contracts. In addition, VSC Re is required to absorb any losses in excess of the trust's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *The trust is a variable interest entity.* The trust has insufficient equity at risk as no parties to the trust were required to contribute assets that provide them with any ownership interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *We are the primary beneficiary of the trust.* We control the amount of premiums written and placed in the trust through Consumer Loan assignments under our Programs, which is the activity that most significantly impacts the economic performance of the trust. We have the right to receive benefits from the trust that could potentially be significant. In addition, VSC Re has the obligation to absorb losses of the trust that could potentially be significant.

**Stock-Based Compensation Plans**

We have stock-based compensation plans for team members and non-employee directors, which are described more fully in <u>[Note 13](#i687b0c1a0c454573b67518d6a549de43_118)</u> to the consolidated financial statements. We apply a fair-value-based measurement method in accounting for stock-based compensation plans and recognize stock-based compensation expense over the requisite service period of the grant as salaries and wages expense.

**Employee Benefit Plan**

We sponsor a 401(k) plan that covers substantially all of our team members. We offer matching contributions to the 401(k) plan based on each enrolled team member's eligible annual gross pay (subject to statutory limitations). Our matching contribution rate is equal to 100% of the first 4% participants contribute and an additional 50% of the next 2% participants contribute, for a maximum matching contribution of 5% of each participant's eligible annual gross pay. For the years ended December 31, 2025, 2024 and 2023, we recognized compensation expense of $11.4 million, $10.3 million, and $9.4 million, respectively, for our matching contributions to the plan.

**Income Taxes**

Provisions for federal, state, and foreign income taxes are calculated on reported pre-tax earnings based on current tax law and also include, in the current period, the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized in different time periods for financial reporting purposes than for income tax purposes.

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

We follow a two-step approach for recognizing uncertain tax positions. First, we evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more-likely-than-not that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. Second, for positions that we determine are more-likely-than-not to be sustained, we recognize the tax benefit as the largest benefit that has a greater than 50% likelihood of being sustained. We establish a reserve for uncertain tax positions liability that is comprised of unrecognized tax benefits and related interest. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. We recognize interest and penalties related to uncertain tax positions in provision for income taxes. For additional information regarding our income taxes, see <u>[Note 10](#i687b0c1a0c454573b67518d6a549de43_109)</u> to the consolidated financial statements.

**Advertising Costs**

Advertising costs are expensed as incurred. Advertising expenses were $3.6 million for the year ended December 31, 2025, $1.4 million for the year ended December 31, 2024, and $0.5 million for the year ended December 31, 2023.

**New Accounting Update Adopted During the Current Year**

*Improvements to Income Tax Disclosures.* In December 2023, the FASB issued ASU 2023-09, which intends to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments intended to improve the effectiveness of income tax disclosures. We adopted the updated standard on a retrospective basis for the year ended December 31, 2025. The adoption of ASU 2023-09 expanded our income tax disclosures, but did not otherwise have a material impact on our consolidated financial statements.

**New Accounting Updates Not Yet Adopted**

*Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative.* In October 2023, the FASB issued ASU 2023-06*,* which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the "Codification"). The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. We are currently evaluating the impact the adoption of ASU 2023-06 will have on our consolidated financial statements and related disclosures.

*Disaggregation of Income Statement Expenses.* In November 2024, the FASB issued ASU 2024-03, which requires disaggregated disclosure of income statement expenses. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. We are currently evaluating the impact the adoption of ASU 2024-03 will have on our consolidated financial statements and related disclosures.

*Targeted Improvements to the Accounting For Internal-Use Software.* In September 2025, the FASB issued ASU 2025-06, which amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40 to better reflect current software development approaches. Under the current guidance, capitalization of software development costs for internal-use software is required once the preliminary project stage is complete. Under the new guidance, capitalization will no longer align with the project stage but may begin once (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual periods. Early adoption is permitted, but we have not yet adopted ASU 2025-06. The adoption of ASU 2025-06 is expected to change how we account for our internal-use software. However, we do not believe that its adoption will have a material impact on our consolidated financial statements and related disclosures.

**Subsequent Events**

We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of December 31, 2025 for items that could potentially be recognized or disclosed in these financial statements. For additional information regarding subsequent events, see <u>[Note 16](#i687b0c1a0c454573b67518d6a549de43_127)</u>.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FAIR VALUE OF FINANCIAL INSTRUMENTS**

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate their value.

*Cash and Cash Equivalents and Restricted Cash and Cash Equivalents.* The carrying amounts approximate their fair value due to the short maturity of these instruments.

*Restricted Securities Available for Sale.* The fair value of U.S. Government and agency securities, corporate bonds, and municipal bonds is based on quoted market values in active markets. For asset-backed securities, mortgage-backed securities, and commercial paper we use model-based valuation techniques for which all significant assumptions are observable in the market.

*Loans Receivable, net.* The fair value is determined by calculating the present value of expected future net cash flows estimated by us by utilizing the discount rate used to calculate the value of our Loans under our non-GAAP floating yield methodology.

*Revolving Secured Lines of Credit.* The fair value is determined by calculating the present value of the debt instrument based on current rates for debt with a similar risk profile and maturity.

*Secured Financing.* The fair value of certain Term ABS financings is determined using quoted market prices in an active market. For our warehouse facilities and certain other Term ABS financings, the fair values are determined by calculating the present value of each debt instrument based on current rates for debt with similar risk profiles and maturities.

*Senior Notes.* The fair value is determined using quoted market prices in an active market.

A comparison of the carrying amount and estimated fair value of these financial instruments is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In millions) | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Carrying<br>Amount** | **Estimated<br>Fair Value** | **Carrying<br>Amount** | **Estimated<br>Fair Value** |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $22.8 | $22.8 | $343.7 | $343.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents | 477.9 | 477.9 | 501.3 | 501.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted securities available for sale | 106.2 | 106.2 | 106.4 | 106.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net | 7909.2 | 8974.1 | 7850.3 | 8922.7 |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving secured lines of credit | $107.3 | $107.3 | $0.1 | $0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financing | 5158.8 | 5225.3 | 5361.5 | 5431.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior notes | 1087.8 | 1131.4 | 991.3 | 1035.3 |

---

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. We group assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1&nbsp;&nbsp;&nbsp;&nbsp;Valuation is based upon quoted prices for identical instruments traded in active markets.

Level 2&nbsp;&nbsp;&nbsp;&nbsp;Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

Level 3&nbsp;&nbsp;&nbsp;&nbsp;Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates or assumptions that market participants would use in pricing the asset or liability.

The following table provides the level of measurement used to determine the fair value for each of our financial instruments measured or disclosed at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In millions) | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total Fair Value** |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents (1) | $22.8 | $— | $— | $22.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents (1) | 477.9 |  |  | 477.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted securities available for sale (2) | 84.7 | 21.5 |  | 106.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net (1) |  |  | 8974.1 | 8974.1 |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving secured lines of credit (1) | $— | $107.3 | $— | $107.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financing (1) | 3825.1 | 1400.2 |  | 5225.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior notes (1) | 1131.4 |  |  | 1131.4 |
| (In millions) | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total Fair Value** |
| **Assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents (1) | $343.7 | $— | $— | $343.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents (1) | 501.3 |  |  | 501.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted securities available for sale (2) | 84.5 | 21.9 |  | 106.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net (1) |  |  | 8922.7 | 8922.7 |
| **Liabilities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revolving secured lines of credit (1) | $— | $0.1 | $— | $0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secured financing (1) | 3831.7 | 1600.2 |  | 5431.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior notes (1) | 1035.3 |  |  | 1035.3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;Measured at amortized cost with fair value disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Measured at fair value on a recurring basis.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RESTRICTED SECURITIES AVAILABLE FOR SALE**

Restricted securities available for sale consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In millions) | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Amortized<br>Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Estimated<br>Fair Value** |
| Corporate bonds | $53.1 | $0.9 | $(0.1) | $53.9 |
| U.S. Government and agency securities | 30.6 | 0.2 |  | 30.8 |
| Asset-backed securities | 18.5 | 0.2 |  | 18.7 |
| Mortgage-backed securities | 2.8 |  |  | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restricted securities available for sale | $105.0 | $1.3 | $(0.1) | $106.2 |
| (In millions) | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Amortized<br>Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Estimated<br>Fair Value** |
| Corporate bonds | $49.4 | $0.2 | $(0.4) | $49.2 |
| U.S. Government and agency securities | 35.6 | 0.1 | (0.4) | 35.3 |
| Asset-backed securities | 20.1 | 0.1 |  | 20.2 |
| Mortgage-backed securities | 1.7 |  |  | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restricted securities available for sale | $106.8 | $0.4 | $(0.8) | $106.4 |

---

The fair value and gross unrealized losses for restricted securities available for sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (In millions) | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2025** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2025** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2025** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2025** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2025** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2025** |
|  | **Less than 12 Months** | **Less than 12 Months** | **12 Months or More** | **12 Months or More** |  |  |
|  | **Estimated<br>Fair Value** | **Gross<br>Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Gross<br>Unrealized<br>Losses** | **Total Estimated<br>Fair Value** | **Total Gross**<br>**Unrealized Losses** |
| Corporate bonds | $1.1 | $— | $4.1 | $(0.1) | $5.2 | $(0.1) |
| U.S. Government and agency securities | 6.9 |  | 1.4 |  | 8.3 |  |
| Asset-backed securities |  |  | 1.2 |  | 1.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restricted securities available for sale | $8.0 | $— | $6.7 | $(0.1) | $14.7 | $(0.1) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (In millions) | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2024** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2024** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2024** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2024** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2024** | **Securities Available for Sale with Gross Unrealized Losses as of December 31, 2024** |
|  | **Less than 12 Months** | **Less than 12 Months** | **12 Months or More** | **12 Months or More** |  |  |
|  | **Estimated<br>Fair Value** | **Gross<br>Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Gross<br>Unrealized<br>Losses** | **Total Estimated<br>Fair Value** | **Total Gross<br>Unrealized Losses** |
| Corporate bonds | $13.1 | $(0.2) | $8.4 | $(0.2) | $21.5 | $(0.4) |
| U.S. Government and agency securities | 19.8 | (0.2) | 4.9 | (0.2) | 24.7 | (0.4) |
| Asset-backed securities | 2.4 |  | 3.6 |  | 6.0 |  |
| Mortgage-backed securities | 1.7 |  |  |  | 1.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restricted securities available for sale | $37.0 | $(0.4) | $16.9 | $(0.4) | $53.9 | $(0.8) |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

The cost and estimated fair values of debt securities by contractual maturity were as follows (securities with multiple maturity dates are classified in the period of final maturity). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In millions) | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| **Contractual Maturity** | **Amortized Cost** | **Estimated Fair Value** | **Amortized Cost** | **Estimated Fair Value** |
| Within one year | $9.6 | $9.6 | $9.5 | $9.4 |
| Over one year to five years | 92.1 | 93.2 | 84.7 | 84.3 |
| Over five years to ten years | 3.3 | 3.4 | 12.6 | 12.7 |
| Over ten years |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restricted securities available for sale | $105.0 | $106.2 | $106.8 | $106.4 |

---

**5.&nbsp;&nbsp;&nbsp;&nbsp;LOANS RECEIVABLE**

Loans receivable and allowance for credit losses consist of the following:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Dealer Loans** | **Purchased Loans** | **Total** |
| Loans receivable | $8790.8 | $2720.7 | $11511.5 |
| Allowance for credit losses | (3089.1) | (513.2) | (3602.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net | $5701.7 | $2207.5 | $7909.2 |
| (In millions) | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Dealer Loans** | **Purchased Loans** | **Total** |
| Loans receivable | $8521.0 | $2768.1 | $11289.1 |
| Allowance for credit losses | (2844.5) | (594.3) | (3438.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans receivable, net | $5676.5 | $2173.8 | $7850.3 |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

A summary of changes in Loans receivable and allowance for credit losses is as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **Loans Receivable** | **Loans Receivable** | **Loans Receivable** | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Loans Receivable, Net** | **Loans Receivable, Net** | **Loans Receivable, Net** |
|  | **Dealer Loans** | **Purchased Loans** | **Total** | **Dealer Loans** | **Purchased Loans** | **Total** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Balance, beginning of period | $8521.0 | $2768.1 | $11289.1 | $(2844.5) | $(594.3) | $(3438.8) | $5676.5 | $2173.8 | $7850.3 |
| Finance charges | 2183.7 | 888.6 | 3072.3 | (760.9) | (169.6) | (930.5) | 1422.8 | 719.0 | 2141.8 |
| Provision for credit losses |  |  |  | (369.8) | (246.3) | (616.1) | (369.8) | (246.3) | (616.1) |
| New Consumer Loan assignments (1) | 2764.8 | 1091.3 | 3856.1 |  |  |  | 2764.8 | 1091.3 | 3856.1 |
| Collections (2) | (3924.7) | (1642.8) | (5567.5) |  |  |  | (3924.7) | (1642.8) | (5567.5) |
| Accelerated Dealer Holdback payments | 50.7 |  | 50.7 |  |  |  | 50.7 |  | 50.7 |
| Dealer Holdback payments | 180.1 |  | 180.1 |  |  |  | 180.1 |  | 180.1 |
| Transfers (3) | (164.2) | 164.2 |  | 51.7 | (51.7) |  | (112.5) | 112.5 |  |
| Write-offs | (836.4) | (554.4) | (1390.8) | 836.4 | 554.4 | 1390.8 |  |  |  |
| Recoveries (4) | 2.0 | 5.7 | 7.7 | (2.0) | (5.7) | (7.7) |  |  |  |
| Deferral of Loan origination costs | 13.8 |  | 13.8 |  |  |  | 13.8 |  | 13.8 |
| Balance, end of period | $8790.8 | $2720.7 | $11511.5 | $(3089.1) | $(513.2) | $(3602.3) | $5701.7 | $2207.5 | $7909.2 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
|  | **Loans Receivable** | **Loans Receivable** | **Loans Receivable** | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Loans Receivable, Net** | **Loans Receivable, Net** | **Loans Receivable, Net** |
|  | **Dealer Loans** | **Purchased Loans** | **Total** | **Dealer Loans** | **Purchased Loans** | **Total** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Balance, beginning of period | $7065.5 | $2954.6 | $10020.1 | $(2355.7) | $(709.1) | $(3064.8) | $4709.8 | $2245.5 | $6955.3 |
| Finance charges | 1931.4 | 905.9 | 2837.3 | (651.7) | (192.9) | (844.6) | 1279.7 | 713.0 | 1992.7 |
| Provision for credit losses |  |  |  | (537.3) | (277.4) | (814.7) | (537.3) | (277.4) | (814.7) |
| New Consumer Loan assignments (1) | 3578.3 | 1040.1 | 4618.4 |  |  |  | 3578.3 | 1040.1 | 4618.4 |
| Collections (2) | (3575.5) | (1641.0) | (5216.5) |  |  |  | (3575.5) | (1641.0) | (5216.5) |
| Accelerated Dealer Holdback payments | 59.0 |  | 59.0 |  |  |  | 59.0 |  | 59.0 |
| Dealer Holdback payments | 241.2 |  | 241.2 |  |  |  | 241.2 |  | 241.2 |
| Transfers (3) | (138.9) | 138.9 |  | 45.3 | (45.3) |  | (93.6) | 93.6 |  |
| Write-offs | (658.3) | (634.7) | (1293.0) | 658.3 | 634.7 | 1293.0 |  |  |  |
| Recoveries (4) | 3.4 | 4.3 | 7.7 | (3.4) | (4.3) | (7.7) |  |  |  |
| Deferral of Loan origination costs | 14.9 |  | 14.9 |  |  |  | 14.9 |  | 14.9 |
| Balance, end of period | $8521.0 | $2768.1 | $11289.1 | $(2844.5) | $(594.3) | $(3438.8) | $5676.5 | $2173.8 | $7850.3 |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
|  | **Loans Receivable** | **Loans Receivable** | **Loans Receivable** | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Loans Receivable, Net** | **Loans Receivable, Net** | **Loans Receivable, Net** |
|  | **Dealer Loans** | **Purchased Loans** | **Total** | **Dealer Loans** | **Purchased Loans** | **Total** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Balance, beginning of period | $6074.8 | $3090.7 | $9165.5 | $(2000.0) | $(867.8) | $(2867.8) | $4074.8 | $2222.9 | $6297.7 |
| Finance charges | 1575.5 | 925.5 | 2501.0 | (528.8) | (216.8) | (745.6) | 1046.7 | 708.7 | 1755.4 |
| Provision for credit losses |  |  |  | (427.7) | (308.5) | (736.2) | (427.7) | (308.5) | (736.2) |
| New Consumer Loan assignments (1) | 2933.7 | 1214.1 | 4147.8 |  |  |  | 2933.7 | 1214.1 | 4147.8 |
| Collections (2) | (3147.7) | (1656.8) | (4804.5) |  |  |  | (3147.7) | (1656.8) | (4804.5) |
| Accelerated Dealer Holdback payments | 46.9 |  | 46.9 |  |  |  | 46.9 |  | 46.9 |
| Dealer Holdback payments | 235.9 |  | 235.9 |  |  |  | 235.9 |  | 235.9 |
| Transfers (3) | (100.9) | 100.9 |  | 35.8 | (35.8) |  | (65.1) | 65.1 |  |
| Write-offs | (566.6) | (723.8) | (1290.4) | 566.6 | 723.8 | 1290.4 |  |  |  |
| Recoveries (4) | 1.6 | 4.0 | 5.6 | (1.6) | (4.0) | (5.6) |  |  |  |
| Deferral of Loan origination costs | 12.3 |  | 12.3 |  |  |  | 12.3 |  | 12.3 |
| Balance, end of period | $7065.5 | $2954.6 | $10020.1 | $(2355.7) | $(709.1) | $(3064.8) | $4709.8 | $2245.5 | $6955.3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents repayments that we collected on Consumer Loans assigned under our programs.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Under the Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer's outstanding Dealer Loan balance and related allowance for credit losses balance to Purchased Loans in the period this forfeiture occurs.

&nbsp;&nbsp;&nbsp;&nbsp;(4)The Dealer Loans amount represents net cash flows received (collections less any related Dealer Holdback payments) on Dealer Loans that were previously written off in full. The Purchased Loans amount represents collections received on Purchased Loans that were previously written off in full.

We recognize provision for credit losses on new Consumer Loan assignments for contractual net cash flows that were not expected to be realized at the time of assignment. We also recognize provision for credit losses on forecast changes in the amount and timing of expected future net cash flows subsequent to assignment. The following table summarizes the provision for credit losses for each of these components:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
| **Provision for Credit Losses** | **Dealer Loans** | **Purchased Loans** | **Total** |
| New Consumer Loan assignments | $155.8 | $122.0 | $277.8 |
| Forecast changes | 214.0 | 124.3 | 338.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $369.8 | $246.3 | $616.1 |

---

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
| **Provision for Credit Losses** | **Dealer Loans** | **Purchased Loans** | **Total** |
| New Consumer Loan assignments | $191.4 | $129.5 | $320.9 |
| Forecast changes | 345.9 | 147.9 | 493.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $537.3 | $277.4 | $814.7 |

---

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
| **Provision for Credit Losses** | **Dealer Loans** | **Purchased Loans** | **Total** |
| New Consumer Loan assignments | $146.2 | $176.3 | $322.5 |
| Forecast changes | 281.5 | 132.2 | 413.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $427.7 | $308.5 | $736.2 |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

The net Loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a Loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the Dealer. Under CECL, we are required to recognize:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a significant provision for credit losses expense at the time of assignment for contractual net cash flows we do not expect to realize; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

Additional information related to new Consumer Loan assignments is as follows:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
| **New Consumer Loan Assignments** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Contractual net cash flows at the time of assignment (1) | $4415.6 | $2166.6 | $6582.2 |
| Expected net cash flows at the time of assignment (2) | 3986.9 | 1562.0 | 5548.9 |
| Loans receivable at the time of assignment (3) | 2764.8 | 1091.3 | 3856.1 |
| Provision for credit losses expense at the time of assignment | $(155.8) | $(122.0) | $(277.8) |
| Expected future finance charges at the time of assignment (4) | 1377.9 | 592.7 | 1970.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected net Loan income at the time of assignment (5) | $1222.1 | $470.7 | $1692.8 |

---

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
| **New Consumer Loan Assignments** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Contractual net cash flows at the time of assignment (1) | $5613.6 | $2126.0 | $7739.6 |
| Expected net cash flows at the time of assignment (2) | 5090.0 | 1514.5 | 6604.5 |
| Loans receivable at the time of assignment (3) | 3578.3 | 1040.1 | 4618.4 |
| Provision for credit losses expense at the time of assignment | $(191.4) | $(129.5) | $(320.9) |
| Expected future finance charges at the time of assignment (4) | 1703.1 | 603.9 | 2307.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected net Loan income at the time of assignment (5) | $1511.7 | $474.4 | $1986.1 |

---

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
| **New Consumer Loan Assignments** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Contractual net cash flows at the time of assignment (1) | $4579.3 | $2438.1 | $7017.4 |
| Expected net cash flows at the time of assignment (2) | 4154.8 | 1704.4 | 5859.2 |
| Loans receivable at the time of assignment (3) | 2933.7 | 1214.1 | 4147.8 |
| Provision for credit losses expense at the time of assignment | $(146.2) | $(176.3) | $(322.5) |
| Expected future finance charges at the time of assignment (4) | 1367.3 | 666.6 | 2033.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected net Loan income at the time of assignment (5) | $1221.1 | $490.3 | $1711.4 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)The Dealer Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under the Portfolio Program, less the related Dealer Holdback payments that we would be required to make if we collected all of the contractual repayments. The Purchased Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under the Purchase Program.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under the Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under the Purchase Program.

&nbsp;&nbsp;&nbsp;&nbsp;(3)The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under the Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under the Purchase Program.

&nbsp;&nbsp;&nbsp;&nbsp;(4)Represents revenue that is expected to be recognized on a level-yield basis over the lives of the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;(5)Represents the amount that expected net cash flows at the time of assignment exceed Loans receivable at the time of assignment.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

A summary of changes in expected future net cash flows is as follows:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
| **Expected Future Net Cash Flows** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Balance, beginning of period | $8176.3 | $3383.9 | $11560.2 |
| New Consumer Loan assignments (1) | 3986.9 | 1562.0 | 5548.9 |
| Realized net cash flows (2) | (3693.9) | (1642.8) | (5336.7) |
| Forecast changes | (132.9) | (36.6) | (169.5) |
| Transfers (3) | (170.9) | 178.2 | 7.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance, end of period | $8165.5 | $3444.7 | $11610.2 |

---

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
| **Expected Future Net Cash Flows** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Balance, beginning of period | $6707.2 | $3472.0 | $10179.2 |
| New Consumer Loan assignments (1) | 5090.0 | 1514.5 | 6604.5 |
| Realized net cash flows (2) | (3275.3) | (1641.0) | (4916.3) |
| Forecast changes | (204.6) | (109.4) | (314.0) |
| Transfers (3) | (141.0) | 147.8 | 6.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balance, end of period | $8176.3 | $3383.9 | $11560.2 |

---

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
| **Expected Future Net Cash Flows** | **Dealer Loans** | **Purchased Loans** | **Total** |
| Balance, beginning of period | $5637.9 | $3395.5 | $9033.4 |
| New Consumer Loan assignments (1) | 4154.8 | 1704.4 | 5859.2 |
| Realized net cash flows (2) | (2864.9) | (1656.8) | (4521.7) |
| Forecast changes | (125.3) | (81.0) | (206.3) |
| Transfers (3) | (95.3) | 109.9 | 14.6 |
| Balance, end of period | $6707.2 | $3472.0 | $10179.2 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under the Portfolio Program, less the related Dealer Holdback payments that we expected to make. The Purchased Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under the Purchase Program.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under the Portfolio Program, less the Dealer Holdback and Accelerated Dealer Holdback payments that we made. Purchased Loans amount represents repayments that we collected on Consumer Loans assigned under the Purchase Program.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Under the Portfolio Program, certain events may result in Dealers forfeiting their rights to Dealer Holdback. We transfer the Dealer's outstanding Dealer Loan balance, related allowance for credit losses balance, and related expected future net cash flows to Purchased Loans in the period this forfeiture occurs.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**Credit Quality**

We monitor and evaluate the credit quality of Consumer Loans assigned under the Portfolio and Purchase Programs on a monthly basis by comparing our current forecasted collection rates to our prior forecasted collection rates and our initial expectations. For additional information regarding credit quality, see <u>[Note 2](#i687b0c1a0c454573b67518d6a549de43_85)</u> to the consolidated financial statements. The following table compares our aggregated forecast of Consumer Loan collection rates as of December 31, 2025, with the aggregated forecasts as of December 31, 2024, as of December 31, 2023, and at the time of assignment, segmented by year of assignment:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Total Loans as of December 31, 2025** | **Total Loans as of December 31, 2025** | **Total Loans as of December 31, 2025** | **Total Loans as of December 31, 2025** | **Total Loans as of December 31, 2025** | **Total Loans as of December 31, 2025** | **Total Loans as of December 31, 2025** |
| | **Forecasted Collection Percentage as of (1)** | **Forecasted Collection Percentage as of (1)** | **Forecasted Collection Percentage as of (1)** | **Forecasted Collection Percentage as of (1)** | **Current Forecast Variance from** | **Current Forecast Variance from** | **Current Forecast Variance from** |
|<br>**Consumer Loan Assignment Year** | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** | **Initial<br>Forecast** | **December 31, 2024** | **December 31, 2023** | **Initial<br>Forecast** |
| 2016 | 63.9% | 63.9% | 63.8% | 65.4% | 0.0% | 0.1% | -1.5% |
| 2017 | 64.8% | 64.7% | 64.7% | 64.0% | 0.1% | 0.1% | 0.8% |
| 2018 | 65.5% | 65.5% | 65.5% | 63.6% | 0.0% | 0.0% | 1.9% |
| 2019 | 67.2% | 67.2% | 66.9% | 64.0% | 0.0% | 0.3% | 3.2% |
| 2020 | 68.0% | 67.7% | 67.6% | 63.4% | 0.3% | 0.4% | 4.6% |
| 2021 | 63.8% | 63.8% | 64.5% | 66.3% | 0.0% | -0.7% | -2.5% |
| 2022 | 59.3% | 60.2% | 62.7% | 67.5% | -0.9% | -3.4% | -8.2% |
| 2023 | 63.3% | 64.3% | 67.4% | 67.5% | -1.0% | -4.1% | -4.2% |
| 2024 | 65.3% | 66.5% |  | 67.2% | -1.2% |  | -1.9% |
| 2025 | 67.2% |  |  | 67.0% |  |  | 0.2% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Dealer Loans as of December 31, 2025** | **Dealer Loans as of December 31, 2025** | **Dealer Loans as of December 31, 2025** | **Dealer Loans as of December 31, 2025** | **Dealer Loans as of December 31, 2025** | **Dealer Loans as of December 31, 2025** | **Dealer Loans as of December 31, 2025** |
| | **Forecasted Collection Percentage as of (1) (2)** | **Forecasted Collection Percentage as of (1) (2)** | **Forecasted Collection Percentage as of (1) (2)** | **Forecasted Collection Percentage as of (1) (2)** | **Current Forecast Variance from** | **Current Forecast Variance from** | **Current Forecast Variance from** |
| **Consumer Loan Assignment Year** | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** | **Initial<br>Forecast** | **December 31, 2024** | **December 31, 2023** | **Initial<br>Forecast** |
| 2016 | 63.2% | 63.1% | 63.0% | 65.1% | 0.1% | 0.2% | -1.9% |
| 2017 | 64.1% | 64.1% | 64.0% | 63.8% | 0.0% | 0.1% | 0.3% |
| 2018 | 64.9% | 64.9% | 64.9% | 63.6% | 0.0% | 0.0% | 1.3% |
| 2019 | 66.9% | 66.8% | 66.5% | 63.9% | 0.1% | 0.4% | 3.0% |
| 2020 | 67.8% | 67.5% | 67.4% | 63.3% | 0.3% | 0.4% | 4.5% |
| 2021 | 63.6% | 63.5% | 64.2% | 66.3% | 0.1% | -0.6% | -2.7% |
| 2022 | 58.5% | 59.5% | 62.0% | 67.3% | -1.0% | -3.5% | -8.8% |
| 2023 | 62.1% | 63.1% | 66.4% | 66.8% | -1.0% | -4.3% | -4.7% |
| 2024 | 64.1% | 65.4% |  | 66.3% | -1.3% |  | -2.2% |
| 2025 | 65.7% |  |  | 65.5% |  |  | 0.2% |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Purchased Loans as of December 31, 2025** | **Purchased Loans as of December 31, 2025** | **Purchased Loans as of December 31, 2025** | **Purchased Loans as of December 31, 2025** | **Purchased Loans as of December 31, 2025** | **Purchased Loans as of December 31, 2025** | **Purchased Loans as of December 31, 2025** |
| | **Forecasted Collection Percentage as of (1) (2)** | **Forecasted Collection Percentage as of (1) (2)** | **Forecasted Collection Percentage as of (1) (2)** | **Forecasted Collection Percentage as of (1) (2)** | **Current Forecast Variance from** | **Current Forecast Variance from** | **Current Forecast Variance from** |
| **Consumer Loan Assignment Year** | **December 31, 2025** | **December 31, 2024** | **December 31, 2023** | **Initial<br>Forecast** | **December 31, 2024** | **December 31, 2023** | **Initial<br>Forecast** |
| 2016 | 66.2% | 66.1% | 66.1% | 66.5% | 0.1% | 0.1% | -0.3% |
| 2017 | 66.4% | 66.3% | 66.3% | 64.6% | 0.1% | 0.1% | 1.8% |
| 2018 | 66.8% | 66.8% | 66.8% | 63.5% | 0.0% | 0.0% | 3.3% |
| 2019 | 67.9% | 67.9% | 67.5% | 64.2% | 0.0% | 0.4% | 3.7% |
| 2020 | 68.4% | 67.9% | 67.8% | 63.6% | 0.5% | 0.6% | 4.8% |
| 2021 | 64.4% | 64.3% | 65.0% | 66.3% | 0.1% | -0.6% | -1.9% |
| 2022 | 61.3% | 62.1% | 64.3% | 68.0% | -0.8% | -3.0% | -6.7% |
| 2023 | 66.8% | 67.7% | 70.1% | 69.4% | -0.9% | -3.3% | -2.6% |
| 2024 | 69.9% | 70.7% |  | 70.7% | -0.8% |  | -0.8% |
| 2025 | 71.9% |  |  | 71.5% |  |  | 0.4% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The forecasted collection rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment.

We evaluate and adjust the expected collection rate for each Consumer Loan subsequent to assignment primarily through the monitoring of consumer payment behavior. The following table summarizes the past-due status of Consumer Loan assignments as of December 31, 2025 and December 31, 2024, segmented by year of assignment:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) | **Total Loans as of December 31, 2025 (1) (2)** | **Total Loans as of December 31, 2025 (1) (2)** | **Total Loans as of December 31, 2025 (1) (2)** | **Total Loans as of December 31, 2025 (1) (2)** | **Total Loans as of December 31, 2025 (1) (2)** |
|  | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Post-term Consumer Loans (4)** | **Total** |
| **Consumer Loan Assignment Year** | **Current (5)** | **Past Due<br>11-90 Days**  | **Past Due**<br>**Over 90 Days** | **Post-term Consumer Loans (4)** | **Total** |
| 2020 and prior | $20.0 | $14.8 | $66.0 | $236.9 | $337.7 |
| 2021 | 87.2 | 46.1 | 149.5 | 21.4 | 304.2 |
| 2022 | 370.8 | 130.6 | 268.0 | 6.0 | 775.4 |
| 2023 | 1112.5 | 337.9 | 407.3 | 0.7 | 1858.4 |
| 2024 | 2394.0 | 711.8 | 501.5 |  | 3607.3 |
| 2025 | 3822.7 | 663.5 | 142.3 |  | 4628.5 |
|  | $7807.2 | $1904.7 | $1534.6 | $265.0 | $11511.5 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) | **Dealer Loans as of December 31, 2025 (1)** | **Dealer Loans as of December 31, 2025 (1)** | **Dealer Loans as of December 31, 2025 (1)** | **Dealer Loans as of December 31, 2025 (1)** | **Dealer Loans as of December 31, 2025 (1)** |
|  | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Post-term Consumer Loans (4)** | **Total** |
| **Consumer Loan Assignment Year** | **Current (5)** | **Past Due<br>11-90 Days**  | **Past Due<br>Over 90 Days** | **Post-term Consumer Loans (4)** | **Total** |
| 2020 and prior | $11.8 | $8.4 | $38.9 | $134.5 | $193.6 |
| 2021 | 58.5 | 29.8 | 99.3 | 16.5 | 204.1 |
| 2022 | 265.2 | 92.1 | 190.1 | 4.7 | 552.1 |
| 2023 | 801.8 | 247.5 | 299.9 | 0.6 | 1349.8 |
| 2024 | 1882.7 | 581.3 | 412.4 |  | 2876.4 |
| 2025 | 2947.2 | 547.7 | 119.9 |  | 3614.8 |
|  | $5967.2 | $1506.8 | $1160.5 | $156.3 | $8790.8 |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) | **Purchased Loans as of December 31, 2025 (2)** | **Purchased Loans as of December 31, 2025 (2)** | **Purchased Loans as of December 31, 2025 (2)** | **Purchased Loans as of December 31, 2025 (2)** | **Purchased Loans as of December 31, 2025 (2)** |
|  | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Post-term Consumer Loans (4)** | **Total** |
| **Consumer Loan Assignment Year** | **Current (5)** | **Past Due<br>11-90 Days**  | **Past Due<br>Over 90 Days** | **Post-term Consumer Loans (4)** | **Total** |
| 2020 and prior | $8.2 | $6.4 | $27.1 | $102.4 | $144.1 |
| 2021 | 28.7 | 16.3 | 50.2 | 4.9 | 100.1 |
| 2022 | 105.6 | 38.5 | 77.9 | 1.3 | 223.3 |
| 2023 | 310.7 | 90.4 | 107.4 | 0.1 | 508.6 |
| 2024 | 511.3 | 130.5 | 89.1 |  | 730.9 |
| 2025 | 875.5 | 115.8 | 22.4 |  | 1013.7 |
|  | $1840.0 | $397.9 | $374.1 | $108.7 | $2720.7 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) | **Total Loans as of December 31, 2024 (1) (2)** | **Total Loans as of December 31, 2024 (1) (2)** | **Total Loans as of December 31, 2024 (1) (2)** | **Total Loans as of December 31, 2024 (1) (2)** | **Total Loans as of December 31, 2024 (1) (2)** |
|  | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Post-term Consumer Loans (4)** | **Total** |
| **Consumer Loan Assignment Year** | **Current (5)** | **Past Due<br>11-90 Days**  | **Past Due**<br>**Over 90 Days** | **Post-term Consumer Loans (4)** | **Total** |
| 2019 and prior | $25.5 | $18.8 | $87.3 | $239.7 | $371.3 |
| 2020 | 113.3 | 64.2 | 179.1 | 25.7 | 382.3 |
| 2021 | 267.8 | 125.2 | 259.0 | 3.8 | 655.8 |
| 2022 | 795.2 | 269.8 | 371.7 | 1.0 | 1437.7 |
| 2023 | 2033.7 | 576.5 | 420.6 |  | 3030.8 |
| 2024 | 4412.3 | 819.1 | 179.8 |  | 5411.2 |
|  | $7647.8 | $1873.6 | $1497.5 | $270.2 | $11289.1 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) | **Dealer Loans as of December 31, 2024 (1)** | **Dealer Loans as of December 31, 2024 (1)** | **Dealer Loans as of December 31, 2024 (1)** | **Dealer Loans as of December 31, 2024 (1)** | **Dealer Loans as of December 31, 2024 (1)** |
|  | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Post-term Consumer Loans (4)** | **Total** |
| **Consumer Loan Assignment Year** | **Current (5)** | **Past Due<br>11-90 Days**  | **Past Due<br>Over 90 Days** | **Post-term Consumer Loans (4)** | **Total** |
| 2019 and prior | $11.3 | $8.2 | $39.7 | $132.4 | $191.6 |
| 2020 | 67.9 | 37.7 | 106.4 | 18.5 | 230.5 |
| 2021 | 180.2 | 82.6 | 171.0 | 3.0 | 436.8 |
| 2022 | 569.7 | 191.5 | 262.1 | 0.8 | 1024.1 |
| 2023 | 1487.0 | 429.4 | 312.8 |  | 2229.2 |
| 2024 | 3571.3 | 686.8 | 150.7 |  | 4408.8 |
|  | $5887.4 | $1436.2 | $1042.7 | $154.7 | $8521.0 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) | **Purchased Loans as of December 31, 2024 (2)** | **Purchased Loans as of December 31, 2024 (2)** | **Purchased Loans as of December 31, 2024 (2)** | **Purchased Loans as of December 31, 2024 (2)** | **Purchased Loans as of December 31, 2024 (2)** |
|  | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Pre-term Consumer Loans (3)** | **Post-term Consumer Loans (4)** | **Total** |
| **Consumer Loan Assignment Year** | **Current (5)** | **Past Due<br>11-90 Days**  | **Past Due<br>Over 90 Days** | **Post-term Consumer Loans (4)** | **Total** |
| 2019 and prior | $14.2 | $10.6 | $47.6 | $107.3 | $179.7 |
| 2020 | 45.4 | 26.5 | 72.7 | 7.2 | 151.8 |
| 2021 | 87.6 | 42.6 | 88.0 | 0.8 | 219.0 |
| 2022 | 225.5 | 78.3 | 109.6 | 0.2 | 413.6 |
| 2023 | 546.7 | 147.1 | 107.8 |  | 801.6 |
| 2024 | 841.0 | 132.3 | 29.1 |  | 1002.4 |
|  | $1760.4 | $437.4 | $454.8 | $115.5 | $2768.1 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)As Consumer Loans are aggregated by Dealer for purposes of recognizing revenue and measuring credit losses, the Dealer Loan amount was estimated by allocating the balance of each Dealer Loan to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.

&nbsp;&nbsp;&nbsp;&nbsp;(2)As certain Consumer Loans are aggregated by Dealer or month of purchase for purposes of recognizing revenue and measuring credit losses, the Purchased Loan amount was estimated by allocating the balance of certain Purchased Loans to the underlying Consumer Loans based on the forecasted future collections of each Consumer Loan.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms.

&nbsp;&nbsp;&nbsp;&nbsp;(4)Represents the Loan balance attributable to Consumer Loans outstanding beyond their initial loan terms.

&nbsp;&nbsp;&nbsp;&nbsp;(5)We consider a Consumer Loan to be current for purposes of forecasting expected collection rates if contractual repayments are less than 11 days past due.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

The following table summarizes the write-offs for Consumer Loan assignments for the years ended December 31, 2025, 2024, and 2023 segmented by year of assignment:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
| **Write-offs by Consumer Loan Assignment Year** | **Dealer Loans** | **Purchased Loans** | **Total** |
| 2020 and prior | $265.1 | $100.7 | $365.8 |
| 2021 | 151.5 | 56.0 | 207.5 |
| 2022 | 248.3 | 95.9 | 344.2 |
| 2023 | 99.3 | 132.9 | 232.2 |
| 2024 | 57.7 | 114.3 | 172.0 |
| 2025 | 14.5 | 54.6 | 69.1 |
|  | $836.4 | $554.4 | $1390.8 |

---

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** | **For the Year Ended December 31, 2024** |
| **Write-offs by Consumer Loan Assignment Year** | **Dealer Loans** | **Purchased Loans** | **Total** |
| 2019 and prior | $177.6 | $134.5 | $312.1 |
| 2020 | 110.5 | 73.5 | 184.0 |
| 2021 | 131.3 | 92.3 | 223.6 |
| 2022 | 175.0 | 139.8 | 314.8 |
| 2023 | 47.6 | 143.9 | 191.5 |
| 2024 | 16.3 | 50.7 | 67.0 |
|  | $658.3 | $634.7 | $1293.0 |

---

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** | **For the Year Ended December 31, 2023** |
| **Write-offs by Consumer Loan Assignment Year** | **Dealer Loans** | **Purchased Loans** | **Total** |
| 2018 and prior | $120.6 | $104.8 | $225.4 |
| 2019 | 101.3 | 176.6 | 277.9 |
| 2020 | 107.0 | 101.9 | 208.9 |
| 2021 | 107.2 | 119.7 | 226.9 |
| 2022 | 113.3 | 158.0 | 271.3 |
| 2023 | 17.2 | 62.8 | 80.0 |
|  | $566.6 | $723.8 | $1290.4 |

---

During the second quarter of 2025, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2024. Consumer Loans assigned in 2024 prior to the implementation of our scorecard adjustment during the third quarter of 2024 had underperformed relative to the forecast adjustment we implemented during the second quarter of 2024. Accordingly, in the second quarter of 2025, we applied an adjustment to that segment of the Consumer Loans assigned in 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2025 reduced forecasted net cash flows by $18.6 million, or 0.2%, and increased provision for credit losses by $16.5 million.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our Loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024. Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters. Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022. During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics. Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2024 reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased provision for credit losses by $127.5 million.

During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. We had experienced a decrease in Consumer Loan prepayments to below-average levels and, as a result, slowed our forecasted net cash flow timing. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of the adjustment to our forecasting methodology during the second quarter of 2023 reduced forecasted net cash flows by $44.5 million, or 0.5%, and increased provision for credit losses by $71.3 million.

**6.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTY AND EQUIPMENT**

Property and equipment consists of the following:

---

| | | |
|:---|:---|:---|
| (In millions) | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| Land and land improvements | $2.7 | $2.7 |
| Building and improvements | 17.8 | 17.6 |
| Data processing equipment and software | 43.8 | 44.1 |
| Office furniture and equipment | 2.1 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment | 66.4 | 66.6 |
| Less: Accumulated depreciation on property and equipment | (53.8) | (51.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment, net | $12.6 | $14.7 |

---

As the vast majority of our team members now work remotely, we had significant excess space in the two office buildings that we owned in Southfield, Michigan. During the second quarter of 2024, we sold the larger building for net sales proceeds of $3.2 million and recognized a loss on sale of the building of $23.7 million. The loss on sale of the building represented the amount by which the $26.9 million carrying value of the building and its improvements, the related land and land improvements, and office furniture and equipment exceeded the net sales proceeds of $3.2 million.

Depreciation expense on property and equipment was $3.6 million, $6.7 million, and $8.9 million for the years ended December 31, 2025, 2024, and 2023, respectively.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**7.&nbsp;&nbsp;&nbsp;&nbsp;REINSURANCE**

A summary of reinsurance activity is as follows:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Net assumed written premiums | $93.7 | $104.4 | $92.8 |
| Net premiums earned | 95.6 | 96.1 | 79.6 |
| Provision for claims | 71.7 | 73.5 | 70.7 |
| Amortization of capitalized acquisition costs | 2.4 | 2.4 | 1.9 |

---

The trust assets and related reinsurance liabilities are as follows:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) |  | **As of December 31,** | **As of December 31,** |
|  | **Balance Sheet location** | **2025** | **2024** |
| Trust assets | Restricted cash and cash equivalents | $0.7 | $0.3 |
| Trust assets | Restricted securities available for sale | 106.2 | 106.4 |
| Unearned premium | Accounts payable and accrued liabilities | 74.0 | 75.9 |
| Claims reserve (1) | Accounts payable and accrued liabilities | 5.9 | 6.0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The claims reserve represents our liability for incurred-but-not-reported claims and is estimated based on historical claims experience.

The following tables present information about incurred and paid claims development for the five-year period ended December 31, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (Dollars in millions) | (Dollars in millions) |  |  |  |  |  |  |
|  | **Cumulative Incurred Claims** | **Cumulative Incurred Claims** | **Cumulative Incurred Claims** | **Cumulative Incurred Claims** | **Cumulative Incurred Claims** | **As of December 31, 2025** | **As of December 31, 2025** |
| **Incident Year** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **Claims Reserve** | **Cumulative Number of Reported Claims** |
| **Incident Year** | **2021** | **2022** | **2023** | **2024** | **2025** | **Claims Reserve** | **Cumulative Number of Reported Claims** |
| &nbsp;&nbsp;&nbsp;2021 | $38.9 | $39.2 | $39.3 | $39.3 | $39.3 | $— | 28856 |
| &nbsp;&nbsp;&nbsp;2022 |  | 46.0 | 47.7 | 47.8 | 47.8 |  | 30493 |
| &nbsp;&nbsp;&nbsp;2023 |  |  | 68.9 | 69.2 | 69.2 |  | 38732 |
| &nbsp;&nbsp;&nbsp;2024 |  |  |  | 73.1 | 72.9 |  | 40080 |
| &nbsp;&nbsp;&nbsp;2025 |  |  |  |  | 71.9 | 5.9 | 37355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |  |  | $301.1 | $5.9 | 175516 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) | **Cumulative Paid Claims** | **Cumulative Paid Claims** | **Cumulative Paid Claims** | **Cumulative Paid Claims** | **Cumulative Paid Claims** |
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
| **Incident Year** | **2021** | **2022** | **2023** | **2024** | **2025** |
| &nbsp;&nbsp;&nbsp;2021 | $36.5 | $39.2 | $39.3 | $39.3 | $39.3 |
| &nbsp;&nbsp;&nbsp;2022 |  | 42.9 | 47.7 | 47.8 | 47.8 |
| &nbsp;&nbsp;&nbsp;2023 |  |  | 63.3 | 69.2 | 69.2 |
| &nbsp;&nbsp;&nbsp;2024 |  |  |  | 67.1 | 72.9 |
| &nbsp;&nbsp;&nbsp;2025 |  |  |  |  | 66.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $295.2 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Average Annual Percentage Payout of Incurred Claims by Age** | **Average Annual Percentage Payout of Incurred Claims by Age** | **Average Annual Percentage Payout of Incurred Claims by Age** | **Average Annual Percentage Payout of Incurred Claims by Age** | **Average Annual Percentage Payout of Incurred Claims by Age** | **Average Annual Percentage Payout of Incurred Claims by Age** |
| **Claim Age (Years)** | **1** | **2** | **3** | **4** | **5** |
| Payout Percentage | 91.6% | 8.3% | 0.1% | —% | —% |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**8.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INCOME**

Other income consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Ancillary product profit sharing | $37.8 | $33.4 | $34.1 |
| Interest | 27.5 | 26.2 | 19.7 |
| Remarketing fees | 12.7 | 12.1 | 10.7 |
| Other | 1.8 | 1.9 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $79.8 | $73.6 | $66.9 |

---

Ancillary product profit sharing consists of payments received from TPPs based upon the performance of vehicle service contracts and GAP contracts, and is recognized as income over the life of the vehicle service contracts and GAP contracts.

Interest consists of income earned on cash and cash equivalents, restricted cash and cash equivalents, and restricted securities available for sale. Interest income is generally recognized over time as it is earned. Interest income on restricted securities available for sale is recognized over the life of the underlying financial instruments using the interest method.

Remarketing fees consist of fees charged to Dealers that are retained from the sale of repossessed vehicles by Vehicle Remarketing Services, Inc. ("VRS"), our wholly owned subsidiary that is responsible for remarketing vehicles for Credit Acceptance. VRS coordinates vehicle repossessions with a nationwide network of repossession contractors, the redemption of the vehicles by the consumers, and the sale of the vehicles through a nationwide network of vehicle auctions. VRS recognizes income from the retained fees at the time of the sale and does not retain a fee if a repossessed vehicle is redeemed by the consumer prior to the sale.

The following table disaggregates our other income by major source of income and timing of the revenue recognition:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** | **For the Year Ended December 31, 2025** |
|  | **Ancillary product profit sharing** | **Interest** | **Remarketing fees** | **Other** | **Total Other Income** |
| **Source of income** |  |  |  |  |  |
| Third-Party Providers | $37.8 | $27.5 | $— | $0.7 | $66.0 |
| Dealers |  |  | 12.7 | 1.1 | 13.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $37.8 | $27.5 | $12.7 | $1.8 | $79.8 |
| **Timing of revenue recognition** |  |  |  |  |  |
| Over time | $37.8 | $27.5 | $— | $0.3 | $65.6 |
| At a point in time |  |  | 12.7 | 1.5 | 14.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $37.8 | $27.5 | $12.7 | $1.8 | $79.8 |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**9.&nbsp;&nbsp;&nbsp;&nbsp;DEBT** 

Debt consists of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In millions) | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Principal Outstanding** | **Unamortized Debt Issuance Costs** | **Unamortized Discount** | **Carrying <br>Amount** |
| Revolving secured lines of credit (1) | $107.3 | $— | $— | $107.3 |
| Secured financing (2) | 5180.6 | (21.7) | (0.1) | 5158.8 |
| Senior notes | 1100.0 | (12.2) |  | 1087.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt | $6387.9 | $(33.9) | $(0.1) | $6353.9 |
| (In millions) | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Principal Outstanding** | **Unamortized Debt Issuance Costs** | **Unamortized Discount** | **Carrying <br>Amount** |
| Revolving secured lines of credit (1) | $0.1 | $— | $— | $0.1 |
| Secured financing (2) | 5391.8 | (29.0) | (1.3) | 5361.5 |
| Senior notes | 1000.0 | (8.7) |  | 991.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt | $6391.9 | $(37.7) | $(1.3) | $6352.9 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)Excludes deferred debt issuance costs of $4.5 million and $4.4 million as of December 31, 2025 and December 31, 2024, respectively, which are included in other assets.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Warehouse facilities and Term ABS financings.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

General information for each of our financing transactions in place as of December 31, 2025 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (Dollars in millions) |  |  |  |  |  |
| **Financings** | **Wholly Owned Subsidiary** | **Maturity Date** | **Maturity Date** | **Financing Amount** | **Interest Rate Basis<br> as of December 31, 2025** |
| Revolving Secured<br>Line of Credit Facility | n/a | 06/22/28 |  | $390.0 | At our option, either the Secured Overnight Financing Rate (SOFR) plus 197.5 basis points or the prime rate plus 87.5 basis points |
| RTP Facility | n/a |  | (1) | $20.0 | SOFR plus 197.5 basis points |
| Warehouse Facility II (2) | CAC Warehouse Funding LLC II | 09/20/27 | (3) | $500.0 | SOFR plus 185.0 basis points |
| Warehouse Facility IV (2) | CAC Warehouse Funding LLC IV | 07/30/28 | (3) | $300.0 | SOFR plus 205.0 basis points |
| Warehouse Facility V (2) | CAC Warehouse Funding LLC V | 12/29/27 | (4) | $250.0 | SOFR plus 185.0 basis points |
| Warehouse Facility VI (2) | CAC Warehouse Funding LLC VI | 09/30/28 | (3) | $75.0 | SOFR plus 185.0 basis points  |
| Warehouse Facility VIII (2) | CAC Warehouse Funding LLC VIII | 09/19/28 | (3) | $200.0 | SOFR plus 185.0 basis points |
| Term ABS 2019-2 (2) | Credit Acceptance Funding LLC 2019-2 | 09/15/26 | (5) | $500.0 | Fixed rate |
| Term ABS 2021-1 (2) | Credit Acceptance Funding LLC 2021-1 | 02/17/26 | (5) | $100.0 | SOFR plus 220.0 basis points |
| Term ABS 2022-1 (2) | Credit Acceptance Funding LLC 2022-1 | 06/17/24 | (3) | $350.0 | Fixed rate |
| Term ABS 2022-2 (2) | Credit Acceptance Funding LLC 2022-2 | 06/15/27 | (5) | $300.0 | SOFR plus 246.4 basis points |
| Term ABS 2022-3 (2) | Credit Acceptance Funding LLC 2022-3 | 10/15/24 | (3) | $389.9 | Fixed rate |
| Term ABS 2023-1 (2) | Credit Acceptance Funding LLC 2023-1 | 03/17/25 | (3) | $400.0 | Fixed rate |
| Term ABS 2023-2 (2) | Credit Acceptance Funding LLC 2023-2 | 05/15/25 | (3) | $400.0 | Fixed rate |
| Term ABS 2023-3 (2) | Credit Acceptance Funding LLC 2023-3 | 08/15/25 | (3) | $400.0 | Fixed rate |
| Term ABS 2023-5 (2) | Credit Acceptance Funding LLC 2023-5 | 12/15/25 | (3) | $294.0 | Fixed rate |
| Term ABS 2024-A (2) | Credit Acceptance Funding LLC 2024-A | 02/15/27 | (5) | $200.0 | Fixed rate |
| Term ABS 2024-1 (2) | Credit Acceptance Funding LLC 2024-1 | 03/16/26 | (3) | $500.0 | Fixed rate |
| Term ABS 2024-2 (2) | Credit Acceptance Funding LLC 2024-2 | 06/15/26 | (3) | $550.0 | Fixed rate |
| Term ABS 2024-3 (2) | Credit Acceptance Funding LLC 2024-3 | 09/15/26 | (3) | $600.0 | Fixed rate |
| Term ABS 2024-B (2) | Credit Acceptance Funding LLC 2024-B | 12/15/27 | (5) | $300.0 | Fixed rate |
| Term ABS 2025-1 (2) | Credit Acceptance Funding LLC 2025-1 | 03/15/27 | (3) | $400.0 | Fixed rate |
| Term ABS 2025-2 (2) | Credit Acceptance Funding LLC 2025-2 | 11/15/27 | (3) | $500.0 | Fixed rate |
| 2028 Senior Notes | n/a | 12/15/28 |  | $600.0 | Fixed rate |
| 2030 Senior Notes | n/a | 03/15/30 |  | $500.0 | Fixed rate |

---

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(1)Borrowings are subject to repayment on demand.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Financing made available only to a specified subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets.

&nbsp;&nbsp;&nbsp;&nbsp;(4)Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 27, 2029 will be due on that date.

&nbsp;&nbsp;&nbsp;&nbsp;(5)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.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

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

---

| | | |
|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** |
| **Revolving Secured Lines of Credit** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum outstanding principal balance | $307.6 | $342.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average outstanding principal balance | 39.0 | 127.0 |
| **Warehouse Facility II** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum outstanding principal balance | $251.0 | $251.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average outstanding principal balance | 5.5 | 94.4 |
| **Warehouse Facility IV** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum outstanding principal balance | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average outstanding principal balance |  |  |
| **Warehouse Facility V** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum outstanding principal balance | $— | $100.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average outstanding principal balance |  | 5.7 |
| **Warehouse Facility VI** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum outstanding principal balance | $— | $75.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average outstanding principal balance |  | 36.5 |
| **Warehouse Facility VIII** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maximum outstanding principal balance | $— | $100.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average outstanding principal balance |  | 19.4 |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

---

| | | |
|:---|:---|:---|
| (Dollars in millions) | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| **Revolving Secured Lines of Credit** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $107.3 | $0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount available for borrowing (1) | 302.7 | 409.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 5.69% | 6.37% |
| **Warehouse Facility II** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount available for borrowing (1) | 500.0 | 500.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral |  | 2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | —% | —% |
| **Warehouse Facility IV** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount available for borrowing (1) | 300.0 | 300.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | —% | —% |
| **Warehouse Facility V** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount available for borrowing (1) | 250.0 | 250.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 1.0 | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | —% | —% |
| **Warehouse Facility VI** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount available for borrowing (1) | 75.0 | 75.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 0.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | —% | —% |
| **Warehouse Facility VIII** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount available for borrowing (1) | 200.0 | 200.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | —% | —% |
| **Term ABS 2019-2** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $500 | $500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 523.8 | 529.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 42.1 | 41.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 5.43% | 5.43% |
| **Term ABS 2021-1** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $100 | $100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 108.8 | 112.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 8.8 | 8.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 5.95% | 6.60% |
| **Term ABS 2021-4** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $— | $63.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral |  | 167.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral |  | 16.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | —% | 1.89% |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

---

| | | |
|:---|:---|:---|
| (Dollars in millions) | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| **Term ABS 2022-1** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $44.8 | $236.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 186.3 | 310.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 19.7 | 24.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.13% | 5.24% |
| **Term ABS 2022-2** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $300.0 | $300.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 325.0 | 406.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 23.6 | 25.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.12% | 7.29% |
| **Term ABS 2022-3** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $127.0 | $347.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 238.8 | 395.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 23.0 | 29.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 8.84% | 7.82% |
| **Term ABS 2023-1** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $209.2 | $400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 293.5 | 453.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 26.9 | 33.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 7.32% | 6.92% |
| **Term ABS 2023-2** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $242.7 | $400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 338.4 | 533.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 28.6 | 36.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.69% | 6.39% |
| **Term ABS 2023-3** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $312.9 | $400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 371.3 | 524.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 30.0 | 36.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.99% | 6.86% |
| **Term ABS 2023-A** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $— | $200.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral |  | 252.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral |  | 17.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | —% | 7.51% |
| **Term ABS 2023-5** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $294.0 | $294.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 327.7 | 398.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 28.9 | 32.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.54% | 6.54% |
| **Term ABS 2024-A** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $200.0 | $200.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 211.1 | 248.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 16.6 | 18.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 7.45% | 7.45% |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

---

| | | |
|:---|:---|:---|
| (Dollars in millions) | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| **Term ABS 2024-1** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $500.0 | $500.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 580.2 | 553.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 44.0 | 45.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.01% | 6.01% |
| **Term ABS 2024-2** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $550.0 | $550.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 608.6 | 646.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 42.9 | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.21% | 6.21% |
| **Term ABS 2024-3** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $600.0 | $600.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 668.7 | 700.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 47.4 | 51.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 4.91% | 4.91% |
| **Term ABS 2024-B** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $300.0 | $300.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 339.9 | 425.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 22.5 | 37.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.13% | 6.13% |
| **Term ABS 2025-1** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $400.0 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 463.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 32.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 5.26% | —% |
| **Term ABS 2025-2** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $500.0 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans pledged as collateral | 689.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents pledged as collateral | 39.0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 4.77% | —% |
| **2026 Senior Notes** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $— | $400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | —% | 6.625% |
| **2028 Senior Notes** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $600.0 | $600.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 9.250% | 9.250% |
| **2030 Senior Notes** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal balance outstanding | $500.0 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate | 6.625% | —% |

---

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

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**Revolving Secured Lines of Credit**

We have two revolving secured lines of credit: (1) a $390.0 million revolving secured line of credit facility, to which we refer as our revolving secured line of credit facility, with a commercial bank syndicate and (2) an uncommitted $20.0 million revolving secured line of credit facility, to which we refer as the RTP facility, with a lender for use solely in facilitating payments by the Company through the lender's real-time payments service.

Borrowings under our revolving secured line of credit facility, including any letters of credit issued under the facility, are subject to a borrowing-base limitation. This limitation equals 80% of the Dealer Loans Receivable constituting revolving credit facility collateral and 80% of Purchased Contract Balances constituting revolving credit facility collateral (each as defined in the agreement governing our revolving secured line of credit facility), less a hedging reserve (not exceeding $1.0 million), and less the amount of other outstanding debt secured by the collateral that secures our revolving secured line of credit facility. Borrowings under our revolving secured line of credit facility are secured by a lien on most of our assets that do not secure obligations under our Warehouse facilities or Term ABS financings.

Borrowings under the RTP facility are secured by a lien on the same collateral that secures obligations under our revolving secured line of credit facility. The RTP facility terminates automatically if the lender ceases to be part of the commercial bank syndicate under our revolving secured line of credit facility or if its lending commitments under our revolving secured line of credit facility are terminated.

**Warehouse Facilities**

We have five Warehouse facilities with total borrowing capacity of $1,325.0 million. Each of the facilities is with a different lender or group of lenders. Under each Warehouse facility, we can convey Loans to the applicable wholly owned subsidiary in return for cash and/or an increase in the value of our equity in such subsidiary. In turn, each such subsidiary pledges the Loans as collateral to secure financing that will fund the cash portion of the purchase price of the Loans. The financing provided to each such subsidiary under the applicable facility is generally limited to the lesser of 80% of the outstanding balance of the conveyed Loans, as determined in accordance with the applicable agreement, plus certain restricted cash and cash equivalents pledged as collateral, or the facility limit.

The financings create indebtedness for which the subsidiaries are liable and which is secured by all the assets of each subsidiary. Such indebtedness is non-recourse to us (other than customary, limited recourse to us in the form of repurchase obligations or indemnification obligations for any violations by us of our representations or obligations as seller, servicer, or custodian), even though we are consolidated for financial reporting purposes with the subsidiaries. Because the subsidiaries are organized as bankruptcy-remote legal entities separate from us, their assets (including the conveyed Loans) are not available to any creditors other than the creditors of the applicable subsidiary.

The subsidiaries pay us a monthly servicing fee equal to 4% of the collections received with respect to the conveyed Loans. The servicing fee is paid out of the collections. Except for the servicing fee and holdback payments due to Dealers, if a facility is amortizing, we do not have any rights in any portion of such collections until all outstanding principal, accrued and unpaid interest, fees, and other related costs have been paid in full. If a facility is in its revolving period, the applicable subsidiary is entitled to the portion of such collections available after the payment of interest and transaction expenses under the facility, provided that the borrowing base requirements of the facility are satisfied.

**Term ABS Financings**

We have wholly owned subsidiaries (the "Funding LLCs") that have completed secured financing transactions with qualified institutional investors or lenders. In connection with each of these transactions, we conveyed Loans on an arms-length basis to a Funding LLC for cash and the sole membership interest in that Funding LLC. In turn, each Funding LLC, other than the Funding LLCs for the Term ABS 2019-2, 2021-1, 2022-2, and 2024-B financings, conveyed the Loans to the respective trusts that issued notes to qualified institutional investors. The Funding LLCs for the Term ABS 2019-2, 2021-1, 2022-2, and 2024-B financings pledged the Loans for the benefit of their respective lenders. The Term ABS 2023-1, 2023-2, 2023-3, 2023-5, 2024-A, 2024-1, 2024-2, 2024-3, 2025-1, and 2025-2 financings each consist of three classes of notes (or, in the case of the Term ABS 2024-B, three classes of loans), while the Term ABS 2022-1 and Term ABS 2022-3 financings consist of four classes of notes.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

Each Term ABS financing at the time of issuance has a specified revolving period during which we are likely to convey additional Loans to the applicable Funding LLC. Each Funding LLC (other than the Funding LLCs of the Term ABS 2019-2, 2021-1, 2022-2, and 2024-B financings) will then convey the Loans to its respective trust. At the end of the applicable revolving period, the debt outstanding under each financing will begin to amortize.

The Term ABS financings create indebtedness for which the applicable trust or Funding LLC is liable and which is secured by all the assets of the applicable trust or Funding LLC. Such indebtedness is non-recourse to us (other than customary, limited recourse to us in the form of repurchase obligations or indemnification obligations for any violations by us of our representations or obligations as seller, servicer, or custodian), even though we are consolidated for financial reporting purposes with the trusts and the Funding LLCs. Because the trusts and the Funding LLCs are organized as bankruptcy-remote legal entities separate from us, their assets (including the conveyed Loans) are not available to any creditors other than the creditors of the applicable subsidiary. We receive a monthly servicing fee on each financing equal to 4% of the collections received with respect to the conveyed Loans. The fee is paid out of the collections. Except for the servicing fee and Dealer Holdback payments due to Dealers, if a Term ABS financing is amortizing, we do not have any rights in any portion of such collections until all outstanding principal, accrued and unpaid interest, fees, and other related costs have been paid in full. If a Term ABS financing is in its revolving period, the applicable trust or Funding LLC is entitled to the portion of such collections available after application of any amounts necessary to acquire additional Loans from us and to pay accrued interest on the debt and any other transaction expenses, provided that any necessary principal payments are made to compensate for certain reductions in the balance of eligible loans or, in the case of the Term ABS 2019-2 financing and Term ABS financings occurring after the Term ABS 2021-3 financing, certain reductions in forecasted collections. In addition, in our capacity as servicer of the Loans, we have a limited right to exercise a "clean-up call" option to purchase Loans from the Funding LLCs and/or the trusts under certain specified circumstances. For those Funding LLCs with a trust, when the trust's indebtedness is paid in full, either through collections or through a prepayment of the indebtedness, the trust is to pay any remaining collections over to its Funding LLC as the sole beneficiary of the trust. For all Funding LLCs, after the indebtedness is paid in full, any remaining collections will ultimately be available to be distributed to us as the sole member of the respective Funding LLC.

**Senior Notes**

On February 28, 2025, we issued $500.0 million aggregate principal amount of 6.625% senior notes due 2030 (the "2030 senior notes"). The 2030 senior notes were issued pursuant to an indenture, dated as of February 28, 2025, among the Company, as issuer, the Company's subsidiaries Buyers Vehicle Protection Plan, Inc. and Vehicle Remarketing Services, Inc., as guarantors (collectively, the "Guarantors"), and the trustee under the indenture.

The 2030 senior notes mature on March 15, 2030 and bear interest at a rate of 6.625% per annum, computed on the basis of a 360-day year composed of twelve 30-day months and payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2025. We used a portion of the net proceeds from the 2030 senior notes to redeem all of the $400.0 million outstanding principal amount of our 6.625% senior notes due 2026 (the "2026 senior notes"). We used the remaining net proceeds from the 2030 senior notes for general corporate purposes. During the first quarter of 2025, we recognized a pre-tax loss on extinguishment of debt of $1.2 million related to the redemption of the 2026 senior notes.

On December 19, 2023, we issued $600.0 million aggregate principal amount of 9.250% senior notes due 2028 (the "2028 senior notes"). The 2028 senior notes were issued pursuant to an indenture, dated as of December 19, 2023, among the Company, as issuer, the Company's subsidiaries Buyers Vehicle Protection Plan, Inc. and Vehicle Remarketing Services, Inc., as guarantors (collectively, the "Guarantors"), and the trustee under the indenture.

The 2028 senior notes mature on December 15, 2028 and bear interest at a rate of 9.250% per annum, computed on the basis of a 360-day year composed of twelve 30-day months and payable semi-annually on June 15 and December 15 of each year, beginning on June 15, 2024. We used a portion of the net proceeds from the 2028 senior notes to repurchase or redeem all of the $400.0 million outstanding principal amount of our 5.125% senior notes due 2024 (the "2024 senior notes"), of which $322.3 million was repurchased on December 19, 2023 and the remaining $77.7 million was redeemed on December 31, 2023. We used the remaining net proceeds from the 2028 senior notes for general corporate purposes. During the fourth quarter of 2023, we recognized a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase and redemption of the 2024 senior notes.

On March 7, 2019, we issued $400.0 million aggregate principal amount of 6.625% senior notes due 2026 (the "2026 senior notes"). The 2026 senior notes were issued pursuant to an indenture, dated as of March 7, 2019, among the Company, as issuer, the Guarantors and the trustee under the indenture.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

The 2030 senior notes and 2028 senior notes (the "senior notes") are guaranteed on a senior basis by the Guarantors, which are also guarantors of obligations under our revolving secured line of credit facility. Other existing and future subsidiaries of ours may become guarantors of the senior notes in the future. The indentures for the senior notes provide for a guarantor of the senior notes to be released from its obligations under its guarantee of the senior notes under specified circumstances.

**Principal Debt Maturities**

The scheduled principal maturities of our debt as of December 31, 2025 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (In millions) |  |  |  |  |  |
| **Year** | **Revolving Secured Lines of Credit Facility** | **Warehouse Facilities** | **Term ABS <br>Financings (1)** | **Senior Notes** | **Total** |
| &nbsp;&nbsp;&nbsp;2026 | $— | $— | $2181.4 | $— | $2181.4 |
| &nbsp;&nbsp;&nbsp;2027 |  |  | 2227.0 |  | 2227.0 |
| &nbsp;&nbsp;&nbsp;2028 | 107.3 |  | 633.3 | 600.0 | 1340.6 |
| &nbsp;&nbsp;&nbsp;2029 |  |  | 138.9 |  | 138.9 |
| &nbsp;&nbsp;&nbsp;2030 |  |  |  | 500.0 | 500.0 |
| &nbsp;&nbsp;&nbsp;Thereafter |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $107.3 | $— | $5180.6 | $1100.0 | $6387.9 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)The principal maturities of the Term ABS financings are estimated based on forecasted collections.

**Debt Covenants**

As of December 31, 2025, we were in compliance with the covenants under our revolving secured line of credit facility, our Warehouse facilities, our Term ABS financings, the senior notes indentures, and the RTP Facility.

Our revolving secured line of credit facility and our Warehouse facilities include covenants that require the maintenance of certain financial ratios and other financial conditions. These covenants require a minimum ratio of (1) our net earnings, adjusted for specified items, before income taxes, depreciation, amortization, and fixed charges to (2) our fixed charges, as defined in the agreements. These covenants also limit the maximum ratio of our funded debt less unrestricted cash and cash equivalents to tangible net worth. Some of these covenants may indirectly limit the repurchase of common stock or payment of dividends on common stock, and the senior notes indentures include covenants limiting such repurchases and dividend payments. Our Warehouse facilities and Term ABS financings contain covenants that measure the performance of the conveyed assets.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**10.&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES**

**Income Tax Provision**

The income tax provision consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Income before provision for income taxes: | $565.4 | $329.5 | $367.6 |
| Current provision for income taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | 83.5 | 116.1 | 97.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | 20.4 | 32.9 | 20.2 |
|  | 103.9 | 149.0 | 117.3 |
| Deferred provision for income taxes: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | 32.2 | (47.9) | (26.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State | 2.4 | (22.5) | (11.6) |
|  | 34.6 | (70.4) | (38.0) |
| Interest and penalties expense: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 3.0 | 3.0 | 2.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Penalties |  |  |  |
|  | 3.0 | 3.0 | 2.2 |
| Provision for income taxes | $141.5 | $81.6 | $81.5 |

---

**Income Tax Payments**

Income tax payments during the year, net of refunds, are comprised of the following:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Federal | $252.9 | $82.7 | $19.7 |
| State: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pennsylvania | (a) | 6.3 | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York | (a) | (a) | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alabama | (a) | (a) | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 26.4 | 14.7 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State total | 26.4 | 21.0 | 12.2 |
| Total cash paid for income taxes (net of refunds) | $279.3 | $103.7 | $31.9 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The amount of income taxes paid during the year does not meet the 5% disaggregation threshold and is included in "Other."

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**Deferred Taxes**

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities consist of the following:

---

| | | |
|:---|:---|:---|
| (In millions) | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | $884.0 | $831.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 15.9 | 14.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred state net operating loss | 32.3 | 25.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 34.6 | 15.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax assets | 966.8 | 886.5 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation of Loans receivable | 1310.4 | 1195.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred Loan origination costs | 1.8 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 8.6 | 8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax liabilities | 1320.8 | 1205.6 |
| Net deferred tax liability | $354.0 | $319.1 |

---

The deferred state net operating loss tax asset arising from the operating loss carryforward for state income tax purposes is expected to expire at various times beginning in 2034, if not utilized. We do not anticipate expiration of the net operating loss carryforwards prior to their utilization.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**Effective Income Tax Rate**

A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
|  | **Amount** | **Percentage** | **Amount** | **Percentage** | **Amount** | **Percentage** |
| U.S. federal statutory income tax rate | $118.7 | 21.0% | $69.2 | 21.0% | $77.2 | 21.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local income taxes (1) (2) | 21.1 | 3.7% | 10.4 | 3.1% | 9.9 | 2.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-deductible executive compensation expense | 5.5 | 1.0% | 7.1 | 2.1% | 4.8 | 1.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefits from stock-based compensation plans | (4.1) | -0.7% | (5.3) | -1.6% | (10.9) | -3.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 0.3 | 0.0% | 0.2 | 0.2% | 0.5 | 0.2% |
| Effective income tax rate | $141.5 | 25.0% | $81.6 | 24.8% | $81.5 | 22.2% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;For the years ended December 31, 2025, 2024, and 2023, the majority of the tax effect in this category was attributable to state income taxes in New Jersey, Tennessee, Illinois, and Pennsylvania; New Jersey and Indiana; and New Jersey, Michigan, New York, Pennsylvania, Maryland, and Alabama, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes uncertain tax benefits applicable to states income taxes.

<u>State and local income taxes</u>

For the year ended December 31, 2025, the impact of state and local income taxes on our effective income tax rate increased from 2024, primarily due to a revision of deferred tax estimates during 2025. For the year ended December 31, 2024, the impact of state and local income taxes on our effective income tax rate increased from 2023, primarily due to an adjustment to an uncertain tax position estimate for state income taxes during the second quarter of 2024 and changes in state tax laws that were enacted during the second quarter of 2024.

<u>Non-deductible executive compensation expense</u>

We recognize non-deductible executive compensation expense as an increase of provision for income taxes or a reduction of benefit for income taxes. For the year ended December 31, 2025, the impact of non-deductible executive compensation expense on our effective income tax rate decreased from 2024, due to a decrease in non-deductible executive compensation expense and an increase in pre-tax income. For the year ended December 31, 2024, the impact of non-deductible executive compensation expense on our effective income tax rate increased from 2023, primarily due to an increase in non-deductible executive compensation expense.

<u>Excess tax benefits from stock-based compensation</u>

We recognize an excess tax benefit or tax deficiency when the deduction for the stock-based compensation expense of a stock award for tax purposes differs from the cumulative stock-based compensation expense recognized in the financial statements. The excess tax benefit or tax deficiency is recognized in provision for income taxes in the period in which the amount of the deduction is determined, which is when restricted stock vests, restricted stock units are settled in common stock, or stock options are exercised. Excess tax benefits reduce our effective income tax rate, while tax deficiencies increase our effective income tax rate. The decrease in the impact of excess tax benefits on our effective income tax rate for the year ended December 31, 2025 as compared to 2024 was due to a lower realized tax deduction from stock compensation and an increase in pre-tax income. The decrease in the impact of excess tax benefits on our effective income tax rate for the year ended December 31, 2024 as compared to 2023 was primarily due to a decrease in the number of restricted stock units that were settled in common stock during 2024 due to the timing of long-term stock award grants.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**Unrecognized Tax Benefits**

The following table is a summary of changes in gross unrecognized tax benefits:

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| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Unrecognized tax benefits at January 1, | $73.0 | $61.0 | $57.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions for tax positions of the current year | 16.5 | 20.3 | 16.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions for tax positions of prior years |  | 2.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reductions for tax positions of prior years | (0.1) | (0.2) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlements |  | (3.2) | (3.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reductions as a result of a lapse of the statute of limitations | (10.0) | (7.7) | (8.5) |
| Unrecognized tax benefits at December 31, | $79.4 | $73.0 | $61.0 |

---

The total amount of gross unrecognized tax benefits that, if recognized, would favorably affect our effective income tax rate in future periods was $79.4 million as of December 31, 2025. As of December 31, 2025, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months. Accrued interest related to uncertain tax positions was $20.9 million and $17.9 million as of December 31, 2025 and 2024, respectively.

We are subject to income tax in federal, state, and local jurisdictions. We are generally no longer subject to tax examinations on federal returns filed for years prior to 2022 and state and local returns filed for years prior to 2019.

**11.&nbsp;&nbsp;&nbsp;&nbsp;NET INCOME PER SHARE**

Basic net income per share has been computed by dividing net income by the basic number of weighted average shares outstanding. Diluted net income per share has been computed by dividing net income by the diluted number of weighted average shares outstanding using the treasury stock method. The share effect is as follows:

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| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Weighted average shares outstanding: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares | 11342184 | 12159941 | 12728888 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vested restricted stock units | 109394 | 163320 | 224536 |
| Basic number of weighted average shares outstanding | 11451578 | 12323261 | 12953424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dilutive effect of restricted stock units and stock options | 199195 | 146022 | 57311 |
| Dilutive number of weighted average shares outstanding | 11650773 | 12469283 | 13010735 |

---

The following outstanding stock awards were excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive:

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| | | | |
|:---|:---|:---|:---|
| | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Stock options | 47000 | 69083 | 228998 |
| Restricted stock units | 7329 | 240 | 3185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 54329 | 69323 | 232183 |

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**12.&nbsp;&nbsp;&nbsp;&nbsp;STOCK REPURCHASES**

The following table summarizes our stock repurchases for the years ended December 31, 2025, 2024, and 2023:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (Dollars in millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| **Stock Repurchases** | **Number of Shares Repurchased** | **Cost (1)** | **Number of Shares Repurchased** | **Cost (1)** | **Number of Shares Repurchased** | **Cost (1)** |
| Open Market (2) | 1484325 | $711.9 | 560916 | $300.4 | 352062 | $175.1 |
| Other (3) | 29513 | 13.5 | 27109 | 12.9 | 57255 | 27.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 1513838 | $725.4 | 588025 | $313.3 | 409317 | $202.6 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)Total cost of repurchases includes excise tax.

&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents repurchases under authorizations by our board of directors for the repurchase of shares by us from time to time in the open market through privately negotiated transactions, through block trades, pursuant to trading plans adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, or otherwise. On September 29, 2025, our board of directors authorized the repurchase of up to two million shares of our common stock in addition to the board's prior authorizations. As of December 31, 2025, we had authorization to repurchase 1,760,766 shares of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;(3)Represents shares of common stock released to us by team members as payment of tax withholdings upon the vesting of restricted stock units and the settlement of restricted stock units in common stock.

**13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; STOCK-BASED COMPENSATION PLANS**

Pursuant to our Amended and Restated Incentive Compensation Plan (the "Incentive Plan"), at any time prior to April 12, 2031, we can grant stock-based awards in the form of restricted stock, restricted stock units, and stock options to team members, officers, directors, and contractors. On April 10, 2024, our board of directors approved an amendment to the Incentive Plan, subject to shareholder approval, increasing the number of shares authorized for issuance by 250,000 shares, to 3,250,000 shares. Shareholder approval was received at our annual meeting of shareholders on June 5, 2024. The shares available for future grants under the Incentive Plan totaled 21,270 as of December 31, 2025.

*Restricted Stock Units*

We grant performance-based and time-based restricted stock units to team members and directors in accordance with the Incentive Plan. The grant-date fair value per share is estimated to equal the market price of our common stock on the date of grant. Each restricted stock unit represents and has a value equal to one share of common stock. Based on the terms of individual restricted stock unit grant agreements, restricted stock units vest under one of the following methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For executive officers and senior leaders, over a period of ten years, based on continuous employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For certain team members, over a period of three or four years, based on continuous employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For non-employee directors, over a period of three years, based on continuous service as a director.

A summary of the restricted stock unit ("RSU") activity under the Incentive Plan for the year ended December 31, 2025, is presented below:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Restricted Stock Units** | **Number of Restricted Stock Units** | **Weighted Average Grant-Date Fair Value Per Share** | **Aggregate Intrinsic <br>Value (2) <br>(in millions)** | **Weighted Average Remaining Contractual Term (in years)** | |
| Outstanding as of December 31, 2024 | 533447 | $407.15 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted | 243351 | 453.50 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Converted | (75911) | 220.69 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (3264) | 478.24 |  |  |  |
| Outstanding as of December 31, 2025 (1) | 697623 | $443.27 | $309.4 | 3.9 | (3) |
| Vested as of December 31, 2025 | 56859 | $124.94 | $25.2 | 0.5 |  |

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&nbsp;&nbsp;&nbsp;&nbsp;(1)No RSUs outstanding at December 31, 2025 were convertible to shares of common stock.

&nbsp;&nbsp;&nbsp;&nbsp;(2)The intrinsic value of RSUs is measured by applying the closing stock price as of December 31, 2025 to the applicable number of units.

&nbsp;&nbsp;&nbsp;&nbsp;(3)The calculation of weighted average remaining contractual term of RSUs outstanding excludes 171,917 RSUs that are to be settled in common stock on future dates that are currently not known, as they are contingent on the timing of the team members' retirement from the Company.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

The grant-date weighted average fair value of RSUs granted in 2025, 2024, and 2023 was $453.50, $484.58, and $454.04, respectively. The total intrinsic value of RSUs settled in common stock during 2025, 2024, and 2023 was $33.7 million, $32.2 million, and $84.8 million, respectively.

*Stock option grants*

We have granted time-based stock options to team members and directors in accordance with the Incentive Plan. Based on the terms of individual stock option grant agreements, the stock options:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• vest and become exercisable in three or four equal annual installments beginning on the first anniversary of the date on which the options were granted, based on continuous employment or service, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expire either six or ten years from the date of the grant.

A summary of the stock option activity under the Incentive Plan for the year ended December 31, 2025, is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Stock Options** | **Number of Stock Options** | **Weighted Average Exercise Price Per Share** | **Aggregate Intrinsic <br>Value (1) <br>(in millions)** | **Weighted Average Remaining Contractual Term (in years)** |
| Outstanding as of December 31, 2024 | 605466 | $367.88 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised | (69419) | 337.65 |  |  |
| Outstanding as of December 31, 2025 | 536047 | $371.79 | $42.9 | 2.2 |
| Exercisable as of December 31, 2025 | 521047 | $367.94 | $42.8 | 2.2 |
| Unvested as of December 31, 2025 | 15000 | $505.55 | $0.1 | 2.4 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)The intrinsic value of stock options is the amount by which the market price of the stock as of December 31, 2025 exceeded the exercise price of the options.

The total intrinsic value of stock options exercised during 2025 was $12.0 million. Net cash proceeds from the exercise of stock options in 2025 was $23.5 million.

*Stock-based compensation expense*

Stock-based compensation expense consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Restricted stock units | $45.7 | $12.1 | $5.6 |
| Stock options | 5.0 | 32.9 | 33.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $50.7 | $45.0 | $39.1 |

---

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

Pursuant to our Amended and Restated Incentive Compensation Plan, we can grant stock-based awards in the form of restricted stock, restricted stock units, and stock options to team members, officers, directors, and contractors. Instead of a short-term compensation program providing for rolling, annual equity awards to our executive officers and senior leaders, we utilize a multi-year compensation program that grants a one-time equity award at the beginning of the compensation program period that is intended to incentivize recipients over the multi-year compensation period. Our current compensation program for executive officers and senior leaders consists primarily of one-time equity awards with a 10-year vesting period. We expect to recognize the remaining expense for stock-based awards outstanding as of December 31, 2025 over a weighted-average period of 4.2 years as follows:

---

| | | | |
|:---|:---|:---|:---|
| (In millions) |  |  |  |
| **For the Years Ended December 31,** | **Restricted <br>Stock Units** | **Stock Options** | **Total Projected Expense** |
| 2026 | $47.0 | $1.2 | $48.2 |
| 2027 | 39.7 |  | 39.7 |
| 2028 | 33.1 |  | 33.1 |
| 2029 | 25.0 |  | 25.0 |
| 2030 | 23.3 |  | 23.3 |
| Thereafter | 89.6 |  | 89.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $257.7 | $1.2 | $258.9 |

---

**14.&nbsp;&nbsp;&nbsp;&nbsp;BUSINESS SEGMENT AND OTHER INFORMATION**

**Business Segment Overview**

We identify operating segments as components of our business for which separate financial information is regularly evaluated by our Chief Executive Officer, who acts as the chief operating decision-maker ("CODM"), in assessing performance and making decisions regarding resource allocation. We periodically review and redefine our segment reporting as internal management reporting practices evolve and the components of our business change. Currently, the CODM reviews consolidated financial statements and metrics to assess performance and allocate resources. Thus, we have determined that we operate in one reportable operating segment that represents our core business of offering Dealers innovative financing solutions and related products and services that enable them to sell vehicles to consumers, regardless of their credit history.

The consolidated financial statements reflect the financial results of our one reportable operating segment. The accounting policies of this segment are the same as those described in the summary of significant accounting policies in <u>[Note 2](#i687b0c1a0c454573b67518d6a549de43_85)</u>. The CODM assesses performance for our one reportable operating segment and decides how to allocate resources based on net income, as reported on our consolidated statements of income, and total assets, as reported on our consolidated balance sheets.

**Geographic Information**

For the three years ended December 31, 2025, 2024, and 2023, all of our revenues were derived from the United States. As of December 31, 2025 and 2024, all of our long-lived assets were located in the United States.

**Products and Services Information**

Our primary product consists of innovative financing solutions that enable Dealers to sell vehicles to consumers, regardless of their credit history. We also provide Dealers the ability to offer ancillary products on vehicles indirectly financed by us.

**Major Customer Information**

We did not have any Dealers that provided 10% or more of our revenue during 2025, 2024, or 2023. Additionally, no single Dealer's Loans receivable balance accounted for more than 10% of total Loans receivable as of December 31, 2025 or 2024.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

**15.&nbsp;&nbsp;&nbsp;&nbsp;COMMITMENTS AND CONTINGENCIES**

**Litigation and Other Legal Matters**

In the normal course of business and as a result of the consumer-oriented nature of the industry in which we operate, we and other industry participants are frequently subject to various consumer claims, litigation, and regulatory investigations seeking damages, fines, and statutory penalties. The claims allege, among other theories of liability, violations of state, federal, and foreign truth-in-lending, credit availability, credit reporting, consumer protection, warranty, debt collection, insurance, and other consumer-oriented laws and regulations, including claims under the Telephone Consumer Protection Act ("TCPA"), seeking damages for alleged physical and mental harm relating to the repossession and sale of consumers' vehicles and other debt collection activities. As the assignee of Consumer Loans originated by Dealers, we may also be named as a co-defendant in lawsuits filed by consumers principally against Dealers. We may also have disputes and litigation with Dealers. The claims may allege, among other theories of liability, that we breached the Dealer servicing agreement. We may also have disputes and litigation with vendors and other third parties. The claims may allege, among other theories of liability, that we breached a license agreement or contract. The damages, fines, and penalties that may be claimed by consumers, regulatory agencies, Dealers, vendors, or other third parties in these types of matters can be substantial. The relief requested by plaintiffs varies but may include requests for compensatory, statutory, and punitive damages and injunctive relief, and plaintiffs may seek treatment as purported class actions or they may file individual arbitration demands for which arbitration providers may request separate filing fees.

The following matters include current actions to which we are a party. In many proceedings, including the specific actions described below, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties, and other factors that may have a material effect on the outcome. For these matters, unless otherwise specified, we do not believe it is possible to provide a meaningful estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated. The total recorded accrual balance as of December 31, 2025 for these matters was $82.6 million. An adverse ultimate disposition in any action to which we are a party or otherwise subject could have a material adverse impact on our financial position, liquidity, and results of operations.

On April 7, 2025, a putative class action was filed against the Company in the United States District Court for the Eastern District of Michigan alleging that the Company violated the TCPA by allegedly calling the cellular phones of members of the putative class without prior express consent and with the use of an artificial or prerecorded voice. The plaintiff seeks to represent a nationwide class and requests damages, injunctive relief, and attorneys' fees. On May 14, 2025, the Company filed a motion to dismiss the complaint. Rather than responding to the motion to dismiss, the plaintiff filed a first amended complaint on May 29, 2025. On June 12, 2025, the Company filed a motion to dismiss the first amended complaint. On February 4, 2026, the court issued an opinion and order granting in part and denying in part the Company's motion to dismiss. The Company intends to vigorously defend itself in this matter.

On May 7, 2019, we received a subpoena from the Consumer Frauds and Protection Bureau of the Office of the New York State Attorney General, relating to the Company's origination and collection policies and procedures in the state of New York. After May 7, 2019 through April 30, 2021, we received additional subpoenas from the Office of the New York State Attorney General relating to the Company's origination, collection, and securitization practices. On November 19, 2020 and August 23, 2022, we received letters from the Office of the New York State Attorney General indicating that it may commence litigation against the Company asserting violations of New York Executive Law § 63(12) and New York General Business Law §§ 349 and 352 et seq. and applicable federal laws, including but not limited to claims that the Company engaged in unfair and deceptive trade practices in auto lending, debt collection, and asset-backed securitizations in the State of New York in violation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, New York Executive Law § 63(12), the New York Martin Act, and New York General Business Law § 349. See the description below of the lawsuit commenced by the Office of the New York State Attorney General on January 4, 2023.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)**

On April 22, 2019, we received a civil investigative demand from the Consumer Financial Protection Bureau ("Bureau") seeking, among other things, certain information relating to the Company's origination and collection of Consumer Loans, TPPs, and credit reporting. After April 22, 2019 through March 7, 2022, we received additional subpoenas from the Bureau. On December 6, 2021, we received a Notice and Opportunity to Respond and Advise letter from the Staff of the Office of Enforcement ("Staff") of the Bureau, stating that the Staff was considering whether to recommend that the Bureau take legal action against the Company for alleged violations of the Consumer Financial Protection Act of 2010 (the "CFPA") in connection with the Company's consumer loan origination practices. See the description below of the lawsuit commenced by the Bureau on January 4, 2023.

On January 4, 2023, the Office of the New York State Attorney General and the Bureau jointly filed a complaint in the United States District Court for the Southern District of New York alleging that the Company engaged in deceptive practices, fraud, illegality, and securities fraud in violation of New York Executive Law § 63(12) and New York General Business Law §§ 349 and 352, and that the Company engaged in deceptive and abusive acts and provided substantial assistance to a covered person or service provider in violation of the CFPA, 12 U.S.C. § 5531 and 12 U.S.C. § 5536(a)(1)(B). The complaint seeks injunctive relief, an accounting of all consumers for whom the Company provided financing, restitution, damages, disgorgement, civil penalties, and payment of costs. On March 14, 2023, the Company filed a motion to dismiss the complaint. On August 7, 2023, the court stayed the action pending the U.S. Supreme Court's decision in *Consumer Financial Protection Bureau v. Community Financial Services Association of America, Ltd.,* No. 22-448 ("CFSA"). On July 1, 2024, the court lifted the stay in view of the decision in CFSA and requested revised briefing on the Company's motion to dismiss that would address the intervening legal developments and sharpen the issues for resolution. As of October 29, 2024, the Company's motion to dismiss has been fully briefed. On April 24, 2025, the Bureau filed an unopposed motion to withdraw as plaintiff, and on April 29, 2025, the court granted that motion and ordered that the Bureau is no longer a plaintiff in the litigation. In September 2025, we made an offer to jointly settle this matter and the multi-state matter discussed below on terms that included, among other things, a proposed cash payment of $45.0 million. In January 2026, we reached preliminary alignment with representatives of the agencies involved in this matter and the multi-state matter discussed below on certain material terms of a potential settlement of those legal matters, including a potential cash payment by us of $75.5 million. Discussions with respect to resolution of those matters are ongoing. Until this matter is fully and finally resolved, the Company intends to vigorously defend itself.

On March 18, 2016, we received a subpoena from the Attorney General of the State of Maryland, relating to the Company's repossession and sale policies and procedures in the state of Maryland. On April 3, 2020, we received a subpoena from the Attorney General of the State of Maryland relating to the Company's origination and collection policies and procedures in the state of Maryland. On August 11, 2020, we received a subpoena from the Attorney General of the State of Maryland restating most of the requests contained in the March 18, 2016 and April 3, 2020 subpoenas, making additional requests, and expanding the inquiry to include 41 other states (Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and Wisconsin) and the District of Columbia. Also on August 11, 2020, we received from the Attorney General of the State of New Jersey a subpoena that is essentially identical to the August 11, 2020 Maryland subpoena, both as to substance and as to the jurisdictions identified. The Company has been informed that the State of Kansas, the State of Texas, and the State of Iowa have withdrawn from the multi-state investigation. We are cooperating with these investigations and cannot predict their eventual scope, duration, or outcome at this time. In September 2025, we made an offer to jointly settle this matter and the New York Attorney General matter discussed above on terms that included, among other things, a proposed cash payment of $45.0 million. In January 2026, we reached preliminary alignment with representatives of the agencies involved in this matter and the New York Attorney General matter discussed above on certain material terms of a potential settlement of those legal matters, including a potential cash payment by us of $75.5 million. Discussions with respect to resolution of those matters are ongoing. Until this matter is fully and finally resolved, the Company intends to vigorously defend itself.

*Litigation Resolved during 2025*

On December 1, 2021, we received a subpoena from the Office of the Attorney General for the State of California seeking documents and information regarding GAP products, GAP product administration, and refunds. We cooperated with this inquiry and, on May 8, 2025, the Office of the Attorney General for the State of California confirmed that the matter is closed.

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONCLUDED)**

**Lease Commitments**

We lease office equipment that, in the normal course of business, we expect to have to renew or replace with other leases. Total rental expense on all operating leases was $2.2 million for 2025, $2.0 million for 2024, and $1.2 million for 2023. Contingent rentals under the operating leases were insignificant. Our total minimum future lease commitments under operating leases as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| (In millions) |  |
| **Year** | **Minimum Future<br>Lease Commitments** |
| &nbsp;&nbsp;&nbsp;2026 | $1.3 |
| &nbsp;&nbsp;&nbsp;2027 | 0.7 |
| &nbsp;&nbsp;&nbsp;2028 | 0.4 |
| &nbsp;&nbsp;&nbsp;2029 | 0.1 |
| &nbsp;&nbsp;&nbsp;2030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $2.5 |

---

**16.&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENTS** 

On January 15, 2026, we extended the date on which our $100.0 million Term ABS 2021-1 financing will cease to revolve from February 17, 2026 to January 18, 2028. The interest rate on borrowings under the financing was decreased from SOFR plus 220 basis points to SOFR plus 140 basis points.

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**ITEM 9.&nbsp;&nbsp;&nbsp;&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

Not applicable.

**ITEM 9A.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES**

*Evaluation of disclosure controls and procedures.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Disclosure Controls and Procedures.* Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, our principal executive officer and principal financial officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective in recording, processing, summarizing, and reporting, on a timely basis, information required to be disclosed by us in the reports that we file or submit under the Exchange Act and are effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Internal Control Over Financial Reporting.* There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

*Management's Report on Internal Control over Financial Reporting.*

We are responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and that the degree of compliance with the policies or procedures may deteriorate.

We assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, we used the criteria set forth in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on our assessment, we believe that as of December 31, 2025, our internal control over financial reporting is effective based on those criteria.

Our independent registered public accounting firm, Grant Thornton LLP, audited our internal control over financial reporting as of December 31, 2025, and their attestation report dated February 13, 2026 expressed an unqualified opinion on our internal control over financial reporting and is included in this Item 9A.

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Board of Directors and Shareholders

Credit Acceptance Corporation

**Opinion on internal control over financial reporting**

We have audited the internal control over financial reporting of Credit Acceptance Corporation (a Michigan corporation) and subsidiaries (the "Company") as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"), the consolidated financial statements of the Company as of and for the year ended December 31, 2025, and our report dated February 13, 2026 expressed an unqualified opinion on those financial statements.

**Basis for opinion** 

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and limitations of internal control over financial reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Southfield, Michigan

February 13, 2026

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**ITEM 9B.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

During the quarter ended December 31, 2025, there were no Rule 10b5-1 trading arrangements (as defined in Item 408(a) of Regulation S-K) or non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K) adopted or terminated by any director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of Credit Acceptance Corporation, except for the following Rule 10b5-1 trading arrangements, each of which is intended to satisfy the affirmative defense of Rule 10b5-1(c), that were adopted or terminated during such quarter:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Title of Director or Officer** | **Action** | **Date** | **Aggregate Number of Securities to be Sold Pursuant to the Trading Arrangement** | **Expiration Date of the Trading Arrangement (1)** |
| Andrew K. Rostami<br>*Chief Marketing and Product Officer* | Adoption | 11/5/2025 | Up to 1,159 shares of common stock underlying employee restricted stock units (2) | 6/30/2026 |
| Andrew K. Rostami<br>*Chief Marketing and Product Officer* | Termination | 12/15/2025 | N/A (3) | N/A (3) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The trading arrangement permits transactions through and including the earlier of (i) the expiration date indicated and (ii) the date when all shares subject to the trading arrangement have been sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;The aggregate number of shares to be sold will be reduced by the number of shares released to us as payment of tax withholdings upon the vesting of restricted stock units and the settlement of restricted stock units in shares of common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;On December 15, 2025, Mr. Rostami terminated the trading arrangement he had adopted on November 5, 2025.

**ITEM 9C.&nbsp;&nbsp;&nbsp;&nbsp;DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**PART III**

**ITEM 10.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

Information is contained under the captions "Proposal #1 – Election of Directors" (excluding the "Report of the Audit Committee") and, if required, "Section 16(a) Beneficial Ownership Reporting Compliance" in the Proxy Statement and is incorporated herein by reference.

**ITEM 11.&nbsp;&nbsp;&nbsp;&nbsp;EXECUTIVE COMPENSATION**

Information is contained under the caption "Compensation of Executive Officers and Directors" in the Proxy Statement and is incorporated herein by reference.

------

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**ITEM 12.&nbsp;&nbsp;&nbsp;&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

Information is contained under the caption "Common Stock Ownership of Certain Beneficial Owners and Management" in the Proxy Statement and is incorporated herein by reference.

Our Amended and Restated Incentive Compensation Plan (the "Incentive Plan"), which was approved by shareholders on July 21, 2021, and amendments to which were approved by shareholders on June 2, 2023 and June 5, 2024, provides for the granting of restricted stock, restricted stock units, and stock options to team members, officers, and directors.

The following table sets forth (1) the number of shares of common stock to be issued upon the exercise of outstanding stock options or restricted stock units, (2) the weighted average exercise price of outstanding options, if applicable, and (3) the number of shares remaining available for future issuance, as of December 31, 2025:

**Equity Compensation Plan Information**

---

| | | | |
|:---|:---|:---|:---|
| **Plan category** | **Number of shares to be issued upon exercise of outstanding options, warrants and rights** | **Weighted-average exercise price of outstanding options (a)** | **Number of shares<br>remaining available for future issuance under equity compensation plans (b)** |
| Equity compensation plan approved by shareholders: |  |  |  |
| Incentive Plan | 1282865 | $371.79 | 21270 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)The weighted average exercise price in this column does not take into account restricted stock units that are outstanding under the Incentive Plan, which have no exercise price.

&nbsp;&nbsp;&nbsp;&nbsp;(b)For additional information regarding our equity compensation plans, including grants of restricted stock units, see <u>[Note 13](#i687b0c1a0c454573b67518d6a549de43_118)</u> to the consolidated financial statements contained in Item 8 of this Form 10-K, which is incorporated herein by reference.

**ITEM 13.&nbsp;&nbsp;&nbsp;&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

Information is contained under the caption "Certain Relationships and Transactions" and "Proposal #1 – Election of Directors – Meetings and Committees of the Board of Directors" in the Proxy Statement and is incorporated herein by reference.

**ITEM 14.&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL ACCOUNTING FEES AND SERVICES**

Information is contained under the caption "Independent Accountants" in the Proxy Statement and is incorporated herein by reference.

**PART IV**

**ITEM 15.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

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| | |
|:---|:---|
| (a)(1) | The following consolidated financial statements of the Company and notes thereto and the Report of Independent Registered Public Accounting Firm are contained in Item 8 — Financial Statements and Supplementary Data of this Form 10-K, which is incorporated herein by reference. |
|  | Report of Independent Registered Public Accounting Firm |
|  | Consolidated Financial Statements: |
|  | — Consolidated Balance Sheets as of December 31, 2025 and 2024 |
|  | — Consolidated Statements of Income for the years ended December 31, 2025, 2024, and 2023 |
|  | — Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024, and 2023 |
|  | — Consolidated Statements of Shareholders' Equity for the years ended December 31, 2025, 2024, and 2023 |
|  | — Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024, and 2023 |
|  | Notes to Consolidated Financial Statements |
| (2) | Financial statement schedules have been omitted because they are not applicable or are not required or the information required to be set forth therein is included in the consolidated financial statements or notes thereto. |
| (3) | The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index below. |

---

------

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/885550/0000950124-97-004326.txt)</u> | Articles of Incorporation, as amended July 1, 1997 (incorporated by reference to Exhibit 3(a)(1) to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997). |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/885550/000088555022000013/a8-k20220303exhibit31.htm)</u> | Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed March 7, 2022). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555022000031/cacc-20220331xex41.htm)</u> | Description of Common Stock of Credit Acceptance Corporation (incorporated by reference to Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022). |
| <u>[4.2](https://www.sec.gov/Archives/edgar/data/885550/000095012310009043/k48819exv4wgw6.htm)</u> | Amended and Restated Intercreditor Agreement, dated as of February 1, 2010, among Credit Acceptance Corporation, the other Grantors party thereto, representatives of the Secured Parties thereunder, and Comerica Bank, as administrative agent under the Original Credit Agreement (as defined therein) and as collateral agent (incorporated by reference to Exhibit 4(g)(6) to the Company's Current Report on Form 8-K filed February 5, 2010). |
| <u>[4.3](https://www.sec.gov/Archives/edgar/data/885550/000088555013000036/cacc_8k040513sca.htm)</u> | Amended and Restated Sale and Contribution Agreement, dated as of April 5, 2013, between the Company and CAC Warehouse Funding LLC IV (incorporated by reference to Exhibit 4.85 to the Company's Current Report on Form 8-K filed April 5, 2013). |
| <u>[4.4](https://www.sec.gov/Archives/edgar/data/885550/000088555014000015/cacc_ex4-107.htm)</u> | First Amendment to Amended and Restated Sale and Contribution Agreement, dated as of December 4, 2013, between the Company and CAC Warehouse Funding LLC IV (incorporated by reference to Exhibit 4.107 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013). |
| <u>[4.5](https://www.sec.gov/Archives/edgar/data/885550/000088555014000045/cacc_8k062314loc.htm)</u> | Sixth Amended and Restated Credit Agreement, dated as of June 23, 2014, among the Company, the Banks signatory thereto, and Comerica Bank, as agent for the Banks (incorporated by reference to Exhibit 4.124 to the Company's Current Report on Form 8-K filed June 25, 2014). |
| <u>[4.6](https://www.sec.gov/Archives/edgar/data/885550/000088555014000057/cacc_8k20140915lsa.htm)</u> | Loan and Security Agreement, dated as of September 15, 2014, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank, and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.127 to the Company's Current Report on Form 8-K filed September 18, 2014). |
| <u>[4.7](https://www.sec.gov/Archives/edgar/data/885550/000088555014000057/cacc_8k20140915bsa.htm)</u> | Backup Servicing Agreement, dated as of September 15, 2014, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank, and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.128 to the Company's Current Report on Form 8-K filed September 18, 2014). |
| <u>[4.8](https://www.sec.gov/Archives/edgar/data/885550/000088555014000057/cacc_8k20140915ca.htm)</u> | Contribution Agreement, dated as of September 15, 2014, between the Company and CAC Warehouse Funding LLC V (incorporated by reference to Exhibit 4.129 to the Company's Current Report on Form 8-K filed September 18, 2014). |
| <u>[4.9](https://www.sec.gov/Archives/edgar/data/885550/000088555015000050/cacc_8k20150811arca.htm)</u> | First Amendment to the Sixth Amended and Restated Credit Agreement, dated as of June 11, 2015, among the Company, the Banks which are parties thereto from time to time, and Comerica Bank (incorporated by reference to Exhibit 4.74 to the Company's Current Report on Form 8-K filed June 16, 2015). |
| <u>[4.10](https://www.sec.gov/Archives/edgar/data/885550/000088555015000050/cacc_8k20150611lsa.htm)</u> | First Amendment to Loan and Security Agreement, dated as of June 11, 2015, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank, and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.75 to the Company's Current Report on Form 8-K filed June 16, 2015). |
| <u>[4.11](https://www.sec.gov/Archives/edgar/data/885550/000088555015000062/cacc_8k20150930lsa.htm)</u> | Loan and Security Agreement, dated as of September 30, 2015, among the Company, CAC Warehouse Funding LLC VI, and Flagstar Bank, FSB (incorporated by reference to Exhibit 4.82 to the Company's Current Report on Form 8-K filed October 5, 2015). |
| <u>[4.12](https://www.sec.gov/Archives/edgar/data/885550/000088555015000062/cacc_8k20150930ca.htm)</u> | Contribution Agreement, dated as of September 30, 2015, between the Company and CAC Warehouse Funding LLC VI (incorporated by reference to Exhibit 4.83 to the Company's Current Report on Form 8-K filed October 5, 2015). |
| <u>[4.13](https://www.sec.gov/Archives/edgar/data/885550/000088555016000125/cacc_8k20160615sasarca.htm)</u> | Second Amendment to the Sixth Amended and Restated Credit Agreement, dated as of June 15, 2016, among the Company, the Banks signatory thereto, and Comerica Bank, as agent for the Banks (incorporated by reference to Exhibit 4.76 to the Company's Current Report on Form 8-K filed June 20, 2016). |
| <u>[4.14](https://www.sec.gov/Archives/edgar/data/885550/000088555016000136/cacc_8k20160818lsa1.htm)</u> | Second Amendment to Loan and Security Agreement, dated as of August 18, 2016, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank, and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.79 to the Company's Current Report on Form 8-K filed August 23, 2016). |
| <u>[4.15](https://www.sec.gov/Archives/edgar/data/885550/000088555016000136/cacc_8k20160818ca.htm)</u> | First Amendment to Contribution Agreement, dated as of August 18, 2016, between the Company and CAC Warehouse Funding LLC V (incorporated by reference to Exhibit 4.80 to the Company's Current Report on Form 8-K filed August 23, 2016). |
| <u>[4.16](https://www.sec.gov/Archives/edgar/data/885550/000088555017000046/cacc_8k20170628arca.htm)</u> | Third Amendment to Sixth Amended and Restated Credit Agreement and Extension Agreement, dated as of June 28, 2017, among the Company, the Banks signatory thereto, and Comerica Bank, as agent for the Banks (incorporated by reference to Exhibit 4.80 to the Company's Current Report on Form 8-K filed June 30, 2017). |
| <u>[4.17](https://www.sec.gov/Archives/edgar/data/885550/000088555017000051/cacc_8k20170718lsa.htm)</u> | First Amendment to Loan and Security Agreement, dated as of July 18, 2017, among the Company, CAC Warehouse Funding LLC VI, and Flagstar Bank, fsb (incorporated by reference to Exhibit 4.87 to the Company's Current Report on Form 8-K filed July 21, 2017). |

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| | |
|:---|:---|
| <u>[4.18](https://www.sec.gov/Archives/edgar/data/885550/000088555017000069/cacc-20170930xex494.htm)</u> | New Bank Addendum, dated October 19, 2017, to the Sixth Amended and Restated Credit Acceptance Corporation Credit Agreement dated as of October 19, 2017, among the Company, each of the financial institutions parties thereto, and Comerica Bank, as agent (incorporated by reference to Exhibit 4.94 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017). |
| <u>[4.19](https://www.sec.gov/Archives/edgar/data/885550/000088555017000069/cacc-20170930xex495.htm)</u> | Assignment Agreement, dated October 19, 2017, among the Company, the Banks signatory thereto, and Comerica Bank, as agent, under the Sixth Amended and Restated Credit Acceptance Corporation Credit Agreement dated as of June 23, 2014 (incorporated by reference to Exhibit 4.95 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017). |
| <u>[4.20](https://www.sec.gov/Archives/edgar/data/885550/000088555018000038/cacc_8k20180510lsa.htm)</u> | Amended and Restated Loan and Security Agreement, dated as of May 10, 2018, among the Company, CAC Warehouse Funding LLC IV, the lenders from time to time party thereto, Bank of Montreal, BMO Capital Markets Corp., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.86 to the Company's Current Report on Form 8-K filed May 15, 2018). |
| <u>[4.21](https://www.sec.gov/Archives/edgar/data/885550/000088555018000047/cacc_8k20180627arca.htm)</u> | Fourth Amendment to Sixth Amended and Restated Credit Agreement, dated as of June 27, 2018, among the Company, the Banks which are parties thereto from time to time, and Comerica Bank as Administrative Agent and Collateral Agent for the Banks (incorporated by reference to Exhibit 4.94 to the Company's Current Report on Form 8-K filed June 28, 2018). |
| <u>[4.22](https://www.sec.gov/Archives/edgar/data/885550/000088555018000056/cacfifththird-thirdamendme.htm)</u> | Third Amendment to Loan and Security Agreement, dated as of August 15, 2018, among the Company, CAC Warehouse Funding LLC V, Fifth Third Bank, and Systems & Services Technologies, Inc. (incorporated by reference to Exhibit 4.95 to the Company's Current Report on Form 8-K filed August 17, 2018). |
| <u>[4.23](https://www.sec.gov/Archives/edgar/data/885550/000088555019000020/cacc_8k20190307ia.htm)</u> | Indenture, dated as of March 7, 2019, among Credit Acceptance Corporation, the Guarantors named therein, and U.S. Bank Trust Company, National Association, as successor to U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.99 to the Company's Current Report on Form 8-K filed March 8, 2019). |
| <u>[4.24](https://www.sec.gov/Archives/edgar/data/885550/000088555019000020/cacc_8k20190307rra.htm)</u> | Registration Rights Agreement, dated March 7, 2019, among Credit Acceptance Corporation, Buyers Vehicle Protection Plan, Inc., Vehicle Remarketing Services, Inc., and the representative of the initial purchasers of Credit Acceptance Corporation's 6.625% Senior Notes due 2026 (incorporated by reference to Exhibit 4.100 to the Company's Current Report on Form 8-K filed March 8, 2019). |
| <u>[4.25](https://www.sec.gov/Archives/edgar/data/885550/000088555019000050/cacc_8k20190624arca.htm)</u> | Fifth Amendment to Sixth Amended and Restated Credit Agreement, dated as of June 24, 2019, among the Company, Comerica Bank, and the other banks signatory thereto and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.101 to the Company's Current Report on Form 8-K filed June 26, 2019). |
| <u>[4.26](https://www.sec.gov/Archives/edgar/data/885550/000088555019000063/cacc-20190630xex4103.htm)</u> | Fourth Amendment to Loan Security Agreement, dated as of July 16, 2019, among the Company, CAC<br>Warehouse Funding LLC V, and Fifth Third Bank (incorporated by reference to Exhibit 4.103 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019). |
| <u>[4.27](https://www.sec.gov/Archives/edgar/data/885550/000088555019000056/cacc_8k2019725lsa.htm)</u> | Second Amendment to Loan and Security Agreement, dated as of July 25, 2019, among the Company, CAC Warehouse Funding LLC VI, and Flagstar Bank, FSB (incorporated by reference to Exhibit 4.105 to the Company's Current Report on Form 8-K filed July 26, 2019). |
| <u>[4.28](https://www.sec.gov/Archives/edgar/data/885550/000088555019000058/cacc_8k20190726citizenslsa.htm)</u> | Loan and Security Agreement, dated as of July 26, 2019, among the Company, CAC Warehouse Funding LLC VIII, the lenders from time to time party thereto, Citizens Bank N.A., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.106 to the Company's Current Report on Form 8-K filed July 29, 2019). |
| <u>[4.29](https://www.sec.gov/Archives/edgar/data/885550/000088555019000058/cacc_8k20190726citizensca.htm)</u> | Sale and Contribution Agreement, dated as of July 26, 2019, between the Company and CAC Warehouse Funding LLC VIII (incorporated by reference to Exhibit 4.107 to the Company's Current Report on Form 8-K filed July 29, 2019). |
| <u>[4.30](https://www.sec.gov/Archives/edgar/data/885550/000088555019000058/cacc_8k20190726citizensbsa.htm)</u> | Backup Servicing Agreement, dated as of July 26, 2019, among the Company, CAC Warehouse Funding LLC VIII, Citizens Bank, N.A., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.108 to the Company's Current Report on Form 8-K filed July 29, 2019). |
| <u>[4.31](https://www.sec.gov/Archives/edgar/data/885550/000088555019000058/cacc_8k20190726bmolsa.htm)</u> | First Amendment to Amended and Restated Loan and Security Agreement, dated as of July 26, 2019, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, Citizens Bank, N.A., BMO Capital Markets Corp., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.110 to the Company's Current Report on Form 8-K filed July 29, 2019). |
| <u>[4.32](https://www.sec.gov/Archives/edgar/data/885550/000088555019000058/cacc_8k20190726bmobsa.htm)</u> | Amended and Restated Backup Servicing Agreement, dated as of July 26, 2019, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, BMO Capital Markets Corp., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.111 to the Company's Current Report on Form 8-K filed July 29, 2019). |
| <u>[4.33](https://www.sec.gov/Archives/edgar/data/885550/000088555019000065/cacc8k20190828lsa.htm)</u> | Loan and Security Agreement, dated as of August 28, 2019, among the Company, Credit Acceptance Funding LLC 2019-2, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.112 to the Company's Current Report on Form 8-K filed September 4, 2019). |

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|:---|:---|
| <u>[4.34](https://www.sec.gov/Archives/edgar/data/885550/000088555019000065/cacc8k20190828bsa.htm)</u> | Backup Servicing Agreement, dated as of August 28, 2019, among the Company, Credit Acceptance Funding LLC 2019-2, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.113 to the Company's Current Report on Form 8-K filed September 4, 2019). |
| <u>[4.35](https://www.sec.gov/Archives/edgar/data/885550/000088555019000065/cacc8k20190828sca.htm)</u> | Sale and Contribution Agreement, dated as of August 28, 2019, between the Company and Credit Acceptance Funding LLC 2019-2 (incorporated by reference to Exhibit 4.114 to the Company's Current Report on Form 8-K filed September 4, 2019). |
| <u>[4.36](https://www.sec.gov/Archives/edgar/data/885550/000088555019000070/cacc-20190930xex4117.htm)</u> | Second Amended and Restated Backup Servicing Agreement, dated as of August 16, 2019, among the Company, CAC Warehouse Funding LLC II, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.117 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019). |
| <u>[4.37](https://www.sec.gov/Archives/edgar/data/885550/000088555020000067/cacc8k20200701loc.htm)</u> | Sixth Amendment to Sixth Amended and Restated Credit Agreement, dated as of June 30, 2020, among the Company, Comerica Bank, and the other banks signatory thereto and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.115 to the Company's Current Report on Form 8-K filed July 1, 2020). |
| <u>[4.38](https://www.sec.gov/Archives/edgar/data/885550/000088555020000118/cacc_8k20201215whvamendment.htm)</u> | Fifth Amendment to Loan and Security Agreement, dated as of December 16, 2020, among the Company, CAC Warehouse Funding LLC V, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.129 to the Company's Current Report on Form 8-K filed December 18, 2020). |
| <u>[4.39](https://www.sec.gov/Archives/edgar/data/885550/000088555020000118/cacc_8k20201215locamendment.htm)</u> | Seventh Amendment to Sixth Amended and Restated Credit Agreement and Extension Agreement, dated as of December 15, 2020, among the Company, Comerica Bank, and the other banks signatory thereto and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.128 to the Company's Current Report on Form 8-K filed December 18, 2020). |
| <u>[4.40](https://www.sec.gov/Archives/edgar/data/885550/000088555021000029/cacc_8k20210129lsa.htm)</u> | Loan and Security Agreement, dated as of January 29, 2021, among the Company, Credit Acceptance Funding LLC 2021-1, Fifth Third Bank, National Association, and Systems and Services Technologies, Inc. (incorporated by reference to Exhibit 4.130 to the Company's Current Report on Form 8-K filed February 4, 2021). |
| <u>[4.41](https://www.sec.gov/Archives/edgar/data/885550/000088555021000029/cacc_8k20210129bsa.htm)</u> | Backup Servicing Agreement, dated as of January 29, 2021, among the Company, Credit Acceptance Funding LLC 2021-1, Fifth Third Bank, National Association, and Systems and Services Technologies, Inc. (incorporated by reference to Exhibit 4.131 to the Company's Current Report on Form 8-K filed February 4, 2021). |
| <u>[4.42](https://www.sec.gov/Archives/edgar/data/885550/000088555021000029/cacc_8k20210129sca.htm)</u> | Sale and Contribution Agreement, dated as of January 29, 2021, between the Company and Credit Acceptance Funding LLC 2021-1 (incorporated by reference to Exhibit 4.132 to the Company's Current Report on Form 8-K filed February 4, 2021). |
| <u>[4.43](https://www.sec.gov/Archives/edgar/data/885550/000088555021000029/cacc_8k20210129bmolsa.htm)</u> | Second Amendment to Amended and Restated Loan and Security Agreement, dated as of January 29, 2021, among the Company, CAC Warehouse Funding LLC IV, and Bank of Montreal (incorporated by reference to Exhibit 4.134 to the Company's Current Report on Form 8-K filed February 4, 2021). |
| <u>[4.44](https://www.sec.gov/Archives/edgar/data/885550/000088555021000056/cacc-20210331x10qex4109.htm)</u> | Sixth Amendment to Loan and Security Agreement, dated as of March 22, 2021, among the Company, CAC Warehouse Funding LLC V, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.109 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021). |
| <u>[4.45](https://www.sec.gov/Archives/edgar/data/885550/000088555021000056/cacc-20210331x10qex4110.htm)</u> | First Amendment to Loan and Security Agreement, dated as of March 22, 2021, among the Company, Credit Acceptance Funding LLC 2021-1, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.110 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021). |
| <u>[4.46](https://www.sec.gov/Archives/edgar/data/885550/000088555021000098/cacc-20210630xex4117.htm)</u> | Seventh Amended and Restated Loan and Security Agreement, dated as of April 30, 2021, among the Company, CAC Warehouse Funding LLC II, the lenders from time to time party thereto, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.117 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021). |
| <u>[4.47](https://www.sec.gov/Archives/edgar/data/885550/000088555021000098/cacc-20210630xex4118.htm)</u> | Fifth Amended and Restated Sale and Contribution Agreement, dated as of April 30, 2021, between the Company and CAC Warehouse Funding LLC II (incorporated by reference to Exhibit 4.118 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021). |
| <u>[4.48](https://www.sec.gov/Archives/edgar/data/885550/000088555021000113/cacc_8k20210902lsa.htm)</u> | First Amendment to the Loan and Security Agreement, dated as of September 1, 2021, among the Company, CAC Warehouse Funding LLC VIII, Citizens Bank N.A.. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.119 to the Company's Current Report on Form 8-K filed September 8, 2021). |
| <u>[4.49](https://www.sec.gov/Archives/edgar/data/885550/000088555021000122/cacc_8k20211006locamendment.htm)</u> | Eighth Amendment to Sixth Amended and Restated Credit Agreement and Extension Agreement, dated as of October 6, 2021, among the Company, Comerica Bank, and the other banks signatory thereto and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.120 to the Company's Current Report on Form 8-K filed October 12, 2021). |

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|:---|:---|
| <u>[4.50](https://www.sec.gov/Archives/edgar/data/885550/000088555021000125/cacc_8k20211015lsa.htm)</u> | Third Amendment to Loan and Security Agreement dated as of October 15, 2021 among the Company, CAC Warehouse Funding Corporation VI, and Flagstar Bank, FSB (incorporated by reference to Exhibit 4.121 to the Company's Current Report on Form 8-K filed October 21, 2021). |
| <u>[4.51](https://www.sec.gov/Archives/edgar/data/885550/000088555022000056/cacc_8k20220616bmolsa.htm)</u> | Third Amendment to the Amended and Restated Loan and Security Agreement, dated as of June 16, 2022, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, BMO Capital Markets Corp., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.100 to the Company's Current Report on Form 8-K filed June 23, 2022). |
| <u>[4.52](https://www.sec.gov/Archives/edgar/data/885550/000088555022000056/cacc_8k20220616rca.htm)</u> | Ninth Amendment to the Sixth Amended and Restated Credit Agreement and Extension Agreement, dated as of June 22, 2022, among the Company, Comerica Bank and the other banks signatory thereto and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.101 to the Company's Current Report on Form 8-K filed June 23, 2022). |
| <u>[4.53](https://www.sec.gov/Archives/edgar/data/885550/000088555022000067/cacc_8k20220812lsaxbusa.htm)</u> | Amendment No. 1 to Loan and Security Agreement and Backup Servicing Agreement, dated as of August 12, 2022, among the Company, Credit Acceptance Funding LLC 2019-2, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.102 to the Company's Current Report on Form 8-K filed August 17, 2022). |
| <u>[4.54](https://www.sec.gov/Archives/edgar/data/885550/000088555022000082/cacc-20221101xex4103.htm)</u> | Second Amendment to Loan and Security Agreement, dated as of July 22, 2022, among Credit Acceptance Corporation, CAC Warehouse Funding LLC VIII, Citizens Bank, N.A., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.103 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022). |
| <u>[4.55](https://www.sec.gov/Archives/edgar/data/885550/000088555022000082/cacc-20221101xex4104.htm)</u> | Seventh Amendment to Loan and Security Agreement, dated as of July 28, 2022, among Credit Acceptance Corporation, CAC Warehouse Funding LLC V and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.104 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022). |
| <u>[4.56](https://www.sec.gov/Archives/edgar/data/885550/000088555022000082/cacc-20221101xex4105.htm)</u> | Second Amendment to Loan and Security Agreement, dated as of July 28, 2022, among Credit Acceptance Corporation, Credit Acceptance Funding LLC 2021-1 and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.105 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022). |
| <u>[4.57](https://www.sec.gov/Archives/edgar/data/885550/000088555022000088/cacc_8k20221103ia.htm)</u> | Indenture dated as of November 3, 2022, between Credit Acceptance Auto Loan Trust 2022-3 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.106 to the Company's Current Report on Form 8-K filed November 9, 2022). |
| <u>[4.58](https://www.sec.gov/Archives/edgar/data/885550/000088555022000088/cacc_8k20221103ssa.htm)</u> | Sale and Servicing Agreement, dated as of November 3, 2022, among the Company, Credit Acceptance Auto Loan Trust 2022-3, Credit Acceptance Funding LLC 2022-3, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.107 to the Company's Current Report on Form 8-K filed November 9, 2022). |
| <u>[4.59](https://www.sec.gov/Archives/edgar/data/885550/000088555022000088/cacc_8k20221103bsa.htm)</u> | Backup Servicing Agreement, dated as of November 3, 2022, among the Company, Credit Acceptance Auto Loan Trust 2022-3, Credit Acceptance Funding LLC 2022-3, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.108 to the Company's Current Report on Form 8-K filed November 9, 2022). |
| <u>[4.60](https://www.sec.gov/Archives/edgar/data/885550/000088555022000088/cacc_8k20221103arta.htm)</u> | Amended and Restated Trust Agreement, dated as of November 3, 2022, between Credit Acceptance Funding LLC 2022-3, each of the initial members of the Board of Trustees of the Trust, and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.109 to the Company's Current Report on Form 8-K filed November 9, 2022). |
| <u>[4.61](https://www.sec.gov/Archives/edgar/data/885550/000088555022000088/cacc_8k20221103sca.htm)</u> | Sale and Contribution Agreement, dated as of November 3, 2022, between the Company and Credit Acceptance Funding LLC 2022-3 (incorporated by reference to Exhibit 4.110 to the Company's Current Report on Form 8-K filed November 9, 2022). |
| <u>[4.62](https://www.sec.gov/Archives/edgar/data/885550/000088555022000090/cacc_8k20221215lsa.htm)</u> | Loan and Security Agreement, dated as of December 15, 2022, among the Company, Credit Acceptance Funding LLC 2022-2, Bank of Montreal, BMO Capital Markets Corp., and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.112 to the Company's Current Report on Form 8-K filed December 21, 2022). |
| <u>[4.63](https://www.sec.gov/Archives/edgar/data/885550/000088555022000090/cacc_8k20221215bsa.htm)</u> | Backup Servicing Agreement, dated as of December 15, 2022, among the Company, Credit Acceptance Funding LLC 2022-2, Bank of Montreal, BMO Capital Markets Corp., and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.113 to the Company's Current Report on Form 8-K filed December 21, 2022). |
| <u>[4.64](https://www.sec.gov/Archives/edgar/data/885550/000088555022000090/cacc_8k20221215sca.htm)</u> | Sale and Contribution Agreement, dated as of December 15, 2022, between the Company and Credit Acceptance Funding LLC 2022-2 (incorporated by reference to Exhibit 4.115 to the Company's Current Report on Form 8-K filed December 21, 2022). |

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| <u>[4.65](https://www.sec.gov/Archives/edgar/data/885550/000088555023000002/cacc_8k20221227lsa.htm)</u> | Eighth Amendment to Loan and Security Agreement, dated as of December 27, 2022, among the Company, CAC Warehouse Funding LLC V, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.116 to the Company's Current Report on Form 8-K filed January 3, 2023). |
| <u>[4.66](https://www.sec.gov/Archives/edgar/data/885550/000088555023000002/cacc_8k20221227termlsa.htm)</u> | Third Amendment to Loan and Security Agreement, dated as of December 27, 2022, among the Company, Credit Acceptance Funding LLC 2021-1, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.117 to the Company's Current Report on Form 8-K filed January 3, 2023). |
| <u>[4.67](https://www.sec.gov/Archives/edgar/data/885550/000088555023000023/cacc-20221231xex4110.htm)</u> | Amendment No. 1 to Letter Agreement dated November 15, 2022, between Chapter 4 Properties LLC and Comerica Bank (incorporated by reference to Exhibit 4.110 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022). |
| <u>[4.68](https://www.sec.gov/Archives/edgar/data/885550/000088555023000029/cacc_8k20230316ia.htm)</u> | Indenture, dated as of March 16, 2023, between Credit Acceptance Auto Loan Trust 2023-1 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.111 to the Company's Current Report on Form 8-K filed March 22, 2023). |
| <u>[4.69](https://www.sec.gov/Archives/edgar/data/885550/000088555023000029/cacc_8k20230316bsa.htm)</u> | Backup Servicing Agreement, dated as of March 16, 2023, among the Company, Credit Acceptance Funding LLC 2023-1, Credit Acceptance Auto Loan Trust 2023-1, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.112 to the Company's Current Report on Form 8-K filed March 22, 2023). |
| <u>[4.70](https://www.sec.gov/Archives/edgar/data/885550/000088555023000029/cacc_8k20230316sca.htm)</u> | Sale and Contribution Agreement, dated as of March 16, 2023, between the Company and Credit Acceptance Funding LLC 2023-1 (incorporated by reference to Exhibit 4.114 to the Company's Current Report on Form 8-K filed March 22, 2023). |
| <u>[4.71](https://www.sec.gov/Archives/edgar/data/885550/000088555023000029/cacc_8k20230316arta.htm)</u> | Amended and Restated Trust Agreement, dated as of March 16, 2023, among Credit Acceptance Funding LLC 2023-1, the initial members of the Board of Trustees of the Trust, and U.S. Bank Trust National Association (incorporated by reference to Exhibit 4.115 to the Company's Current Report on Form 8-K filed March 16, 2023). |
| <u>[4.72](https://www.sec.gov/Archives/edgar/data/885550/000088555023000029/cacc_8k20230316ssa.htm)</u> | Sale and Servicing Agreement, dated as of March 16, 2023, among the Company, Credit Acceptance Auto Loan Trust 2023-1, Credit Acceptance Funding LLC 2023-1, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.116 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023). |
| <u>[4.73](https://www.sec.gov/Archives/edgar/data/885550/000088555023000054/cacc_8k20230428lsa.htm)</u> | Amendment No. 1 to the Seventh Amended and Restated Loan and Security Agreement, dated as of April 28, 2023, among the Company, CAC Warehouse Funding LLC II, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.117 to the Company's Current Report on Form 8-K filed May 4, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525ia.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525ia.htm)[4](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525ia.htm)</u> | Indenture, dated as of May 25, 2023, between Credit Acceptance Auto Loan Trust 2023-2 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.118 to the Company's Current Report on Form 8-K filed June 1, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525bsa.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525bsa.htm)[5](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525bsa.htm)</u> | Backup Servicing Agreement, dated as of May 25, 2023, among the Company, Credit Acceptance Funding LLC 2023-2, Credit Acceptance Auto Loan Trust 2023-2, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.119 to the Company's Current Report on Form 8-K filed June 1, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525sca.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525sca.htm)[6](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525sca.htm)</u> | Sale and Contribution Agreement, dated as of May 25, 2023, between the Company and Credit Acceptance Funding LLC 2023-2 (incorporated by reference to Exhibit 4.121 to the Company's Current Report on Form 8-K filed June 1, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525arta.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525arta.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525arta.htm)</u> | Amended and Restated Trust Agreement, dated as of May 25, 2023, among Credit Acceptance Funding LLC 2023-2, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.122 to the Company's Current Report on Form 8-K filed June 1, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525ssa.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525ssa.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000059/cacc_8k20230525ssa.htm)</u> | Sale and Servicing Agreement, dated as of May 25, 2023, among the Company, Credit Acceptance Auto Loan Trust 2023-2, Credit Acceptance Funding LLC 2023-2, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.123 to the Company's Current Report on Form 8-K filed June 1, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000070/cacc_8k20230622rca.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555023000070/cacc_8k20230622rca.htm)[9](https://www.sec.gov/Archives/edgar/data/885550/000088555023000070/cacc_8k20230622rca.htm)</u> | Eleventh Amendment to Sixth Amended and Restated Credit Agreement, dated as of June 22, 2023, among the Company, Comerica Bank and the other banks signatory thereto, and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.124 to the Company's Current Report on Form 8-K filed June 28, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4125.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4125.htm)[0](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4125.htm)</u> | Amendment No. 2 to Loan and Security Agreement, dated as of May 15, 2023, among the Company, Credit Acceptance Funding LLC 2019-2, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.125 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4126.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4126.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4126.htm)</u> | Ninth Amendment to Loan and Security Agreement, dated as of July 10, 2023, among the Company, CAC Warehouse Funding LLC V, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.126 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023). |

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| | |
|:---|:---|
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4127.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4127.htm)[2](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex4127.htm)</u> | Fourth Amendment to Loan and Security Agreement, dated as of July 10, 2023, among the Company, Credit Acceptance Funding LLC 2021-1, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.127 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000090/cacc_8k20230804lsa.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000090/cacc_8k20230804lsa.htm)[3](https://www.sec.gov/Archives/edgar/data/885550/000088555023000090/cacc_8k20230804lsa.htm)</u> | Fifth Amendment to Loan and Security Agreement, dated as of August 4, 2023, among the Company, CAC Warehouse Funding LLC VI, and Flagstar Bank, N.A. (incorporated by reference to Exhibit 4.128 to the Company's Current Report on Form 8-K filed August 9, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824ia.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824ia.htm)[4](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824ia.htm)</u> | Indenture, dated as of August 24, 2023, between Credit Acceptance Auto Loan Trust 2023-3 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.129 to the Company's Current Report on Form 8-K filed August 30, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824bsa.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824bsa.htm)[5](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824bsa.htm)</u> | Backup Servicing Agreement, dated as of August 24, 2023, among the Company, Credit Acceptance Funding LLC 2023-3, Credit Acceptance Auto Loan Trust 2023-3, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.130 to the Company's Current Report on Form 8-K filed August 30, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824sca.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824sca.htm)[6](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824sca.htm)</u> | Sale and Contribution Agreement, dated as of August 24, 2023, between the Company and Credit Acceptance Funding LLC 2023-3 (incorporated by reference to Exhibit 4.132 to the Company's Current Report on Form 8-K filed August 30, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824arta.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824arta.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824arta.htm)</u> | Amended and Restated Trust Agreement, dated as of August 24, 2023, among Credit Acceptance Funding LLC 2023-3, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.133 to the Company's Current Report on Form 8-K filed August 30, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824ssa.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824ssa.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000099/cacc_8k20230824ssa.htm)</u> | Sale and Servicing Agreement, dated as of August 24, 2023, among the Company, Credit Acceptance Auto Loan Trust 2023-3, Credit Acceptance Funding LLC 2023-3, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.134 to the Company's Current Report on Form 8-K filed August 30, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000102/cacc_8k20230921lsa.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555023000102/cacc_8k20230921lsa.htm)[9](https://www.sec.gov/Archives/edgar/data/885550/000088555023000102/cacc_8k20230921lsa.htm)</u> | Third Amendment to Loan and Security Agreement, dated as of September 21, 2023, among the Company, CAC Warehouse Funding LLC VIII, Citizens Bank, N.A., and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.135 to the Company's Current Report on Form 8-K filed September 26, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000110/cacc-20230930xex4136.htm)[9](https://www.sec.gov/Archives/edgar/data/885550/000088555023000110/cacc-20230930xex4136.htm)[0](https://www.sec.gov/Archives/edgar/data/885550/000088555023000110/cacc-20230930xex4136.htm)</u> | Fourth Amendment to Amended and Restated Loan and Security Agreement, dated as of August 30, 2023, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, BMO Capital Markets Corp., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.136 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000110/cacc-20230930xex4137.htm)[9](https://www.sec.gov/Archives/edgar/data/885550/000088555023000110/cacc-20230930xex4137.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555023000110/cacc-20230930xex4137.htm)</u> | First Amendment to Loan and Security Agreement, dated as of August 30, 2023, among the Company, Credit Acceptance Funding LLC 2022-2, Bank of Montreal, and BMO Capital Markets Corp. (incorporated by reference to Exhibit 4.137 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023). |
| <u>[4.92](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221ia.htm)</u> | Indenture, dated as of December 21, 2023, between Credit Acceptance Auto Loan Trust 2023-5 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.143 to the Company's Current Report on Form 8-K filed December 27, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221bsa.htm)[93](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221bsa.htm)</u> | Backup Servicing Agreement, dated as of December 21, 2023, among the Company, Credit Acceptance Funding LLC 2023-5, Credit Acceptance Auto Loan Trust 2023-5, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.144 to the Company's Current Report on Form 8-K filed December 27, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221sca.htm)[94](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221sca.htm)</u> | Sale and Contribution Agreement, dated as of December 21, 2023, between the Company and Credit Acceptance Funding LLC 2023-5 (incorporated by reference to Exhibit 4.146 to the Company's Current Report on Form 8-K filed December 27, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221arta.htm)[95](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221arta.htm)</u> | Amended and Restated Trust Agreement, dated as of December 21, 2023, among Credit Acceptance Funding LLC 2023-5, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.147 to the Company's Current Report on Form 8-K filed December 27, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221ssa.htm)[96](https://www.sec.gov/Archives/edgar/data/885550/000088555023000143/cacc_8k20231221ssa.htm)</u> | Sale and Servicing Agreement, dated as of December 21, 2023, among the Company, Credit Acceptance Auto Loan Trust 2023-5, Credit Acceptance Funding LLC 2023-5, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.148 to the Company's Current Report on Form 8-K filed December 27, 2023). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555024000004/cacc_8k20231229lsa.htm)[97](https://www.sec.gov/Archives/edgar/data/885550/000088555024000004/cacc_8k20231229lsa.htm)</u> | Fifth Amendment to Amended and Restated Loan and Security Agreement, dated as of December 29, 2023, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, BMO Capital Markets Corp., Computershare Trust Company, N.A., and (with respect to Section 9 thereof) Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.149 to the Company's Current Report on Form 8-K filed January 4, 2024). |

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|:---|:---|
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555024000035/cacc_8k20240216lsa.htm)[9](https://www.sec.gov/Archives/edgar/data/885550/000088555024000035/cacc_8k20240216lsa.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555024000035/cacc_8k20240216lsa.htm)</u> | Fifth Amendment to Loan and Security Agreement, dated as of February 16, 2024, among the Company, Credit Acceptance Funding LLC 2021-1, Fifth Third Bank, National Association, and Systems and Services Technologies, Inc. (incorporated by reference to Exhibit 4.132 to the Company's Current Report on Form 8-K filed February 22, 2024). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227ssa.htm)[99](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227ssa.htm)</u> | Sale and Servicing Agreement, dated as of February 27, 2024, among the Company, Credit Acceptance Auto Loan Trust 2024-A, Credit Acceptance Funding LLC 2024-A, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.133 to the Company's Current Report on Form 8-K filed February 29, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227bsa.htm)[00](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227bsa.htm)</u> | Backup Servicing Agreement, dated as of February 27, 2024, among the Company, Credit Acceptance Auto Loan Trust 2024-A, Credit Acceptance Funding LLC 2024-A, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.134 to the Company's Current Report on Form 8-K filed February 29, 2024). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227sca.htm)[10](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227sca.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227sca.htm)</u> | Sale and Contribution Agreement, dated as of February 27, 2024, between the Company and Credit Acceptance Funding LLC 2024-A (incorporated by reference to Exhibit 4.136 to the Company's Current Report on Form 8-K filed February 29, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227arta.htm)[02](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227arta.htm)</u> | Amended and Restated Trust Agreement, dated as of February 27, 2024, among Credit Acceptance Funding LLC 2024-A, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.137 to the Company's Current Report on Form 8-K filed February 29, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227ia.htm)[03](https://www.sec.gov/Archives/edgar/data/885550/000088555024000037/cacc_8k20240227ia.htm)</u> | Indenture, dated as of February 27, 2024, between Credit Acceptance Auto Loan Trust 2024-A and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.138 to the Company's Current Report on Form 8-K filed February 29, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328ia.htm)[04](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328ia.htm)</u> | Indenture, dated as of March 28, 2024, between Credit Acceptance Auto Loan Trust 2024-1 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.139 to the Company's Current Report on Form 8-K filed April 3, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328bsa.htm)[05](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328bsa.htm)</u> | Backup Servicing Agreement, dated as of March 28, 2024, among the Company, Credit Acceptance Funding LLC 2024-1, Credit Acceptance Auto Loan Trust 2024-1, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.140 to the Company's Current Report on Form 8-K filed April 3, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328sca.htm)[06](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328sca.htm)</u> | Sale and Contribution Agreement, dated as of March 28, 2024, between the Company and Credit Acceptance Funding LLC 2024-1 (incorporated by reference to Exhibit 4.142 to the Company's Current Report on Form 8-K filed April 3, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328arta.htm)[0](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328arta.htm)[7](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328arta.htm)</u> | Amended and Restated Trust Agreement, dated as of March 28, 2024, among Credit Acceptance Funding LLC 2024-1, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.143 to the Company's Current Report on Form 8-K filed April 3, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328ssa.htm)[08](https://www.sec.gov/Archives/edgar/data/885550/000088555024000049/cacc_8k20240328ssa.htm)</u> | Sale and Servicing Agreement, dated as of March 28, 2024, among the Company, Credit Acceptance Auto Loan Trust 2024-1, Credit Acceptance Funding LLC 2024-1, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.144 to the Company's Current Report on Form 8-K filed April 3, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000077/cacc_8k20240617rca.htm)[09](https://www.sec.gov/Archives/edgar/data/885550/000088555024000077/cacc_8k20240617rca.htm)</u> | Twelfth Amendment to Sixth Amended and Restated Credit Agreement, dated as of June 17, 2024, among the Company, Comerica Bank and the other banks signatory thereto, and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.145 to the Company's Current Report on Form 8-K filed June 20, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620ia.htm)[10](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620ia.htm)</u> | Indenture, dated as of June 20, 2024, between Credit Acceptance Auto Loan Trust 2024-2 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.146 to the Company's Current Report on Form 8-K filed June 26, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620bsa.htm)[11](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620bsa.htm)</u> | Backup Servicing Agreement, dated as of June 20, 2024, among the Company, Credit Acceptance Funding LLC 2024-2, Credit Acceptance Auto Loan Trust 2024-2, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.147 to the Company's Current Report on Form 8-K filed June 26, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620sca.htm)[12](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620sca.htm)</u> | Sale and Contribution Agreement, dated as of June 20, 2024, between the Company and Credit Acceptance Funding LLC 2024-2 (incorporated by reference to Exhibit 4.149 to the Company's Current Report on Form 8-K filed June 26, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620arta.htm)[13](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620arta.htm)</u> | Amended and Restated Trust Agreement, dated as of June 20, 2024, among Credit Acceptance Funding LLC 2024-2, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.150 to the Company's Current Report on Form 8-K filed June 26, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620ssa.htm)[14](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620ssa.htm)</u> | Sale and Servicing Agreement, dated as of June 20, 2024, among the Company, Credit Acceptance Auto Loan Trust 2024-2, Credit Acceptance Funding LLC 2024-2, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.151 to the Company's Current Report on Form 8-K filed June 26, 2024). |

---

------

---

| | |
|:---|:---|
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620lsa.htm)[15](https://www.sec.gov/Archives/edgar/data/885550/000088555024000079/cacc_8k20240620lsa.htm)</u> | Second Amendment to Loan and Security Agreement, dated as of June 21, 2024, among the Company, Credit Acceptance Funding LLC 2022-2, Bank of Montreal, Fairway Finance Company, LLC, and BMO Capital Markets Corp. (incorporated by reference to Exhibit 4.152 to the Company's Current Report on Form 8-K filed June 26, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000090/cacc_8k20240726rca.htm)[16](https://www.sec.gov/Archives/edgar/data/885550/000088555024000090/cacc_8k20240726rca.htm)</u> | Thirteenth Amendment to Sixth Amended and Restated Credit Agreement, dated as of July 26, 2024, among the Company, Comerica Bank and the other banks signatory thereto, and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.153 to the Company's Current Report on Form 8-K filed July 31, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000090/cacc_8k20240726consent.htm)[17](https://www.sec.gov/Archives/edgar/data/885550/000088555024000090/cacc_8k20240726consent.htm)</u> | Consent, dated June 26, 2024, under the Loan and Security Agreement, dated as of November 30, 2023, among the Company, Credit Acceptance Funding LLC 2023-A, the lenders from time to time party thereto, Wells Fargo Bank, National Association, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.154 to the Company's Current Report on Form 8-K filed July 31, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000090/cacc_8k20240726lsa.htm)[18](https://www.sec.gov/Archives/edgar/data/885550/000088555024000090/cacc_8k20240726lsa.htm)</u> | Amendment No. 2 to the Seventh Amended and Restated Loan and Security Agreement, dated as of July 26, 2024, among CAC Warehouse Funding LLC II, the Company, Wells Fargo Bank, National Association, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.155 to the Company's Current Report on Form 8-K filed July 31, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000111/cacc_8k20240919lsax2019-2.htm)[19](https://www.sec.gov/Archives/edgar/data/885550/000088555024000111/cacc_8k20240919lsax2019-2.htm)</u> | Amendment No. 3 to Loan and Security Agreement, dated as of September 19, 2024, among the Company, Credit Acceptance Funding LLC 2019-2, and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.156 to the Company's Current Report on Form 8-K filed September 24, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000111/cacc_8k20240919lsaxwells.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000111/cacc_8k20240919lsaxwells.htm)[0](https://www.sec.gov/Archives/edgar/data/885550/000088555024000111/cacc_8k20240919lsaxwells.htm)</u> | Amendment No. 3 to the Seventh Amended and Restated Loan and Security Agreement, dated as of September 19, 2024, among CAC Warehouse Funding LLC II, the Company, Wells Fargo Bank, National Association, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.157 to the Company's Current Report on Form 8-K filed September 24, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926ia.htm)[11](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926ia.htm)</u> | Indenture, dated as of September 26, 2024, between Credit Acceptance Auto Loan Trust 2024-3 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.158 to the Company's Current Report on Form 8-K filed October 2, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926bsa.htm)[12](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926bsa.htm)</u> | Backup Servicing Agreement, dated as of September 26, 2024, among the Company, Credit Acceptance Funding LLC 2024-3, Credit Acceptance Auto Loan Trust 2024-3, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.159 to the Company's Current Report on Form 8-K filed October 2, 2024). |
| <u>[4.](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926sca.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926sca.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926sca.htm)[3](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926sca.htm)</u> | Sale and Contribution Agreement, dated as of September 26, 2024, between the Company and Credit Acceptance Funding LLC 2024-3 (incorporated by reference to Exhibit 4.161 to the Company's Current Report on Form 8-K filed October 2, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926arta.htm)[14](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926arta.htm)</u> | Amended and Restated Trust Agreement, dated as of September 26, 2024, among Credit Acceptance Funding LLC 2024-3, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.162 to the Company's Current Report on Form 8-K filed October 2, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926ssa.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926ssa.htm)[5](https://www.sec.gov/Archives/edgar/data/885550/000088555024000113/cacc_8k20240926ssa.htm)</u> | Sale and Servicing Agreement, dated as of September 26, 2024, among the Company, Credit Acceptance Auto Loan Trust 2024-3, Credit Acceptance Funding LLC 2024-3, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.163 to the Company's Current Report on Form 8-K filed October 2, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000119/cacc-20240930xex4164.htm)[16](https://www.sec.gov/Archives/edgar/data/885550/000088555024000119/cacc-20240930xex4164.htm)</u> | Sixth Amendment to Loan and Security Agreement, dated as of August 1, 2024, among the Company, CAC Warehouse Funding LLC VI, and Flagstar Bank, N.A. (incorporated by reference to Exhibit 4.164 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000142/cacc_8k20241205lsa.htm)[17](https://www.sec.gov/Archives/edgar/data/885550/000088555024000142/cacc_8k20241205lsa.htm)</u> | Tenth Amendment to Loan and Security Agreement, dated as of December 5, 2024, among the Company, CAC Warehouse Funding LLC V, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.165 to the Company's Current Report on Form 8-K filed December 10, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220lsa.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220lsa.htm)[8](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220lsa.htm)</u> | Loan and Security Agreement, dated as of December 20, 2024, among the Company, Credit Acceptance Funding LLC 2024-B, Wells Fargo Bank, National Association, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.166 to the Company's Current Report on Form 8-K filed December 23, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220bsa.htm)[1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220bsa.htm)[9](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220bsa.htm)</u> | Backup Servicing Agreement, dated as of December 20, 2024 among the Company, Credit Acceptance Funding LLC 2024-B, Wells Fargo Bank, National Association, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.167 to the Company's Current Report on Form 8-K filed December 23, 2024). |

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| | |
|:---|:---|
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220aria.htm)[20](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220aria.htm)</u> | Amended and Restated Intercreditor Agreement, dated December 20, 2024, among the Company, CAC Warehouse Funding LLC II, CAC Warehouse Funding LLC IV, CAC Warehouse Funding LLC V, CAC Warehouse Funding LLC VI, CAC Warehouse Funding LLC VIII, Credit Acceptance Funding LLC 2024-B, Credit Acceptance Funding LLC 2024-3, Credit Acceptance Funding LLC 2024-2, Credit Acceptance Funding LLC 2024-1, Credit Acceptance Funding LLC 2024-A, Credit Acceptance Funding LLC 2023-5, Credit Acceptance Funding LLC 2023-A, Credit Acceptance Funding LLC 2023-3, Credit Acceptance Funding LLC 2023-2, Credit Acceptance Funding LLC 2023-1, Credit Acceptance Funding LLC 2022-3, Credit Acceptance Funding LLC 2022-2, Credit Acceptance Funding LLC 2022-1, Credit Acceptance Funding LLC 2021-4, Credit Acceptance Funding LLC 2021-1, Credit Acceptance Funding LLC 2019-2, Credit Acceptance Auto Loan Trust 2024-3, Credit Acceptance Auto Loan Trust 2024-2, Credit Acceptance Auto Loan Trust 2024-1, Credit Acceptance Auto Loan Trust 2024-A, Credit Acceptance Auto Loan Trust 2023-5, Credit Acceptance Auto Loan Trust 2023-3, Credit Acceptance Auto Loan Trust 2023-2, Credit Acceptance Auto Loan Trust 2023-1, Credit Acceptance Auto Loan Trust 2022-3, Credit Acceptance Auto Loan Trust 2022-1, Credit Acceptance Auto Loan Trust 2021-4, Computershare Trust Company, N.A., Bank of Montreal, Fifth Third Bank, National Association, Flagstar Bank, National Association, Citizens Bank, N.A., and Comerica Bank (incorporated by reference to Exhibit 4.168 to the Company's Current Report on Form 8-K filed December 23, 2024). |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220sca.htm)[21](https://www.sec.gov/Archives/edgar/data/885550/000088555024000147/cacc_8k20241220sca.htm)</u> | Sale and Contribution Agreement, dated as of December 20, 2024, between the Company and Credit Acceptance Funding LLC 2024-B (incorporated by reference to Exhibit 4.169 to the Company's Current Report on Form 8-K filed December 23, 2024). |
| <u>[4.122](https://www.sec.gov/Archives/edgar/data/885550/000088555025000023/cacc_8k20250225ia.htm)</u> | Indenture, dated as of February 28, 2025, among the Company, the Guarantors named therein, and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.145 to the Company's Current Report on Form 8-K filed on February 28, 2025). |
| <u>[4.123](https://www.sec.gov/Archives/edgar/data/885550/000088555025000035/cacc_8k20250327ia.htm)</u> | Indenture, dated as of March 27, 2025, between the Credit Acceptance Auto Loan Trust 2025-1 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.146 to the Company's Current Report on Form 8-K filed on April 2, 2025). |
| <u>[4.124](https://www.sec.gov/Archives/edgar/data/885550/000088555025000035/cacc_8k20250327sca.htm)</u> | Sale and Contribution Agreement, dated as of March 27, 2025, between the Company and Credit Acceptance Funding 2025-1 (incorporated by reference to Exhibit 4.149 to the Company's Current Report on Form 8-K filed April 2, 2025). |
| <u>[4.125](https://www.sec.gov/Archives/edgar/data/885550/000088555025000035/cacc_8k20250327arta.htm)</u> | Amended and Restated Trust Agreement, dated as of March 27, 2025, among Credit Acceptance Funding LLC 2025-1, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.150 to the Company's Current Report on Form 8-K filed on April 2, 2025). |
| <u>[4.126](https://www.sec.gov/Archives/edgar/data/885550/000088555025000035/cacc_8k20250327bsa.htm)</u> | Backup Servicing Agreement, dated as of March 27, 2025, among the Company, Credit Acceptance Funding LLC 2025-1, Credit Acceptance Auto Loan Trust 2025-1, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.147 to the Company's Current Report on Form 8-K filed on April 2, 2025). |
| <u>[4.127](https://www.sec.gov/Archives/edgar/data/885550/000088555025000035/cacc_8k20250327ssa.htm)</u> | Sale and Servicing Agreement, dated as of March 27, 2025, among the Company, Credit Acceptance Auto Loan Trust 2025-1, Credit Acceptance Funding LLC 2025-1, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.151 to the Company's Current Report on Form 8-K filed on April 2, 2025). |
| <u>[4.128](https://www.sec.gov/Archives/edgar/data/885550/000088555023000140/cacc_8k20231219ia.htm)</u> | Indenture, dated as of December 19, 2023, among the Company, the Guarantors named therein, and U.S. Bank Trust Company, National Association, as trustee (the "2028 Notes Indenture") (incorporated by reference to Exhibit 4.142 to the Company's Current Report on Form 8-K filed on December 19, 2023). |
| <u>[4.129](https://www.sec.gov/Archives/edgar/data/885550/000088555025000055/cacc-2025x0331xex4153.htm)</u> | First Supplemental Indenture, dated as of February 28, 2025, among the Company, the Guarantors named therein, and U.S. Bank Trust Company, National Association, as trustee, relating to the 2028 Notes Indenture (incorporated by reference to Exhibit 4.153 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2025). |
| <u>[4.130](https://www.sec.gov/Archives/edgar/data/885550/000088555025000055/cacc-2025x0331xex4154.htm)</u> | Fourth Amendment to Loan and Security Agreement, dated as of August 18, 2022, among the Company, CAC Warehouse Funding LLC VI and Flagstar Bank, N.A. (successor by conversion to Flagstar Bank, fsb) (incorporated by reference to Exhibit 4.154 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2025). |
| <u>[4.131](https://www.sec.gov/Archives/edgar/data/885550/000088555025000076/cacc_8k20250624rca.htm)</u> | Fourteenth Amendment to Sixth Amended and Restated Credit Agreement, dated as of June 24, 2025, among the Company, Comerica Bank and the other banks signatory thereto, and Comerica Bank, as administrative agent for the banks (incorporated by reference to Exhibit 4.155 to the Company's Current Report on Form 8-K filed on June 30, 2025). |
| <u>[4.132](https://www.sec.gov/Archives/edgar/data/885550/000088555025000079/cacc_8k20250711rca.htm)</u> | Seventh Amendment to Loan and Security Agreement, dated as of July 11, 2025, among the Company, CAC Warehouse Funding LLC VI and Flagstar Bank, N.A. (incorporated by reference to Exhibit 4.156 to the Company's Current Report on Form 8-K filed on July 16, 2025). |
| <u>[4.133](https://www.sec.gov/Archives/edgar/data/885550/000088555025000088/cacc_8k20250730lsa.htm)</u> | Sixth Amendment to Amended and Restated Loan and Security Agreement, dated as of July 30, 2025, among the Company, CAC Warehouse Funding LLC IV, Bank of Montreal, BMO Capital Markets Corp. and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.157 to the Company's Current Report on Form 8-K filed on August 4, 2025). |

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| | |
|:---|:---|
| <u>[4.134](https://www.sec.gov/Archives/edgar/data/885550/000088555025000105/cacc_8k20250919lsa.htm)</u> | Fourth Amendment to Loan and Security Agreement, dated as of September 19, 2025, among the Company, CAC Warehouse Funding LLC VIII, Citizens Bank, N.A. and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.158 to the Company's Current Report on Form 8-K filed on September 24, 2025). |
| <u>[4.135](https://www.sec.gov/Archives/edgar/data/885550/000088555025000131/cacc_8k20251113ia.htm)</u> | Indenture, dated as of November 13, 2025, between Credit Acceptance Auto Loan Trust 2025-2 and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.159 to the Company's Current Report on Form 8-K filed on November 17, 2025). |
| <u>[4.136](https://www.sec.gov/Archives/edgar/data/885550/000088555025000131/cacc_8k20251113sca.htm)</u> | Sale and Contribution Agreement, dated as of November 13, 2025, between the Company and Credit Acceptance Funding LLC 2025-2 (incorporated by reference to Exhibit 4.162 to the Company's Current Report on Form 8-K filed on November 17, 2025). |
| <u>[4.137](https://www.sec.gov/Archives/edgar/data/885550/000088555025000131/cacc_8k20251113bsa.htm)</u> | Backup Servicing Agreement, dated as of November 13, 2025, among the Company, Credit Acceptance Funding LLC 2025-2, Credit Acceptance Auto Loan Trust 2025-2, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.160 to the Company's Current Report on Form 8-K filed on November 17, 2025). |
| <u>[4.138](https://www.sec.gov/Archives/edgar/data/885550/000088555025000131/cacc_8k20251113arta.htm)</u> | Amended and Restated Trust Agreement, dated as of November 13, 2025, among Credit Acceptance Funding LLC 2025-2, each of the initial members of the Board of Trustees of the Trust, and Computershare Delaware Trust Company (incorporated by reference to Exhibit 4.163 to the Company's Current Report on Form 8-K filed on November 17, 2025). |
| <u>[4.139](https://www.sec.gov/Archives/edgar/data/885550/000088555025000131/cacc_8k20251113ssa.htm)</u> | Sale and Servicing Agreement, dated as of November 13, 2025, among the Company, Credit Acceptance Auto Loan Trust 2025-2, Credit Acceptance Funding LLC 2025-2, and Computershare Trust Company, N.A. (incorporated by reference to Exhibit 4.164 to the Company's Current Report on Form 8-K filed on November 17, 2025). |
| <u>[4.140](https://www.sec.gov/Archives/edgar/data/885550/000088555026000004/cacc_8k20260115lsaxbsa.htm)</u> | Sixth Amendment to Loan and Security Agreement and First Amendment to Backup Servicing Agreement, dated as of January 15, 2026, among the Company, Credit Acceptance Funding LLC 2021-1, and Fifth Third Bank, National Association (incorporated by reference to Exhibit 4.165 to the Company's Current Report on Form 8-K filed on January 20, 2026). |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/885550/000095012407001196/k12821exv10wxqyx4y.txt)</u> | Form of Restricted Stock Grant Agreement (incorporated by reference to Exhibit 10(q)(4) to the Company's Current Report on Form 8-K filed February 28, 2007).\* |
| <u>[10.2](https://www.sec.gov/Archives/edgar/data/885550/000095012309006377/k47674ddef14a.htm)</u> | Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan, as amended, April 6, 2009 (incorporated by reference to Annex A to the Company's Definitive Proxy Statement on Schedule 14A filed April 10, 2009).\* |
| <u>[10.3](https://www.sec.gov/Archives/edgar/data/885550/000095012309054843/k48458exv10wxqyx11y.htm)</u> | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10(q)(11) to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009).\* |
| <u>[10.4](https://www.sec.gov/Archives/edgar/data/885550/000095012309054843/k48458exv10wxqyx12y.htm)</u> | Form of Board of Directors Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10(q)(12) to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009).\* |
| <u>[10.5](https://www.sec.gov/Archives/edgar/data/885550/000088555012000035/cacc_ex1016.htm)</u> | Restricted Stock Unit Award Agreement, dated March 26, 2012, between the Company and Brett A. Roberts (incorporated by reference to Exhibit 10.16 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012).\* |
| <u>[10.6](https://www.sec.gov/Archives/edgar/data/885550/000088555012000035/cacc_ex1017.htm)</u> | Restricted Stock Award Agreement, dated March 26, 2012, between the Company and Brett A. Roberts (incorporated by reference to Exhibit 10.17 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012).\* |
| <u>[10.7](https://www.sec.gov/Archives/edgar/data/885550/000088555012000028/cacc_proxy040512.htm)</u> | Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan, as amended March 26, 2012 (incorporated by reference to Annex A to the Company's Definitive Proxy Statement on Schedule 14A filed April 5, 2012).\* |
| <u>[10.8](https://www.sec.gov/Archives/edgar/data/885550/000088555014000015/cacc_ex10-19.htm)</u> | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.19 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013).\* |
| <u>[10.9](https://www.sec.gov/Archives/edgar/data/885550/000088555017000003/cacc_8k20170103sa.htm)</u> | Shareholder Agreement, dated as of January 3, 2017, between the Company and Donald A. Foss (incorporated by reference to Exhibit 10.18 to the Company's Current Report on Form 8-K filed January 4, 2017).\* |
| <u>[10.10](https://www.sec.gov/Archives/edgar/data/885550/000088555017000035/cacc-20170331xex1019rsutem.htm)</u> | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.19 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017).\* |
| <u>[10.11](https://www.sec.gov/Archives/edgar/data/885550/000088555017000069/cacc-20170930xex1019.htm)</u> | Amendment to Shareholder Agreement dated September 15, 2017, between the Company and Donald A. Foss (incorporated by reference to Exhibit 10.19 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017).\* |
| <u>[10.12](https://www.sec.gov/Archives/edgar/data/885550/000088555018000014/cacc-20171231xex1012.htm)</u> | Amendment to Shareholder Agreement dated November 29, 2017, between the Company and Donald A. Foss.\* |
| <u>[10.13](https://www.sec.gov/Archives/edgar/data/885550/000088555019000034/cacc-20190331xex10131.htm)</u> | Form of Director Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.13 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019).\* |
| <u>[10.14](https://www.sec.gov/Archives/edgar/data/885550/000088555021000034/cacc-20201231xex1014.htm)</u> | Form of Nonqualified Stock Option Agreement (incorporated by reference to Exhibit 10.14 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020).\* |

---

------

---

| | |
|:---|:---|
| <u>[10.15](https://www.sec.gov/Archives/edgar/data/885550/000088555021000056/cacc-20210331ex1015.htm)</u> | Form of Nonqualified Stock Option Agreement (incorporated by reference to Exhibit 10.15 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021).\* |
| <u>[10.16](https://www.sec.gov/Archives/edgar/data/885550/000088555021000098/cacc-20210630xex1017.htm)</u> | Form of Nonqualified Stock Option Agreement (incorporated by reference to Exhibit 10.17 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021).\* |
| <u>[10.17](https://www.sec.gov/Archives/edgar/data/885550/000088555021000098/cacc-20210630xex1018.htm)</u> | Form of Nonqualified Stock Option Agreement (incorporated by reference to Exhibit 10.18 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021).\* |
| <u>[10.18](https://www.sec.gov/Archives/edgar/data/885550/000088555021000106/cacc_20210901assuranceofdi.htm)</u> | Settlement Agreement and Assurance of Discontinuance with the Commonwealth of Massachusetts (incorporated by reference to Exhibit 10.19 to the Company's Current Report on Form 8-K filed September 1, 2021). |
| <u>[10.19](https://www.sec.gov/Archives/edgar/data/885550/000088555021000075/def14a_cacc20210422.htm)</u> | Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan as amended and restated April 12, 2021 (incorporated by reference to Annex A to the Company's definitive proxy statement on Schedule 14A filed June 10, 2021).\* |
| <u>[10.20](https://www.sec.gov/Archives/edgar/data/885550/000088555023000110/cacc-20230930xex1020.htm)</u> | Non-Employee Director Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.20 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023).\* |
| <u>[10.21](https://www.sec.gov/Archives/edgar/data/885550/000088555023000080/cacc-20230630xex1019.htm)</u> | Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan, as amended effective June 2, 2023 (incorporated by reference to Exhibit 10.19 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023).\* |
| <u>[10.22](https://www.sec.gov/Archives/edgar/data/885550/000088555024000092/cacc-20240630xex1022.htm)</u> | Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan, as amended effective June 5, 2024 (incorporated by reference to Exhibit 10.22 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024).\* |
| <u>[10.23](https://www.sec.gov/Archives/edgar/data/885550/000088555024000119/cacc-20240930xex1023.htm)</u> | Amendment, effective September 19, 2024, to the Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan (incorporated by reference to Exhibit 10.23 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024).\* |
| <u>[10.24](https://www.sec.gov/Archives/edgar/data/885550/000088555025000012/cacc-20241231xex1024.htm)</u> | Form of Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.24 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024).\* |
| <u>[10.25](cacc-20251231xex1025.htm)</u> | Form of Restricted Stock Unit Award Agreement\* |
| <u>[10.26](cacc-20251231xex1026.htm)</u> | Executive Severance Agreement, dated as of October 27, 2025, between the Company and Vinayak Hegde\* |
| <u>[10.27](cacc-20251231xex1027.htm)</u> | Separation and Advisory Agreement, dated February 9, 2026, between the Company and Arthur Smith\* |
| <u>[10.28](cacc-20251231xex1028.htm)</u> | Separation and Advisory Agreement, dated February 9, 2026, between the Company and Daniel Ulatowski\* |
| <u>[19](cacc-20251231xex19.htm)</u> | Securities trading policy. |
| <u>[21](cacc-20251231xex21.htm)</u> | List of Credit Acceptance Corporation subsidiaries. |
| <u>[23](cacc-20251231xex23.htm)</u> | Consent of Grant Thornton LLP. |
| <u>[31.1](cacc-20251231xex31a.htm)</u> | Certification of principal executive officer pursuant to Rule 13a-14(a) of the Securities Exchange Act. |
| <u>[31.2](cacc-20251231xex31b.htm)</u> | Certification of principal financial officer pursuant to Rule 13a-14(a) of the Securities Exchange Act. |
| <u>[32.1](cacc-20251231xex32a.htm)</u> | Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| <u>[32.2](cacc-20251231xex32b.htm)</u> | Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| <u>[97](https://www.sec.gov/Archives/edgar/data/885550/000088555024000030/cacc-20231231xex97.htm)</u> | Policy relating to recovery of erroneously awarded compensation (incorporated by reference to Exhibit 97 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023). |
| 101(SCH) | Inline XBRL Taxonomy Extension Schema Document. |
| 101(CAL) | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101(DEF) | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101(LAB) | Inline XBRL Taxonomy Label Linkbase Document. |
| 101(PRE) | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (included in the Exhibit 101 Inline XBRL Document Set). |
| \* | Management contract or compensatory plan or arrangement. |

---

Other instruments, notes, or extracts from agreements defining the rights of holders of long-term debt of the Company or its subsidiaries have not been filed because (i) in each case the total amount of long-term debt permitted thereunder does not exceed 10% of the Company's consolidated assets and (ii) the Company hereby agrees that it will furnish such instruments, notes, and extracts to the Securities and Exchange Commission upon its request.

------

Amendments and modifications to other exhibits previously filed have been omitted when in the opinion of the registrant such exhibits as amended or modified are no longer material or, in certain instances, are no longer required to be filed as exhibits.

**ITEM 16.&nbsp;&nbsp;&nbsp;&nbsp;FORM 10-K SUMMARY**

None.

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **CREDIT ACCEPTANCE CORPORATION** | **CREDIT ACCEPTANCE CORPORATION** |
| By: | /s/ VINAYAK R. HEGDE |
|  | Vinayak R. Hegde |
|  | *Chief Executive Officer* |
| Date: | February 13, 2026 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on February 13, 2026 on behalf of the registrant and in the capacities indicated.

---

| | |
|:---|:---|
| **Signature** | **Title** |
| /s/ VINAYAK R. HEGDE | Chief Executive Officer and Director |
| Vinayak R. Hegde | (Principal Executive Officer) |
| /s/ JAY D. MARTIN | Chief Financial Officer |
| Jay D. Martin | (Principal Financial Officer and Principal Accounting Officer) |
| /s/ THOMAS N. TRYFOROS | Chair of the Board and Lead Director |
| Thomas N. Tryforos | |
| /s/ KENNETH S. BOOTH | Director |
| Kenneth S. Booth | |
| /s/ GLENDA J. FLANAGAN | Director |
| Glenda J. Flanagan | |
| /s/ SEAN E. QUINN | Director |
| Sean E. Quinn | |
| /s/ SCOTT J. VASSALLUZZO | Director |
| Scott J. Vassalluzzo | |

---

## Exhibit 10.25

**Exhibit 10.25**

 **CREDIT ACCEPTANCE CORPORATION <br>RESTRICTED STOCK UNIT AWARD AGREEMENT**

Credit Acceptance Corporation (the "***Company***") hereby grants you, (the "***Participant***"), a Restricted Stock Unit Award (the "***Award***") under the Credit Acceptance Corporation Amended and Restated Incentive Compensation Plan, as amended (the "***Plan***"). The terms and conditions of the Award are set forth in this agreement and in Appendix A (collectively, the "***Agreement***").

GRANT DATE: November 13, 2025

NUMBER OF RESTRICTED STOCK UNITS: 140,000 Restricted Stock Units, comprised of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110,000 Base Restricted Stock Units, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,000 Retirement Restricted Stock Units

VESTING SCHEDULE: As described in Appendix A.

**<u>IMPORTANT</u>:**

Your signature below indicates your agreement and understanding that this grant is subject to all of the terms and conditions contained in Appendix A and in the Plan. BY SIGNING THIS AGREEMENT, YOU ACKNOWLEDGE THE FOLLOWING:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.THAT YOU HAVE RECEIVED A COPY OF THE PLAN AND THAT YOU HAVE READ THE PLAN, THIS AGREEMENT, AND APPENDIX A, WHICH CONTAINS SPECIFIC TERMS AND CONDITIONS OF THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.THAT IF THERE IS ANY INCONSISTENCY BETWEEN THE TERMS OF THE PLAN AND THE TERMS OF THIS AWARD AGREEMENT AND APPENDIX A, THE PLAN'S TERMS SHALL SUPERSEDE AND REPLACE THE CONFLICTING TERMS OF THIS AWARD AGREEMENT AND APPENDIX A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.THAT THE PLAN IS SUBJECT TO AMENDMENT AND THIS GRANT WILL BE SUBJECT TO THE TERMS OF ANY FUTURE AMENDMENT TO THE PLAN, PROVIDED THAT SUCH AMENDMENT SHALL NOT ADVERSELY AFFECT YOUR RIGHTS THAT HAVE VESTED UNDER THIS AGREEMENT PRIOR TO THE EFFECTIVE DATE OF THE AMENDMENT.

---

| | | |
|:---|:---|:---|
| CREDIT ACCEPTANCE CORPORATION | CREDIT ACCEPTANCE CORPORATION | Vinayak R. Hegde |
| | | *(Participant's name)* |
| By | **/s/ Jay D. Martin** | **/s/ Vinayak R. Hegde** |
| | Jay D. Martin | *(Participant's signature)* |
| Its: | Chief Financial Officer | |
| Its: | Chief Financial Officer | |
| Date: | &nbsp;&nbsp;&nbsp;&nbsp;<u>November 13, 2025&nbsp;&nbsp;&nbsp;&nbsp;</u> | Date: <u>November 13, 2025&nbsp;&nbsp;&nbsp;&nbsp;</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;

------

<u>APPENDIX A—TERMS AND CONDITIONS</u>

THE AGREEMENT, including Appendix A, effective as of the Grant Date above, represents the grant of Restricted Stock Units by the Company to the Participant named above, pursuant to the provisions of the Plan and this Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein. The parties hereto agree as follows:

1.<u>Value of Restricted Stock Units</u>. Each Restricted Stock Unit shall represent and have a value equal to one share of Common Stock, par value $0.01, of the Company, subject to adjustment as provided in Section 6.01 of the Plan.

2.<u>Vesting Schedule Applicable to Restricted Stock Units</u>. Except as provided in Section 3, the Restricted Stock Units (both Base Restricted Stock Units and Retirement Restricted Stock Units) will become vested in accordance with the following schedule:

![image_0a.jpg](image_0a.jpg)

*provided* that the Participant is providing services to the Company through each such date (each, a "***Vesting Date***"), except as expressly provided by Section 3 below.

For purposes of this Agreement including Appendix A, the term "***Base Restricted Stock Units***" shall mean those certain Restricted Stock Units designated as Base Restricted Stock Units in the Agreement and which are subject to the settlement terms set forth in Section 5(a) below, and the term "***Retirement Restricted Stock Units***" shall mean those certain Restricted Stock Units designated as Retirement Restricted Stock Units in the Agreement and which are subject to the settlement terms set forth in Section 5(b) below.

3.<u>Termination Provisions; Termination Prior to Vesting</u>. Notwithstanding Section 2, if the Participant ceases to be an Employee prior to a Vesting Date for any reason, any unvested Restricted Stock Units shall be forfeited by the Participant; *provided, however*, that if the Participant's employment is terminated (i) by the Company without Cause or (ii) by the Participant for Good Reason, in either case, during the twenty-four (24) month period following a Change in Control, then such termination will not result in forfeiture, and the Restricted Stock Units instead shall vest with respect to the amount of Restricted Stock Units that would have vested over the next three (3) Vesting Dates following the Termination Date had the Participant remained employed or, if less, the remaining unvested number of Restricted Stock Units subject to this Award.

&nbsp;&nbsp;&nbsp;&nbsp;

------

4.<u>Dividend Equivalents</u>. While the Restricted Stock Units are outstanding, the Company shall credit to the Participant, on each date that the Company pays a cash dividend to holders of Common Stock generally, an additional number of Restricted Stock Units ("***Additional Restricted Stock Units***") equal to the total number of whole Restricted Stock Units and Additional Restricted Stock Units previously credited to the Participant under this Agreement multiplied by the dollar amount of the cash dividend paid per share of Common Stock by the Company on such date, divided by the closing price of a share of Common Stock on such date. Any fractional Restricted Stock Unit resulting from such calculation shall be included in the Additional Restricted Stock Units. A report showing the number of Additional Restricted Stock Units so credited shall be sent to the Participant periodically, as proportionately allocated between Base Restricted Stock Units and Retirement Restricted Stock Units, as determined by the Company. The Additional Restricted Stock Units so credited shall be subject to the same terms and conditions as the Restricted Stock Units granted pursuant to this Agreement and the Additional Restricted Stock Units shall be forfeited in the event that the Restricted Stock Units with respect to which the dividend equivalents were credited are forfeited.

5.<u>Form and Timing of Settlement of the Restricted Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as set forth in Section 10, payment of vested Restricted Stock Units shall be made in Common Stock and shall be made in accordance with the following schedule (or within fourteen (14) days following) (the "***Payment Date***"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Base Restricted Stock Units*. The Payment Date with respect to half (50%) of the Base Restricted Stock Units that vest on each Vesting Date as provided in Section 2 shall be the Vesting Date, and the Payment Date for the remaining half (50%) of the then vesting Base Restricted Stock Units shall be the earlier of (i) the tenth anniversary of the Grant Date or (ii) the second anniversary of the date the Participant incurs a separation from service (the "***Termination Date***") ; and;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)*Retirement Restricted Stock Units*. The Payment Date with respect to all (100%) of the vested Retirement Restricted Stock Units as of the Termination Date shall be the fifth anniversary of the Termination Date, or, if the Participant has attained the age of 60 or older on the Termination Date, the second anniversary of the Termination Date. Notwithstanding the foregoing, on each Vesting Date with respect to the Retirement Restricted Stock Units, the Company shall withhold such number of vested Restricted Stock Units as is necessary to satisfy the total amount (but no more than the total amount) of employment taxes and income taxes related to the withholding of employment taxes, if any, which the Company determines must be withheld in connection with the vesting of such Restricted Stock Units.

The Participant shall be eligible for payment of vested Restricted Stock Units on the Payment Date *provided that*, subject to Section 3, the Participant has provided services to the Company through the applicable Vesting Date, regardless of whether the Participant is providing services to the Company through the Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Change in Control.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Upon the occurrence of a Change in Control, notwithstanding the provisions of Section 5(a), the Payment Date for all then vested Base Restricted Stock Units and all then vested Retirement Restricted Stock Units shall be the date of (or within fourteen (14) days following the date of) the Change in Control. Payment shall be made in Common Stock or, unless otherwise determined by the Committee, in the form of such other consideration necessary for a Participant to receive property, cash, or securities (or combination thereof) as such Participant would have been entitled to receive upon the occurrence of the Change in Control transaction if the Participant had been, immediately prior to such transaction, the holder of the number of shares of Common Stock covered by the Award at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)In addition, in the event that the Participant's employment is terminated by the Company without Cause or by the Participant for Good Reason during the twenty-four month period commencing on the date of the Change in Control, any additional vested Base Restricted Stock Units (inclusive of amounts that vest pursuant to Section 3) shall be paid to the Participant within fourteen (14) days of the Termination Date. Any additional vested Retirement Restricted Stock Units (inclusive of amounts that vest pursuant to Section 3) shall remain subject to the payment terms provided by Section 5(a)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Death*. Notwithstanding the foregoing, upon the death of the Participant, payment with respect to all then vested Base Restricted Stock Units and all then vested Retirement Restricted Stock Units shall be made in Common Stock within thirty (30) days of the date of death; *provided, however*, that the payment shall be deemed to have been made on the Payment Date so long as the settlement occurs no later than December 31 of the year following the year in which the date of death occurs.

For purposes of this Section 5, the number of vested Restricted Stock Units paid will be rounded up, if necessary, to the next higher whole number of shares*, provided* that the total number of Restricted Stock Units paid hereunder shall in no event exceed the number of Restricted Stock Units that become vested pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;

------

6.<u>Tax Withholding</u>. Notwithstanding any contrary provision of this Award Agreement, Restricted Stock Units may not be paid pursuant to Section 5 unless and until satisfactory arrangements (as determined by the Committee) are made by the Participant with respect to the payment of income and employment taxes, if any, which the Company determines must be withheld with respect to payment of the Restricted Stock Units. The Participant may satisfy tax withholding obligations, if any, in whole or in part, pursuant to such procedures as the Committee may specify from time to time, by (a) electing to have the Company withhold otherwise vested Restricted Stock Units, (b) delivering to the Company already vested and owned shares of Common Stock having a fair market value equal to the minimum amount required to be withheld, or such other rate that will not cause adverse accounting consequences for the Company and is permitted under applicable withholding rules promulgated by the Internal Revenue Service or another applicable governmental entity, (c) delivering to the Company cash or check, or (d) to the extent permitted by the Company and applicable law, electing to have the Company reduce future compensation payable in the same taxable year as the tax obligations become due. If the Participant does not deposit with the Company (on or before the date taxes are to be remitted by the Company) the full required amount then due for taxes, if any, the Company may sell (in a market transaction or in a non-market transaction at the market price) or withhold sufficient vested shares held for the Participant.

7.<u>Rights as Shareholder</u>. Neither the Participant nor any person claiming under or through the Participant will have any of the rights or privileges of a shareholder of the Company in respect of any Restricted Stock Units granted hereunder unless and until the Restricted Stock Units are settled and the underlying shares of Common Stock are issued and recorded on the records of the Company or its transfer agents or registrars.

8.<u>Nontransferability</u>. Restricted Stock Units may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.

9.<u>Administration</u>. This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participant.

10.<u>Specific Restrictions upon Shares</u>. The Participant hereby agrees with the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Participant shall acquire the shares of Common Stock issuable with respect to the Restricted Stock Units granted hereunder for investment purposes only not with a view of resale or other distribution thereof to the public in violation of the Securities Act of 1933, as amended (the "***1933 Act***") and shall not dispose of any such shares in transactions which, in the opinion of counsel to the Company, violate the 1933 Act, or the rules and regulations thereunder, or any applicable state securities or "Blue Sky" laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If any shares acquired with respect to the Restricted Stock Units shall be registered under the 1933 Act, no public offering (otherwise than on a national securities exchange, as defined in the Exchange Act) of any such shares shall be made by the Participant under such circumstances that he or she (or such other person) may be deemed an underwriter, as defined in the 1933 Act.

&nbsp;&nbsp;&nbsp;&nbsp;

------

11.<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Adjustments to Shares</u>. In the event of any merger, reorganization, recapitalization, stock dividend, stock split, extraordinary distribution with respect to the Common Stock or other change in corporate structure affecting the Stock, the Committee or Board of Directors of the Company will make such substitution or adjustments in the aggregate number and kind of shares of Common Stock subject to this Restricted Stock Unit Award to prevent dilution of rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Notices</u>. Any written notice required or permitted under this Agreement shall be deemed given (i) when delivered personally, as appropriate either to the Participant or to the Human Resources Department of the Company, (ii) when deposited in a United States Post Office as registered mail, postage prepaid, addressed as appropriate either to the Participant at his or her address as he or she may designate in writing to the Company, or to the Attention: Human Resources Department, Credit Acceptance Corporation, at its headquarters office or such other address as the Company may designate in writing to the Participant, or (iii) if delivered by electronic email transmission (addressed to the Participant at his email address on file with the Company or, if to the Company, to MyCompensation@creditacceptance.com), effective on the day that such email was sent, provided that a receipt of such email is requested and thereafter confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Failure to Enforce Not a Waiver</u>. The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Effect of Demotion Prior to Change in Control</u>. Unless and to the extent otherwise determined by the Committee in its discretion, any voluntary or involuntary demotion of the Participant prior to the date of a Change in Control shall result in the forfeiture of any remaining unvested Base Restricted Stock Units and unvested Retirement Restricted Stock Units hereunder and the termination of this Agreement; *provided* that any vested Base Restricted Stock Units and vested Retirement Restricted Stock Units shall remain subject to the payment provisions of Section 5 and such other provisions as are necessary for the proper administration of such vested awards. This provision shall have no effect on and after the date of a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>No Effect on Employment</u>. Nothing in the Plan or this Agreement shall confer upon the Participant any right to continue in the employ or service of the Company or any Affiliate. The terms of the Participant's employment will be determined from time to time by the Company or the Affiliate employing the Participant (as the case may be), and the Company or the Affiliate will have the right, which is hereby expressly reserved, to terminate or change the terms of the employment of the Participant, or to terminate the employment of the Participant, at any time for any reason whatsoever, with or without cause. If the Participant has a written employment agreement with the Company or any Affiliate which contains different or additional provisions relating to Plan awards, or otherwise conflicts with the terms of this Agreement, the provisions of the employment agreement will govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Governing Law</u>. All questions concerning the construction, validity and interpretation of this Agreement shall be governed by and construed according to the laws of the State of Michigan.

&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Provision of Plan</u>. The Restricted Stock Units provided for herein and granted pursuant to the Plan, and said Restricted Stock Units and this Agreement are in all respects governed by the Plan and subject to all of the terms and provisions thereof, whether such terms and provisions are incorporated in this Agreement, solely by reference or expressly cited herein. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan's terms shall completely supersede and replace the conflicting terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Section 16 Compliance</u>. If the Participant is subject to Section 16 of the Exchange Act, except in the case of death or disability, or unless otherwise exempt, at least six months must elapse from the date of grant of the Restricted Stock Units hereunder to the date of the Participant's disposition of such Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Clawback Policy</u>. Awards are subject to the Company's policies on recoupment of gains realized from any Awards as may be in effect from time to time. The Award will be subject to recoupment in accordance with the terms of the Credit Acceptance Corporation Clawback Policy and any other clawback policy that the Company may or is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company's securities are listed or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Code Section 409A</u>. The Restricted Stock Units are intended to comply with Section 409A of the Code and shall be interpreted in accordance with Section 409A of the Code and Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the awards are granted. Notwithstanding any provision of the Plan or the Agreement to the contrary, in the event that the Committee determines that any award may or does not comply with Section 409A of the Code, the Company may adopt such amendments to the award (without the Participant's consent) or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary or appropriate to (i) exempt the award from the application of Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to award, or (ii) comply with the requirements of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 10.26

**Exhibit 10.26**

**<u>EXECUTIVE SEVERANCE AGREEMENT</u>**

This Executive Severance Agreement (the "**Agreement**") is by and between, Vinayak Hegde ("**Employee**"), and Credit Acceptance Corporation (the "**Company**"), for the benefit of it and its affiliated organizations, subsidiaries, predecessors, successors, and assigns, and all of its and their past, present, or future directors, officers, agents, employees, representatives, owners, and stockholders. The Company and Employee are referred to herein, individually as a "**party**," and collectively as the "**parties**."

**<u>Recitals</u>**

**Whereas**, the parties agree that upon certain conditions being met, Employee will be entitled to a Severance Benefits, in exchange for the release and other obligations contained herein;

**Whereas**, Employee executing this Agreement and its accompanying Release (at the appropriate time) is a condition precedent to Employee receiving certain Severance Benefits due under this Agreement;

**Whereas**, if the parties intend to finally and amicably terminate the employer-employee relationship that exists between them, it will be consistent with the terms of this Agreement.

In consideration of the foregoing and of the promises and covenants contained herein, the adequacy and sufficiency of which is explicitly acknowledged, each party agrees as follows:

**<u>Terms</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.<u>Qualifying Termination</u>**. Employee shall only be eligible to receive the Severance Benefits if: (a) Employee resigns from employment with Good Reason; or (b) Employee is terminated without Cause, and provided in either case that such termination of employment constitutes a "separation from service" within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the "**Code**") (either (a) or (b), a "**Qualifying Termination**"). To receive the Severance Benefits, Employee understands and acknowledges that Employee must comply with the terms of this Agreement, including proper and timely execution of the attached General Release. The effective date of Employee's termination of employment for any reason, shall be the "Separation Date."

"**Cause**" means: (i) Employee has misappropriated for personal use any material funds or property of the Company; (ii) Employee has been convicted of or pled nolo contendere to a felony (other than traffic violation not involving human injury) or other crime that involves fraud, dishonesty, or moral turpitude; or (iii) the Employee 's willful and material breach of Employee's obligations to the Company, including the Employee's willful and material failure to perform his duties with the Company (other than as a result of incapacity due to illness or injury

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or reasonable permitted time off), provided, however, that, in each case of (i), (ii) or (iii), if capable of cure, a termination by the Company for Good Cause shall be effective only if, within thirty (30) days following delivery of a written notice by the Company's Board of Directors to Employee of the event giving rise to Good Cause that reasonably identifies the reason(s) for such determination, Employee has failed to materially cure such condition. The determination by the Board of the occurrence of Good Cause shall be made, in good faith, by the affirmative vote of all disinterested members of the Board, and only after Employee has had the opportunity to be represented by counsel in addressing the Board in the meeting at which such determination is discussed. Good Cause does not include: Employee resigning for any reason; a separation in employment due to Employee's involuntary layoff, a reduction in force, position elimination, death or disability; or trivial or de minimis violations of Company policy, rules, or procedures (as determined in the Company's sole discretion).

"**Good Reason**" means the occurrence of any of the following events without Employee's written consent: (i) a material diminution of Employee's rate of base salary or target annual bonus opportunity; (ii) a material diminution in Employee's authority, duties, or responsibilities; (iii) a material breach by the Company of any material provision of this Agreement or other compensation agreement between Employee and the Company; (iv) the failure of any successor or acquiring entity to assume the Company's obligations under this Agreement, or (v) a relocation of Employee's principal place of employment to a place that increases Employee's one-way commute by more than twenty five (25) miles. No resignation for Good Reason shall be effective unless (1) Employee provides written notice, within ninety (90) days after the first occurrence of the event giving rise to Good Reason to the Board setting forth in reasonable detail the material facts constituting Good Reason and the reasonable steps necessary to cure, (2) the Company has had thirty (30) business days from the date of such notice to cure any such occurrence otherwise constituting Good Reason, and (3) if such event is not reasonably cured within such period, Employee must resign from all positions he then holds with the Company effective not later than sixty (60) days after the expiration of the cure period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.<u>Other Conditions of Eligibility</u>**. In addition, to be eligible for the Severance Benefits, Employee must: (a) cooperate with the Company in the transition of Employee's duties and responsibilities to a successor and in the transitions of any clients, work, or other Company-related matters in each case as directed by the Company, upon separation of employment for any reason; (b) comply with all of the terms and conditions of this Agreement; and (c) timely execute (and not revoke) the attached General Release after Employee's Separation Date; in each case, as determined in the sole discretion of the Company. The Severance Benefits will not have been earned by Employee until all the conditions of this Section and Section 6 are satisfied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.<u>Severance Benefits</u>**. Subject to Employee's compliance with the terms and conditions of this Agreement, the Company agrees to pay Employee upon termination the following payments and benefits as (the **"Severance Benefits"**):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.A lump sum payment equal to one times Employee's final rate of base salary (ignoring any reduction that forms the basis for Good Reason), payable in a single lump sum payment on the date that is 60 days after the Separation Date, less the required withholdings and deductions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.A lump sum cash payment that is the equivalent of twelve (12) months of the cost of the medical, dental, and vision benefit premiums for Employee and his eligible dependents due under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("**COBRA**"), based on Employee's then-current group health insurance coverage, payable in a single lump sum payment on the date that is 60 days after the Separation Date, less the required withholdings and deductions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.The Company will accelerate the vesting of Employee's then-outstanding compensatory equity awards as to the number of shares subject to each such award that would have vested in the ordinary course in the period that is (i) one year after the Separation Date, if the Qualifying Termination occurs outside of the Change in Control Protection Period and (ii) three years after the Separation Date, if the Qualifying Termination occurs within the Change in Control Protection Period, with such vesting effective as of the Separation Date.

The "**Change in Control Protection Period**" is the period that begins immediately prior to, on or within twenty-four (24) months after a Change in Control (as defined in the Company's Amended and Restated Incentive Compensation Plan (as in effect on Employee's start date). The Severance Benefits will not be considered compensation for purposes of any retirement or other compensation-based plan, policy, or benefit offered by the Company. Employee acknowledges and agrees that Employee has no right to receive the Severance Benefits absent this Agreement and conditioned on Employee's satisfaction of all conditions precedent in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.<u>Equity Held By Employee</u>**. Except as set forth above, this Agreement shall not modify the terms of any stock options or restricted units held by Employee pursuant to the Company Amended and Restated Incentive Compensation Plan, as amended from time to time, and any applicable award documents (the "**Equity Documents**"). Except as set forth above, any Equity Awards held by Employee as of Employee's Separation Date shall continue to remain subject to the terms and conditions of the Equity Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.<u>Other Benefits</u>**. Employee understands and agrees that, except as expressly stated in this Agreement and for benefits required by applicable law to be continued (including under COBRA), Employee's participation in any Company benefit plans, procedures or policies shall cease as of Employee's Separation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.<u>Payment Timing.</u>** The Severance Benefits are conditioned on the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.**Employee's Qualifying Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.**Employee timely executing (and not revoking) the General Release (attached as Exhibit 1 to this Agreement), which cannot be executed until after the Separation Date, and returning and delivering a copy of the same to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.**The Effective Date of the General Release (attached as Exhibit 1); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.**Employee's return, without retention of any copies, of all Company property in Employee's possession, custody, or control, regardless of whether such property is electronic, digital, or hard copy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.<u>At-Will Employment</u>.** Nothing in this Agreement shall be interpreted or construed as modifying or otherwise altering the at-will employment relationship between Employee and the Company. Nothing in this Agreement shall be interpreted as a guarantee of employment for any duration of time or as creating a "for cause" relationship. Each party retains the right to end Employee's employment for any reason and at any time, with or without cause and with or without notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.<u>Tax Consequences</u>**. All cash amounts payable under this Agreement are intended to fit within the "short term deferral" exception for the Section 409A of the Code ("**Section 409A**") or the "separation pay plan" exception specified in Treas. Reg. § 1.409A-1(b)(9), or both of them, and shall be interpreted in a manner consistent with the applicable exceptions. To the extent any of the Severance Benefits are not so exempt, such amounts are intended to comply with Section 409A and this Agreement shall be interpreted and administered in such a way as to comply with Section 409A to the maximum extent possible. To the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided hereunder during the six-month period immediately following Employee's termination of employment shall instead be paid without interest on the first business day after the date that is six months following Employee's termination of employment (or within 30 days after Employee's death, if earlier). In addition, each amount to be paid or benefit to be provided to Employee hereunder, which constitutes deferred compensation subject to Section 409A of the Code, shall be construed as a separate identified payment for purposes of Section 409A of the Code. The terms "termination of employment," "resignation," or words of similar import, as used in this

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Agreement shall mean, with respect to any payments subject to Section 409A, Employee's "separation from service" as defined by Section 409A. Nothing in this Agreement shall be construed as a guarantee of any particular tax treatment to the Employee. Employee shall be solely responsible for the tax consequences with respect to all amounts payable under this Agreement, and, provided this Agreement is administered in accordance with its terms, in no event shall the Company have any responsibility or liability if this Agreement does not meet any applicable requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.<u>Non-Disparagement</u>**. For a period of five (5) years after the Separation Date, neither Employee nor the members of the Company's Board of Directors will make any statement, oral or written, (whether online or through any social media, electronic, print, or digital communication, post, or review) publicly or to any third-party, including but not limited to, Credit Acceptance's employees, dealers, customers, clients, or business partners that defames, disparages, or denigrates the Company or the Employee. Breach of this promise of non-disparagement will constitute a material breach of this Agreement; provided, that such restriction shall not prohibit any such person from (a) making any truthful statement to the extent required by applicable law or (b) exercising or enforcing any of its rights under this Agreement or any other document entered into in connection with Employee's employment with or termination of employment with the Company. Notwithstanding the foregoing, nothing in this Agreement is intended to prohibit or limit Employee's right to discuss or disclose conduct that occurs at the workplace, at work-related events coordinated by or through the Company, between employees, or between the Company and any employee that Employee reasonably believed under Washington state, federal, or common law to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.<u>Additional Acknowledgements and Agreements</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Existing Agreements or Arrangements.** This Agreement does not—except unless expressly stated—modify, alter, or supersede any prior agreements signed by Employee. Employee acknowledges agrees that he will continue to be bound, and will continue to comply with, any restrictive covenants, non-disclosure, or arbitration agreements entered into between Employee and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Injunctive Relief.** Employee and the Company acknowledge that any breach of this Agreement, specifically including the provisions in Section 9, will cause substantial and irreparable harm to the other party to this Agreement. Accordingly, any such non-breaching party shall be entitled to seek injunctive and other forms of equitable relief to prevent or address such breach and the prevailing party shall be entitled to recover any other rights, remedies, or damages available at law, in equity, or by statute.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Payment Conditions.** Without limiting Company's rights and remedies, Employee acknowledges and agrees that the right of Employee to receive any payment due under this Agreement will be suspended and cancelled if Employee is in breach of any provision of this Agreement and fails to cure such breach within fifteen (15) days after the date the Company notifies Employee in writing of such breach. The Company may withhold payment of the Severance Benefits in the event Employee breaches this Agreement and fails to timely cure such breach or fails to satisfy any condition precedent to payment, including Employee's failure or refusal to execute the attached General Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.Repayment Obligations**. All disputes related to any material breach of this Agreement will be subject to the parties' ADR Agreement and corresponding ADR Policy and Procedure. In the event that an arbitrator determines that Employee has violated any of the material terms and conditions of this Agreement, the arbitrator shall determine the appropriate remedy in the arbitrator's discretion, which may be the full repayment of the Severance Benefits paid hereunder as damages, along with any other remedies the arbitrator deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.Modification.** No amendment or modification of this Agreement is binding unless in writing and signed by Employee and the Company's Chief Legal Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.Assignability.** This Agreement and the rights and duties set forth herein may not be assigned by either of the parties without the express written consent of the Company's Chief Legal Officer. This Agreement shall be binding on and inure to the benefit of each party and such party's respective heirs, legal representatives, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**g.Severability.** If any court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then such invalidity or unenforceability shall have no effect on the other provisions, which shall remain valid, binding and enforceable and in full force and effect, and such invalid or unenforceable provision shall be construed in a manner, or severed to the minimal extent necessary, so as to give the maximum valid and enforceable effect to the intent of the parties expressed in any such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**h.Waiver of Breach.** The waiver by either party of the breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by either party. A party can only waive a breach of this Agreement through a written and signed waiver identifying the specific breach being waived. For the Company, such waiver must be signed by the Chief Legal Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.Governing Law.** This Agreement shall be interpreted, enforced, and governed by the laws of the State of Washington, without regard to any rules of construction or choice of law principals that would require application of the laws of another jurisdiction. Any action to enforce this Agreement shall be subject to the parties' arbitration agreement (i.e., the Company's Alternative Dispute Resolution Policy and Procedure)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**j.Effective Date.** The terms and conditions of this Agreement shall be effective as of the date it is signed by both parties (the "**Effective Date**"). In the event either party fails or refuses to sign this Agreement, this Agreement shall be null and void and of no force or effect. This Agreement may be executed by electronic signature (such as DocuSign), facsimile or computer scanned copy, and/or in one or more counterparts, each of which shall be deemed an original, but all of which together will constitute one agreement.

In agreement to the above terms and provisions, the parties—after having the opportunity to review these terms and consult their own legal counsel—freely and on their own volition execute this Agreement as follows:

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| | |
|:---|:---|
| **EMPLOYEE:**<br>&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Vinayak Hegde&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Vinayak Hegde<br>Dated: <u>&nbsp;&nbsp;&nbsp;&nbsp; October 27, 2025&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> | **Credit Acceptance Corporation:**<br>&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ Wendy Rummler&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>By: Wendy Rummler<br>Its: Chief People Officer<br>Dated: <u>&nbsp;&nbsp;&nbsp;&nbsp; October 27, 2025&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |

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**EXHIBIT 1 TO SEVERANCE AND RELEASE AGREEMENT:**

**GENERAL RELEASE**

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**<u>GENERAL RELEASE</u>**

This General Release is being executed by Vinayak Hegde (**"Employee"**), for the benefit of Credit Acceptance Corporation and for the benefit of all its subsidiaries, affiliated or related organizations, predecessors, successors, and assigns, and its and their employees, officers, directors, agents, attorneys, and representatives (the **"Company"**).

Employee is executing this Agreement as a condition necessary under the terms of Employee's Executive Severance Agreement (together with this release, the **"Agreement"**) and as a condition precedent to Employee receiving the Severance Benefits provided by Employee's Executive Severance Agreement. Employee understands and acknowledges that this Agreement cannot be executed until after Employee's employment is terminated by a Qualifying Termination and Employee's Separation Date, as defined in the Executive Severance Agreement. If Employee executes this Agreement prior to Employee's Separation Date, this Agreement shall be of no force or effect and shall not satisfy the conditions required by the Executive Severance Agreement.

Accordingly, and in exchange for the promises, representations, and consideration below, the adequacy and sufficiency of which is expressly acknowledges, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.<u>Release of Claims</u>**. Employee, for himself and his heirs, executors, administrators, personal representatives, agents, employees, assigns, legal representatives and accountants, affiliates, and for any partnerships, corporations, sole proprietorships, or other entities owned or controlled by him, fully releases and discharges the Company and the Company's parents, subsidiaries, predecessors, successors, assigns, and affiliates, (the **"Released Entities"**), and the Released Entities' past, present and future employees, agents, officers, directors, shareholders, representatives, attorneys, insurers and related parties (together with the Released Entities, the **"Released Parties"**), from any and all actions, causes of action, suits, debts, sums of money, accounts, covenants, contracts, agreements, arrangements, promises, obligations, warranties, trespasses, torts, injuries, losses, damages, claims, demands or other liability or relief of any nature whatsoever, whether known or unknown, foreseen or unforeseen, resulting or to result, whether in law or in equity, or before administrative agencies or departments, that he ever had, now has, or may have, for personal, monetary or other relief, arising out of any matter, cause or event occurring on or prior to the Effective Date of this Agreement, including, but not limited to, any and all claims relating to his employment, or the termination of his employment at the Company, any and all claims under any federal, state, or local laws, regulations, rules, or ordinances, including, but not limited to, assault and battery, intentional infliction of emotional distress, slander, breach of contract, promissory estoppel, negligence, fraud, tortious interference, wrongful discharge, employment discrimination and other violation of federal law (including, but not limited to, violation of the Age Discrimination in Employment Act and Older Workers Benefit Protection Act, Employee Retirement Income Security Act of 1974, Title VII, the Civil Rights Act of 1991, the Americans

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with Disabilities Act, the Family and Medical Leave Act of 1993, the Uniformed Services Employment and Reemployment Rights Act, the Worker Adjustment and Retraining Notification Act), RCW 49.60, RCW 49.46, RCW 49.48, RCW 29.12, RCW 49.44.211, RCW 49.44, RCW 49.52, RCW 50.32, SB 5525, and all other state law, local law, including retaliation, sex, race, national origin, age, disability, or religious discrimination and/or harassment, and unlawful employment practices or any other matter whatsoever, which Employee has claimed or may claim or could claim in any local, state or federal forum against the Released Parties. In addition, Employee acknowledges and agrees that he has been fully and properly paid for all hours worked; has received all Family and Medical Leave Act of 1993 (**"**FMLA**"**) leave to which he was entitled; is not currently aware of any facts or circumstances constituting a violation of either the FMLA or the Fair Labor Standards Act, as amended (**"**FLSA**"**); and, to the greatest extent permitted by applicable law, waives and releases any and all claims under the FMLA and/or the FLSA. *By signing below, Employee acknowledges and agrees that this general release will have the broadest possible application and includes any and all claims whatsoever, including, but not limited to, any claims that relate to, or arise from, Employee's employment or separation from employment with the Company, or that are based on events or circumstances occurring up to and including the date Employee signs this Agreement*.

Employee promises, agrees, and warrants that he will not make, file, or initiate any claim, legal or otherwise, action, or administrative action for any claim released by this Agreement. Notwithstanding the forgoing, this provision does not release claims for (a) compensation for illness or injury or medical expenses under any workers' compensation statute; (b) vested benefits under any Plan maintained by the Company that provides for retirement benefits; (c) health benefits under any law or policy or Plan currently maintained by the Company that provides for health insurance continuation or conversion rights; (d) any claim that cannot, as a matter of law, be waived or released; or (e) Employee's rights to indemnification, whether under applicable law, the Company's governing documents or any written indemnification agreement between the Company and Employee. This Agreement is in full accord and satisfaction and compromise of any claims Employee may have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.<u>Acknowledgements</u>**. Employee acknowledges and agrees that this Agreement will not supersede any other agreement, including but not limited to any confidentiality, non-compete, or arbitration agreement or obligation that Employee was subject to while an employee of the Company. All such agreements remain in effect pursuant to their terms. This Agreement will also not reduce Employee's obligations to comply with applicable laws relating to trade secrets, confidential information, or unfair competition.

Employee also acknowledges and agrees that he has not suffered any on the job injury for which he has not already filed a claim, and Employee acknowledges that Employee has been paid all wages, compensation, and benefits, including but not limited to, any incentives, commissions, vacation pay, sick pay, paid time off or bonuses that Employee earned or became entitled to during Employee's employment with the Company through the Separation Date. Employee warrants that he was given all time off from work that she was entitled to under any policy or law, including but not limited to, all FMLA leaves of absence.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.<u>Non-Disparagement</u>**. Section 9 of the Agreement is incorporated by reference herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.<u>No Cooperation or Encouragement</u>**. Unless compelled by law, Employee will not provide, directly or indirectly, any information, encouragement, or assistance to any person or entity considering or pursuing a demand, claim, charge, or lawsuit against the Company or any other Released Party. Moreover, Employee agrees to cooperate with the Company, upon its request, in any investigation or defense. The Parties acknowledge that a breach by Employee of this Paragraph would constitute a material breach of this Agreement, defeat the purpose and intent of this Agreement, and cause great damage and injury to the Company. These provisions are material elements of the Company's consideration for, and inducement to enter into, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.<u>Protected Rights</u>**. Notwithstanding any other provision, nothing in this Agreement limits Employee's rights protected under applicable law to file a charge or complaint with the U.S. Equal Employment Opportunity Commission (EEOC), the Occupational Safety and Health Administration (OSHA), the Securities and Exchange Commission (SEC), the National Labor Relations Board (NLRB), or any other federal, state or local governmental agency or commission (**"government agency"**). Employee understands that this Agreement does not limit Employee's ability to **(i)** engage in protected concerted activities for the purpose of collective bargaining, **(ii)** communicate with any government agency, or **(iii)** otherwise participate in any investigation or proceeding that may be conducted by any government agency, including providing documents or other information to the government agency, without notice to the Company. However, this Agreement does, to the fullest extent permissible under applicable law, waive Employee's right to recover monetary damages or remedies in any governmental agency proceeding that personally or individually benefits Employee for claims or items that Employee released in this Agreement, including, but not limited to, front pay, back pay, liquidated damages, and reinstatement. This waiver of rights to relief shall not apply to participation in any investigation or proceeding conducted by the SEC or any other agency that lawfully precludes such a waiver. Employee may receive money properly awarded by the SEC in exchange for providing information to that agency. Nothing in this Agreement is intended to bar or impede Employee's ability to seek or receive any monetary award or bounty from the SEC or any other governmental agency in connection with "whistleblower" activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.<u>No Reemployment</u>**. Employee agrees that he will not seek employment or reemployment with the Company or its subsidiaries, successors, or affiliates. None of these entities have any obligation to consider Employee for employment or reemployment. This Agreement gives the Company and any Released Party the right to refuse to hire Employee and preclude him from working on its premises, its parents or subsidiaries premises, or the premises of any other affiliated or related organization as either an employee, consultant, contractor, or similar capacity. Employee agrees that he will direct any third party seeking a reference to hr-inquiries@creditacceptance.com. The Company agrees that if any third party contacts the Company through the channel required by this Section, the Company will only identify the dates of Employee's employment and the position(s) held.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.<u>No Waiver For Future Acts</u>**. Employee understands that he does not waive rights or claims that may arise after the Effective Date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.<u>Consideration and Revocation Periods</u>.** By signing this Agreement, Employee specifically acknowledges that, in compliance with the Older Workers Benefit Protection Act (**"OWBPA"**) in order to effectively waive any potential claim under the Age Discrimination in Employment Act (**"ADEA"**):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.**Employee has had a reasonable period of not less than twenty-one (21) days to review and consider the terms and consequences of this Agreement, and to obtain all of the advice Employee desires or requires regarding the purpose and effect of the terms of this Agreement. Should Employee execute this Agreement prior to the expiration of the twenty-one (21) day consideration period, which Employee is not required to do, Employee is knowingly and voluntarily waiving his right to consider this Agreement for the full twenty-one (21) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.**Employee may, for a period of seven (7) days following execution of this Agreement, revoke his acceptance of this Agreement. This revocation must be done in writing and delivered to the Company's Chief Legal Office at ekerber@creditacceptance.com before the close of business on the seventh day after Employee signs this Agreement.

If Employee revokes this Agreement as provided in this Section, the Agreement shall be null and void and Employee will not be entitled to any of the consideration from the Company provided by this Agreement or Employee's Executive Severance Agreement. If Employee does not revoke this Agreement within seven (7) days of executing it, this Agreement shall become enforceable on the eighth (8th) day after Employee's execution (the **"Effective Date"**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.<u>ADEA/OWBPA Acknowledgements</u>.** Employee agrees that this Agreement and its releases fully comply with the ADEA, OWBPA, and all other laws, statutes, ordinances, regulations, and/or principles of common law governing releases. Specifically, as it relates to the ADEA, Employee understands that this Agreement has to meet certain requirements to validly release any ADEA claims that he might have, and Employee represents that all such requirements have been satisfied, including that: **(i)** he has read and understands the terms of this Agreement; **(ii)** he is not waiving ADEA rights arising after the date of signing this Agreement; (**iii**) he is receiving valuable consideration in exchange for execution of this Agreement that he would not otherwise be entitled to receive; (**iv**) the Company is, in writing, advising him to consult independent legal advice before signing this Agreement and Employee has obtained and considered such legal counsel, as he deems necessary; **(v)** he received 21 days to consider whether or not to enter into this Agreement (although Employee may elect not to use the 21-day period at his option); (**vi)** by signing this Agreement, Employee specifically acknowledges and agrees that he knowingly and voluntarily waives all rights or claims arising under the ADEA; and **(vii)** he has at least seven days after signing this Agreement to revoke his acceptance. **Employee is hereby advised that he should consult his own legal counsel regarding this Agreement prior to executing the Agreement.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.<u>Return of Company Property</u>**. Employee has returned any property in his possession or control belonging to the Company, regardless of whether such property is in electronic, digital, or hard copy format. Employee agrees not to retain copies of any of the foregoing property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.Repayment Obligations in Dispute**. All disputes related to any material breach of this Agreement will be subject to the parties' ADR Agreement and corresponding ADR Policy and Procedure. In the event that an arbitrator determines that Employee has violated any of the material terms and conditions of this Agreement, the arbitrator shall determine the appropriate remedy in the arbitrator's discretion, which may be the full repayment of the Severance Benefits paid hereunder as damages, along with any other remedies the arbitrator deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.<u>Medicare Acknowledgement</u>**. Employee affirms that he [is not eligible] for and has never been a recipient of Medicare benefits. Employee further affirms that (a) he has not sought medical treatment or incurred medical costs through Medicare; (b) is not otherwise eligible for Medicare benefits; and (c) Medicare has not notified Employee nor is Employee aware of any Medicare liens applicable to Employee. Employee agrees to hold the Company harmless from any action by Medicare seeking payment of any past, current or future medical expenses for Employee. The Parties have made every effort to protect Medicare's interest, if any, in this Agreement, and have not shifted responsibility for medical treatment to Medicare in contravention of federal law. Any present or future action or decision by Center for Medicare Services (CMS) regarding this Agreement or Employee's eligibility or entitlement to Medicare will not render Employee's release void or ineffective. Employee waives any and all private causes of action for damages under 42 U.S.C. §1395, and acknowledges that the Company may report the Severance Benefits to CMS if required by law to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.<u>Severability</u>**. If any provision of this Agreement shall be held invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render invalid or unenforceable any other provision of this Agreement and this Agreement shall be carried out as if any such invalid or unenforceable provision were not contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.<u>Governing Law</u>.** This Agreement shall be interpreted, enforced, and governed by the laws of the State of Washington, without regard to any rules of construction or choice of law principals that would require application of the laws of another jurisdiction. Any action to enforce this Agreement (including the Executive Severance Agreement) shall be subject to the Parties' arbitration agreement (i.e., the Company's Alternative Dispute Resolution Policy and Procedure)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.<u>No Admission of Liability</u>.** Neither execution of this Agreement by the Company nor any action taken by the Company toward compliance with the terms of this Agreement, including offering this Agreement, constitute an admission by the Released Parties that they have acted improperly or unlawfully with regard to Employee or that they have violated any state or federal law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.<u>Third-Party Beneficiaries</u>**. Employee acknowledges and the Parties agree that all individuals and entities defined as Released Parties in this Agreement are intended third-party beneficiaries of this Agreement and may enforce any portion of this Agreement against Employee as if they were parties to this Agreement. Employee acknowledges that the warranties and representations contained in this Agreement are expressly undertaken by Employee to directly benefit the Company and the Released Parties, as herein defined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.<u>Counterparts</u>**. This Agreement may be executed in counterparts which, when taken together, constitute a single instrument, and a facsimile or electronically scanned signature shall be considered as authentic as the original.

**THE UNDERSIGNED REPRESENT THAT THEY HAVE READ AND UNDERSTAND THE TERMS OF THIS AGREEMENT, AND ARE ENTERING INTO THIS AGREEMENT VOLUNTARILY.**

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| | |
|:---|:---|
| **Employee:**<br><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Vinayak Hegde<br>Dated: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> | **Credit Acceptance Corporation:**<br><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>By: <br>Its: <br>Dated: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> |

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## Exhibit 10.27

**Exhibit 10.27**

&nbsp;&nbsp;&nbsp;&nbsp;**<u>SEPARATION AND ADVISORY AGREEMENT</u>**

WHEREAS**, Arthur Smith,** hereinafter referred to as "Executive," is separating employment with **Credit Acceptance Corporation** (the "**Company**"), with the expected separation date of **February 1, 2026**, ("**Separation Date**"), in accordance with the terms of this agreement (this "**Agreement**"); and

WHEREAS, it is the intent of the Company to recognize the service of Executive to the Company;

WHEREAS, it is the intent of the parties reasonably present to the employees of the Company and outwardly to third-parties that the decision to end Executive's employment with the Company was reached by mutual agreement;

WHEREAS, it is the intent of the parties to amicably transition Executive's duties in connection with his departure from the Company through the Separation Date and during the subsequent Advisory Period (as defined below), and, as such, the parties acknowledge that the mutual benefit that this amicable transition provides is of material value in support of this Agreement;

WHEREAS, following the Separation Date, the Company desires to engage Executive to provide services to the Company as an non-employee advisor ("**Advisor**") for a period of six (6) months, pursuant to the terms set forth in this Agreement;

WHEREAS, the parties to this Agreement intend to finally and amicably terminate the employer and employee relationship that exists between them effective as of the Separation Date, after which Executive will serve as an independent contractor and advisor to the Company during the Advisory Period;

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IT IS, THEREFORE, AGREED AS FOLLOWS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Executive, including all heirs, legal representatives, and assigns, hereby forever releases the Company and all of its affiliated organizations, subsidiaries, predecessors, successors and assigns, and all of its past, present and future directors, officers, agents, employees, representatives, owners and stockholders (collectively, the "**Company Releasees**"), both personally and in their representative capacities, of and from all claims, contracts, promises and damages, upon or by reason of any matter, cause or thing whatsoever, whether known or unknown, which Executive ever had, now has or may hereafter claim to have, including, but not limited to, all claims (a) from the beginning of time up to the execution or re-execution of this Agreement, including any claims (i) relating in any way to Executive's employment with the Company, including any claims for employment discrimination, harassment, and/or retaliation, wrongful termination, or any other type of claim for compensation, money damages, attorney fees, or other relief, and (ii) all claims under constitutional, statutory or common law, including without limitation claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621, et seq., the Older Workers' Benefit Protection Act, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, and the Elliot-Larsen Civil Rights Act), each as amended and including each of their respective implementing regulations and/or any other federal, state, local or foreign law (statutory, regulatory or otherwise) that may be legally waived and released; (ii) any claims arising out of or related to the termination of Executive's employment or (iii) any claims arising under or relating to any policy, agreement, understanding or promise, written or

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oral, formal or informal, between the Company and Executive. Executive expressly waives the provisions of any state, federal, or local law or statute that provides in substance that releases shall not extend to claims, demands, injuries, or damages that are unsuspected or unknown to exist at the time the release is executed. This release does not affect any rights to file for a benefit under any state workers' compensation statutes for injuries sustained between the execution of this Agreement and the Separation Date, any claims that cannot be waived under applicable law, any rights under this Agreement, any rights to indemnification which Executive might have as a result of Executive's employment with the Company, or any rights Executive may have to vested benefits under employee benefit plans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Executive promises and agrees not to, at any time, file any claim, legal or administrative, that Executive ever had, now has, or hereafter claims to have through the date Executive signs or re-signs this Agreement (as applicable), against the Company Releasees, and all of its past, present and future directors, officers, agents, employees, representatives, owners and stockholders. Executive further promises and agrees that, in the event Executive does file such a claim, Executive shall comply with Paragraph 12 of this Agreement and pay all damages, costs and actual attorney fees incurred as a result of defending such a claim. Executive also recognizes that Executive is not hereby prohibited from filing a charge of discrimination with the Equal Employment Opportunity Commission or the equivalent state agency. For the avoidance of doubt, this Agreement shall not in any manner prevent Executive from filing a charge or claim with the Securities and Exchange Commission ("SEC") and Executive's ability to seek or receive an SEC whistleblower award as provided under Section 21F of the Securities Exchange Act of 1934 for information provided to the SEC concerning suspected violations of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;Executive promises and agrees to honor and abide by the terms and conditions of all written agreements in effect between Executive and the Company. In the event Executive violates such an agreement, the Company shall retain and may exercise all legal and equitable rights and pursue all legal and equitable remedies available.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;As of the Separation Date, Executive holds certain stock options granted pursuant to the Credit Acceptance Amended and Restated Incentive Compensation Plan, as amended and restated on April 12, 2021, and as amended and in effect as of June 5, 2024 (the "**Plan**"), and the applicable award agreement dated December 30, 2020 (the "**Option Agreement**"). For purposes of the Option Agreement, the Executive's separation from service shall be treated as a "Retirement" (as defined in the Plan), and the Executive shall have the right to exercise any outstanding vested stock options under the Option Agreement at any time on or before **December 30, 2026** (the expiration date of such stock options). Any of Executive's outstanding equity awards other than Executive's outstanding stock options under the Plan shall be treated in accordance with the terms and conditions of the Plan and the applicable award agreement. The Company shall reimburse Executive for any outstanding expenses incurred by Executive while employed by the Company related to such employment, provided that proof of such expenses is provided to the Company and in accordance with the applicable Company policy/requirements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Effective as of the Separation Date, Executive shall relinquish Executive's current position as the **Chief Analytics Officer** of the Company and any other position Executive may hold with the Company or any of its subsidiaries or affiliates. Following the Separation Date, Executive shall provide advisory services to the Company commencing on the Separation Date and ending on **July 31, 2026**, unless terminated earlier as provided herein (the period between the Separation Date and the date Executive ceases to provide advisory services to the Company, the "**Advisory Period**"). During the Advisory Period, Executive agrees to make himself reasonably available, with reasonable advance notice, to provide advisory services as may be reasonably requested by the Company. Executive's duties and responsibilities as Advisor will consist of those duties and responsibilities assigned to Executive from time to time by the Chief Executive Officer of the Company or his designee. Executive agrees to provide these duties in a professional manner, consistent with industry practices and all applicable laws, and on the terms and conditions set forth in this Agreement. Executive shall perform such services as an independent contractor and not as an employee. During the term of Executive's engagement as Advisor: (i) Executive will not have an employer-employee relationship with the Company or its parents, subsidiaries or affiliates; (ii) Executive's relationship with the Company and its parents, subsidiaries and affiliates shall only be that of an independent contractor and Executive will perform all services during the Advisory Period as an independent contractor; (iii) Executive will not have any right or authority to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or its parents, subsidiaries or affiliates, or to bind the Company or its

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parents, subsidiaries or affiliates in any manner; (iv) subject only to such specific limitations as are contained in this Agreement, the manner, means, details or methods by which Executive performs the advisory services shall be solely within Executive's discretion; and (v) Executive will not be entitled to, and will make no claim to, any rights or fringe benefits afforded to any of the Company Releasees' employees, including, without limitation, disability or unemployment insurance, workers' compensation insurance, pension and retirement benefits, profit-sharing, or rights under any other benefit plan or program applicable to employees of the Company Releasees, except as expressly provided in Paragraph 7 or as required by law. Nothing in this Agreement shall be interpreted or construed as creating or establishing a relationship of employer and employee between Executive and the Company following the Separation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;Regardless of whether Executive signs this Agreement, Executive will receive Executive's base salary at the current rate through the Separation Date, payable in accordance with the Company's usual payroll practices.

&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;Provided that Executive timely signs this Agreement, does not timely revoke his consent to this Agreement in accordance with Paragraph 26 of this Agreement, and remains in compliance with this Agreement at all times, as consideration for Executive's services as Advisor, and in exchange for the covenants, promises, releases and agreements of Executive contained herein, which Executive expressly acknowledges as adequate and in excess of the benefits to which Executive would otherwise be entitled, the Company, following the expiration of the revocation period contained in Paragraph 26 of this Agreement, agrees to provide Executive with a monthly fee equal to **$66,758.01**<sup>1</sup> (the "**Advisory Fee**"), payable each month, beginning with the month in which the Advisory Period commences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp; Provided that Executive timely re-signs this Agreement, does not revoke his consent to this Agreement in accordance with Paragraphs 26 or 27 of this Agreement and remains in compliance with this Agreement at all times, the Company, following the expiration of the revocation period contained in Paragraph 27 of this Agreement, agrees to provide Executive with **$500.00,** payable within 30 days following Executive's re-signature of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> This amount is equal one twelfth of Executive's 2025 base salary and the monthly premium for medical, dental, and vision benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"), based upon the elected coverage of the Executive for 2026.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp; The Company makes no representation to Executive concerning the tax consequences of any payments or reimbursements during the Advisory Period. Executive is responsible for paying all federal, state and local income or business taxes, including estimated taxes, self-employment and any other taxes, fees, additions to tax, interest or penalties that may be assessed, imposed, or incurred as a result of the amounts paid by the Company during the Advisory Period. The Company shall not make any social security, workers' compensation or unemployment insurance payments on Executive's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. &nbsp;&nbsp;&nbsp;&nbsp;Either party may terminate the Advisory Period prior to July 31, 2026, upon thirty (30) days' written notice to the other party (the last day of the Advisory Period, the "Advisory Period End Date"). In the event of early termination by the Company for good cause (meaning for willful or malicious misconduct, fraud, material breach of this Agreement, or other action by Executive that materially harms the Company), Executive shall be entitled to payment for services rendered through the Advisory Period End Date, and any unpaid portion of the Advisory Fee, if applicable, shall be prorated accordingly. In the event of early termination by the Company without good cause, Executive shall be entitled to all remaining payments through the full completion of the contemplated Advisory Period (i.e., July 31, 2026). During the Advisory Period, Executive may engage in other employment or consulting activities, provided that such activities do not create a conflict of interest with the Company or violate any confidentiality, non-competition, non-solicitation, or other restrictive covenant agreement entered into between Executive and the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. &nbsp;&nbsp;&nbsp;&nbsp;Executive hereby agrees that the existing obligations Executive has under any confidentiality, non-competition, non-solicitation, or other restrictive covenant agreement entered into between Executive and the Company shall apply and remain in full force and effect and shall survive the execution, delivery and performance of this Agreement and are incorporated by reference as if set forth herein. In addition, Executive hereby agrees that Executive shall not, for a period of two years after the Separation Date, (1) enter into any sort of employment or consulting relationship with a competitor of the Company or (2) solicit, induce, or in any way cause or attempt to cause any current employee of the Company to in any way materially change or alter the person's employment relationship with the Company for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;In the event that Executive violates any of the material terms or conditions of this Agreement, Executive agrees that the Company shall be entitled to immediate repayment of all amounts paid to Executive under Paragraphs 7 and 8 of this Agreement except $100 (as consideration for the release of claims). In addition, the Company will be entitled to payment of all attorney fees, costs and expenses incurred in enforcing this Agreement. Finally, acceptance by the Company of repayment of this amount does not constitute a waiver of the Company's right to enforce any provision of this Agreement or any other written agreement between Executive and the Company, nor does such repayment invalidate Executive's waiver and release of all claims against the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Agreement shall be construed as an admission of wrongdoing or liability of any kind by the Company, its affiliated organizations, subsidiaries, predecessors, successors and assigns, and all of its past, present and future directors, officers, agents, employees, representatives, owners and stockholders. Rather, this Agreement is entered into so as to amicably sever the employer and employee relationship that exists between Executive and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;Subject to Paragraph 16, Executive agrees not to disclose or discuss with any person (other than Executive's spouse, attorney, and tax or other financial advisor) any of the terms and conditions of this Agreement, except as may be required by law or regulation, and except as may be required to effectuate the terms of this Agreement. Executive acknowledges that, among other material terms of this Agreement, this is a material term of this Agreement and that the Company would not agree to this Agreement without this non-disclosure provision.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;Subject to Paragraph 16, Executive agrees not to take any action to maliciously and/or unlawfully harm the Company, its employees, customers, or other business relationships and/or operations. Likewise, Executive agrees not to make or publish (or cause to be made or published) any patently false information about the Company or any statements or comments about the Company which Executive knows to be untrue or with reckless disregard as to the truthfulness of the statement or comment. Likewise, Executive shall not, directly or indirectly, make, publish, or communicate to any person or entity any disparaging, derogatory, or negative statements, whether written or oral, about the Company, including its officers, directors, employees, agents, products, services, operations, or business practices. This provision shall not prohibit truthful statements required by law, regulation, or legal process, or disclosures as permitted under Paragraph 16 of this Agreement. In return, the Company agrees that its executive officers shall not publicly make any disparaging remarks, statements, or comments regarding Executive.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;Nothing in Paragraphs 11, 14, 15, or otherwise in this Agreement or any other agreement between Executive and the Company will prohibit or restrict Executive from (i) voluntarily communicating with an attorney retained by Executive, (ii) voluntarily communicating with or providing information or documents to, initiating a charge or claim with, testifying before, complying with a subpoena from, or assisting or otherwise participate in any manner with an investigation or proceeding conducted by, any government agency, federal, state or local commission on human rights, legislative body, or self-regulatory organization, including making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934, as amended, or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation, (ii) disclosing any information (including, without limitation, information of a confidential or proprietary nature) to a court or other administrative or legislative body in response to a subpoena, court order or written request, provided that Executive first promptly notifies (to the extent legally permissible) the Company and, with respect to any subpoena, court order or written request on behalf of any non-governmental person, uses commercially reasonable efforts to cooperate with any effort by the Company to seek to challenge the subpoena, court order or written request on behalf of any non-governmental person or obtain a protective order limiting its disclosure, (iii) recovering a whistleblower award as provided under Section 21F of the Securities and Exchange Act of 1934, or (iv) discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct

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that Executive has reason to believe is unlawful. Further, pursuant to 18 U.S.C. § 1833(b), Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret of the Company that (I) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to Executive's attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (II) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive's attorney and use the trade secret information in the court proceeding, if Executive (i) files any document containing the trade secret under seal, and (ii) does not disclose the trade secret, except pursuant to court order. While Executive is encouraged to bring any such possible violation to the attention of the Company, Executive does not need the prior authorization of the Company to make any such reports or disclosures to these entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;Executive shall direct prospective employers seeking verification of employment to Company's Human Resources Department. In response to any request for information by prospective employers addressed and directed to the Company's Human Resources Department, the Company shall provide such prospective employers with Executive's last title held and years of employment unless the release of additional information is specifically authorized by Executive or otherwise by court or administrative order.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;On the Advisory Period End Date, Executive agrees to return all Company property, including but not limited to, dealer or customer files and information, computer equipment, software, training material, contracts, forms, letterhead, business cards, cellular telephones, memorandums, and employee handbooks. Executive agrees not to use or disclose any of the Company's confidential and/or proprietary information, ideas, prototypes, or inventions outside of the Company, including but not limited to such information developed by Executive for the Company's benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;Up until the Advisory Period End Date, Executive agrees to reasonably cooperate with the Company to amicably transition Executive's duties and responsibilities in anticipation of Executive's exit from the Company. Executive agrees to reasonably cooperate in the transition of any clients, work, or other Company-related matters as directed by the Company. At any time, Executive also agrees to be available to the Company or its designee and/or participate as required by the Company or its designee in any litigation matter arising out of or as a result of Executive's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;Executive understands and agrees that, except for benefits continued under the Consolidated Omnibus Budget Reconciliation Act of 1985, entitlement to medical, dental, and vision benefits cease at the end of the Separation Date's calendar month, and entitlement to other Company benefits cease as of the Separation Date. Without limiting the foregoing, during the Advisory Period, Executive shall cease to be eligible to receive any awards under the Plan or the Company's other long-term incentive programs and shall not be eligible to receive any salary increase in 2026.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation and other applicable payroll deductions. This Agreement as well as payments and benefits under this Agreement are intended to be exempt from, or to the extent subject thereto, to comply with Section 409A of the Internal Revenue Code of 1986, as amended ("**Section 409A**"), and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted in accordance therewith. Notwithstanding anything contained herein to the contrary, Executive shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to Section 409A until Executive has incurred a "separation from service" from the Company within the meaning of Section 409A. Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid an accelerated or additional tax under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six (6)-month period immediately following Executive's separation from service shall instead be paid on the first business day after the date that is six (6) months following Executive's separation from service (or, if earlier, Executive's date of death). To the extent required to avoid an accelerated or additional tax under Section 409A, amounts reimbursable to Executive shall be paid to Executive on or before the last day of the year following the year in which the expense was incurred and

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the amount of expenses eligible for reimbursement (and in kind benefits provided to Executive) during one year may not affect amounts reimbursable or provided in any subsequent year. The Company makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to any such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;&nbsp;**Executive is hereby advised to consult with an attorney of Executive's choice before signing or re-signing this Agreement. Executive acknowledges that Executive is entering into this Agreement knowingly and voluntarily, without any coercion or intimidation, in exchange for good and valuable consideration in addition to anything of value to which Executive is otherwise entitled.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;&nbsp;&nbsp;&nbsp;If any provision of this Agreement is determined by any court or administrative agency of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms and provisions shall remain in full force and effect and shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be governed and enforced according to the laws of the State of Michigan. This Agreement shall only be enforced in accordance with the Company's Alternate Dispute Resolution ("**ADR**") Policy and Procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.&nbsp;&nbsp;&nbsp;&nbsp;Executive expressly acknowledges that no one has made representations concerning the terms or effect of this Agreement other than as specifically stated herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that Executive has been given a period of twenty-one (21) days within which to consider this Agreement before signing and re-signing it. Executive further acknowledges that any decision on Executive's part not to utilize the full twenty-one (21) day waiting period is done volitionally and not at the urging of the Company. Executive acknowledges that in the event that Executive decides not to utilize the full twenty-one (21) day period to consider this Agreement, the decision to do so was not obtained by the Company based on fraud, misrepresentation, threat to withdraw this Agreement, threat to modify this Agreement, or by any promise to provide Executive with extra benefits in exchange for taking less than twenty-one (21) days to consider this Agreement. Executive understands that, within seven (7) days of signing this Agreement, Executive may revoke this Agreement, and further understands that this Agreement shall not become effective or enforceable until this revocation period has expired without Executive having revoked this Agreement. To be effective, the revocation must be in writing and delivered to the Company's headquarters and addressed to the person who executed this Agreement on the Company's behalf. If this Agreement is not revoked within the seven (7) day period, it shall be fully enforceable without any further affirmative action by either party. [Executive shall sign and date this Agreement within twenty-one (21) days after receipt, but in no event prior to the Separation Date, in the spaces provided on the signature page hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;&nbsp;&nbsp;&nbsp;Executive shall re-execute and return this Agreement to the Company within seven (7) days following the Advisory Period End Date but no earlier than the Advisory Period End Date**.** Executive acknowledges that by re-executing this Agreement, Executive is acknowledging and agreeing that he has been fully paid all earned amounts and benefits and that the release provisions set forth in Paragraph 1 of this Agreement shall be deemed to cover any claims which Executive had, may have had, or thereafter may have against the Company arising from the beginning of time until the date on which Executive re-executes this Agreement. Notwithstanding the initial effectiveness of this Agreement, Executive understands that, within seven (7) days of re-executing this Agreement, Executive may revoke his re-execution of the Agreement. To be effective, the revocation must be in writing and delivered to the Company's headquarters and addressed to the person who executed this Agreement on the Company's behalf. If Executive does not revoke his consent to his re-execution within the seven (7) day period, the release as applied shall be fully enforceable without any further affirmative action by either party. If Executive does not re-execute this Agreement on or within the seven (7)-day period as specified herein, or Executive timely revokes his re-execution as specified herein, (i) the Company shall have no obligation to provide Executive with the a final payment of **$500.00** and (ii) Executive's prior release of claims under this Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.&nbsp;&nbsp;&nbsp;&nbsp;Executive agrees that this Agreement shall be binding upon, and pass to the benefit of, the successors and assigns of the Company. Executive may not assign Executive's duties or obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in counterparts, including via DocuSign and other similar electronic formats, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.&nbsp;&nbsp;&nbsp;&nbsp;This document constitutes the entire understanding of the parties, and no other agreement, policy, or plan between these parties related to Executive's separation from the Company shall be binding unless entered into after the date of this Agreement, in writing, and signed by all the parties. This Agreement may only be amended or modified in a writing signed by Executive and an authorized representative of the Company.

**[SIGNATURES ON FOLLOWING PAGE]**

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**By signing this Agreement, Executive acknowledges to have had the opportunity to consult with an attorney of Executive's choice; to have carefully reviewed and considered this Agreement; to have understand the terms of the Agreement; and to have voluntarily agreed to these terms.**

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| /s/ Arthur Smith | 2/4/2026 |
| Executive: **Arthur Smith** | Date |

---

On Behalf of Credit Acceptance Corporation

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| /s/ Wendy Rummler | 2/9/2026 |
| Name: **Wendy Rummler** | Date |
| Title: **Chief People Officer** | |

---

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IN WITNESS WHEREOF, the Parties have re-executed this Agreement as of the first date set forth below (which shall be no earlier than the Advisory Period End Date).

______________________________________&nbsp;&nbsp;&nbsp;&nbsp;________________________

Executive: **Arthur Smith**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date

On Behalf of Credit Acceptance Corporation

___________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________

Name:&nbsp;&nbsp;&nbsp;&nbsp; **Wendy Rummler** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date

Title: **Chief People Officer**

## Exhibit 10.28

**Exhibit 10.28**

&nbsp;&nbsp;&nbsp;&nbsp;**<u>SEPARATION AND ADVISORY AGREEMENT</u>**

WHEREAS**, Daniel Ulatowski,** hereinafter referred to as "Executive," is separating employment with **Credit Acceptance Corporation** (the "**Company**"), with the expected separation date of **February 1, 2026**, ("**Separation Date**"), in accordance with the terms of this agreement (this "**Agreement**"); and

WHEREAS, it is the intent of the Company to recognize the service of Executive to the Company;

WHEREAS, it is the intent of the parties reasonably present to the employees of the Company and outwardly to third-parties that the decision to end Executive's employment with the Company was reached by mutual agreement;

WHEREAS, it is the intent of the parties to amicably transition Executive's duties in connection with his departure from the Company through the Separation Date and during the subsequent Advisory Period (as defined below), and, as such, the parties acknowledge that the mutual benefit that this amicable transition provides is of material value in support of this Agreement;

WHEREAS, following the Separation Date, the Company desires to engage Executive to provide services to the Company as an non-employee advisor ("**Advisor**") for a period of six (6) months, pursuant to the terms set forth in this Agreement;

WHEREAS, the parties to this Agreement intend to finally and amicably terminate the employer and employee relationship that exists between them effective as of the Separation Date, after which Executive will serve as an independent contractor and advisor to the Company during the Advisory Period;

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IT IS, THEREFORE, AGREED AS FOLLOWS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Executive, including all heirs, legal representatives, and assigns, hereby forever releases the Company and all of its affiliated organizations, subsidiaries, predecessors, successors and assigns, and all of its past, present and future directors, officers, agents, employees, representatives, owners and stockholders (collectively, the "**Company Releasees**"), both personally and in their representative capacities, of and from all claims, contracts, promises and damages, upon or by reason of any matter, cause or thing whatsoever, whether known or unknown, which Executive ever had, now has or may hereafter claim to have, including, but not limited to, all claims (a) from the beginning of time up to the execution or re-execution of this Agreement, including any claims (i) relating in any way to Executive's employment with the Company, including any claims for employment discrimination, harassment, and/or retaliation, wrongful termination, or any other type of claim for compensation, money damages, attorney fees, or other relief, and (ii) all claims under constitutional, statutory or common law, including without limitation claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621, et seq., the Older Workers' Benefit Protection Act, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, and the Elliot-Larsen Civil Rights Act), each as amended and including each of their respective implementing regulations and/or any other federal, state, local or foreign law (statutory, regulatory or otherwise) that may be legally waived and released; (ii) any claims arising out of or related to the termination of Executive's employment or (iii) any claims arising under or relating to any policy, agreement, understanding or promise, written or

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oral, formal or informal, between the Company and Executive. Executive expressly waives the provisions of any state, federal, or local law or statute that provides in substance that releases shall not extend to claims, demands, injuries, or damages that are unsuspected or unknown to exist at the time the release is executed. This release does not affect any rights to file for a benefit under any state workers' compensation statutes for injuries sustained between the execution of this Agreement and the Separation Date, any claims that cannot be waived under applicable law, any rights under this Agreement, any rights to indemnification which Executive might have as a result of Executive's employment with the Company, or any rights Executive may have to vested benefits under employee benefit plans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Executive promises and agrees not to, at any time, file any claim, legal or administrative, that Executive ever had, now has, or hereafter claims to have through the date Executive signs or re-signs this Agreement (as applicable), against the Company Releasees, and all of its past, present and future directors, officers, agents, employees, representatives, owners and stockholders. Executive further promises and agrees that, in the event Executive does file such a claim, Executive shall comply with Paragraph 12 of this Agreement and pay all damages, costs and actual attorney fees incurred as a result of defending such a claim. Executive also recognizes that Executive is not hereby prohibited from filing a charge of discrimination with the Equal Employment Opportunity Commission or the equivalent state agency. For the avoidance of doubt, this Agreement shall not in any manner prevent Executive from filing a charge or claim with the Securities and Exchange Commission ("SEC") and Executive's ability to seek or receive an SEC whistleblower award as provided under Section 21F of the Securities Exchange Act of 1934 for information provided to the SEC concerning suspected violations of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;Executive promises and agrees to honor and abide by the terms and conditions of all written agreements in effect between Executive and the Company. In the event Executive violates such an agreement, the Company shall retain and may exercise all legal and equitable rights and pursue all legal and equitable remedies available.

&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;As of the Separation Date, Executive holds certain stock options granted pursuant to the Credit Acceptance Amended and Restated Incentive Compensation Plan, as amended and restated on April 12, 2021, and as amended and in effect as of June 5, 2024 (the "**Plan**"), and the applicable award agreement dated December 30, 2020 (the "**Option Agreement**"). For purposes of the Option Agreement, the Executive's separation from service shall be treated as a "Retirement" (as defined in the Plan), and the Executive shall have the right to exercise any outstanding vested stock options under the Option Agreement at any time on or before **December 30, 2026** (the expiration date of such stock options). Any of Executive's outstanding equity awards other than Executive's outstanding stock options under the Plan shall be treated in accordance with the terms and conditions of the Plan and the applicable award agreement. The Company shall reimburse Executive for any outstanding expenses incurred by Executive while employed by the Company related to such employment, provided that proof of such expenses is provided to the Company and in accordance with the applicable Company policy/requirements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Effective as of the Separation Date, Executive shall relinquish Executive's current position as the **Chief Sales Officer** of the Company and any other position Executive may hold with the Company or any of its subsidiaries or affiliates. Following the Separation Date, Executive shall provide advisory services to the Company commencing on the Separation Date and ending on **July 31, 2026**, unless terminated earlier as provided herein (the period between the Separation Date and the date Executive ceases to provide advisory services to the Company, the "**Advisory Period**"). During the Advisory Period, Executive agrees to make himself reasonably available, with reasonable advance notice, to provide advisory services as may be reasonably requested by the Company. Executive's duties and responsibilities as Advisor will consist of those duties and responsibilities assigned to Executive from time to time by the Chief Executive Officer of the Company or his designee. Executive agrees to provide these duties in a professional manner, consistent with industry practices and all applicable laws, and on the terms and conditions set forth in this Agreement. Executive shall perform such services as an independent contractor and not as an employee. During the term of Executive's engagement as Advisor: (i) Executive will not have an employer-employee relationship with the Company or its parents, subsidiaries or affiliates; (ii) Executive's relationship with the Company and its parents, subsidiaries and affiliates shall only be that of an independent contractor and Executive will perform all services during the Advisory Period as an independent contractor; (iii) Executive will not have any right or authority to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or its parents, subsidiaries or affiliates, or to bind the Company or its

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parents, subsidiaries or affiliates in any manner; (iv) subject only to such specific limitations as are contained in this Agreement, the manner, means, details or methods by which Executive performs the advisory services shall be solely within Executive's discretion; and (v) Executive will not be entitled to, and will make no claim to, any rights or fringe benefits afforded to any of the Company Releasees' employees, including, without limitation, disability or unemployment insurance, workers' compensation insurance, pension and retirement benefits, profit-sharing, or rights under any other benefit plan or program applicable to employees of the Company Releasees, except as expressly provided in Paragraph 7 or as required by law. Nothing in this Agreement shall be interpreted or construed as creating or establishing a relationship of employer and employee between Executive and the Company following the Separation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;Regardless of whether Executive signs this Agreement, Executive will receive Executive's base salary at the current rate through the Separation Date, payable in accordance with the Company's usual payroll practices.

&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;Provided that Executive timely signs this Agreement, does not timely revoke his consent to this Agreement in accordance with Paragraph 26 of this Agreement, and remains in compliance with this Agreement at all times, as consideration for Executive's services as Advisor, and in exchange for the covenants, promises, releases and agreements of Executive contained herein, which Executive expressly acknowledges as adequate and in excess of the benefits to which Executive would otherwise be entitled, the Company, following the expiration of the revocation period contained in Paragraph 26 of this Agreement, agrees to provide Executive with a monthly fee equal to **$64,166.67** (the "**Advisory Fee**"), payable on the first business day following each month of the Advisory Period via direct deposit or other arrangement agreed to in writing by the parties, beginning with the month in which the Advisory Period commences, for which Executive will be issued an IRS form 1099 for the tax year 2026. Executive will provide an IRS form W-9 or other documents required for tax and regulatory purposes connect with all Advisory Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp; Provided that Executive timely re-signs this Agreement, does not revoke his consent to this Agreement in accordance with Paragraphs 26 or 27 of this Agreement and remains in compliance with this Agreement at all times, the Company, following the expiration of the revocation period contained in Paragraph 27 of this Agreement, agrees to provide Executive with **$500.00,** payable within 30 days following Executive's re-signature of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp; The Company makes no representation to Executive concerning the tax consequences of any payments or reimbursements during the Advisory Period. Executive is responsible for paying all federal, state and local income or business taxes, including estimated taxes, self-employment and any other taxes, fees, additions to tax, interest or penalties that may be assessed, imposed, or incurred as a result of the amounts paid by the Company during the Advisory Period. The Company shall not make any social security, workers' compensation or unemployment insurance payments on Executive's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. &nbsp;&nbsp;&nbsp;&nbsp;Either party may terminate the Advisory Period prior to July 31, 2026, upon thirty (30) days' written notice to the other party (the last day of the Advisory Period**,** the "**Advisory Period End Date**"). In the event of early termination by the Company for good cause (meaning for willful or malicious misconduct, fraud, material breach of this Agreement, or other action by Executive that materially harms the Company), Executive shall be entitled to payment for services rendered through the Advisory Period End Date, and any unpaid portion of the Advisory Fee, if applicable, shall be prorated accordingly. In the event of early termination by the Company without good cause, Executive shall be entitled to all remaining payments through the full completion of the contemplated Advisory Period (i.e., July 31, 2026). **During the Advisory Period, Executive may engage in other employment or consulting activities, provided that such activities do not create a conflict of interest with the Company or violate any confidentiality, non-competition, non-solicitation, or other restrictive covenant agreement entered into between Executive and the Company.** Executive's sale of company stock in any quantity during the Advisory Period will not be considered a breach of this paragraph. Should the Company notify Executive of the Company's intent to terminate under this paragraph for good cause, Executive shall have up to 30 days from the date of notice to cure said good cause reason before the termination becomes effective; failure to cure to the Company's satisfaction will result in termination at the expiration of the 30-day period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. &nbsp;&nbsp;&nbsp;&nbsp;Executive hereby agrees that the existing obligations Executive has under any confidentiality, non-competition, non-solicitation, or other restrictive covenant agreement entered into between Executive and the Company shall apply and remain in full force and effect and shall survive the execution, delivery and performance of this Agreement and are incorporated by reference as if set forth herein. In addition, Executive hereby agrees that Executive shall not, for a period of two years after the Separation Date, (1) enter into any sort of employment or consulting relationship with a competitor of the Company or (2) solicit, induce, or in any way cause or attempt to cause any current employee of the Company to in any way materially change or alter the person's employment relationship with the Company for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;In the event that Executive violates any of the material terms or conditions of this Agreement, Executive agrees that the Company shall be entitled to immediate repayment of all amounts paid to Executive under Paragraphs 7 and 8 of this Agreement except $100 (as consideration for the release of claims). In addition, the Company will be entitled to payment of all attorney fees, costs and expenses incurred in enforcing this Agreement. Finally, acceptance by the Company of repayment of this amount does not constitute a waiver of the Company's right to enforce any provision of this Agreement or any other written agreement between Executive and the Company, nor does such repayment invalidate Executive's waiver and release of all claims against the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Agreement shall be construed as an admission of wrongdoing or liability of any kind by the Company, its affiliated organizations, subsidiaries, predecessors, successors and assigns, and all of its past, present and future directors,

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officers, agents, employees, representatives, owners and stockholders. Rather, this Agreement is entered into so as to amicably sever the employer and employee relationship that exists between Executive and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;Subject to Paragraph 16, Executive agrees not to disclose or discuss with any person (other than Executive's spouse, attorney, and tax or other financial advisor) any of the terms and conditions of this Agreement, except as may be required by law or regulation, and except as may be required to effectuate the terms of this Agreement. Executive acknowledges that, among other material terms of this Agreement, this is a material term of this Agreement and that the Company would not agree to this Agreement without this non-disclosure provision.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;Subject to Paragraph 16, Executive agrees not to take any action to maliciously and/or unlawfully harm the Company, its employees, customers, or other business relationships and/or operations. Likewise, Executive agrees not to make or publish (or cause to be made or published) any patently false information about the Company or any statements or comments about the Company which Executive knows to be untrue or with reckless disregard as to the truthfulness of the statement or comment. Likewise, Executive shall not, directly or indirectly, make, publish, or communicate to any person or entity any disparaging, derogatory, or negative statements, whether written or oral, about the Company, including its officers, directors, employees, agents, products, services, operations, or business practices. This provision shall not prohibit truthful statements required by law, regulation, or legal process, or disclosures as permitted under Paragraph 16 of this Agreement. In return, the Company agrees that its executive officers shall not publicly make any disparaging remarks, statements, or comments regarding Executive. Executive's sale of company stock in any quantity during the Advisory Period will not be considered a breach of this paragraph.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;Nothing in Paragraphs 11, 14, 15, or otherwise in this Agreement or any other agreement between Executive and the Company will prohibit or restrict Executive from (i) voluntarily communicating with an attorney retained by Executive, (ii) voluntarily communicating with or providing information or documents to, initiating a charge or claim with, testifying before, complying with a subpoena from, or assisting or otherwise participate in any manner with an investigation or proceeding conducted by, any government agency, federal, state or local commission on human rights, legislative body, or self-regulatory organization, including making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934, as amended, or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation, (ii) disclosing any information (including, without limitation, information of a confidential or proprietary nature) to a court or other administrative or legislative body in response to a subpoena, court order or written request, provided that Executive first promptly notifies (to the extent legally permissible) the Company and, with respect to any subpoena, court order or written request on behalf of any non-governmental person, uses commercially reasonable efforts to cooperate with any effort by the Company to seek to challenge the subpoena, court order or written request on behalf of any non-governmental person or obtain a protective order limiting its disclosure, (iii) recovering a whistleblower award as provided under Section 21F of the Securities and Exchange Act of 1934, or (iv) discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct

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that Executive has reason to believe is unlawful. Further, pursuant to 18 U.S.C. § 1833(b), Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret of the Company that (I) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to Executive's attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (II) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive's attorney and use the trade secret information in the court proceeding, if Executive (i) files any document containing the trade secret under seal, and (ii) does not disclose the trade secret, except pursuant to court order. While Executive is encouraged to bring any such possible violation to the attention of the Company, Executive does not need the prior authorization of the Company to make any such reports or disclosures to these entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;Executive shall direct prospective employers seeking verification of employment to Company's Human Resources Department. In response to any request for information by prospective employers addressed and directed to the Company's Human Resources Department, the Company shall provide such prospective employers with Executive's last title held and years of employment unless the release of additional information is specifically authorized by Executive or otherwise by court or administrative order.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;Executive, by signing this Agreement, hereby affirmatively states that Executive has returned to the Company, relinquished control of, or destroyed all Company property, including but not limited to, dealer or customer files and information, computer equipment, software, training material, contracts, forms, letterhead, business cards, cellular telephones, memorandums, and employee handbooks. Executive agrees not to use or disclose any of the Company's confidential and/or proprietary information, ideas, prototypes, or inventions outside of the Company, including but not limited to such information developed by Executive for the Company's benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;Up until the Advisory Period End Date, Executive agrees to reasonably cooperate with the Company to amicably transition Executive's duties and responsibilities in anticipation of Executive's exit from the Company. Executive agrees to reasonably cooperate in the transition of any clients, work, or other Company-related matters as directed by the Company. At any time, Executive also agrees to be available to the Company or its designee and/or participate as required by the Company or its designee in any litigation matter arising out of or as a result of Executive's employment with the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;Executive understands and agrees that, except for benefits continued under the Consolidated Omnibus Budget Reconciliation Act of 1985, entitlement to medical, dental, and vision benefits cease at the end of the Separation Date's calendar month, and entitlement to other Company benefits cease as of the Separation Date. Without limiting the foregoing, during the Advisory Period, Executive shall cease to be eligible to receive any awards under the Plan or the Company's other long-term incentive programs and shall not be eligible to receive any salary increase in 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. This Agreement, as well as payments and benefits under this Agreement, are intended to be exempt from, or to the extent subject thereto, to comply with Section 409A of the Internal Revenue Code of 1986, as amended ("**Section 409A**"), and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted in accordance therewith. Notwithstanding anything contained herein to the contrary, Executive shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to Section 409A until Executive has incurred a "separation from service" from the Company within the meaning of Section 409A. Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid an accelerated or additional tax under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six (6)-month period immediately following Executive's separation from service shall instead be paid on the first business day after the date that is

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six (6) months following Executive's separation from service (or, if earlier, Executive's date of death). To the extent required to avoid an accelerated or additional tax under Section 409A, amounts reimbursable to Executive shall be paid to Executive on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in kind benefits provided to Executive) during one year may not affect amounts reimbursable or provided in any subsequent year. The Company makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A from applying to any such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;&nbsp;**Executive is hereby advised to consult with an attorney of Executive's choice before signing or re-signing this Agreement. Executive acknowledges that Executive is entering into this Agreement knowingly and voluntarily, without any coercion or intimidation, in exchange for good and valuable consideration in addition to anything of value to which Executive is otherwise entitled.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;&nbsp;&nbsp;&nbsp;If any provision of this Agreement is determined by any court or administrative agency of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms and provisions shall remain in full force and effect and shall not be affected thereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be governed and enforced according to the laws of the State of Michigan. This Agreement shall only be enforced in accordance with the Company's Alternate Dispute Resolution ("**ADR**") Policy and Procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.&nbsp;&nbsp;&nbsp;&nbsp;Executive expressly acknowledges that no one has made representations concerning the terms or effect of this Agreement other than as specifically stated herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.&nbsp;&nbsp;&nbsp;&nbsp;Executive acknowledges that Executive has been given a period of twenty-one (21) days within which to consider this Agreement before signing and re-signing it. Executive further acknowledges that any decision on Executive's part not to utilize the full twenty-one (21) day waiting period is done volitionally and not at the urging of the Company. Executive acknowledges that in the event that Executive decides not to utilize the full twenty-one (21) day period to consider this Agreement, the decision to do so was not obtained by the Company based on fraud, misrepresentation, threat to withdraw this Agreement, threat to modify this Agreement, or by any promise to provide Executive with extra benefits in exchange for taking less than twenty-one (21) days to consider this Agreement. Executive understands that, within seven (7) days of signing this Agreement, Executive may revoke this Agreement, and further understands that this Agreement shall not become effective or enforceable until this revocation period has expired without Executive having revoked this Agreement. To be effective, the revocation must be in writing and delivered to the Company's headquarters and addressed to the person who executed this Agreement on the Company's behalf. If this Agreement is not revoked within the seven (7) day period, it shall be fully enforceable without any further affirmative action by either party. [Executive shall sign and date this Agreement within twenty-one (21) days after receipt, but in no event prior to the Separation Date, in the spaces provided on the signature page hereto.

&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;&nbsp;&nbsp;&nbsp;Executive shall re-execute and return this Agreement to the Company within seven (7) days following the Advisory Period End Date but no earlier than the Advisory Period End Date**.** Executive acknowledges that by re-executing this Agreement, Executive is acknowledging and agreeing that he has been fully paid all earned amounts and benefits and that the release provisions set forth in Paragraph 1 of this Agreement shall be deemed to cover any claims which Executive had, may have had, or thereafter may have against the Company arising from the beginning of time until the date on which Executive re-executes this Agreement. Notwithstanding the initial effectiveness of this Agreement, Executive understands that, within seven (7) days of re-executing this Agreement, Executive may revoke his re-execution of the Agreement. To be effective, the revocation must be in writing and delivered to the Company's headquarters and addressed to the person who executed this Agreement on the Company's behalf. If Executive does not revoke his consent to his re-execution within the seven (7) day period, the release as applied shall be fully enforceable without any further affirmative action by either party. If Executive does not re-execute this Agreement on or within the seven (7)-day period as specified herein, or Executive timely revokes his re-execution as specified herein, (i) the Company shall have no obligation to provide Executive with the a final payment of **$500.00** and (ii) Executive's prior release of claims under this Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.&nbsp;&nbsp;&nbsp;&nbsp;Executive agrees that this Agreement shall be binding upon, and pass to the benefit of, the successors and assigns of the Company. Executive may not assign Executive's duties or obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in counterparts, including via DocuSign and other similar electronic formats, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.&nbsp;&nbsp;&nbsp;&nbsp;This document constitutes the entire understanding of the parties, and no other agreement, policy, or plan between these parties related to Executive's separation from the Company shall be binding unless entered into after the date of this Agreement, in writing, and signed by all the parties. This Agreement may only be amended or modified in a writing signed by Executive and an authorized representative of the Company.

**[SIGNATURES ON FOLLOWING PAGE]**

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**By signing this Agreement, Executive acknowledges to have had the opportunity to consult with an attorney of Executive's choice; to have carefully reviewed and considered this Agreement; to have understand the terms of the Agreement; and to have voluntarily agreed to these terms.**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;/s/ Daniel Ulatowski | 2/5/2026 |
| Executive: **Daniel Ulatowski** | Date |

---

On Behalf of Credit Acceptance Corporation

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| /s/ Wendy Rummler | 2/9/2026 |
| Executive: **Wendy Rummler** | Date |
| Title: **Chief People Officer** | |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

IN WITNESS WHEREOF, the Parties have re-executed this Agreement as of the first date set forth below (which shall be no earlier than the Advisory Period End Date).

______________________________________&nbsp;&nbsp;&nbsp;&nbsp;________________________

Executive: **Daniel Ulatowski**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date

On Behalf of Credit Acceptance Corporation

___________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________________________

Name:&nbsp;&nbsp;&nbsp;&nbsp; **Wendy Rummler** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date

Title: **Chief People Officer**

## Ex-19

**Exhibit 19**

**RESOLUTION OF THE BOARD OF DIRECTORS OF**

**CREDIT ACCEPTANCE CORPORATION**

**Adopted: August 20, 2003**

**Revised: April 10, 2023**

Whereas, the Board of Directors has considered whether to adopt the following Corporate Policy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.It is the policy of the Company to comply with all applicable securities laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.No person covered by this Policy Statement shall purchase or sell any security issued by the Company while such person is in possession of material information about the Company that has not been disclosed to the public. Nor shall any such person provide such information to any other person, whether employed by the Company or not, except persons with a need to know such information in order to perform their duties for the Company. No person covered by this Policy Statement may use any material information relating to the Company that has not been disclosed to the public as the basis for purchasing or selling any security issued by any other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Officers, directors and certain other management personnel designated by the Chief Executive Officer (collectively, "Management Personnel") may not purchase or sell any security issued by the Company except (a) during a Window Period (as defined below) or (b) with the prior written approval of, in the case of officers and other management personnel, a person designated by Chief Executive Officer for this purpose (the "Stock Compliance Officer"), and, in the case of directors, the Board of Directors or person designated by the Board of Directors for this purpose and, in the case of the Stock Compliance Officer, Chief Executive Officer, unless the Stock Compliance Officer serves in both such capacities, in which case, the Board of Directors or person designated by the Board of Directors for this purpose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Unless otherwise determined in a specific instance by the Board of Directors, the term "Window Period" shall mean the period beginning on the next business day following the date of release of the Company's quarterly and annual summary statements of sales and earnings ("Results"), provided that the Company releases the Results before the market opens on the day of the release. In the event that the Results are released after the market opens on the day of the release, then Window Period shall mean the second business day following the date of release for publication of the Results. In either case, the Window Period shall close on the last day of the fiscal quarter in which the release is made.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Stock Compliance Officer shall not approve any purchase or sale outside a Window Period unless failure to approve the transaction would impose a material hardship on the person proposing the transaction and the Stock Compliance Officer otherwise believes the transaction is in compliance with applicable securities laws. The Stock Compliance Officer may consult with the Chief Executive Officer and Company counsel on such matters as he or she deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The trading restrictions in this Policy Statement do not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any purchase of Company stock through the Credit Acceptance 401(k) Plan resulting from periodic contributions of money to the plan pursuant to payroll deduction elections. The trading restrictions do apply, however, to elections made under the Credit Acceptance 401(k) Plan to (a) increase or decrease the percentage of periodic contributions that will be allocated to the Credit Acceptance Stock Fund, (b) make an intra-plan transfer of an existing account balance into or out of the Credit Acceptance Stock Fund, (c) borrow money against a Credit Acceptance 401(k) Plan account if the loan will result in a liquidation of some or all of a Credit Acceptance Stock Fund balance or (d) pre-pay a plan loan if the pre-payment will result in allocation of loan proceeds to the Credit Acceptance Stock Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any purchase or sale of Company stock by Management Personnel regardless of their awareness of inside information if the transaction is made pursuant to a pre-arranged written trading plan ("Trading Plan") that was entered into during a Window Period when the person was not in possession of material nonpublic information and that complies with the requirements of Rule 10b5-1. Anyone subject to this Policy who wishes to enter into a Trading Plan must submit the Trading Plan to the Stock Compliance Officer for its approval prior to its execution. Trading Plans may not be adopted by a person when he or she is in possession of material nonpublic information about the Company. Once the Trading Plan is adopted, the person must not exercise any subsequent influence over the amount of securities to be traded, the price at which they are to be traded or the date of the trade. The person may amend or replace a Trading Plan only during a Window Period, and such person must submit any proposed

------

amendment or replacement of a Trading Plan to the Stock Compliance Officer for approval prior to adoption. Trades under a plan cannot begin until the later of (a) 90 days after the adoption of modification of their trading plan or (b) two business days after the company files a quarterly report (Form 10-Q) or annual report (Form 10-K) covering the quarter in which the plan was adopted or modified. The person is prohibited from having more than one plan covering the same time period, unless trading under one does not commence until all trades under the other have been completed. Plans set up for a single trade are permitted, but the person is limited to one single-trade plan in any 12-month period. The person must provide notice to the Stock Compliance Officer prior to terminating a Trading Plan. The person should understand that frequent modifications or terminations of a Trading Plan may call into question such person's good faith in entering into the plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exercises of stock options issued by the Company where no Company common stock is sold in the market to fund the option exercise price or related taxes (i.e., a net exercise or where cash is paid to exercise the option) or the exercise of a tax withholding right pursuant to which a person has elected to have the Company withhold shares subject to an option issued by the Company to satisfy tax withholding requirements. The trading restrictions do apply, however, to subsequent sales of Company common stock received upon the exercise of options issued by the Company in which the proceeds are used to fund the option exercise price (i.e., a cashless exercise of options) or related taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.No officer or director of the Company shall purchase and sell, or sell and purchase, any equity security of the Company within any period of less than six months. For purposes of this paragraph 4, payroll deductions for contribution to the Credit Acceptance Stock Fund in the Credit Acceptance 401(k) plan are not considered purchases under this policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.No officer or director of the Company shall sell any equity security of the Company if such person either (a) does not own the security sold or (b) does not deliver the security against such sale within twenty days thereafter or does not within five days after such sale deposit the security in the mails or other usual channels of transportation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.No officer or director of the Company, or any of their designees, shall engage directly or indirectly in hedging transactions involving equity securities of the Company or any other Company securities, including debt securities. "Hedging" refers to any strategy designed to hedge or offset or reduce the risk of price fluctuations in Company securities or to hedge, offset or protect against, in whole or in part, declines in the value of such securities. Hedging transactions include (but are not limited to) prepaid variable forward contracts, swaps, collars, and exchange funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.The prohibition on hedging transactions set forth in this policy is prospective and shall not apply to arrangements in existence on the effective date. To the extent that any shares of Company common stock or any other equity or debt securities were hedged prior to the effective date, this prohibition applies to such shares or securities immediately upon their release from such hedging arrangement. Failure to comply with this prohibition on hedging transactions will be grounds for disciplinary action by the Company, which may include, without limitation, reprimand and, in the case of officers, suspension or termination of employment. Shares of Company stock held by officers and directors may continue to be pledged or otherwise used as security for a loan with prior written approval of the Stock Compliance Officer. The hedging prohibition does not apply to the holding of Company shares in a margin account or any other account that could cause such shares to be subject to a margin call or otherwise be available as collateral for a margin loan so long the individual insider clearly demonstrates the financial capacity to repay the loan without resorting to the pledged securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Each officer and director of the Company shall comply with the filing requirements of Section 16(a) of the Securities Exchange Act of 1934 and, if applicable, of Rule 144 promulgated under the Securities Act of 1933. The Stock Compliance Officer, in conjunction with Company counsel, shall implement a system to assist officers and directors in the timely filing of all required reports under the foregoing provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Each officer and director of the Company shall, and any other person covered by this Policy Statement may be required to, execute and deliver an annual statement to the Company, confirming that such person has complied with this Policy Statement at all times from the date hereof (or such lesser time as such person has been covered hereby).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.The Stock Compliance Officer may adopt such reasonable procedures as he or she shall deem necessary or desirable in order to implement this Policy Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.All officers, directors, employees and agents of this Company shall be encouraged to consult with the Stock Compliance Officer if they have

------

questions about the applicability of this Corporate Policy to them or their activities.

NOW THEREFORE, BE IT RESOLVED, that the above policy is hereby adopted by the Board of Directors and is hereby ratified and approved.

## Ex-21

**Exhibit 21**

**CREDIT ACCEPTANCE CORPORATION**

**SCHEDULE OF CREDIT ACCEPTANCE CORPORATION SUBSIDIARIES**

**As of December 31, 2025** 

The following is a list of subsidiaries as of the date of this filing of Credit Acceptance Corporation, other than subsidiaries which, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary, as defined by the Securities and Exchange Commission Regulation S-X.

---

| |
|:---|
| Buyers Vehicle Protection Plan, Inc |
| CAC International Holdings, LLC |
| CAC Reinsurance, Ltd. |
| CAC Scotland |
| CAC Warehouse Funding LLC II |
| CAC Warehouse Funding LLC IV |
| CAC Warehouse Funding LLC V |
| CAC Warehouse Funding LLC VI |
| CAC Warehouse Funding LLC VIII |
| Credit Acceptance Auto Loan Trust 2019-3 |
| Credit Acceptance Auto Loan Trust 2020-1 |
| Credit Acceptance Auto Loan Trust 2020-2 |
| Credit Acceptance Auto Loan Trust 2020-3 |
| Credit Acceptance Auto Loan Trust 2021-2 |
| Credit Acceptance Auto Loan Trust 2021-3 |
| Credit Acceptance Auto Loan Trust 2021-4 |
| Credit Acceptance Auto Loan Trust 2022-1 |
| Credit Acceptance Auto Loan Trust 2022-3 |
| Credit Acceptance Auto Loan Trust 2023-1 |
| Credit Acceptance Auto Loan Trust 2023-2 |
| Credit Acceptance Auto Loan Trust 2023-3 |
| Credit Acceptance Auto Loan Trust 2023-5 |
| Credit Acceptance Auto Loan Trust 2024-A |
| Credit Acceptance Auto Loan Trust 2024-1 |
| Credit Acceptance Auto Loan Trust 2024-2 |
| Credit Acceptance Auto Loan Trust 2024-3 |
| Credit Acceptance Auto Loan Trust 2025-1 |
| Credit Acceptance Auto Loan Trust 2025-2 |
| Credit Acceptance Auto Loan Trust 2026-1 |
| Credit Acceptance Auto Loan Trust 2026-2 |
| Credit Acceptance Corporation of South Dakota, Inc. |
| Credit Acceptance Funding LLC 2018-1 |
| Credit Acceptance Funding LLC 2018-2 |
| Credit Acceptance Funding LLC 2018-3 |
| Credit Acceptance Funding LLC 2019-1 |
| Credit Acceptance Funding LLC 2019-2 |
| Credit Acceptance Funding LLC 2019-3 |
| Credit Acceptance Funding LLC 2020-1 |
| Credit Acceptance Funding LLC 2020-2 |
| Credit Acceptance Funding LLC 2020-3 |
| Credit Acceptance Funding LLC 2021-1 |
| Credit Acceptance Funding LLC 2021-2 |
| Credit Acceptance Funding LLC 2021-3 |
| Credit Acceptance Funding LLC 2021-4 |
| Credit Acceptance Funding LLC 2022-1 |

---

------

---

| |
|:---|
| Credit Acceptance Funding LLC 2022-2 |
| Credit Acceptance Funding LLC 2022-3 |
| Credit Acceptance Funding LLC 2023-1 |
| Credit Acceptance Funding LLC 2023-2 |
| Credit Acceptance Funding LLC 2023-3 |
| Credit Acceptance Funding LLC 2023-A |
| Credit Acceptance Funding LLC 2023-5 |
| Credit Acceptance Funding LLC 2024-A |
| Credit Acceptance Funding LLC 2024-1 |
| Credit Acceptance Funding LLC 2024-2 |
| Credit Acceptance Funding LLC 2024-3 |
| Credit Acceptance Funding LLC 2024-B |
| Credit Acceptance Funding LLC 2025-1 |
| Credit Acceptance Funding LLC 2025-2 |
| Credit Acceptance Funding LLC 2026-1 |
| Credit Acceptance Funding LLC 2026-2 |
| Vehicle Remarketing Services, Inc. |
| VSC Re Company |

---

## Ex-23

**EXHIBIT 23**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

<br> We have issued our reports dated February 13, 2026, with respect to the consolidated financial statements and internal control over financial reporting included in the Annual Report of Credit Acceptance Corporation on Form 10-K for the year ended December 31, 2025. We consent to the incorporation by reference of said reports in the Registration Statements of Credit Acceptance Corporation on Forms S-8 (File No. 333-67348, File No. 333-91734, File No. 333-111831, File No. 333-120756, File No. 333-187105, File No. 333-260660, File No. 333-275571, File No. 333-281136) and Form S-3 (File No. 333-18301).

/s/ GRANT THORNTON LLP

Southfield, Michigan

February 13, 2026

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Vinayak R. Hegde, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K for the year ended December 31, 2025 of Credit Acceptance Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: February 13, 2026 | By: | /s/ Vinayak R. Hegde |
|  |  | Vinayak R. Hegde |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Jay D. Martin, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K for the year ended December 31, 2025 of Credit Acceptance Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: February 13, 2026 | By: | /s/ Jay D. Martin |
|  |  | Jay D. Martin |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 10-K of Credit Acceptance Corporation (the "Company") for the period ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Vinayak R. Hegde, as Chief Executive Officer (and, as such, the principal executive officer) of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: February 13, 2026 | By: | /s/ Vinayak R. Hegde |
|  |  | Vinayak R. Hegde |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 10-K of Credit Acceptance Corporation (the "Company") for the period ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jay D. Martin, as Chief Financial Officer (and, as such, the principal financial officer) of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: February 13, 2026 | By: | /s/ Jay D. Martin |
|  |  | Jay D. Martin |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

<br>