Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-20202 | |
Entity Registrant Name | CREDIT ACCEPTANCE CORP | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-1999511 | |
Entity Address, Address Line One | 25505 W. Twelve Mile Road | |
Entity Address, City or Town | Southfield, | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48034-8339 | |
City Area Code | 248 | |
Local Phone Number | 353-2700 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | CACC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,566,657 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000885550 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
ASSETS: | |||
Cash and cash equivalents | $ 3.1 | $ 7.7 | |
Restricted cash and cash equivalents | 435.1 | 410 | |
Debt Securities, Available-for-sale, Restricted | 86.2 | 72.3 | |
Loans receivable | [1],[2] | 9,812.2 | 9,165.5 |
Allowance for credit losses | (3,031.7) | (2,867.8) | |
Loans receivable, net | 6,780.5 | 6,297.7 | |
Property and equipment, net | 47.1 | 51.4 | |
Income taxes receivable | 14.2 | 8.7 | |
Other assets | 30.9 | 56.9 | |
Total assets | 7,397.1 | 6,904.7 | |
Liabilities: | |||
Accounts payable and accrued liabilities | 284.1 | 260.8 | |
Revolving secured lines of credit | 102.1 | 30.9 | |
Secured financing | 4,034.2 | 3,756.4 | |
Senior notes | 796 | 794.5 | |
Mortgage note | [3] | 8.5 | 8.9 |
Deferred income taxes, net | 461.8 | 426.7 | |
Income taxes payable | 9.5 | 2.5 | |
Total liabilities | 5,696.2 | 5,280.7 | |
Commitments and Contingencies - See Note 15 | |||
Shareholders' Equity: | |||
Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued | 0 | 0 | |
Common stock, $.01 par value, 80,000,000 shares authorized, 12,566,219 and 12,756,885 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 0.1 | 0.1 | |
Paid-in capital | 271.3 | 245.7 | |
Retained earnings | 1,432.4 | 1,381.1 | |
Accumulated other comprehensive loss | (2.9) | (2.9) | |
Total shareholders’ equity | 1,700.9 | 1,624 | |
Total liabilities and shareholders’ equity | $ 7,397.1 | $ 6,904.7 | |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 80,000,000 | 80,000,000 | |
Common stock, shares issued | 12,566,219 | 12,756,885 | |
Balance, shares | 12,566,219 | 12,756,885 | |
[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.[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.[3]Measured at amortized cost with fair value disclosed. |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Finance charges | $ 441.7 | $ 420.6 | $ 1,303.8 | $ 1,270.3 |
Premiums earned | 20.8 | 16.4 | 58 | 45.6 |
Other income | 16.1 | 23.3 | 48.5 | 57.5 |
Total revenue | 478.6 | 460.3 | 1,410.3 | 1,373.4 |
Costs and expenses: | ||||
Salaries and wages | 66.7 | 66.9 | 214.1 | 196.7 |
General and administrative | 21.3 | 16.6 | 59.8 | 67.8 |
Sales and marketing | 22.5 | 19.7 | 70.9 | 57.9 |
Operating Expenses | 110.5 | 103.2 | 344.8 | 322.4 |
Total provision for credit losses | 184.6 | 180.3 | 572.5 | 351.1 |
Interest | 70.5 | 41.8 | 187.7 | 117.2 |
Provision for claims | 16.5 | 12.9 | 54.1 | 34 |
Total costs and expenses | 382.1 | 338.2 | 1,159.1 | 824.7 |
Income before provision for income taxes | 96.5 | 122.1 | 251.2 | 548.7 |
Provision for income taxes | 25.7 | 35.3 | 58.7 | 140.2 |
Net income | $ 70.8 | $ 86.8 | $ 192.5 | $ 408.5 |
Net income per share: | ||||
Basic (in usd per share) | $ 5.47 | $ 6.53 | $ 14.79 | $ 29.90 |
Diluted (in usd per share) | $ 5.43 | $ 6.49 | $ 14.73 | $ 29.74 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 12,933,377 | 13,293,224 | 13,013,344 | 13,662,178 |
Diluted (in shares) | 13,039,638 | 13,364,160 | 13,068,998 | 13,737,871 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 70.8 | $ 86.8 | $ 192.5 | $ 408.5 |
Other comprehensive loss, net of tax: | ||||
Unrealized loss on securities, net of tax | (0.2) | (1.2) | 0 | (3.6) |
Other comprehensive loss | (0.2) | (1.2) | 0 | (3.6) |
Comprehensive income | $ 70.6 | $ 85.6 | $ 192.5 | $ 404.9 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, shares at Dec. 31, 2021 | 14,145,888 | ||||
Common stock repurchased, shares | (1,261,457) | (1,261,457) | |||
Restricted stock units converted to common stock, shares | 3,980 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 36,300 | ||||
Balance, shares at Sep. 30, 2022 | 12,924,711 | ||||
Balance at Dec. 31, 2021 | $ 1,824,200,000 | $ 100,000 | $ 197,200,000 | $ 1,626,700,000 | $ 200,000 |
Net income | 408,500,000 | 0 | 0 | 408,500,000 | 0 |
Other comprehensive loss | (3,600,000) | 0 | 0 | 0 | (3,600,000) |
Stock-based compensation | 26,900,000 | 0 | 26,900,000 | 0 | 0 |
Common stock repurchased, value | (679,200,000) | 0 | (700,000) | (678,500,000) | 0 |
Stock Issued During Period, Value, Stock Options Exercised | 12,400,000 | 12,400,000 | |||
Balance at Sep. 30, 2022 | 1,589,200,000 | $ 100,000 | 235,800,000 | 1,356,700,000 | (3,400,000) |
Balance, shares at Jun. 30, 2022 | 12,975,455 | ||||
Common stock repurchased, shares | (53,769) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,025 | ||||
Balance, shares at Sep. 30, 2022 | 12,924,711 | ||||
Balance at Jun. 30, 2022 | 1,520,100,000 | $ 100,000 | 225,800,000 | 1,296,400,000 | (2,200,000) |
Net income | 86,800,000 | 0 | 0 | 86,800,000 | 0 |
Other comprehensive loss | (1,200,000) | 0 | 0 | 0 | (1,200,000) |
Stock-based compensation | 8,700,000 | 0 | 8,700,000 | 0 | 0 |
Common stock repurchased, value | (26,500,000) | 0 | 0 | (26,500,000) | 0 |
Stock Issued During Period, Value, Stock Options Exercised | 1,300,000 | 1,300,000 | |||
Balance at Sep. 30, 2022 | $ 1,589,200,000 | $ 100,000 | 235,800,000 | 1,356,700,000 | (3,400,000) |
Balance, shares at Dec. 31, 2022 | 12,756,885 | 12,756,885 | |||
Common stock repurchased, shares | (305,493) | (305,493) | |||
Restricted stock units converted to common stock, shares | 101,757 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 13,070 | ||||
Balance, shares at Sep. 30, 2023 | 12,566,219 | 12,566,219 | |||
Balance at Dec. 31, 2022 | $ 1,624,000,000 | $ 100,000 | 245,700,000 | 1,381,100,000 | (2,900,000) |
Net income | 192,500,000 | 0 | 0 | 192,500,000 | 0 |
Stock-based compensation | 29,000,000 | 0 | 29,000,000 | 0 | 0 |
Common stock repurchased, value | (149,000,000) | 0 | (7,800,000) | (141,200,000) | 0 |
Stock Issued During Period, Value, Stock Options Exercised | 4,400,000 | 4,400,000 | |||
Balance at Sep. 30, 2023 | $ 1,700,900,000 | $ 100,000 | 271,300,000 | 1,432,400,000 | (2,900,000) |
Balance, shares at Jun. 30, 2023 | 12,821,681 | ||||
Common stock repurchased, shares | (256,232) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 770 | ||||
Balance, shares at Sep. 30, 2023 | 12,566,219 | 12,566,219 | |||
Balance at Jun. 30, 2023 | $ 1,747,000,000 | $ 100,000 | 261,700,000 | 1,487,900,000 | (2,700,000) |
Net income | 70,800,000 | 0 | 0 | 70,800,000 | 0 |
Other comprehensive loss | (200,000) | 0 | 0 | 0 | (200,000) |
Stock-based compensation | 9,300,000 | 0 | 9,300,000 | 0 | 0 |
Common stock repurchased, value | (126,300,000) | 0 | 0 | (126,300,000) | 0 |
Stock Issued During Period, Value, Stock Options Exercised | 300,000 | 300,000 | |||
Balance at Sep. 30, 2023 | $ 1,700,900,000 | $ 100,000 | $ 271,300,000 | $ 1,432,400,000 | $ (2,900,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows From Operating Activities: | ||
Net income | $ 192.5 | $ 408.5 |
Adjustments to reconcile cash provided by operating activities: | ||
Provision for credit losses | 572.5 | 351.1 |
Depreciation | 6.6 | 6.8 |
Amortization | 13.3 | 12.5 |
Provision for deferred income taxes | 35.1 | 3.8 |
Stock-based compensation | 29 | 26.9 |
Other | 0.5 | 0.1 |
Change in operating assets and liabilities: | ||
Increase in accounts payable and accrued liabilities | 14.6 | 44.4 |
Decrease (increase) in income taxes receivable | (5.5) | 80.2 |
Increase in income taxes payable | 7 | 0 |
Decrease in other assets | 27 | 17.6 |
Net cash provided by operating activities | 892.6 | 951.9 |
Payments to Acquire Debt Securities, Available-for-sale | 34.7 | 38.2 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of restricted securities available for sale | 12.3 | 9.5 |
Maturities of restricted securities available for sale | 8.1 | 17.9 |
Principal collected on Loans receivable | 2,330.8 | 2,670.8 |
Advances to Dealers | (2,202.9) | (1,971.9) |
Purchases of Consumer Loans | (970.6) | (851.4) |
Accelerated payments of Dealer Holdback | (35.3) | (35.2) |
Payments of Dealer Holdback | (177.3) | (138.7) |
Purchases of property and equipment | (2.3) | (1.9) |
Net cash used in investing activities | (1,071.9) | (339.1) |
Cash Flows From Financing Activities: | ||
Borrowings under revolving secured lines of credit | 5,529.1 | 5,867.3 |
Repayments under revolving secured lines of credit | (5,457.9) | (5,681) |
Proceeds from secured financing | 2,004 | 847.8 |
Repayments of secured financing | (1,722.9) | (1,028.9) |
Payments of debt issuance costs | (16) | (7.9) |
Repurchase of common stock | (149) | (679.2) |
Proceeds from Issuance of Common Stock | 4.4 | 12.4 |
Other | 8.1 | 17.9 |
Net cash provided by (used in) financing activities | 199.8 | (651.6) |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 20.5 | (38.8) |
Cash and cash equivalents and restricted cash and cash equivalents beginning of period | 417.7 | 434.2 |
Cash and cash equivalents and restricted cash and cash equivalents end of period | 438.2 | 395.4 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid during the period for interest | 172.7 | 105.1 |
Cash paid during the period for income taxes, net of refunds | $ 19.7 | $ 50 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for interim periods are not necessarily indicative of actual results achieved for full fiscal years. The consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022 for Credit Acceptance Corporation (the “Company”, “Credit Acceptance”, “we”, “our” or “us”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of September 30, 2023 for items that could potentially be recognized or disclosed in these financial statements. We did not identify any items that would require disclosure in or adjustment to the consolidated financial statements. Reclassification Certain amounts for prior periods have been reclassified to conform to the current presentation. |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Description Of Business [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Since 1972, Credit Acceptance has offered financing programs 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 commitment to changing consumers’ 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 ® scores below 650 or no FICO ® scores: For the Three Months Ended September 30, For the Nine Months Ended September 30, Consumer Loan Assignment Volume 2023 2022 2023 2022 Percentage of total unit volume with either FICO ® scores below 650 or no FICO ® scores 78.6 % 84.2 % 81.5 % 85.6 % In recent years, we have expanded our financing programs to consumers with higher credit ratings, which has contributed to the reduction in the percentage of total unit volume with either FICO ® scores below 650 or no FICO ® scores. 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 seven quarters: Unit Volume Dollar Volume (1) Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased Loans March 31, 2022 72.7 % 27.3 % 68.6 % 31.4 % June 30, 2022 74.0 % 26.0 % 70.4 % 29.6 % September 30, 2022 74.3 % 25.7 % 70.5 % 29.5 % December 31, 2022 73.1 % 26.9 % 69.6 % 30.4 % March 31, 2023 72.1 % 27.9 % 68.1 % 31.9 % June 30, 2023 72.4 % 27.6 % 68.6 % 31.4 % September 30, 2023 74.8 % 25.2 % 71.7 % 28.3 % (1) Represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included. Portfolio Program As payment for the vehicle, the Dealer generally receives the following: • a down payment from the consumer; • a non-recourse cash payment (“advance”) from us; and • 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: • first, to reimburse us for certain collection costs; • second, to pay us our servicing fee, which generally equals 20% of collections; • third, to reduce the aggregate advance balance and to pay any other amounts due from the Dealer to us; and • 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. Purchase Program The Purchase Program differs from our 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. Program Enrollment Dealers are granted access to our Portfolio Program upon enrollment. Access to the Purchase Program is typically only granted to Dealers that meet one of the following: • assigned at least 50 Consumer Loans under the Portfolio Program; • franchise dealership; or • independent dealership that meets certain criteria upon enrollment. 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 Note 3. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Segment Information We currently operate in one reportable segment which represents our core business of offering financing programs that enable Dealers to sell vehicles to consumers, regardless of their credit history. The consolidated financial statements reflect the financial results of our one reportable operating segment. 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 September 30, 2023 and December 31, 2022, we had $2.8 million and $7.1 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 September 30, 2023 and December 31, 2022, we had $431.2 million and $406.5 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 September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 Cash and cash equivalents $ 3.1 $ 7.7 $ 10.7 $ 23.3 Restricted cash and cash equivalents 435.1 410.0 384.7 410.9 Total cash and cash equivalents and restricted cash and cash equivalents $ 438.2 $ 417.7 $ 395.4 $ 434.2 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: • the consumer and Dealer have signed a Consumer Loan contract; and • 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: • the Consumer Loan has been legally assigned to us; and • 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: • We have two financing programs: the Portfolio Program and the Purchase Program. We are considered to be a lender to our Dealers for Consumer Loans assigned under the Portfolio Program and a purchaser of Consumer Loans assigned under the Purchase Program. • 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. • 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 by consumers with impaired or limited credit histories. Our determination is based on the following: • 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. • We only accept Consumer Loan assignments from Dealers located within the United States. Recognition and Measurement Policies. 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 qualified for transition relief and are accounted for as purchased financial assets with credit deterioration (“PCD Method”). Under the PCD Method, for each reporting period subsequent to the adoption of CECL, we: • recognize finance charge revenue using the effective interest rate that was calculated on the adoption date based on expected future net cash flows; and • 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. Consumer Loans assigned to us on or subsequent to January 1, 2020 do not qualify for the PCD Method and are accounted for as originated financial assets (“Originated Method”). While the cash flows we expect to collect at the time of assignment are significantly lower than the contractual cash flows owed to us due to credit quality, our Loans do not qualify for the PCD Method because the assignment of the Consumer Loan to us occurs a moment after the Consumer Loan is originated by the Dealer, so “a more-than-insignificant deterioration in credit quality since origination” has not occurred at the time of assignment. In addition, Dealer Loans also do not qualify for the PCD Method because Consumer Loans assigned to us under the Portfolio Program are considered to be advances under Dealer Loans originated by us rather than Consumer Loans purchased by us. Under the Originated Method, at the time of assignment, we: • calculate the effective interest rate based on contractual future net cash flows; • 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 • 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: • 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 • 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, if assigned on or subsequent to January 1, 2020; or • aggregated into pools based on the month of purchase, if assigned prior to January 1, 2020. The outstanding balance of each Loan included in Loans receivable is comprised of the following: • 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); • finance charges; • Dealer Holdback payments; • accelerated Dealer Holdback payments; • recoveries; • transfers in; • less: collections (net of certain collection costs); • less: write-offs; and • less: transfers out. Under our 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 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 and economic conditions. 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 fully write off the outstanding balances 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 balances 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 vast 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 of 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 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. During the first quarter of 2022, we removed the COVID forecast adjustment from our estimate of future net cash flows and enhanced our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent data and new forecast variables. For additional information, see Note 6. For the three and nine months ended September 30, 2023 and 2022, we did not make any other methodology changes for Loans that had a material impact on our 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 our 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 our 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). For Consumer Loans assigned on or subsequent to January 1, 2020, the effective interest rate is based on contractual future net cash flows. For Consumer Loans assigned prior to January 1, 2020, the effective interest rate was determined based on expected 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. Reinsurance VSC Re Company (“VSC Re”), our wholly owned subsidiary, is engaged in the business of reinsuring coverage under vehicle service contracts sold to consumers by Dealers on vehicles 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: • 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. • 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. • 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. New Accounting Updates Adopted During the Current Year Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, which intends to improve the usefulness of information provided to investors about certain loan refinancings, restructurings, and write-offs. The adoption of ASU 2022-02 on January 1, 2023 expanded our write-off disclosures, but did not otherwise have a material impact on our consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 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 and corporate 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 asset-backed secured financings (“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. Mortgage Note. 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. A comparison of the carrying amount and estimated fair value of these financial instruments is as follows: (In millions) As of September 30, 2023 As of December 31, 2022 Carrying Estimated Fair Carrying Estimated Fair Assets Cash and cash equivalents $ 3.1 $ 3.1 $ 7.7 $ 7.7 Restricted cash and cash equivalents 435.1 435.1 410.0 410.0 Restricted securities available for sale 86.2 86.2 72.3 72.3 Loans receivable, net 6,780.5 7,529.4 6,297.7 6,767.9 Liabilities Revolving secured lines of credit $ 102.1 $ 102.1 $ 30.9 $ 30.9 Secured financing 4,034.2 4,015.3 3,756.4 3,581.9 Senior notes 796.0 745.0 794.5 759.0 Mortgage note 8.5 8.5 8.9 8.9 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 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 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 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 September 30, 2023 Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents (1) $ 3.1 $ — $ — $ 3.1 Restricted cash and cash equivalents (1) 435.1 — — 435.1 Restricted securities available for sale (2) 69.6 16.6 — 86.2 Loans receivable, net (1) — — 7,529.4 7,529.4 Liabilities Revolving secured lines of credit (1) $ — $ 102.1 $ — $ 102.1 Secured financing (1) 3,014.2 1,001.1 — 4,015.3 Senior notes (1) 745.0 — — 745.0 Mortgage note (1) — 8.5 — 8.5 (In millions) As of December 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents (1) $ 7.7 $ — $ — $ 7.7 Restricted cash and cash equivalents (1) 410.0 — — 410.0 Restricted securities available for sale (2) 58.7 13.6 — 72.3 Loans receivable, net (1) — — 6,767.9 6,767.9 Liabilities Revolving secured lines of credit (1) $ — $ 30.9 $ — $ 30.9 Secured financing (1) 2,781.8 800.1 — 3,581.9 Senior notes (1) 759.0 — — 759.0 Mortgage note (1) — 8.9 — 8.9 (1) Measured at amortized cost with fair value disclosed. |
Restricted Securities Available
Restricted Securities Available for Sale | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Restricted Securities Available for Sale | RESTRICTED SECURITIES AVAILABLE FOR SALE Restricted securities available for sale consist of the following: (In millions) As of September 30, 2023 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair Corporate bonds $ 37.8 $ — $ (1.6) $ 36.2 U.S. Government and agency securities 34.3 — (1.7) 32.6 Asset-backed securities 16.9 — (0.5) 16.4 Municipal securities 0.8 — — 0.8 Mortgage-backed securities 0.2 — — 0.2 Total restricted securities available for sale $ 90.0 $ — $ (3.8) $ 86.2 (In millions) As of December 31, 2022 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair Corporate bonds $ 32.6 $ — $ (1.7) $ 30.9 U.S. Government and agency securities 29.5 — (1.7) 27.8 Asset-backed securities 13.8 — (0.4) 13.4 Mortgage-backed securities 0.2 — — 0.2 Total restricted securities available for sale $ 76.1 $ — $ (3.8) $ 72.3 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 September 30, 2023 Less than 12 Months 12 Months or More Estimated Gross Estimated Gross Total Total Corporate bonds $ 18.5 $ (0.4) $ 16.8 $ (1.2) $ 35.3 $ (1.6) U.S. Government and agency securities 13.9 (0.4) 18.8 (1.3) 32.7 (1.7) Asset-backed securities 10.1 (0.1) 6.4 (0.4) 16.5 (0.5) Mortgage-backed securities — — 0.2 — 0.2 — Total restricted securities available for sale $ 42.5 $ (0.9) $ 42.2 $ (2.9) $ 84.7 $ (3.8) (In millions) Securities Available for Sale with Gross Unrealized Losses as of December 31, 2022 Less than 12 Months 12 Months or More Estimated Gross Estimated Gross Total Total Corporate bonds $ 15.1 $ (0.6) $ 13.3 $ (1.1) $ 28.4 $ (1.7) U.S. Government and agency securities 18.0 (0.8) 9.2 (0.9) 27.2 (1.7) Asset-backed securities 6.6 (0.1) 4.4 (0.3) 11.0 (0.4) Mortgage-backed securities 0.3 — — — 0.3 — Total restricted securities available for sale $ 40.0 $ (1.5) $ 26.9 $ (2.3) $ 66.9 $ (3.8) 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 September 30, 2023 December 31, 2022 Contractual Maturity Amortized Cost Estimated Fair Amortized Cost Estimated Fair Within one year $ 7.9 $ 7.7 $ 4.0 $ 3.9 Over one year to five years 74.4 71.0 66.4 63.0 Over five years to ten years 7.7 7.5 5.6 5.3 Over ten years — — 0.1 0.1 Total restricted securities available for sale $ 90.0 $ 86.2 $ 76.1 $ 72.3 |
Loans Receivable
Loans Receivable | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans Receivable | LOANS RECEIVABLE Loans receivable and allowance for credit losses consist of the following: (In millions) As of September 30, 2023 Dealer Loans Purchased Loans Total Loans receivable $ 6,784.6 $ 3,027.6 $ 9,812.2 Allowance for credit losses (2,269.6) (762.1) (3,031.7) Loans receivable, net $ 4,515.0 $ 2,265.5 $ 6,780.5 (In millions) As of December 31, 2022 Dealer Loans Purchased Loans Total Loans receivable $ 6,074.8 $ 3,090.7 $ 9,165.5 Allowance for credit losses (2,000.0) (867.8) (2,867.8) Loans receivable, net $ 4,074.8 $ 2,222.9 $ 6,297.7 A summary of changes in Loans receivable and allowance for credit losses is as follows: For the Three Months Ended September 30, 2023 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 6,534.1 $ 3,065.5 $ 9,599.6 $ (2,188.4) $ (800.9) $ (2,989.3) $ 4,345.7 $ 2,264.6 $ 6,610.3 Finance charges 401.0 231.1 632.1 (136.0) (54.4) (190.4) 265.0 176.7 441.7 Provision for credit losses — — — (108.0) (76.6) (184.6) (108.0) (76.6) (184.6) New Consumer Loan assignments (1) 732.5 289.7 1,022.2 — — — 732.5 289.7 1,022.2 Collections (2) (775.4) (406.7) (1,182.1) — — — (775.4) (406.7) (1,182.1) Accelerated Dealer Holdback payments 10.7 — 10.7 — — — 10.7 — 10.7 Dealer Holdback payments 59.0 — 59.0 — — — 59.0 — 59.0 Transfers (3) (27.3) 27.3 — 9.5 (9.5) — (17.8) 17.8 — Write-offs (153.7) (180.2) (333.9) 153.7 180.2 333.9 — — — Recoveries (4) 0.4 0.9 1.3 (0.4) (0.9) (1.3) — — — Deferral of Loan origination costs 3.3 — 3.3 — — — 3.3 — 3.3 Balance, end of period $ 6,784.6 $ 3,027.6 $ 9,812.2 $ (2,269.6) $ (762.1) $ (3,031.7) $ 4,515.0 $ 2,265.5 $ 6,780.5 For the Three Months Ended September 30, 2022 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,832.9 $ 3,357.7 $ 9,190.6 $ (1,844.8) $ (1,022.1) $ (2,866.9) $ 3,988.1 $ 2,335.6 $ 6,323.7 Finance charges 351.6 244.5 596.1 (112.3) (63.2) (175.5) 239.3 181.3 420.6 Provision for credit losses — — — (95.2) (85.1) (180.3) (95.2) (85.1) (180.3) New Consumer Loan assignments (1) 651.9 273.0 924.9 — — — 651.9 273.0 924.9 Collections (2) (789.2) (448.9) (1,238.1) — — — (789.2) (448.9) (1,238.1) Accelerated Dealer Holdback payments 10.3 — 10.3 — — — 10.3 — 10.3 Dealer Holdback payments 48.3 — 48.3 — — — 48.3 — 48.3 Transfers (3) (13.8) 13.8 — 3.6 (3.6) — (10.2) 10.2 — Write-offs (116.1) (232.7) (348.8) 116.1 232.7 348.8 — — — Recoveries (4) 0.1 0.8 0.9 (0.1) (0.8) (0.9) — — — Deferral of Loan origination costs 2.2 — 2.2 — — — 2.2 — 2.2 Balance, end of period $ 5,978.2 $ 3,208.2 $ 9,186.4 $ (1,932.7) $ (942.1) $ (2,874.8) $ 4,045.5 $ 2,266.1 $ 6,311.6 For the Nine Months Ended September 30, 2023 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 6,074.8 $ 3,090.7 $ 9,165.5 $ (2,000.0) $ (867.8) $ (2,867.8) $ 4,074.8 $ 2,222.9 $ 6,297.7 Finance charges 1,156.8 698.1 1,854.9 (386.7) (164.4) (551.1) 770.1 533.7 1,303.8 Provision for credit losses — — — (327.3) (245.2) (572.5) (327.3) (245.2) (572.5) New Consumer Loan assignments (1) 2,202.9 970.6 3,173.5 — — — 2,202.9 970.6 3,173.5 Collections (2) (2,376.9) (1,266.9) (3,643.8) — — — (2,376.9) (1,266.9) (3,643.8) Accelerated Dealer Holdback payments 35.3 — 35.3 — — — 35.3 — 35.3 Dealer Holdback payments 177.3 — 177.3 — — — 177.3 — 177.3 Transfers (3) (78.9) 78.9 — 28.5 (28.5) — (50.4) 50.4 — Write-offs (417.2) (546.7) (963.9) 417.2 546.7 963.9 — — — Recoveries (4) 1.3 2.9 4.2 (1.3) (2.9) (4.2) — — — Deferral of Loan origination costs 9.2 — 9.2 — — — 9.2 — 9.2 Balance, end of period $ 6,784.6 $ 3,027.6 $ 9,812.2 $ (2,269.6) $ (762.1) $ (3,031.7) $ 4,515.0 $ 2,265.5 $ 6,780.5 For the Nine Months Ended September 30, 2022 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,655.1 $ 3,694.7 $ 9,349.8 $ (1,767.8) $ (1,245.7) $ (3,013.5) $ 3,887.3 $ 2,449.0 $ 6,336.3 Finance charges 1,030.9 764.3 1,795.2 (324.3) (200.6) (524.9) 706.6 563.7 1,270.3 Provision for credit losses — — — (170.0) (181.1) (351.1) (170.0) (181.1) (351.1) New Consumer Loan assignments (1) 1,971.9 851.4 2,823.3 — — — 1,971.9 851.4 2,823.3 Collections (2) (2,488.0) (1,459.7) (3,947.7) — — — (2,488.0) (1,459.7) (3,947.7) Accelerated Dealer Holdback payments 35.2 — 35.2 — — — 35.2 — 35.2 Dealer Holdback payments 138.7 — 138.7 — — — 138.7 — 138.7 Transfers (3) (57.0) 57.0 — 14.2 (14.2) — (42.8) 42.8 — Write-offs (315.8) (701.8) (1,017.6) 315.8 701.8 1,017.6 — — — Recoveries (4) 0.6 2.3 2.9 (0.6) (2.3) (2.9) — — — Deferral of Loan origination costs 6.6 — 6.6 — — — 6.6 — 6.6 Balance, end of period $ 5,978.2 $ 3,208.2 $ 9,186.4 $ (1,932.7) $ (942.1) $ (2,874.8) $ 4,045.5 $ 2,266.1 $ 6,311.6 (1) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. (2) Represents repayments that we collected on Consumer Loans assigned under our programs. (3) Under our 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. (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 Three Months Ended September 30, 2023 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 37.4 $ 40.9 $ 78.3 Forecast changes 70.6 35.7 106.3 Total $ 108.0 $ 76.6 $ 184.6 (In millions) For the Three Months Ended September 30, 2022 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 37.6 $ 45.8 $ 83.4 Forecast changes 57.6 39.3 96.9 Total $ 95.2 $ 85.1 $ 180.3 (In millions) For the Nine Months Ended September 30, 2023 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 108.9 $ 144.2 $ 253.1 Forecast changes 218.4 101.0 319.4 Total $ 327.3 $ 245.2 $ 572.5 (In millions) For the Nine Months Ended September 30, 2022 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 130.7 $ 152.8 $ 283.5 Forecast changes 39.3 28.3 67.6 Total $ 170.0 $ 181.1 $ 351.1 The net Loan income (finance charge revenue less provision for credit losses expense) that we will 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 a significant provision for credit losses expense at the time of assignment for contractual net cash flows we never expect to realize and to recognize in subsequent periods finance charge revenue that is significantly in excess of our expected yields. Additional information related to new Consumer Loan assignments is as follows: (In millions) For the Three Months Ended September 30, 2023 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 1,140.8 $ 577.7 $ 1,718.5 Expected net cash flows at the time of assignment (2) 1,035.1 407.6 1,442.7 Loans receivable at the time of assignment (3) 732.5 289.7 1,022.2 Provision for credit losses expense at the time of assignment $ (37.4) $ (40.9) $ (78.3) Expected future finance charges at the time of assignment (4) 340.0 158.8 498.8 Expected net Loan income at the time of assignment (5) $ 302.6 $ 117.9 $ 420.5 (In millions) For the Three Months Ended September 30, 2022 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 998.1 $ 548.2 $ 1,546.3 Expected net cash flows at the time of assignment (2) 905.6 374.2 1,279.8 Loans receivable at the time of assignment (3) 651.9 273.0 924.9 Provision for credit losses expense at the time of assignment $ (37.6) $ (45.8) $ (83.4) Expected future finance charges at the time of assignment (4) 291.3 147.0 438.3 Expected net Loan income at the time of assignment (5) $ 253.7 $ 101.2 $ 354.9 (In millions) For the Nine Months Ended September 30, 2023 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 3,435.1 $ 1,948.9 $ 5,384.0 Expected net cash flows at the time of assignment (2) 3,118.1 1,357.7 4,475.8 Loans receivable at the time of assignment (3) 2,202.9 970.6 3,173.5 Provision for credit losses expense at the time of assignment $ (108.9) $ (144.2) $ (253.1) Expected future finance charges at the time of assignment (4) 1,024.1 531.3 1,555.4 Expected net Loan income at the time of assignment (5) $ 915.2 $ 387.1 $ 1,302.3 (In millions) For the Nine Months Ended September 30, 2022 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 3,015.3 $ 1,698.3 $ 4,713.6 Expected net cash flows at the time of assignment (2) 2,736.4 1,158.9 3,895.3 Loans receivable at the time of assignment (3) 1,971.9 851.4 2,823.3 Provision for credit losses expense at the time of assignment $ (130.7) $ (152.8) $ (283.5) Expected future finance charges at the time of assignment (4) 895.2 460.3 1,355.5 Expected net Loan income at the time of assignment (5) $ 764.5 $ 307.5 $ 1,072.0 (1) The Dealer Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program. (2) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program. The Loan amounts also represent the fair value at the time of assignment. (3) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. (4) Represents revenue that is expected to be recognized on a level-yield basis over the lives of the Loans. (5) Represents the amount that expected net cash flows at the time of assignment (2) exceed Loans receivable at the time of assignment (3). A summary of changes in expected future net cash flows is as follows: (In millions) For the Three Months Ended September 30, 2023 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 6,166.4 $ 3,509.9 $ 9,676.3 New Consumer Loan assignments (1) 1,035.1 407.6 1,442.7 Realized net cash flows (2) (705.7) (406.7) (1,112.4) Forecast changes (40.3) (29.1) (69.4) Transfers (3) (26.5) 28.5 2.0 Balance, end of period $ 6,429.0 $ 3,510.2 $ 9,939.2 (In millions) For the Three Months Ended September 30, 2022 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,468.6 $ 3,573.6 $ 9,042.2 New Consumer Loan assignments (1) 905.6 374.2 1,279.8 Realized net cash flows (2) (730.6) (448.9) (1,179.5) Forecast changes (37.3) (48.1) (85.4) Transfers (3) (15.2) 16.9 1.7 Balance, end of period $ 5,591.1 $ 3,467.7 $ 9,058.8 (In millions) For the Nine Months Ended September 30, 2023 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,637.9 $ 3,395.5 $ 9,033.4 New Consumer Loan assignments (1) 3,118.1 1,357.7 4,475.8 Realized net cash flows (2) (2,164.3) (1,266.9) (3,431.2) Forecast changes (89.3) (60.0) (149.3) Transfers (3) (73.4) 83.9 10.5 Balance, end of period $ 6,429.0 $ 3,510.2 $ 9,939.2 (In millions) For the Nine Months Ended September 30, 2022 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,249.7 $ 3,698.6 $ 8,948.3 New Consumer Loan assignments (1) 2,736.4 1,158.9 3,895.3 Realized net cash flows (2) (2,314.1) (1,459.7) (3,773.8) Forecast changes (17.4) (1.2) (18.6) Transfers (3) (63.5) 71.1 7.6 Balance, end of period $ 5,591.1 $ 3,467.7 $ 9,058.8 (1) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program. (2) The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under our 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 our Purchase Program. (3) Under our 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. Credit Quality We monitor and evaluate the credit quality of Consumer Loans assigned under our 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 Note 3. The following table compares our forecast of Consumer Loan collection rates as of September 30, 2023 with the forecasts as of June 30, 2023, December 31, 2022, and at the time of assignment, segmented by year of assignment: Total Loans Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan September 30, 2023 June 30, 2023 December 31, 2022 Initial June 30, 2023 December 31, 2022 Initial 2014 71.7 % 71.7 % 71.7 % 71.8 % 0.0 % 0.0 % -0.1 % 2015 65.2 % 65.2 % 65.2 % 67.7 % 0.0 % 0.0 % -2.5 % 2016 63.8 % 63.8 % 63.8 % 65.4 % 0.0 % 0.0 % -1.6 % 2017 64.7 % 64.7 % 64.7 % 64.0 % 0.0 % 0.0 % 0.7 % 2018 65.5 % 65.4 % 65.2 % 63.6 % 0.1 % 0.3 % 1.9 % 2019 66.8 % 66.8 % 66.6 % 64.0 % 0.0 % 0.2 % 2.8 % 2020 67.5 % 67.8 % 67.8 % 63.4 % -0.3 % -0.3 % 4.1 % 2021 64.9 % 65.5 % 66.2 % 66.3 % -0.6 % -1.3 % -1.4 % 2022 63.5 % 64.3 % 66.3 % 67.5 % -0.8 % -2.8 % -4.0 % 2023 67.6 % 67.5 % — 67.6 % 0.1 % — 0.0 % Dealer Loans Forecasted Collection Percentage as of (1) (2) Current Forecast Variance from Consumer Loan September 30, 2023 June 30, 2023 December 31, 2022 Initial June 30, 2023 December 31, 2022 Initial 2014 71.6 % 71.6 % 71.6 % 71.9 % 0.0 % 0.0 % -0.3 % 2015 64.6 % 64.6 % 64.5 % 67.5 % 0.0 % 0.1 % -2.9 % 2016 63.0 % 63.0 % 63.0 % 65.1 % 0.0 % 0.0 % -2.1 % 2017 64.0 % 64.0 % 64.0 % 63.8 % 0.0 % 0.0 % 0.2 % 2018 64.9 % 64.8 % 64.6 % 63.6 % 0.1 % 0.3 % 1.3 % 2019 66.5 % 66.5 % 66.3 % 63.9 % 0.0 % 0.2 % 2.6 % 2020 67.4 % 67.6 % 67.7 % 63.3 % -0.2 % -0.3 % 4.1 % 2021 64.6 % 65.2 % 66.0 % 66.3 % -0.6 % -1.4 % -1.7 % 2022 62.9 % 63.7 % 65.8 % 67.3 % -0.8 % -2.9 % -4.4 % 2023 66.7 % 66.8 % — 66.9 % -0.1 % — -0.2 % Purchased Loans Forecasted Collection Percentage as of (1) (2) Current Forecast Variance from Consumer Loan September 30, 2023 June 30, 2023 December 31, 2022 Initial June 30, 2023 December 31, 2022 Initial 2014 72.5 % 72.5 % 72.5 % 70.9 % 0.0 % 0.0 % 1.6 % 2015 68.9 % 68.9 % 68.9 % 68.5 % 0.0 % 0.0 % 0.4 % 2016 66.1 % 66.0 % 66.0 % 66.5 % 0.1 % 0.1 % -0.4 % 2017 66.3 % 66.3 % 66.3 % 64.6 % 0.0 % 0.0 % 1.7 % 2018 66.8 % 66.7 % 66.4 % 63.5 % 0.1 % 0.4 % 3.3 % 2019 67.5 % 67.5 % 67.2 % 64.2 % 0.0 % 0.3 % 3.3 % 2020 67.8 % 68.0 % 68.0 % 63.6 % -0.2 % -0.2 % 4.2 % 2021 65.4 % 66.0 % 66.7 % 66.3 % -0.6 % -1.3 % -0.9 % 2022 65.0 % 65.7 % 67.4 % 68.0 % -0.7 % -2.4 % -3.0 % 2023 69.9 % 69.2 % — 69.2 % 0.7 % — 0.7 % (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. (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 of 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 September 30, 2023 and December 31, 2022, segmented by year of assignment: (In millions) Total Loans as of September 30, 2023 (1) (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due Over 90 Days 2018 and prior $ 44.7 $ 27.1 $ 110.3 $ 205.3 $ 387.4 2019 209.7 105.2 275.8 30.3 621.0 2020 415.0 190.3 335.8 3.2 944.3 2021 728.9 295.0 382.5 0.3 1,406.7 2022 1,807.0 540.2 381.6 — 2,728.8 2023 3,209.7 451.4 62.9 — 3,724.0 $ 6,415.0 $ 1,609.2 $ 1,548.9 $ 239.1 $ 9,812.2 (In millions) Dealer Loans as of September 30, 2023 (1) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2018 and prior $ 21.5 $ 12.9 $ 53.4 $ 119.8 $ 207.6 2019 97.7 48.5 129.8 17.0 293.0 2020 255.4 113.9 203.9 2.5 575.7 2021 498.4 195.6 253.9 0.2 948.1 2022 1,326.7 391.9 275.3 — 1,993.9 2023 2,384.2 335.7 46.4 — 2,766.3 $ 4,583.9 $ 1,098.5 $ 962.7 $ 139.5 $ 6,784.6 (In millions) Purchased Loans as of September 30, 2023 (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2018 and prior $ 23.2 $ 14.2 $ 56.9 $ 85.5 $ 179.8 2019 112.0 56.7 146.0 13.3 328.0 2020 159.6 76.4 131.9 0.7 368.6 2021 230.5 99.4 128.6 0.1 458.6 2022 480.3 148.3 106.3 — 734.9 2023 825.5 115.7 16.5 — 957.7 $ 1,831.1 $ 510.7 $ 586.2 $ 99.6 $ 3,027.6 (In millions) Total Loans as of December 31, 2022 (1) (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due Over 90 Days 2017 and prior $ 16.1 $ 9.6 $ 42.2 $ 167.7 $ 235.6 2018 142.8 71.7 197.5 37.3 449.3 2019 446.5 214.0 411.9 6.5 1,078.9 2020 732.6 332.8 421.1 0.9 1,487.4 2021 1,209.1 480.4 398.8 — 2,088.3 2022 3,036.1 631.1 158.8 — 3,826.0 $ 5,583.2 $ 1,739.6 $ 1,630.3 $ 212.4 $ 9,165.5 (In millions) Dealer Loans as of December 31, 2022 (1) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2017 and prior $ 7.7 $ 4.5 $ 20.4 $ 103.1 $ 135.7 2018 71.5 34.3 97.3 21.3 224.4 2019 215.2 100.7 196.9 4.2 517.0 2020 461.6 204.6 259.4 0.7 926.3 2021 836.1 324.8 268.0 — 1,428.9 2022 2,258.6 467.1 116.8 — 2,842.5 $ 3,850.7 $ 1,136.0 $ 958.8 $ 129.3 $ 6,074.8 (In millions) Purchased Loans as of December 31, 2022 (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2017 and prior $ 8.4 $ 5.1 $ 21.8 $ 64.6 $ 99.9 2018 71.3 37.4 100.2 16.0 224.9 2019 231.3 113.3 215.0 2.3 561.9 2020 271.0 128.2 161.7 0.2 561.1 2021 373.0 155.6 130.8 — 659.4 2022 777.5 164.0 42.0 — 983.5 $ 1,732.5 $ 603.6 $ 671.5 $ 83.1 $ 3,090.7 (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. (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. (3) Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms. (4) Represents the Loan balance attributable to Consumer Loans outstanding beyond their initial loan terms. (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. The following table summarizes the write-offs for Consumer Loan assignments for the three and nine months ended September 30, 2023, segmented by year of assignment: (In millions) For the Three Months Ended September 30, 2023 Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total 2018 and prior $ 29.5 $ 24.3 $ 53.8 2019 26.2 43.2 69.4 2020 28.9 23.8 52.7 2021 30.3 28.7 59.0 2022 31.7 38.5 70.2 2023 7.1 21.7 28.8 $ 153.7 $ 180.2 $ 333.9 (In millions) For the Nine Months Ended September 30, 2023 Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total 2018 and prior $ 95.1 $ 83.7 $ 178.8 2019 76.9 142.3 219.2 2020 80.2 78.7 158.9 2021 75.7 90.9 166.6 2022 78.0 118.9 196.9 2023 11.3 32.2 43.5 $ 417.2 $ 546.7 $ 963.9 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. During the first half of 2023, we 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 third quarter of 2023. Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change through 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. The COVID-19 pandemic created conditions that increased the level of uncertainty associated with our estimate of the amount and timing of future net cash flows from our Loan portfolio. During the first quarter of 2020, we applied a subjective adjustment to our forecasting model to reflect our best estimate of the future impact of the COVID-19 pandemic on future net cash flows (“COVID forecast adjustment”), which reduced our estimate of future net cash flows by $162.2 million. We continued to apply the COVID forecast adjustment through the end of 2021 as it continued to represent our best estimate. During the first quarter of 2022, we determined that we had sufficient Consumer Loan performance experience since the lapse of federal stimulus payments and enhanced unemployment benefits to refine our estimate of future net cash flows. Accordingly, during the first quarter of 2022, we removed the COVID forecast adjustment and enhanced our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent data and new forecast variables. The removal of the COVID forecast adjustment and the implementation of the enhanced forecasting methodology during the first quarter of 2022 impacted forecasted net cash flows and provision for credit losses as follows: (In millions) Increase / (Decrease) in Forecasting Methodology Changes Forecasted Net Cash Flows Provision for Credit Losses Removal of COVID forecast adjustment $ 149.5 $ (118.5) Implementation of enhanced forecasting methodology (53.8) 47.9 Total $ 95.7 $ (70.6) |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Reinsurance [Text Block] | REINSURANCE A summary of reinsurance activity is as follows: (In millions) For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Net assumed written premiums $ 22.6 $ 18.8 $ 71.5 $ 55.6 Net premiums earned 20.8 16.4 58.0 45.6 Provision for claims 16.5 12.9 54.1 34.0 Amortization of capitalized acquisition costs 0.3 0.3 1.3 1.1 The trust assets and related reinsurance liabilities are as follows: (In millions) As of Balance Sheet Location September 30, 2023 December 31, 2022 Trust assets Restricted cash and cash equivalents $ 1.7 $ 0.4 Trust assets Restricted securities available for sale 86.2 72.3 Unearned premium Accounts payable and accrued liabilities 67.9 54.4 Claims reserve (1) Accounts payable and accrued liabilities 5.7 3.1 (1) The claims reserve represents our liability for incurred-but-not-reported claims and is estimated based on historical claims experience. |
Other Income
Other Income | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER INCOME Other income consists of the following: (In millions) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Ancillary product profit sharing $ 7.8 $ 13.7 $ 24.4 $ 41.3 Interest 5.3 1.9 14.3 2.9 Remarketing fees 2.5 7.1 8.2 11.0 Other 0.5 0.6 1.6 2.3 Total $ 16.1 $ 23.3 $ 48.5 $ 57.5 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 Three Months Ended September 30, 2023 Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income Source of Income Third Party Providers $ 7.8 $ 5.3 $ — $ 0.1 $ 13.2 Dealers — — 2.5 0.4 2.9 Total $ 7.8 $ 5.3 $ 2.5 $ 0.5 $ 16.1 Timing of Revenue Recognition Over time $ 7.8 $ 5.3 $ — $ 0.2 $ 13.3 At a point in time — — 2.5 0.3 2.8 Total $ 7.8 $ 5.3 $ 2.5 $ 0.5 $ 16.1 (In millions) For the Nine Months Ended September 30, 2023 Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income Source of Income Third Party Providers $ 24.4 $ 14.3 $ — $ 0.1 $ 38.8 Dealers — — 8.2 1.5 9.7 Total $ 24.4 $ 14.3 $ 8.2 $ 1.6 $ 48.5 Timing of Revenue Recognition Over time $ 24.4 $ 14.3 $ — $ 0.8 $ 39.5 At a point in time — — 8.2 0.8 9.0 Total $ 24.4 $ 14.3 $ 8.2 $ 1.6 $ 48.5 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consists of the following: (In millions) As of September 30, 2023 Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying Revolving secured lines of credit (1) $ 102.1 $ — $ — $ 102.1 Secured financing (2) 4,057.9 (21.0) (2.7) 4,034.2 Senior notes 800.0 (4.0) — 796.0 Mortgage note 8.5 — — 8.5 Total debt $ 4,968.5 $ (25.0) $ (2.7) $ 4,940.8 (In millions) As of December 31, 2022 Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying Revolving secured lines of credit (1) $ 30.9 $ — $ — $ 30.9 Secured financing (2) 3,776.7 (16.9) (3.4) 3,756.4 Senior notes 800.0 (5.5) — 794.5 Mortgage note 8.9 — — 8.9 Total debt $ 4,616.5 $ (22.4) $ (3.4) $ 4,590.7 (1) Excludes deferred debt issuance cost s of $4.6 million and $3.9 million as of September 30, 2023 and December 31, 2022, respectively, which are included in other assets. (2) Warehouse facilities and Term ABS financings. General information for each of our financing transactions in place as of September 30, 2023 is as follows: (Dollars in millions) Financings Wholly Owned Maturity Date Financing Interest Rate Basis as of Revolving Secured Line of Credit Facility n/a 06/22/2026 $ 390.0 At our option, either the Bloomberg Short-Term Bank Yield Index rate (BSBY) plus 187.5 basis points or the prime rate plus 87.5 basis points RTP Facility n/a — (1) $ 20.0 BSBY plus 187.5 basis points Warehouse Facility II (2) CAC Warehouse Funding LLC II 04/30/2026 (3) 400.0 The Secured Overnight Financing Rate (SOFR) plus 230 basis points (4) Warehouse Facility IV (2) CAC Warehouse Funding LLC IV 05/20/2025 (3) 300.0 SOFR plus 221.4 basis points (4) Warehouse Facility V (2) CAC Warehouse Funding LLC V 12/29/2025 (5) 200.0 SOFR plus 245 basis points (4) Warehouse Facility VI (2) CAC Warehouse Funding LLC VI 09/30/2026 (3) 75.0 BSBY plus 200 basis points Warehouse Facility VIII (2) CAC Warehouse Funding LLC VIII 09/21/2026 (3) 200.0 SOFR plus 225.0 basis points (4) Term ABS 2019-2 (2) Credit Acceptance Funding LLC 2019-2 08/15/2025 (6) 500.0 Fixed rate Term ABS 2020-2 (2) Credit Acceptance Funding LLC 2020-2 07/15/2022 (3) 481.8 Fixed rate Term ABS 2020-3 (2) Credit Acceptance Funding LLC 2020-3 10/17/2022 (3) 600.0 Fixed rate Term ABS 2021-1 (2) Credit Acceptance Funding LLC 2021-1 12/16/2024 (6) 100.0 SOFR plus 220 basis points (4) Term ABS 2021-2 (2) Credit Acceptance Funding LLC 2021-2 02/15/2023 (3) 500.0 Fixed rate Term ABS 2021-3 (2) Credit Acceptance Funding LLC 2021-3 05/15/2023 (3) 450.0 Fixed rate Term ABS 2021-4 (2) Credit Acceptance Funding LLC 2021-4 10/16/2023 (3) 250.1 Fixed rate Term ABS 2022-1 (2) Credit Acceptance Funding LLC 2022-1 06/17/2024 (3) 350.0 Fixed rate Term ABS 2022-2 (2) Credit Acceptance Funding LLC 2022-2 12/15/2025 (6) 200.0 SOFR plus 235 basis points (4) Term ABS 2022-3 (2) Credit Acceptance Funding LLC 2022-3 10/15/2024 (3) 389.9 Fixed rate Term ABS 2023-1 (2) Credit Acceptance Funding LLC 2023-1 03/17/2025 (3) 400.0 Fixed rate Term ABS 2023-2 (2) Credit Acceptance Funding LLC 2023-2 5/15/2025 (3) $ 400.0 Fixed rate Term ABS 2023-3 (2) Credit Acceptance Funding LLC 2023-3 8/15/2025 (3) $ 400.0 Fixed rate 2024 Senior Notes n/a 12/31/2024 400.0 Fixed rate 2026 Senior Notes n/a 03/15/2026 400.0 Fixed rate Mortgage Note (2) Chapter 4 Properties, LLC 08/06/2028 9.0 BSBY plus 150 basis points (1) Borrowings are subject to repayment on demand. (2) Financing made available only to a specified subsidiary of the Company. (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. (4) Interest rate cap agreements are in place to limit the exposure to increasing interest rates. (5) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 27, 2027 will be due on that date. (6) Represents the revolving maturity date. The Company has the option to redeem and retire the indebtedness after the revolving maturity date. If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets. Additional information related to the amounts outstanding on each facility is as follows: (In millions) For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Revolving Secured Lines of Credit Maximum outstanding principal balance $ 302.2 $ 356.3 $ 355.5 $ 379.7 Average outstanding principal balance 171.1 169.1 152.4 152.8 Warehouse Facility II Maximum outstanding principal balance 201.0 100.0 201.0 201.0 Average outstanding principal balance 86.2 71.7 55.2 83.1 Warehouse Facility IV Maximum outstanding principal balance — — — 43.8 Average outstanding principal balance — — — 5.7 Warehouse Facility V Maximum outstanding principal balance — — — — Average outstanding principal balance — — — — Warehouse Facility VI Maximum outstanding principal balance — 50.0 — 50.0 Average outstanding principal balance — 50.0 — 17.2 Warehouse Facility VIII Maximum outstanding principal balance — — — 48.2 Average outstanding principal balance — — — 6.3 (Dollars in millions) As of September 30, 2023 December 31, 2022 Revolving Secured Lines of Credit Principal balance outstanding $ 102.1 $ 30.9 Amount available for borrowing (1) 307.9 379.1 Interest rate 7.26 % 6.25 % Warehouse Facility II Principal balance outstanding $ 201.0 $ — Amount available for borrowing (1) 199.0 400.0 Loans pledged as collateral 244.9 — Restricted cash and cash equivalents pledged as collateral 9.7 1.0 Interest rate 7.60 % — % Warehouse Facility IV Principal balance outstanding $ — $ — Amount available for borrowing (1) 300.0 300.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral 1.0 1.0 Interest rate — % — % Warehouse Facility V Principal balance outstanding $ — $ — Amount available for borrowing (1) 200.0 200.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral 1.0 1.0 Interest rate — % — % Warehouse Facility VI Principal balance outstanding $ — $ — Amount available for borrowing (1) 75.0 75.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral — — Interest rate — % — % Warehouse Facility VIII Principal balance outstanding $ — $ — Amount available for borrowing (1) 200.0 200.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral — — Interest rate — % — % Term ABS 2019-2 Principal balance outstanding $ 500.0 $ 500.0 Loans pledged as collateral 554.8 627.5 Restricted cash and cash equivalents pledged as collateral 45.7 51.0 Interest rate 5.15 % 5.15 % Term ABS 2019-3 Principal balance outstanding $ — $ 64.4 Loans pledged as collateral — 200.9 Restricted cash and cash equivalents pledged as collateral — 24.5 Interest rate — % 3.00 % Term ABS 2020-1 Principal balance outstanding $ — $ 144.6 Loans pledged as collateral — 362.5 Restricted cash and cash equivalents pledged as collateral — 38.8 Interest rate — % 2.51 % Term ABS 2020-2 Principal balance outstanding $ 62.9 $ 307.0 Loans pledged as collateral 289.1 452.0 Restricted cash and cash equivalents pledged as collateral 34.2 43.9 Interest rate 2.70 % 1.81 % Term ABS 2020-3 Principal balance outstanding $ 196.1 $ 520.7 Loans pledged as collateral 467.1 655.1 Restricted cash and cash equivalents pledged as collateral 45.4 53.9 Interest rate 1.86 % 1.47 % Term ABS 2021-1 Principal balance outstanding $ 100.0 $ 100.0 Loans pledged as collateral 112.7 115.0 Restricted cash and cash equivalents pledged as collateral 8.9 8.5 Interest rate 7.53 % 6.52 % Term ABS 2021-2 Principal balance outstanding $ 269.0 $ 500.0 Loans pledged as collateral 460.3 572.9 Restricted cash and cash equivalents pledged as collateral 39.7 44.5 Interest rate 1.25 % 1.12 % Term ABS 2021-3 Principal balance outstanding $ 338.9 $ 450.0 Loans pledged as collateral 438.0 519.9 Restricted cash and cash equivalents pledged as collateral 36.4 38.8 Interest rate 1.19 % 1.14 % Term ABS 2021-4 Principal balance outstanding $ 250.1 $ 250.1 Loans pledged as collateral 267.9 278.5 Restricted cash and cash equivalents pledged as collateral 22.0 21.8 Interest rate 1.44 % 1.44 % Term ABS 2022-1 Principal balance outstanding $ 350.0 $ 350.0 Loans pledged as collateral 379.1 434.7 Restricted cash and cash equivalents pledged as collateral 26.6 27.7 Interest rate 5.03 % 5.03 % Term ABS 2022-2 Principal balance outstanding $ 200.0 $ 200.0 Loans pledged as collateral 214.4 229.3 Restricted cash and cash equivalents pledged as collateral 15.0 25.6 Interest rate 7.76 % 6.65 % Term ABS 2022-3 Principal balance outstanding $ 389.9 $ 389.9 Loans pledged as collateral 423.9 429.2 Restricted cash and cash equivalents pledged as collateral 29.3 27.6 Interest rate 7.68 % 7.68 % Term ABS 2023-1 Principal balance outstanding $ 400.0 $ — Loans pledged as collateral 629.9 — Restricted cash and cash equivalents pledged as collateral 39.4 — Interest rate 6.92 % — % Term ABS 2023-2 Principal balance outstanding $ 400.0 $ — Loans pledged as collateral 694.6 — Restricted cash and cash equivalents pledged as collateral 41.9 — Interest rate 6.39 % — % Term ABS 2023-3 Principal balance outstanding $ 400.0 $ — Loans pledged as collateral 604.8 — Restricted cash and cash equivalents pledged as collateral 37.2 — Interest rate 6.86 % — % 2024 Senior Notes Principal balance outstanding $ 400.0 $ 400.0 Interest rate 5.125 % 5.125 % 2026 Senior Notes Principal balance outstanding $ 400.0 $ 400.0 Interest rate 6.625 % 6.625 % Mortgage Note Principal balance outstanding $ 8.5 $ 8.9 Interest rate 6.87 % 5.46 % (1) Availability may be limited by the amount of assets pledged as collateral. 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 value of Loans, as defined in the agreement governing our revolving secured line of credit facility, less a hedging reserve (not exceeding $1.0 million), and the amount of other 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. We entered into the RTP facility on May 3, 2023. 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 $1,175.0 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 intended to be unavailable to our creditors. The subsidiaries pay us a monthly servicing fee equal to either 4% or 6%, depending upon the facility, 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, and 2022-2 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, and 2022-2 financings pledged the Loans for the benefit of their respective lenders. The Term ABS 2020-2, 2020-3, 2021-2, 2021-3, 2021-4, 2023-1, 2023-2, and 2023-3 financings each consist of three classes of notes, while the Term ABS 2022-1 and Term ABS 2022-3 financings consist of four classes of notes. 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, and 2022-2 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 intended to be unavailable to our creditors. We receive a monthly servicing fee on each financing equal to either 4% or 6%, depending upon the financing, 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 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. The table below sets forth certain additional details regarding the outstanding Term ABS financings: (Dollars in millions) Term ABS Financings Closing Date Net Book Value of Loans Revolving Period Term ABS 2019-2 August 28, 2019 $ 625.1 Through August 15, 2025 Term ABS 2020-2 July 23, 2020 602.3 Through July 15, 2022 Term ABS 2020-3 October 22, 2020 750.1 Through October 17, 2022 Term ABS 2021-1 January 29, 2021 125.1 Through December 16, 2024 Term ABS 2021-2 February 18, 2021 625.1 Through February 15, 2023 Term ABS 2021-3 May 20, 2021 562.6 Through May 15, 2023 Term ABS 2021-4 October 28, 2021 312.6 Through October 16, 2023 Term ABS 2022-1 June 16, 2022 437.6 Through June 17, 2024 Term ABS 2022-2 December 15, 2022 250.1 Through December 15, 2025 Term ABS 2022-3 November 3, 2022 500.1 Through October 15, 2024 Term ABS 2023-1 March 16, 2023 500.2 Through March 17, 2025 Term ABS 2023-2 May 25, 2023 500.1 Through May 15, 2025 Term ABS 2023-3 August 24, 2023 500.1 Through August 15, 2025 Senior Notes On December 18, 2019, we issued $400.0 million aggregate principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”). The 2024 senior notes were issued pursuant to an indenture, dated as of December 18, 2019, 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 U.S. Bank National Association, as trustee. The 2024 senior notes mature on December 31, 2024 and bear interest at a rate of 5.125% per annum, computed on the basis of a 360-day year composed of twelve 30-day months and payable semi-annually on June 30 and December 31 of each year, beginning on June 30, 2020. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of our 6.125% senior notes due 2021 (the “2021 senior notes”), of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility and cash on hand to the extent available, to redeem in full the $250.0 million outstanding principal amount of our 7.375% senior notes due 2023 (the “2023 senior notes”) on March 15, 2020. During the fourth quarter of 2019, we recognized a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of the 2021 senior notes in the fourth quarter of 2019 and the irrevocable notice given in December 2019 for the redemption of the remaining 2021 senior notes in the first quarter of 2020. During the first quarter of 2020, we recognized a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of the 2023 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 U.S. Bank National Association, as trustee. The 2026 senior notes mature on March 15, 2026 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, 2019. We used the net proceeds from the offering of the 2026 senior notes for general corporate purposes, including repayment of outstanding borrowings under our revolving secured line of credit facility. The 2024 senior notes and 2026 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. Mortgage Note We have a $9.0 million mortgage note with a commercial bank that is secured by a first mortgage lien on a building acquired by us and an assignment of all leases, rents, revenues, and profits under all present and future leases of the building. The note matures on August 6, 2028, and bears interest at BSBY plus 150 basis points. Debt Covenants As of September 30, 2023, we were in compliance with our covenants under our revolving secured line of credit facility and our Warehouse facilities, including those 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. Our Warehouse facilities also contain covenants that measure the performance of the conveyed assets. Our Term ABS financings also contain covenants that measure the performance of the conveyed assets. As of September 30, 2023, we were in compliance with all such covenants. As of the end of the quarter, we were also in compliance with our covenants under the senior notes indentures and the RTP facility. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | DERIVATIVE AND HEDGING INSTRUMENTS Interest Rate Caps. We utilize interest rate cap agreements to manage the interest rate risk on certain secured financings. The following tables provide the terms of our interest rate cap agreements that were in effect as of September 30, 2023 and December 31, 2022: (Dollars in millions) As of September 30, 2023 Facility Amount Facility Name Purpose Start End Notional Cap Interest Rate (1) $ 400.0 Warehouse Facility II Cap Floating Rate 07/2022 12/2023 $ 205.0 6.50 % 300.0 Warehouse Facility IV Cap Floating Rate 05/2023 11/2024 300.0 7.50 % 200.0 Warehouse Facility V Cap Floating Rate 04/2023 01/2026 94.0 5.44 % 200.0 Warehouse Facility VIII Cap Floating Rate 09/2022 09/2025 200.0 5.42 % 100.0 Term ABS 2021-1 Cap Floating Rate 04/2023 06/2024 56.3 5.46 % 200.0 Term ABS 2022-2 Cap Floating Rate 12/2022 06/2024 200.0 6.50 % (Dollars in millions) As of December 31, 2022 Facility Amount Facility Name Purpose Start End Notional Cap Interest Rate (1) $ 400.0 Warehouse Facility II Cap Floating Rate 07/2022 12/2023 $ 205.0 6.50 % 300.0 Warehouse Facility IV Cap Floating Rate 07/2019 07/2023 175.0 6.50 % 200.0 Warehouse Facility V Cap Floating Rate 12/2020 01/2026 94.0 5.50 % 200.0 Warehouse Facility VIII Cap Floating Rate 08/2019 08/2023 116.7 5.50 % Cap Floating Rate 09/2022 09/2025 83.3 5.50 % 200.0 100.0 Term ABS 2021-1 Cap Floating Rate 02/2021 06/2024 100.0 5.50 % 200.0 Term ABS 2022-2 Cap Floating Rate 12/2022 06/2024 200.0 6.50 % (1) Rate excludes the spread over the corresponding benchmark rate. The interest rate caps have not been designated as hedging instruments. As of September 30, 2023 and December 31, 2022, the interest rate caps had a fair value of $0.9 million and $2.0 million, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State and local income taxes 4.3 % 6.9 % 2.8 % 3.9 % Excess tax benefits from stock-based compensation — % — % -2.1 % -0.1 % Other 1.3 % 1.0 % 1.7 % 0.8 % Effective income tax rate 26.6 % 28.9 % 23.4 % 25.6 % State and local income taxes For the three months ended September 30, 2023, the impact of state and local income taxes on our effective income tax rate decreased from the same period in 2022 primarily due to the greater impact of state and local tax law changes recorded in the prior period. For the nine months ended September 30, 2023, the impact of state and local income taxes on our effective income tax rate decreased from the same period in 2022 primarily due to the settlement of an uncertain tax position for state income taxes during the second quarter of 2023. Excess tax benefits from stock-based compensation 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 units are converted to 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 impact of excess tax benefits on our effective income tax rate for the nine months ended September 30, 2023 increased from the same period in 2022 primarily due to an increase in the number of restricted stock units that were converted to common stock during the first quarter of 2023 due to the timing of long-term stock award grants. Other Other items impacting our effective income tax rate primarily consist of non-deductible executive compensation expense. The impact of non-deductible expense on our effective income tax rate for the three and nine months ended September 30, 2023 increased in magnitude from the same periods in 2022 due to an increase in non-deductible executive compensation and a decrease in pre-tax income. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 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: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Weighted average shares outstanding: Common shares 12,716,387 12,927,081 12,785,870 13,296,064 Vested restricted stock units 216,990 366,143 227,474 366,114 Basic number of weighted average shares outstanding 12,933,377 13,293,224 13,013,344 13,662,178 Dilutive effect of restricted stock units and stock options 106,261 70,936 55,654 75,693 Dilutive number of weighted average shares outstanding 13,039,638 13,364,160 13,068,998 13,737,871 The following outstanding stock awards were excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive : For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Stock options 89,625 63,875 229,123 56,321 Restricted stock units 3,186 4,000 3,132 2,432 Total 92,811 67,875 232,255 58,753 |
Stock Repurchases
Stock Repurchases | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stock Repurchases [Text Block] | STOCK REPURCHASES The following table summarizes our stock repurchases for the three and nine months ended September 30, 2023 and 2022: (Dollars in millions) For the Three Months Ended September 30, 2023 2022 Stock Repurchases Number of Shares Repurchased Cost Number of Shares Repurchased Cost Open Market (1) 256,232 $ 126.3 53,769 $ 26.5 (Dollars in millions) For the Nine Months Ended September 30, 2023 2022 Stock Repurchases Number of Shares Repurchased Cost Number of Shares Repurchased Cost Open Market (1) 272,034 $ 133.9 1,259,712 $ 678.2 Other (2) 33,459 15.1 1,745 1.0 Total 305,493 $ 149.0 1,261,457 $ 679.2 (1) Represents repurchases under authorizations by the 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 August 21, 2023, the 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 September 30, 2023, we had authorization to repurchase 1,886,035 shares of our common stock. (2) 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 conversion of restricted stock units to common stock. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS A summary of restricted stock unit activity is presented in the following table: Restricted Stock Units Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Per Share Outstanding as of December 31, 2022 341,228 $ 169.28 Granted 15,027 466.15 Converted (101,757) 233.39 Forfeited (791) 461.95 Outstanding as of September 30, 2023 253,707 $ 160.24 Stock-based compensation expense consists of the following: (In millions) For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Stock options $ 8.0 $ 8.1 $ 25.1 $ 25.1 Restricted stock units 1.3 0.6 3.9 1.8 Total $ 9.3 $ 8.7 $ 29.0 $ 26.9 We expect to recognize the future stock-based compensation expense as follows: (in millions) Year Total Projected Remainder of 2023 $ 9.9 2024 38.2 2025 9.2 2026 3.6 2027 0.1 Total $ 61.0 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingent Liabilities | 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 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 our 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. The following matters include current actions to which we are a party and updates to matters that were disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. 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 are cooperating with this inquiry and cannot predict the eventual scope, duration, or outcome at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this investigation. 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. 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 (the “CFSA case”). The court ordered the parties to file a joint letter updating the court by the earlier of November 3, 2023, or one week after a major development in the CFSA case. We are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this litigation. The Company intends to vigorously defend itself in this matter. 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 multistate investigation. We are cooperating with these investigations and cannot predict their eventual scope, duration, or outcome at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from these investigations. On December 9, 2014, we received a civil investigative subpoena from the U.S. Department of Justice pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 directing us to produce certain information relating to subprime automotive finance and related securitization activities. We have cooperated with the inquiry, but cannot predict the eventual scope, duration, or outcome at this time. As a result, we are unable to estimate the reasonably possible loss or range of reasonably possible loss arising from this investigation. 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 70.8 | $ 86.8 | $ 192.5 | $ 408.5 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Business Segment Information | Business Segment Information We currently operate in one reportable segment which represents our core business of offering financing programs that enable Dealers to sell vehicles to consumers, regardless of their credit history. The consolidated financial statements reflect the financial results of our one reportable operating segment. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents | 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 September 30, 2023 and December 31, 2022, we had $2.8 million and $7.1 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 September 30, 2023 and December 31, 2022, we had $431.2 million and $406.5 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 September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 Cash and cash equivalents $ 3.1 $ 7.7 $ 10.7 $ 23.3 Restricted cash and cash equivalents 435.1 410.0 384.7 410.9 Total cash and cash equivalents and restricted cash and cash equivalents $ 438.2 $ 417.7 $ 395.4 $ 434.2 |
Restricted Securities, Available-for-sale | 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 | 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: • the consumer and Dealer have signed a Consumer Loan contract; and • 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: • the Consumer Loan has been legally assigned to us; and • 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: • We have two financing programs: the Portfolio Program and the Purchase Program. We are considered to be a lender to our Dealers for Consumer Loans assigned under the Portfolio Program and a purchaser of Consumer Loans assigned under the Purchase Program. • 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. • 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 by consumers with impaired or limited credit histories. Our determination is based on the following: • 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. • We only accept Consumer Loan assignments from Dealers located within the United States. Recognition and Measurement Policies. 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 qualified for transition relief and are accounted for as purchased financial assets with credit deterioration (“PCD Method”). Under the PCD Method, for each reporting period subsequent to the adoption of CECL, we: • recognize finance charge revenue using the effective interest rate that was calculated on the adoption date based on expected future net cash flows; and • 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. Consumer Loans assigned to us on or subsequent to January 1, 2020 do not qualify for the PCD Method and are accounted for as originated financial assets (“Originated Method”). While the cash flows we expect to collect at the time of assignment are significantly lower than the contractual cash flows owed to us due to credit quality, our Loans do not qualify for the PCD Method because the assignment of the Consumer Loan to us occurs a moment after the Consumer Loan is originated by the Dealer, so “a more-than-insignificant deterioration in credit quality since origination” has not occurred at the time of assignment. In addition, Dealer Loans also do not qualify for the PCD Method because Consumer Loans assigned to us under the Portfolio Program are considered to be advances under Dealer Loans originated by us rather than Consumer Loans purchased by us. Under the Originated Method, at the time of assignment, we: • calculate the effective interest rate based on contractual future net cash flows; • 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 • 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: • 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 • 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, if assigned on or subsequent to January 1, 2020; or • aggregated into pools based on the month of purchase, if assigned prior to January 1, 2020. The outstanding balance of each Loan included in Loans receivable is comprised of the following: • 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); • finance charges; • Dealer Holdback payments; • accelerated Dealer Holdback payments; • recoveries; • transfers in; • less: collections (net of certain collection costs); • less: write-offs; and • less: transfers out. Under our 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 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 and economic conditions. 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 fully write off the outstanding balances 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 balances 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 vast 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 of 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 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. During the first quarter of 2022, we removed the COVID forecast adjustment from our estimate of future net cash flows and enhanced our methodology for forecasting the amount and timing of future net cash flows from our Loan portfolio through the utilization of more recent data and new forecast variables. For additional information, see Note 6. For the three and nine months ended September 30, 2023 and 2022, we did not make any other methodology changes for Loans that had a material impact on our financial statements. |
Finance Charges | 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 our 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 our 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). For Consumer Loans assigned on or subsequent to January 1, 2020, the effective interest rate is based on contractual future net cash flows. For Consumer Loans assigned prior to January 1, 2020, the effective interest rate was determined based on expected 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. |
Reinsurance | Reinsurance VSC Re Company (“VSC Re”), our wholly owned subsidiary, is engaged in the business of reinsuring coverage under vehicle service contracts sold to consumers by Dealers on vehicles 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: • 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. • 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. • 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. |
New Accounting Updates | New Accounting Updates Adopted During the Current Year Troubled Debt Restructurings and Vintage Disclosures. In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, which intends to improve the usefulness of information provided to investors about certain loan refinancings, restructurings, and write-offs. The adoption of ASU 2022-02 on January 1, 2023 expanded our write-off disclosures, but did not otherwise have a material impact on our consolidated financial statements. |
Description of Business (Tables
Description of Business (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Description Of Business [Abstract] | |
Percentage of Consumer Loans Assigned with FICO Score of Less Than 650 or No FICO Score | The following table shows the percentage of Consumer Loans assigned to us with either FICO ® scores below 650 or no FICO ® scores: For the Three Months Ended September 30, For the Nine Months Ended September 30, Consumer Loan Assignment Volume 2023 2022 2023 2022 Percentage of total unit volume with either FICO ® scores below 650 or no FICO ® scores 78.6 % 84.2 % 81.5 % 85.6 % |
Schedule of Percentage of Consumer Loans Assigned Based on Unit Volumes | The following table shows the percentage of Consumer Loans assigned to us as Dealer Loans and Purchased Loans for each of the last seven quarters: Unit Volume Dollar Volume (1) Three Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased Loans March 31, 2022 72.7 % 27.3 % 68.6 % 31.4 % June 30, 2022 74.0 % 26.0 % 70.4 % 29.6 % September 30, 2022 74.3 % 25.7 % 70.5 % 29.5 % December 31, 2022 73.1 % 26.9 % 69.6 % 30.4 % March 31, 2023 72.1 % 27.9 % 68.1 % 31.9 % June 30, 2023 72.4 % 27.6 % 68.6 % 31.4 % September 30, 2023 74.8 % 25.2 % 71.7 % 28.3 % (1) Represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | 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 September 30, 2023 December 31, 2022 September 30, 2022 December 31, 2021 Cash and cash equivalents $ 3.1 $ 7.7 $ 10.7 $ 23.3 Restricted cash and cash equivalents 435.1 410.0 384.7 410.9 Total cash and cash equivalents and restricted cash and cash equivalents $ 438.2 $ 417.7 $ 395.4 $ 434.2 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Comparison of the Carrying Value and Estimated Fair Value of Financial Instruments | A comparison of the carrying amount and estimated fair value of these financial instruments is as follows: (In millions) As of September 30, 2023 As of December 31, 2022 Carrying Estimated Fair Carrying Estimated Fair Assets Cash and cash equivalents $ 3.1 $ 3.1 $ 7.7 $ 7.7 Restricted cash and cash equivalents 435.1 435.1 410.0 410.0 Restricted securities available for sale 86.2 86.2 72.3 72.3 Loans receivable, net 6,780.5 7,529.4 6,297.7 6,767.9 Liabilities Revolving secured lines of credit $ 102.1 $ 102.1 $ 30.9 $ 30.9 Secured financing 4,034.2 4,015.3 3,756.4 3,581.9 Senior notes 796.0 745.0 794.5 759.0 Mortgage note 8.5 8.5 8.9 8.9 |
Schedule of Assets and Liabilities, Measured at Fair Value on a Recurring Basis | 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 September 30, 2023 Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents (1) $ 3.1 $ — $ — $ 3.1 Restricted cash and cash equivalents (1) 435.1 — — 435.1 Restricted securities available for sale (2) 69.6 16.6 — 86.2 Loans receivable, net (1) — — 7,529.4 7,529.4 Liabilities Revolving secured lines of credit (1) $ — $ 102.1 $ — $ 102.1 Secured financing (1) 3,014.2 1,001.1 — 4,015.3 Senior notes (1) 745.0 — — 745.0 Mortgage note (1) — 8.5 — 8.5 (In millions) As of December 31, 2022 Level 1 Level 2 Level 3 Total Fair Value Assets Cash and cash equivalents (1) $ 7.7 $ — $ — $ 7.7 Restricted cash and cash equivalents (1) 410.0 — — 410.0 Restricted securities available for sale (2) 58.7 13.6 — 72.3 Loans receivable, net (1) — — 6,767.9 6,767.9 Liabilities Revolving secured lines of credit (1) $ — $ 30.9 $ — $ 30.9 Secured financing (1) 2,781.8 800.1 — 3,581.9 Senior notes (1) 759.0 — — 759.0 Mortgage note (1) — 8.9 — 8.9 (1) Measured at amortized cost with fair value disclosed. |
Restricted Securities Availab_2
Restricted Securities Available For Sale (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Restricted Securities Available for Sale | Restricted securities available for sale consist of the following: (In millions) As of September 30, 2023 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair Corporate bonds $ 37.8 $ — $ (1.6) $ 36.2 U.S. Government and agency securities 34.3 — (1.7) 32.6 Asset-backed securities 16.9 — (0.5) 16.4 Municipal securities 0.8 — — 0.8 Mortgage-backed securities 0.2 — — 0.2 Total restricted securities available for sale $ 90.0 $ — $ (3.8) $ 86.2 (In millions) As of December 31, 2022 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair Corporate bonds $ 32.6 $ — $ (1.7) $ 30.9 U.S. Government and agency securities 29.5 — (1.7) 27.8 Asset-backed securities 13.8 — (0.4) 13.4 Mortgage-backed securities 0.2 — — 0.2 Total restricted securities available for sale $ 76.1 $ — $ (3.8) $ 72.3 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | 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 September 30, 2023 Less than 12 Months 12 Months or More Estimated Gross Estimated Gross Total Total Corporate bonds $ 18.5 $ (0.4) $ 16.8 $ (1.2) $ 35.3 $ (1.6) U.S. Government and agency securities 13.9 (0.4) 18.8 (1.3) 32.7 (1.7) Asset-backed securities 10.1 (0.1) 6.4 (0.4) 16.5 (0.5) Mortgage-backed securities — — 0.2 — 0.2 — Total restricted securities available for sale $ 42.5 $ (0.9) $ 42.2 $ (2.9) $ 84.7 $ (3.8) (In millions) Securities Available for Sale with Gross Unrealized Losses as of December 31, 2022 Less than 12 Months 12 Months or More Estimated Gross Estimated Gross Total Total Corporate bonds $ 15.1 $ (0.6) $ 13.3 $ (1.1) $ 28.4 $ (1.7) U.S. Government and agency securities 18.0 (0.8) 9.2 (0.9) 27.2 (1.7) Asset-backed securities 6.6 (0.1) 4.4 (0.3) 11.0 (0.4) Mortgage-backed securities 0.3 — — — 0.3 — Total restricted securities available for sale $ 40.0 $ (1.5) $ 26.9 $ (2.3) $ 66.9 $ (3.8) |
Schedule of Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | 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 September 30, 2023 December 31, 2022 Contractual Maturity Amortized Cost Estimated Fair Amortized Cost Estimated Fair Within one year $ 7.9 $ 7.7 $ 4.0 $ 3.9 Over one year to five years 74.4 71.0 66.4 63.0 Over five years to ten years 7.7 7.5 5.6 5.3 Over ten years — — 0.1 0.1 Total restricted securities available for sale $ 90.0 $ 86.2 $ 76.1 $ 72.3 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Sep. 30, 2023 | |
Receivables [Abstract] | ||
Schedule of Loans Receivable | Loans receivable and allowance for credit losses consist of the following: (In millions) As of September 30, 2023 Dealer Loans Purchased Loans Total Loans receivable $ 6,784.6 $ 3,027.6 $ 9,812.2 Allowance for credit losses (2,269.6) (762.1) (3,031.7) Loans receivable, net $ 4,515.0 $ 2,265.5 $ 6,780.5 (In millions) As of December 31, 2022 Dealer Loans Purchased Loans Total Loans receivable $ 6,074.8 $ 3,090.7 $ 9,165.5 Allowance for credit losses (2,000.0) (867.8) (2,867.8) Loans receivable, net $ 4,074.8 $ 2,222.9 $ 6,297.7 | |
Summary of Changes in Loans Receivable | A summary of changes in Loans receivable and allowance for credit losses is as follows: For the Three Months Ended September 30, 2023 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 6,534.1 $ 3,065.5 $ 9,599.6 $ (2,188.4) $ (800.9) $ (2,989.3) $ 4,345.7 $ 2,264.6 $ 6,610.3 Finance charges 401.0 231.1 632.1 (136.0) (54.4) (190.4) 265.0 176.7 441.7 Provision for credit losses — — — (108.0) (76.6) (184.6) (108.0) (76.6) (184.6) New Consumer Loan assignments (1) 732.5 289.7 1,022.2 — — — 732.5 289.7 1,022.2 Collections (2) (775.4) (406.7) (1,182.1) — — — (775.4) (406.7) (1,182.1) Accelerated Dealer Holdback payments 10.7 — 10.7 — — — 10.7 — 10.7 Dealer Holdback payments 59.0 — 59.0 — — — 59.0 — 59.0 Transfers (3) (27.3) 27.3 — 9.5 (9.5) — (17.8) 17.8 — Write-offs (153.7) (180.2) (333.9) 153.7 180.2 333.9 — — — Recoveries (4) 0.4 0.9 1.3 (0.4) (0.9) (1.3) — — — Deferral of Loan origination costs 3.3 — 3.3 — — — 3.3 — 3.3 Balance, end of period $ 6,784.6 $ 3,027.6 $ 9,812.2 $ (2,269.6) $ (762.1) $ (3,031.7) $ 4,515.0 $ 2,265.5 $ 6,780.5 For the Three Months Ended September 30, 2022 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,832.9 $ 3,357.7 $ 9,190.6 $ (1,844.8) $ (1,022.1) $ (2,866.9) $ 3,988.1 $ 2,335.6 $ 6,323.7 Finance charges 351.6 244.5 596.1 (112.3) (63.2) (175.5) 239.3 181.3 420.6 Provision for credit losses — — — (95.2) (85.1) (180.3) (95.2) (85.1) (180.3) New Consumer Loan assignments (1) 651.9 273.0 924.9 — — — 651.9 273.0 924.9 Collections (2) (789.2) (448.9) (1,238.1) — — — (789.2) (448.9) (1,238.1) Accelerated Dealer Holdback payments 10.3 — 10.3 — — — 10.3 — 10.3 Dealer Holdback payments 48.3 — 48.3 — — — 48.3 — 48.3 Transfers (3) (13.8) 13.8 — 3.6 (3.6) — (10.2) 10.2 — Write-offs (116.1) (232.7) (348.8) 116.1 232.7 348.8 — — — Recoveries (4) 0.1 0.8 0.9 (0.1) (0.8) (0.9) — — — Deferral of Loan origination costs 2.2 — 2.2 — — — 2.2 — 2.2 Balance, end of period $ 5,978.2 $ 3,208.2 $ 9,186.4 $ (1,932.7) $ (942.1) $ (2,874.8) $ 4,045.5 $ 2,266.1 $ 6,311.6 For the Nine Months Ended September 30, 2023 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 6,074.8 $ 3,090.7 $ 9,165.5 $ (2,000.0) $ (867.8) $ (2,867.8) $ 4,074.8 $ 2,222.9 $ 6,297.7 Finance charges 1,156.8 698.1 1,854.9 (386.7) (164.4) (551.1) 770.1 533.7 1,303.8 Provision for credit losses — — — (327.3) (245.2) (572.5) (327.3) (245.2) (572.5) New Consumer Loan assignments (1) 2,202.9 970.6 3,173.5 — — — 2,202.9 970.6 3,173.5 Collections (2) (2,376.9) (1,266.9) (3,643.8) — — — (2,376.9) (1,266.9) (3,643.8) Accelerated Dealer Holdback payments 35.3 — 35.3 — — — 35.3 — 35.3 Dealer Holdback payments 177.3 — 177.3 — — — 177.3 — 177.3 Transfers (3) (78.9) 78.9 — 28.5 (28.5) — (50.4) 50.4 — Write-offs (417.2) (546.7) (963.9) 417.2 546.7 963.9 — — — Recoveries (4) 1.3 2.9 4.2 (1.3) (2.9) (4.2) — — — Deferral of Loan origination costs 9.2 — 9.2 — — — 9.2 — 9.2 Balance, end of period $ 6,784.6 $ 3,027.6 $ 9,812.2 $ (2,269.6) $ (762.1) $ (3,031.7) $ 4,515.0 $ 2,265.5 $ 6,780.5 For the Nine Months Ended September 30, 2022 (In millions) Loans Receivable Allowance for Credit Losses Loans Receivable, Net Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,655.1 $ 3,694.7 $ 9,349.8 $ (1,767.8) $ (1,245.7) $ (3,013.5) $ 3,887.3 $ 2,449.0 $ 6,336.3 Finance charges 1,030.9 764.3 1,795.2 (324.3) (200.6) (524.9) 706.6 563.7 1,270.3 Provision for credit losses — — — (170.0) (181.1) (351.1) (170.0) (181.1) (351.1) New Consumer Loan assignments (1) 1,971.9 851.4 2,823.3 — — — 1,971.9 851.4 2,823.3 Collections (2) (2,488.0) (1,459.7) (3,947.7) — — — (2,488.0) (1,459.7) (3,947.7) Accelerated Dealer Holdback payments 35.2 — 35.2 — — — 35.2 — 35.2 Dealer Holdback payments 138.7 — 138.7 — — — 138.7 — 138.7 Transfers (3) (57.0) 57.0 — 14.2 (14.2) — (42.8) 42.8 — Write-offs (315.8) (701.8) (1,017.6) 315.8 701.8 1,017.6 — — — Recoveries (4) 0.6 2.3 2.9 (0.6) (2.3) (2.9) — — — Deferral of Loan origination costs 6.6 — 6.6 — — — 6.6 — 6.6 Balance, end of period $ 5,978.2 $ 3,208.2 $ 9,186.4 $ (1,932.7) $ (942.1) $ (2,874.8) $ 4,045.5 $ 2,266.1 $ 6,311.6 (1) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. (2) Represents repayments that we collected on Consumer Loans assigned under our programs. (3) Under our 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. (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. | |
Summary of Provision for Credit Losses [Table Text Block] | The following table summarizes the provision for credit losses for each of these components: (In millions) For the Three Months Ended September 30, 2023 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 37.4 $ 40.9 $ 78.3 Forecast changes 70.6 35.7 106.3 Total $ 108.0 $ 76.6 $ 184.6 (In millions) For the Three Months Ended September 30, 2022 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 37.6 $ 45.8 $ 83.4 Forecast changes 57.6 39.3 96.9 Total $ 95.2 $ 85.1 $ 180.3 (In millions) For the Nine Months Ended September 30, 2023 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 108.9 $ 144.2 $ 253.1 Forecast changes 218.4 101.0 319.4 Total $ 327.3 $ 245.2 $ 572.5 (In millions) For the Nine Months Ended September 30, 2022 Provision for Credit Losses Dealer Loans Purchased Loans Total New Consumer Loan assignments $ 130.7 $ 152.8 $ 283.5 Forecast changes 39.3 28.3 67.6 Total $ 170.0 $ 181.1 $ 351.1 | |
Summary of Information Related to New Consumer Loan Assignments | Additional information related to new Consumer Loan assignments is as follows: (In millions) For the Three Months Ended September 30, 2023 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 1,140.8 $ 577.7 $ 1,718.5 Expected net cash flows at the time of assignment (2) 1,035.1 407.6 1,442.7 Loans receivable at the time of assignment (3) 732.5 289.7 1,022.2 Provision for credit losses expense at the time of assignment $ (37.4) $ (40.9) $ (78.3) Expected future finance charges at the time of assignment (4) 340.0 158.8 498.8 Expected net Loan income at the time of assignment (5) $ 302.6 $ 117.9 $ 420.5 (In millions) For the Three Months Ended September 30, 2022 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 998.1 $ 548.2 $ 1,546.3 Expected net cash flows at the time of assignment (2) 905.6 374.2 1,279.8 Loans receivable at the time of assignment (3) 651.9 273.0 924.9 Provision for credit losses expense at the time of assignment $ (37.6) $ (45.8) $ (83.4) Expected future finance charges at the time of assignment (4) 291.3 147.0 438.3 Expected net Loan income at the time of assignment (5) $ 253.7 $ 101.2 $ 354.9 (In millions) For the Nine Months Ended September 30, 2023 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 3,435.1 $ 1,948.9 $ 5,384.0 Expected net cash flows at the time of assignment (2) 3,118.1 1,357.7 4,475.8 Loans receivable at the time of assignment (3) 2,202.9 970.6 3,173.5 Provision for credit losses expense at the time of assignment $ (108.9) $ (144.2) $ (253.1) Expected future finance charges at the time of assignment (4) 1,024.1 531.3 1,555.4 Expected net Loan income at the time of assignment (5) $ 915.2 $ 387.1 $ 1,302.3 (In millions) For the Nine Months Ended September 30, 2022 New Consumer Loan Assignments Dealer Loans Purchased Loans Total Contractual net cash flows at the time of assignment (1) $ 3,015.3 $ 1,698.3 $ 4,713.6 Expected net cash flows at the time of assignment (2) 2,736.4 1,158.9 3,895.3 Loans receivable at the time of assignment (3) 1,971.9 851.4 2,823.3 Provision for credit losses expense at the time of assignment $ (130.7) $ (152.8) $ (283.5) Expected future finance charges at the time of assignment (4) 895.2 460.3 1,355.5 Expected net Loan income at the time of assignment (5) $ 764.5 $ 307.5 $ 1,072.0 (1) The Dealer Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program. (2) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program. The Loan amounts also represent the fair value at the time of assignment. (3) The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. (4) Represents revenue that is expected to be recognized on a level-yield basis over the lives of the Loans. (5) Represents the amount that expected net cash flows at the time of assignment (2) exceed Loans receivable at the time of assignment (3). | |
Summary of Changes in Expected Future Net Cash Flows [Table Text Block] | A summary of changes in expected future net cash flows is as follows: (In millions) For the Three Months Ended September 30, 2023 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 6,166.4 $ 3,509.9 $ 9,676.3 New Consumer Loan assignments (1) 1,035.1 407.6 1,442.7 Realized net cash flows (2) (705.7) (406.7) (1,112.4) Forecast changes (40.3) (29.1) (69.4) Transfers (3) (26.5) 28.5 2.0 Balance, end of period $ 6,429.0 $ 3,510.2 $ 9,939.2 (In millions) For the Three Months Ended September 30, 2022 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,468.6 $ 3,573.6 $ 9,042.2 New Consumer Loan assignments (1) 905.6 374.2 1,279.8 Realized net cash flows (2) (730.6) (448.9) (1,179.5) Forecast changes (37.3) (48.1) (85.4) Transfers (3) (15.2) 16.9 1.7 Balance, end of period $ 5,591.1 $ 3,467.7 $ 9,058.8 (In millions) For the Nine Months Ended September 30, 2023 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,637.9 $ 3,395.5 $ 9,033.4 New Consumer Loan assignments (1) 3,118.1 1,357.7 4,475.8 Realized net cash flows (2) (2,164.3) (1,266.9) (3,431.2) Forecast changes (89.3) (60.0) (149.3) Transfers (3) (73.4) 83.9 10.5 Balance, end of period $ 6,429.0 $ 3,510.2 $ 9,939.2 (In millions) For the Nine Months Ended September 30, 2022 Expected Future Net Cash Flows Dealer Loans Purchased Loans Total Balance, beginning of period $ 5,249.7 $ 3,698.6 $ 8,948.3 New Consumer Loan assignments (1) 2,736.4 1,158.9 3,895.3 Realized net cash flows (2) (2,314.1) (1,459.7) (3,773.8) Forecast changes (17.4) (1.2) (18.6) Transfers (3) (63.5) 71.1 7.6 Balance, end of period $ 5,591.1 $ 3,467.7 $ 9,058.8 (1) The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program. (2) The Dealer Loans amount represents repayments that we collected on Consumer Loans assigned under our 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 our Purchase Program. (3) Under our 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. | |
Schedule of Consumer Loans Forecasted Collection Percentage | The following table compares our forecast of Consumer Loan collection rates as of September 30, 2023 with the forecasts as of June 30, 2023, December 31, 2022, and at the time of assignment, segmented by year of assignment: Total Loans Forecasted Collection Percentage as of (1) Current Forecast Variance from Consumer Loan September 30, 2023 June 30, 2023 December 31, 2022 Initial June 30, 2023 December 31, 2022 Initial 2014 71.7 % 71.7 % 71.7 % 71.8 % 0.0 % 0.0 % -0.1 % 2015 65.2 % 65.2 % 65.2 % 67.7 % 0.0 % 0.0 % -2.5 % 2016 63.8 % 63.8 % 63.8 % 65.4 % 0.0 % 0.0 % -1.6 % 2017 64.7 % 64.7 % 64.7 % 64.0 % 0.0 % 0.0 % 0.7 % 2018 65.5 % 65.4 % 65.2 % 63.6 % 0.1 % 0.3 % 1.9 % 2019 66.8 % 66.8 % 66.6 % 64.0 % 0.0 % 0.2 % 2.8 % 2020 67.5 % 67.8 % 67.8 % 63.4 % -0.3 % -0.3 % 4.1 % 2021 64.9 % 65.5 % 66.2 % 66.3 % -0.6 % -1.3 % -1.4 % 2022 63.5 % 64.3 % 66.3 % 67.5 % -0.8 % -2.8 % -4.0 % 2023 67.6 % 67.5 % — 67.6 % 0.1 % — 0.0 % Dealer Loans Forecasted Collection Percentage as of (1) (2) Current Forecast Variance from Consumer Loan September 30, 2023 June 30, 2023 December 31, 2022 Initial June 30, 2023 December 31, 2022 Initial 2014 71.6 % 71.6 % 71.6 % 71.9 % 0.0 % 0.0 % -0.3 % 2015 64.6 % 64.6 % 64.5 % 67.5 % 0.0 % 0.1 % -2.9 % 2016 63.0 % 63.0 % 63.0 % 65.1 % 0.0 % 0.0 % -2.1 % 2017 64.0 % 64.0 % 64.0 % 63.8 % 0.0 % 0.0 % 0.2 % 2018 64.9 % 64.8 % 64.6 % 63.6 % 0.1 % 0.3 % 1.3 % 2019 66.5 % 66.5 % 66.3 % 63.9 % 0.0 % 0.2 % 2.6 % 2020 67.4 % 67.6 % 67.7 % 63.3 % -0.2 % -0.3 % 4.1 % 2021 64.6 % 65.2 % 66.0 % 66.3 % -0.6 % -1.4 % -1.7 % 2022 62.9 % 63.7 % 65.8 % 67.3 % -0.8 % -2.9 % -4.4 % 2023 66.7 % 66.8 % — 66.9 % -0.1 % — -0.2 % Purchased Loans Forecasted Collection Percentage as of (1) (2) Current Forecast Variance from Consumer Loan September 30, 2023 June 30, 2023 December 31, 2022 Initial June 30, 2023 December 31, 2022 Initial 2014 72.5 % 72.5 % 72.5 % 70.9 % 0.0 % 0.0 % 1.6 % 2015 68.9 % 68.9 % 68.9 % 68.5 % 0.0 % 0.0 % 0.4 % 2016 66.1 % 66.0 % 66.0 % 66.5 % 0.1 % 0.1 % -0.4 % 2017 66.3 % 66.3 % 66.3 % 64.6 % 0.0 % 0.0 % 1.7 % 2018 66.8 % 66.7 % 66.4 % 63.5 % 0.1 % 0.4 % 3.3 % 2019 67.5 % 67.5 % 67.2 % 64.2 % 0.0 % 0.3 % 3.3 % 2020 67.8 % 68.0 % 68.0 % 63.6 % -0.2 % -0.2 % 4.2 % 2021 65.4 % 66.0 % 66.7 % 66.3 % -0.6 % -1.3 % -0.9 % 2022 65.0 % 65.7 % 67.4 % 68.0 % -0.7 % -2.4 % -3.0 % 2023 69.9 % 69.2 % — 69.2 % 0.7 % — 0.7 % (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. | |
Financing Receivable, Past Due [Table Text Block] | The following table summarizes the past-due status of Consumer Loan assignments as of September 30, 2023 and December 31, 2022, segmented by year of assignment: (In millions) Total Loans as of September 30, 2023 (1) (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due Over 90 Days 2018 and prior $ 44.7 $ 27.1 $ 110.3 $ 205.3 $ 387.4 2019 209.7 105.2 275.8 30.3 621.0 2020 415.0 190.3 335.8 3.2 944.3 2021 728.9 295.0 382.5 0.3 1,406.7 2022 1,807.0 540.2 381.6 — 2,728.8 2023 3,209.7 451.4 62.9 — 3,724.0 $ 6,415.0 $ 1,609.2 $ 1,548.9 $ 239.1 $ 9,812.2 (In millions) Dealer Loans as of September 30, 2023 (1) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2018 and prior $ 21.5 $ 12.9 $ 53.4 $ 119.8 $ 207.6 2019 97.7 48.5 129.8 17.0 293.0 2020 255.4 113.9 203.9 2.5 575.7 2021 498.4 195.6 253.9 0.2 948.1 2022 1,326.7 391.9 275.3 — 1,993.9 2023 2,384.2 335.7 46.4 — 2,766.3 $ 4,583.9 $ 1,098.5 $ 962.7 $ 139.5 $ 6,784.6 (In millions) Purchased Loans as of September 30, 2023 (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2018 and prior $ 23.2 $ 14.2 $ 56.9 $ 85.5 $ 179.8 2019 112.0 56.7 146.0 13.3 328.0 2020 159.6 76.4 131.9 0.7 368.6 2021 230.5 99.4 128.6 0.1 458.6 2022 480.3 148.3 106.3 — 734.9 2023 825.5 115.7 16.5 — 957.7 $ 1,831.1 $ 510.7 $ 586.2 $ 99.6 $ 3,027.6 (In millions) Total Loans as of December 31, 2022 (1) (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due Over 90 Days 2017 and prior $ 16.1 $ 9.6 $ 42.2 $ 167.7 $ 235.6 2018 142.8 71.7 197.5 37.3 449.3 2019 446.5 214.0 411.9 6.5 1,078.9 2020 732.6 332.8 421.1 0.9 1,487.4 2021 1,209.1 480.4 398.8 — 2,088.3 2022 3,036.1 631.1 158.8 — 3,826.0 $ 5,583.2 $ 1,739.6 $ 1,630.3 $ 212.4 $ 9,165.5 (In millions) Dealer Loans as of December 31, 2022 (1) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2017 and prior $ 7.7 $ 4.5 $ 20.4 $ 103.1 $ 135.7 2018 71.5 34.3 97.3 21.3 224.4 2019 215.2 100.7 196.9 4.2 517.0 2020 461.6 204.6 259.4 0.7 926.3 2021 836.1 324.8 268.0 — 1,428.9 2022 2,258.6 467.1 116.8 — 2,842.5 $ 3,850.7 $ 1,136.0 $ 958.8 $ 129.3 $ 6,074.8 (In millions) Purchased Loans as of December 31, 2022 (2) Pre-term Consumer Loans (3) Post-term Consumer Loans (4) Total Consumer Loan Assignment Year Current (5) Past Due Past Due 2017 and prior $ 8.4 $ 5.1 $ 21.8 $ 64.6 $ 99.9 2018 71.3 37.4 100.2 16.0 224.9 2019 231.3 113.3 215.0 2.3 561.9 2020 271.0 128.2 161.7 0.2 561.1 2021 373.0 155.6 130.8 — 659.4 2022 777.5 164.0 42.0 — 983.5 $ 1,732.5 $ 603.6 $ 671.5 $ 83.1 $ 3,090.7 (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. (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. (3) Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms. (4) Represents the Loan balance attributable to Consumer Loans outstanding beyond their initial loan terms. (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. | |
Schedule of write-offs for Consumer Loan assignments segmented by year of assignment | The following table summarizes the write-offs for Consumer Loan assignments for the three and nine months ended September 30, 2023, segmented by year of assignment: (In millions) For the Three Months Ended September 30, 2023 Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total 2018 and prior $ 29.5 $ 24.3 $ 53.8 2019 26.2 43.2 69.4 2020 28.9 23.8 52.7 2021 30.3 28.7 59.0 2022 31.7 38.5 70.2 2023 7.1 21.7 28.8 $ 153.7 $ 180.2 $ 333.9 (In millions) For the Nine Months Ended September 30, 2023 Write-offs by Consumer Loan Assignment Year Dealer Loans Purchased Loans Total 2018 and prior $ 95.1 $ 83.7 $ 178.8 2019 76.9 142.3 219.2 2020 80.2 78.7 158.9 2021 75.7 90.9 166.6 2022 78.0 118.9 196.9 2023 11.3 32.2 43.5 $ 417.2 $ 546.7 $ 963.9 | |
Forecast adjustment [Table Text Block] | The removal of the COVID forecast adjustment and the implementation of the enhanced forecasting methodology during the first quarter of 2022 impacted forecasted net cash flows and provision for credit losses as follows: (In millions) Increase / (Decrease) in Forecasting Methodology Changes Forecasted Net Cash Flows Provision for Credit Losses Removal of COVID forecast adjustment $ 149.5 $ (118.5) Implementation of enhanced forecasting methodology (53.8) 47.9 Total $ 95.7 $ (70.6) |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Summary of Reinsurance Activity | A summary of reinsurance activity is as follows: (In millions) For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Net assumed written premiums $ 22.6 $ 18.8 $ 71.5 $ 55.6 Net premiums earned 20.8 16.4 58.0 45.6 Provision for claims 16.5 12.9 54.1 34.0 Amortization of capitalized acquisition costs 0.3 0.3 1.3 1.1 |
Schedule of Trust Assets and Reinsurance Liabilities | The trust assets and related reinsurance liabilities are as follows: (In millions) As of Balance Sheet Location September 30, 2023 December 31, 2022 Trust assets Restricted cash and cash equivalents $ 1.7 $ 0.4 Trust assets Restricted securities available for sale 86.2 72.3 Unearned premium Accounts payable and accrued liabilities 67.9 54.4 Claims reserve (1) Accounts payable and accrued liabilities 5.7 3.1 (1) The claims reserve represents our liability for incurred-but-not-reported claims and is estimated based on historical claims experience. |
Other Income (Tables)
Other Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule Of Other Income [Table Text Block] | Other income consists of the following: (In millions) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Ancillary product profit sharing $ 7.8 $ 13.7 $ 24.4 $ 41.3 Interest 5.3 1.9 14.3 2.9 Remarketing fees 2.5 7.1 8.2 11.0 Other 0.5 0.6 1.6 2.3 Total $ 16.1 $ 23.3 $ 48.5 $ 57.5 |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates our other income by major source of income and timing of the revenue recognition: (In millions) For the Three Months Ended September 30, 2023 Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income Source of Income Third Party Providers $ 7.8 $ 5.3 $ — $ 0.1 $ 13.2 Dealers — — 2.5 0.4 2.9 Total $ 7.8 $ 5.3 $ 2.5 $ 0.5 $ 16.1 Timing of Revenue Recognition Over time $ 7.8 $ 5.3 $ — $ 0.2 $ 13.3 At a point in time — — 2.5 0.3 2.8 Total $ 7.8 $ 5.3 $ 2.5 $ 0.5 $ 16.1 (In millions) For the Nine Months Ended September 30, 2023 Ancillary Product Profit Sharing Interest Remarketing Fees Other Total Other Income Source of Income Third Party Providers $ 24.4 $ 14.3 $ — $ 0.1 $ 38.8 Dealers — — 8.2 1.5 9.7 Total $ 24.4 $ 14.3 $ 8.2 $ 1.6 $ 48.5 Timing of Revenue Recognition Over time $ 24.4 $ 14.3 $ — $ 0.8 $ 39.5 At a point in time — — 8.2 0.8 9.0 Total $ 24.4 $ 14.3 $ 8.2 $ 1.6 $ 48.5 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Principal Debt Outstanding | Debt consists of the following: (In millions) As of September 30, 2023 Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying Revolving secured lines of credit (1) $ 102.1 $ — $ — $ 102.1 Secured financing (2) 4,057.9 (21.0) (2.7) 4,034.2 Senior notes 800.0 (4.0) — 796.0 Mortgage note 8.5 — — 8.5 Total debt $ 4,968.5 $ (25.0) $ (2.7) $ 4,940.8 (In millions) As of December 31, 2022 Principal Outstanding Unamortized Debt Issuance Costs Unamortized Discount Carrying Revolving secured lines of credit (1) $ 30.9 $ — $ — $ 30.9 Secured financing (2) 3,776.7 (16.9) (3.4) 3,756.4 Senior notes 800.0 (5.5) — 794.5 Mortgage note 8.9 — — 8.9 Total debt $ 4,616.5 $ (22.4) $ (3.4) $ 4,590.7 (1) Excludes deferred debt issuance cost s of $4.6 million and $3.9 million as of September 30, 2023 and December 31, 2022, respectively, which are included in other assets. |
Schedule of General Information of Financing Transaction | General information for each of our financing transactions in place as of September 30, 2023 is as follows: (Dollars in millions) Financings Wholly Owned Maturity Date Financing Interest Rate Basis as of Revolving Secured Line of Credit Facility n/a 06/22/2026 $ 390.0 At our option, either the Bloomberg Short-Term Bank Yield Index rate (BSBY) plus 187.5 basis points or the prime rate plus 87.5 basis points RTP Facility n/a — (1) $ 20.0 BSBY plus 187.5 basis points Warehouse Facility II (2) CAC Warehouse Funding LLC II 04/30/2026 (3) 400.0 The Secured Overnight Financing Rate (SOFR) plus 230 basis points (4) Warehouse Facility IV (2) CAC Warehouse Funding LLC IV 05/20/2025 (3) 300.0 SOFR plus 221.4 basis points (4) Warehouse Facility V (2) CAC Warehouse Funding LLC V 12/29/2025 (5) 200.0 SOFR plus 245 basis points (4) Warehouse Facility VI (2) CAC Warehouse Funding LLC VI 09/30/2026 (3) 75.0 BSBY plus 200 basis points Warehouse Facility VIII (2) CAC Warehouse Funding LLC VIII 09/21/2026 (3) 200.0 SOFR plus 225.0 basis points (4) Term ABS 2019-2 (2) Credit Acceptance Funding LLC 2019-2 08/15/2025 (6) 500.0 Fixed rate Term ABS 2020-2 (2) Credit Acceptance Funding LLC 2020-2 07/15/2022 (3) 481.8 Fixed rate Term ABS 2020-3 (2) Credit Acceptance Funding LLC 2020-3 10/17/2022 (3) 600.0 Fixed rate Term ABS 2021-1 (2) Credit Acceptance Funding LLC 2021-1 12/16/2024 (6) 100.0 SOFR plus 220 basis points (4) Term ABS 2021-2 (2) Credit Acceptance Funding LLC 2021-2 02/15/2023 (3) 500.0 Fixed rate Term ABS 2021-3 (2) Credit Acceptance Funding LLC 2021-3 05/15/2023 (3) 450.0 Fixed rate Term ABS 2021-4 (2) Credit Acceptance Funding LLC 2021-4 10/16/2023 (3) 250.1 Fixed rate Term ABS 2022-1 (2) Credit Acceptance Funding LLC 2022-1 06/17/2024 (3) 350.0 Fixed rate Term ABS 2022-2 (2) Credit Acceptance Funding LLC 2022-2 12/15/2025 (6) 200.0 SOFR plus 235 basis points (4) Term ABS 2022-3 (2) Credit Acceptance Funding LLC 2022-3 10/15/2024 (3) 389.9 Fixed rate Term ABS 2023-1 (2) Credit Acceptance Funding LLC 2023-1 03/17/2025 (3) 400.0 Fixed rate Term ABS 2023-2 (2) Credit Acceptance Funding LLC 2023-2 5/15/2025 (3) $ 400.0 Fixed rate Term ABS 2023-3 (2) Credit Acceptance Funding LLC 2023-3 8/15/2025 (3) $ 400.0 Fixed rate 2024 Senior Notes n/a 12/31/2024 400.0 Fixed rate 2026 Senior Notes n/a 03/15/2026 400.0 Fixed rate Mortgage Note (2) Chapter 4 Properties, LLC 08/06/2028 9.0 BSBY plus 150 basis points (1) Borrowings are subject to repayment on demand. (2) Financing made available only to a specified subsidiary of the Company. (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. (4) Interest rate cap agreements are in place to limit the exposure to increasing interest rates. (5) Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 27, 2027 will be due on that date. (6) Represents the revolving maturity date. The Company has the option to redeem and retire the indebtedness after the revolving maturity date. If we do not elect this option, the outstanding balance will amortize based on the cash flows of the pledged assets. |
Schedule of Additional Information Related to Debt Instruments | Additional information related to the amounts outstanding on each facility is as follows: (In millions) For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Revolving Secured Lines of Credit Maximum outstanding principal balance $ 302.2 $ 356.3 $ 355.5 $ 379.7 Average outstanding principal balance 171.1 169.1 152.4 152.8 Warehouse Facility II Maximum outstanding principal balance 201.0 100.0 201.0 201.0 Average outstanding principal balance 86.2 71.7 55.2 83.1 Warehouse Facility IV Maximum outstanding principal balance — — — 43.8 Average outstanding principal balance — — — 5.7 Warehouse Facility V Maximum outstanding principal balance — — — — Average outstanding principal balance — — — — Warehouse Facility VI Maximum outstanding principal balance — 50.0 — 50.0 Average outstanding principal balance — 50.0 — 17.2 Warehouse Facility VIII Maximum outstanding principal balance — — — 48.2 Average outstanding principal balance — — — 6.3 |
Summary of Debt | (Dollars in millions) As of September 30, 2023 December 31, 2022 Revolving Secured Lines of Credit Principal balance outstanding $ 102.1 $ 30.9 Amount available for borrowing (1) 307.9 379.1 Interest rate 7.26 % 6.25 % Warehouse Facility II Principal balance outstanding $ 201.0 $ — Amount available for borrowing (1) 199.0 400.0 Loans pledged as collateral 244.9 — Restricted cash and cash equivalents pledged as collateral 9.7 1.0 Interest rate 7.60 % — % Warehouse Facility IV Principal balance outstanding $ — $ — Amount available for borrowing (1) 300.0 300.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral 1.0 1.0 Interest rate — % — % Warehouse Facility V Principal balance outstanding $ — $ — Amount available for borrowing (1) 200.0 200.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral 1.0 1.0 Interest rate — % — % Warehouse Facility VI Principal balance outstanding $ — $ — Amount available for borrowing (1) 75.0 75.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral — — Interest rate — % — % Warehouse Facility VIII Principal balance outstanding $ — $ — Amount available for borrowing (1) 200.0 200.0 Loans pledged as collateral — — Restricted cash and cash equivalents pledged as collateral — — Interest rate — % — % Term ABS 2019-2 Principal balance outstanding $ 500.0 $ 500.0 Loans pledged as collateral 554.8 627.5 Restricted cash and cash equivalents pledged as collateral 45.7 51.0 Interest rate 5.15 % 5.15 % Term ABS 2019-3 Principal balance outstanding $ — $ 64.4 Loans pledged as collateral — 200.9 Restricted cash and cash equivalents pledged as collateral — 24.5 Interest rate — % 3.00 % Term ABS 2020-1 Principal balance outstanding $ — $ 144.6 Loans pledged as collateral — 362.5 Restricted cash and cash equivalents pledged as collateral — 38.8 Interest rate — % 2.51 % Term ABS 2020-2 Principal balance outstanding $ 62.9 $ 307.0 Loans pledged as collateral 289.1 452.0 Restricted cash and cash equivalents pledged as collateral 34.2 43.9 Interest rate 2.70 % 1.81 % Term ABS 2020-3 Principal balance outstanding $ 196.1 $ 520.7 Loans pledged as collateral 467.1 655.1 Restricted cash and cash equivalents pledged as collateral 45.4 53.9 Interest rate 1.86 % 1.47 % Term ABS 2021-1 Principal balance outstanding $ 100.0 $ 100.0 Loans pledged as collateral 112.7 115.0 Restricted cash and cash equivalents pledged as collateral 8.9 8.5 Interest rate 7.53 % 6.52 % Term ABS 2021-2 Principal balance outstanding $ 269.0 $ 500.0 Loans pledged as collateral 460.3 572.9 Restricted cash and cash equivalents pledged as collateral 39.7 44.5 Interest rate 1.25 % 1.12 % Term ABS 2021-3 Principal balance outstanding $ 338.9 $ 450.0 Loans pledged as collateral 438.0 519.9 Restricted cash and cash equivalents pledged as collateral 36.4 38.8 Interest rate 1.19 % 1.14 % Term ABS 2021-4 Principal balance outstanding $ 250.1 $ 250.1 Loans pledged as collateral 267.9 278.5 Restricted cash and cash equivalents pledged as collateral 22.0 21.8 Interest rate 1.44 % 1.44 % Term ABS 2022-1 Principal balance outstanding $ 350.0 $ 350.0 Loans pledged as collateral 379.1 434.7 Restricted cash and cash equivalents pledged as collateral 26.6 27.7 Interest rate 5.03 % 5.03 % Term ABS 2022-2 Principal balance outstanding $ 200.0 $ 200.0 Loans pledged as collateral 214.4 229.3 Restricted cash and cash equivalents pledged as collateral 15.0 25.6 Interest rate 7.76 % 6.65 % Term ABS 2022-3 Principal balance outstanding $ 389.9 $ 389.9 Loans pledged as collateral 423.9 429.2 Restricted cash and cash equivalents pledged as collateral 29.3 27.6 Interest rate 7.68 % 7.68 % Term ABS 2023-1 Principal balance outstanding $ 400.0 $ — Loans pledged as collateral 629.9 — Restricted cash and cash equivalents pledged as collateral 39.4 — Interest rate 6.92 % — % Term ABS 2023-2 Principal balance outstanding $ 400.0 $ — Loans pledged as collateral 694.6 — Restricted cash and cash equivalents pledged as collateral 41.9 — Interest rate 6.39 % — % Term ABS 2023-3 Principal balance outstanding $ 400.0 $ — Loans pledged as collateral 604.8 — Restricted cash and cash equivalents pledged as collateral 37.2 — Interest rate 6.86 % — % 2024 Senior Notes Principal balance outstanding $ 400.0 $ 400.0 Interest rate 5.125 % 5.125 % 2026 Senior Notes Principal balance outstanding $ 400.0 $ 400.0 Interest rate 6.625 % 6.625 % Mortgage Note Principal balance outstanding $ 8.5 $ 8.9 Interest rate 6.87 % 5.46 % (1) Availability may be limited by the amount of assets pledged as collateral. |
Summary of Term ABS Financings | The table below sets forth certain additional details regarding the outstanding Term ABS financings: (Dollars in millions) Term ABS Financings Closing Date Net Book Value of Loans Revolving Period Term ABS 2019-2 August 28, 2019 $ 625.1 Through August 15, 2025 Term ABS 2020-2 July 23, 2020 602.3 Through July 15, 2022 Term ABS 2020-3 October 22, 2020 750.1 Through October 17, 2022 Term ABS 2021-1 January 29, 2021 125.1 Through December 16, 2024 Term ABS 2021-2 February 18, 2021 625.1 Through February 15, 2023 Term ABS 2021-3 May 20, 2021 562.6 Through May 15, 2023 Term ABS 2021-4 October 28, 2021 312.6 Through October 16, 2023 Term ABS 2022-1 June 16, 2022 437.6 Through June 17, 2024 Term ABS 2022-2 December 15, 2022 250.1 Through December 15, 2025 Term ABS 2022-3 November 3, 2022 500.1 Through October 15, 2024 Term ABS 2023-1 March 16, 2023 500.2 Through March 17, 2025 Term ABS 2023-2 May 25, 2023 500.1 Through May 15, 2025 Term ABS 2023-3 August 24, 2023 500.1 Through August 15, 2025 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Terms of Interest Rate Cap Agreements | The following tables provide the terms of our interest rate cap agreements that were in effect as of September 30, 2023 and December 31, 2022: (Dollars in millions) As of September 30, 2023 Facility Amount Facility Name Purpose Start End Notional Cap Interest Rate (1) $ 400.0 Warehouse Facility II Cap Floating Rate 07/2022 12/2023 $ 205.0 6.50 % 300.0 Warehouse Facility IV Cap Floating Rate 05/2023 11/2024 300.0 7.50 % 200.0 Warehouse Facility V Cap Floating Rate 04/2023 01/2026 94.0 5.44 % 200.0 Warehouse Facility VIII Cap Floating Rate 09/2022 09/2025 200.0 5.42 % 100.0 Term ABS 2021-1 Cap Floating Rate 04/2023 06/2024 56.3 5.46 % 200.0 Term ABS 2022-2 Cap Floating Rate 12/2022 06/2024 200.0 6.50 % (Dollars in millions) As of December 31, 2022 Facility Amount Facility Name Purpose Start End Notional Cap Interest Rate (1) $ 400.0 Warehouse Facility II Cap Floating Rate 07/2022 12/2023 $ 205.0 6.50 % 300.0 Warehouse Facility IV Cap Floating Rate 07/2019 07/2023 175.0 6.50 % 200.0 Warehouse Facility V Cap Floating Rate 12/2020 01/2026 94.0 5.50 % 200.0 Warehouse Facility VIII Cap Floating Rate 08/2019 08/2023 116.7 5.50 % Cap Floating Rate 09/2022 09/2025 83.3 5.50 % 200.0 100.0 Term ABS 2021-1 Cap Floating Rate 02/2021 06/2024 100.0 5.50 % 200.0 Term ABS 2022-2 Cap Floating Rate 12/2022 06/2024 200.0 6.50 % (1) Rate excludes the spread over the corresponding benchmark rate. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of the U.S. Federal Statutory Rate to Effective Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State and local income taxes 4.3 % 6.9 % 2.8 % 3.9 % Excess tax benefits from stock-based compensation — % — % -2.1 % -0.1 % Other 1.3 % 1.0 % 1.7 % 0.8 % Effective income tax rate 26.6 % 28.9 % 23.4 % 25.6 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Shares Outstanding Basic and Diluted | 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: For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Weighted average shares outstanding: Common shares 12,716,387 12,927,081 12,785,870 13,296,064 Vested restricted stock units 216,990 366,143 227,474 366,114 Basic number of weighted average shares outstanding 12,933,377 13,293,224 13,013,344 13,662,178 Dilutive effect of restricted stock units and stock options 106,261 70,936 55,654 75,693 Dilutive number of weighted average shares outstanding 13,039,638 13,364,160 13,068,998 13,737,871 |
Schedule of stock awards excluded from the computation of diluted net income per share | The following outstanding stock awards were excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive : For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Stock options 89,625 63,875 229,123 56,321 Restricted stock units 3,186 4,000 3,132 2,432 Total 92,811 67,875 232,255 58,753 |
Stock Repurchases (Tables)
Stock Repurchases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | The following table summarizes our stock repurchases for the three and nine months ended September 30, 2023 and 2022: (Dollars in millions) For the Three Months Ended September 30, 2023 2022 Stock Repurchases Number of Shares Repurchased Cost Number of Shares Repurchased Cost Open Market (1) 256,232 $ 126.3 53,769 $ 26.5 (Dollars in millions) For the Nine Months Ended September 30, 2023 2022 Stock Repurchases Number of Shares Repurchased Cost Number of Shares Repurchased Cost Open Market (1) 272,034 $ 133.9 1,259,712 $ 678.2 Other (2) 33,459 15.1 1,745 1.0 Total 305,493 $ 149.0 1,261,457 $ 679.2 (1) Represents repurchases under authorizations by the 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 August 21, 2023, the 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 September 30, 2023, we had authorization to repurchase 1,886,035 shares of our common stock. (2) 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 conversion of restricted stock units to common stock. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity | A summary of restricted stock unit activity is presented in the following table: Restricted Stock Units Number of Restricted Stock Units Weighted Average Grant-Date Fair Value Per Share Outstanding as of December 31, 2022 341,228 $ 169.28 Granted 15,027 466.15 Converted (101,757) 233.39 Forfeited (791) 461.95 Outstanding as of September 30, 2023 253,707 $ 160.24 |
Schedule of Stock Based Compensation Expense | Stock-based compensation expense consists of the following: (In millions) For the Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Stock options $ 8.0 $ 8.1 $ 25.1 $ 25.1 Restricted stock units 1.3 0.6 3.9 1.8 Total $ 9.3 $ 8.7 $ 29.0 $ 26.9 |
Schedule of Future Share-Based Compensation Cost | We expect to recognize the future stock-based compensation expense as follows: (in millions) Year Total Projected Remainder of 2023 $ 9.9 2024 38.2 2025 9.2 2026 3.6 2027 0.1 Total $ 61.0 |
Description of Business (Narrat
Description of Business (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 loan program | |
Description Of Business [Abstract] | |
Number of business programs | program | 2 |
Original number of Consumer Loans required to group advances | 100 |
Additional number of Consumer Loans required to group advances | 50 |
Servicing fee percentage in collections | 20% |
Number Of Consumer Loans Required To Group Advances | 50 |
Description of Business (Percen
Description of Business (Percentage of Consumer Loans Assigned with FICO Score of Less Than 650 or No FICO Score) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Percentage Of Contracts With FICO Score Lower Than 650 Or No FICO Score [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Percentage Of Contracts | 78.60% | 84.20% | 81.50% | 85.60% |
Description of Business (Perc_2
Description of Business (Percentage of Consumer Loans Assigned Based on Volumes) (Details) | 3 Months Ended | ||||||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |||||||
Portfolio Program [Member] | |||||||||||||
Description Of Business [Line Items] | |||||||||||||
Percentage of new consumer loans unit volume | 74.80% | 72.40% | 72.10% | 73.10% | 74.30% | 74% | 72.70% | ||||||
Percentage of new consumer loans dollar volume | 71.70% | 68.60% | [1] | 68.10% | [1] | 69.60% | [1] | 70.50% | [1] | 70.40% | [1] | 68.60% | [1] |
Purchase Program [Member] | |||||||||||||
Description Of Business [Line Items] | |||||||||||||
Percentage of new consumer loans unit volume | 25.20% | 27.60% | 27.90% | 26.90% | 25.70% | 26% | 27.30% | ||||||
Percentage of new consumer loans dollar volume | 28.30% | 31.40% | [1] | 31.90% | [1] | 30.40% | [1] | 29.50% | [1] | 29.60% | [1] | 31.40% | [1] |
[1]Represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program and one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program. Payments of Dealer Holdback (as defined below) and accelerated Dealer Holdback are not included. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
Uninsured cash and cash equivalents | $ 2.8 | $ 2.8 | $ 7.1 | ||
Total provision for credit losses | 184.6 | $ 180.3 | 572.5 | $ 351.1 | |
Restricted Cash and Cash Equivalents [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Uninsured cash and cash equivalents | 431.2 | 431.2 | $ 406.5 | ||
New Consumer Loan Assignments [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Total provision for credit losses | 78.3 | 83.4 | 253.1 | 283.5 | |
Loans Receivable [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Total provision for credit losses | $ 0 | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 3.1 | $ 7.7 | $ 10.7 | $ 23.3 |
Restricted cash and cash equivalents | 435.1 | 410 | 384.7 | 410.9 |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | $ 438.2 | $ 417.7 | $ 395.4 | $ 434.2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Schedule of Comparison of the Carrying Value and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and cash equivalents | [1] | $ 3.1 | $ 7.7 |
Restricted cash and cash equivalents | [1] | 435.1 | 410 |
Debt Securities, Available-for-sale, Restricted | 86.2 | 72.3 | |
Loans receivable, net | [1] | 7,529.4 | 6,767.9 |
Liabilities | |||
Revolving secured lines of credit | [1] | 102.1 | 30.9 |
Secured financing | [1] | 4,015.3 | 3,581.9 |
Senior notes | [1] | 745 | 759 |
Mortgage note | [1] | 8.5 | 8.9 |
Carrying Amount [Member] | |||
Assets | |||
Cash and cash equivalents | 3.1 | 7.7 | |
Restricted cash and cash equivalents | 435.1 | 410 | |
Debt Securities, Available-for-sale, Restricted | 86.2 | 72.3 | |
Loans receivable, net | 6,780.5 | 6,297.7 | |
Liabilities | |||
Revolving secured lines of credit | 102.1 | 30.9 | |
Secured financing | 4,034.2 | 3,756.4 | |
Senior notes | 796 | 794.5 | |
Mortgage note | 8.5 | 8.9 | |
Estimated Fair Value [Member] | |||
Assets | |||
Cash and cash equivalents | 3.1 | 7.7 | |
Restricted cash and cash equivalents | 435.1 | 410 | |
Debt Securities, Available-for-sale, Restricted | 86.2 | 72.3 | |
Loans receivable, net | 7,529.4 | 6,767.9 | |
Liabilities | |||
Revolving secured lines of credit | 102.1 | 30.9 | |
Secured financing | 4,015.3 | 3,581.9 | |
Senior notes | 745 | 759 | |
Mortgage note | $ 8.5 | $ 8.9 | |
[1]Measured at amortized cost with fair value disclosed. |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Schedule of Assets and Liabilities, Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [1] | $ 3.1 | $ 7.7 |
Restricted cash and cash equivalents | [1] | 435.1 | 410 |
Debt Securities, Available-for-sale | [2] | 86.2 | 72.3 |
Loans receivable, net | [1] | 7,529.4 | 6,767.9 |
Revolving secured lines of credit | [1] | 102.1 | 30.9 |
Secured financing | [1] | 4,015.3 | 3,581.9 |
Senior notes | [1] | 745 | 759 |
Mortgage note | [1] | 8.5 | 8.9 |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [1] | 3.1 | 7.7 |
Restricted cash and cash equivalents | [1] | 435.1 | 410 |
Debt Securities, Available-for-sale | [2] | 69.6 | 58.7 |
Secured financing | [1] | 3,014.2 | 2,781.8 |
Senior notes | [1] | 745 | 759 |
Mortgage note | [1] | 0 | 0 |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities, Available-for-sale | [2] | 16.6 | 13.6 |
Revolving secured lines of credit | [1] | 102.1 | 30.9 |
Secured financing | [1] | 1,001.1 | 800.1 |
Mortgage note | [1] | 8.5 | 8.9 |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans receivable, net | [1] | $ 7,529.4 | $ 6,767.9 |
[1]Measured at amortized cost with fair value disclosed.[2]Measured at fair value on a recurring basis. |
Restricted Securities Availab_3
Restricted Securities Available for Sale (Schedule of Restricted Securities Available for Sale) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Restricted Securities Available For Sale [Line Items] | ||
Total restricted securities available for sale, cost | $ 90 | $ 76.1 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 3.8 | 3.8 |
Debt Securities, Available-for-sale, Restricted | 86.2 | 72.3 |
Corporate Bond Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Total restricted securities available for sale, cost | 37.8 | 32.6 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1.6 | 1.7 |
Debt Securities, Available-for-sale, Restricted | 36.2 | 30.9 |
US Government and Agency Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Total restricted securities available for sale, cost | 34.3 | 29.5 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1.7 | 1.7 |
Debt Securities, Available-for-sale, Restricted | 32.6 | 27.8 |
Asset-backed Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Total restricted securities available for sale, cost | 16.9 | 13.8 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0.5 | 0.4 |
Debt Securities, Available-for-sale, Restricted | 16.4 | 13.4 |
Municipal Bonds | ||
Restricted Securities Available For Sale [Line Items] | ||
Total restricted securities available for sale, cost | 0.8 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Debt Securities, Available-for-sale, Restricted | 0.8 | |
Mortgage-backed Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Total restricted securities available for sale, cost | 0.2 | 0.2 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Restricted | $ 0.2 | $ 0.2 |
Restricted Securities Availab_4
Restricted Securities Available for Sale (Schedule of Restricted Securities Available for Sale by Aging Category) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Restricted Securities Available For Sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 42.5 | $ 40 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.9 | 1.5 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 42.2 | 26.9 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2.9 | 2.3 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 84.7 | 66.9 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 3.8 | 3.8 |
Corporate Bond Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 18.5 | 15.1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.4 | 0.6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 16.8 | 13.3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1.2 | 1.1 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 35.3 | 28.4 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 1.6 | 1.7 |
US Government and Agency Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 13.9 | 18 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.4 | 0.8 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 18.8 | 9.2 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1.3 | 0.9 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 32.7 | 27.2 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 1.7 | 1.7 |
Asset-backed Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 10.1 | 6.6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.1 | 0.1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 6.4 | 4.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.4 | 0.3 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 16.5 | 11 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 0.5 | 0.4 |
Mortgage-backed Securities [Member] | ||
Restricted Securities Available For Sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 0.3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0.2 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | $ 0.2 | $ 0.3 |
Restricted Securities Availab_5
Restricted Securities Available for Sale (Schedule of Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Within one year, cost | $ 7.9 | $ 4 |
Over one year to five years, cost | 74.4 | 66.4 |
Over five years to ten years, cost | 7.7 | 5.6 |
Over ten years, cost | 0 | 0.1 |
Total restricted securities available for sale, cost | 90 | 76.1 |
Within one year, fair value | 7.7 | 3.9 |
Over one year to five years, fair value | 71 | 63 |
Over five years to ten years, fair value | 7.5 | 5.3 |
Over ten years, fair value | 0 | 0.1 |
Debt Securities, Available-for-sale, Restricted | $ 86.2 | $ 72.3 |
Loans Receivable (Narrative) (D
Loans Receivable (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Forecast changes | $ (69.4) | $ (85.4) | $ (149.3) | $ (18.6) |
Dealer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Forecast changes | (40.3) | (37.3) | (89.3) | (17.4) |
Purchased Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Forecast changes | (29.1) | $ (48.1) | $ (60) | $ (1.2) |
COVID-19 Adjustment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Forecast changes | $ (162.2) |
Loans Receivable (Schedule of L
Loans Receivable (Schedule of Loans Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | [1],[2] | $ 9,812.2 | $ 9,165.5 | ||||
Allowance for credit losses | (3,031.7) | (2,867.8) | |||||
Loans receivable, net | 6,780.5 | $ 6,610.3 | 6,297.7 | $ 6,311.6 | $ 6,323.7 | $ 6,336.3 | |
Dealer Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | [1] | 6,784.6 | 6,074.8 | ||||
Allowance for credit losses | (2,269.6) | (2,000) | |||||
Loans receivable, net | 4,515 | 4,345.7 | 4,074.8 | 4,045.5 | 3,988.1 | 3,887.3 | |
Purchased Loans [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans receivable | [2] | 3,027.6 | 3,090.7 | ||||
Allowance for credit losses | (762.1) | (867.8) | |||||
Loans receivable, net | $ 2,265.5 | $ 2,264.6 | $ 2,222.9 | $ 2,266.1 | $ 2,335.6 | $ 2,449 | |
[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.[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. |
Loans Receivable (Summary of Ch
Loans Receivable (Summary of Changes in Loans Receivable and Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | $ (6,610.3) | $ (6,323.7) | $ (6,297.7) | $ (6,336.3) | |
Finance Charges Revenue | (441.7) | (420.6) | (1,303.8) | (1,270.3) | |
Provision for credit losses | (184.6) | (180.3) | (572.5) | (351.1) | |
New Consumer Loan Assignments | [1] | 1,022.2 | 924.9 | 3,173.5 | 2,823.3 |
Proceeds from Collection of Loans Receivable | [2] | (1,182.1) | (1,238.1) | (3,643.8) | (3,947.7) |
Accelerated Payments of Dealer Holdback | 10.7 | 10.3 | 35.3 | 35.2 | |
Payments of Dealer Holdback | 59 | 48.3 | 177.3 | 138.7 | |
Loans And Leases Receivable Transfers | [3] | 0 | 0 | 0 | 0 |
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 | |
Recoveries | [4] | 0 | 0 | 0 | 0 |
Deferral of Loan Origination Costs | 3.3 | 2.2 | 9.2 | 6.6 | |
Balance, end of period | (6,780.5) | (6,311.6) | (6,780.5) | (6,311.6) | |
Dealer Loans [Member] | |||||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | (4,345.7) | (3,988.1) | (4,074.8) | (3,887.3) | |
Finance Charges Revenue | (265) | (239.3) | (770.1) | (706.6) | |
Provision for credit losses | (108) | (95.2) | (327.3) | (170) | |
New Consumer Loan Assignments | [1] | 732.5 | 651.9 | 2,202.9 | 1,971.9 |
Proceeds from Collection of Loans Receivable | [2] | (775.4) | (789.2) | (2,376.9) | (2,488) |
Accelerated Payments of Dealer Holdback | 10.7 | 10.3 | 35.3 | 35.2 | |
Payments of Dealer Holdback | 59 | 48.3 | 177.3 | 138.7 | |
Loans And Leases Receivable Transfers | [3] | (17.8) | (10.2) | (50.4) | (42.8) |
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 | |
Recoveries | [4] | 0 | 0 | 0 | 0 |
Deferral of Loan Origination Costs | 3.3 | 2.2 | 9.2 | 6.6 | |
Balance, end of period | (4,515) | (4,045.5) | (4,515) | (4,045.5) | |
Purchased Loans [Member] | |||||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | (2,264.6) | (2,335.6) | (2,222.9) | (2,449) | |
Finance Charges Revenue | (176.7) | (181.3) | (533.7) | (563.7) | |
Provision for credit losses | (76.6) | (85.1) | (245.2) | (181.1) | |
New Consumer Loan Assignments | [1] | 289.7 | 273 | 970.6 | 851.4 |
Proceeds from Collection of Loans Receivable | [2] | (406.7) | (448.9) | (1,266.9) | (1,459.7) |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Loans And Leases Receivable Transfers | [3] | (17.8) | (10.2) | (50.4) | (42.8) |
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 | |
Recoveries | [4] | 0 | 0 | 0 | 0 |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | |
Balance, end of period | (2,265.5) | (2,266.1) | (2,265.5) | (2,266.1) | |
Loans Receivable [Member] | |||||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | (9,599.6) | (9,190.6) | (9,165.5) | (9,349.8) | |
Finance Charges Revenue | (632.1) | (596.1) | (1,854.9) | (1,795.2) | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
New Consumer Loan Assignments | [1] | 1,022.2 | 924.9 | 3,173.5 | 2,823.3 |
Proceeds from Collection of Loans Receivable | [2] | (1,182.1) | (1,238.1) | (3,643.8) | (3,947.7) |
Accelerated Payments of Dealer Holdback | 10.7 | 10.3 | 35.3 | 35.2 | |
Payments of Dealer Holdback | 59 | 48.3 | 177.3 | 138.7 | |
Loans And Leases Receivable Transfers | [3] | 0 | 0 | 0 | 0 |
Allowance for Loan and Lease Losses, Write-offs | (333.9) | (348.8) | (963.9) | (1,017.6) | |
Recoveries | [4] | (1.3) | (0.9) | (4.2) | (2.9) |
Deferral of Loan Origination Costs | 3.3 | 2.2 | 9.2 | 6.6 | |
Balance, end of period | (9,812.2) | (9,186.4) | (9,812.2) | (9,186.4) | |
Loans Receivable [Member] | Dealer Loans [Member] | |||||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | (6,534.1) | (5,832.9) | (6,074.8) | (5,655.1) | |
Finance Charges Revenue | (401) | (351.6) | (1,156.8) | (1,030.9) | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
New Consumer Loan Assignments | [1] | 732.5 | 651.9 | 2,202.9 | 1,971.9 |
Proceeds from Collection of Loans Receivable | [2] | (775.4) | (789.2) | (2,376.9) | (2,488) |
Accelerated Payments of Dealer Holdback | 10.7 | 10.3 | 35.3 | 35.2 | |
Payments of Dealer Holdback | 59 | 48.3 | 177.3 | 138.7 | |
Loans And Leases Receivable Transfers | [3] | (27.3) | (13.8) | (78.9) | (57) |
Allowance for Loan and Lease Losses, Write-offs | (153.7) | (116.1) | (417.2) | (315.8) | |
Recoveries | [4] | (0.4) | (0.1) | (1.3) | (0.6) |
Deferral of Loan Origination Costs | 3.3 | 2.2 | 9.2 | 6.6 | |
Balance, end of period | (6,784.6) | (5,978.2) | (6,784.6) | (5,978.2) | |
Loans Receivable [Member] | Purchased Loans [Member] | |||||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | (3,065.5) | (3,357.7) | (3,090.7) | (3,694.7) | |
Finance Charges Revenue | (231.1) | (244.5) | (698.1) | (764.3) | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
New Consumer Loan Assignments | [1] | 289.7 | 273 | 970.6 | 851.4 |
Proceeds from Collection of Loans Receivable | [2] | (406.7) | (448.9) | (1,266.9) | (1,459.7) |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Loans And Leases Receivable Transfers | [3] | (27.3) | (13.8) | (78.9) | (57) |
Allowance for Loan and Lease Losses, Write-offs | (180.2) | (232.7) | (546.7) | (701.8) | |
Recoveries | [4] | (0.9) | (0.8) | (2.9) | (2.3) |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | |
Balance, end of period | (3,027.6) | (3,208.2) | (3,027.6) | (3,208.2) | |
Allowance for Credit Losses [Member] | |||||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | (2,989.3) | (2,866.9) | (2,867.8) | (3,013.5) | |
Finance Charges Revenue | (190.4) | (175.5) | (551.1) | (524.9) | |
Provision for credit losses | (184.6) | (180.3) | (572.5) | (351.1) | |
New Consumer Loan Assignments | [1] | 0 | 0 | 0 | 0 |
Proceeds from Collection of Loans Receivable | [2] | 0 | 0 | 0 | 0 |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Loans And Leases Receivable Transfers | [3] | 0 | 0 | 0 | 0 |
Allowance for Loan and Lease Losses, Write-offs | (333.9) | (348.8) | (963.9) | (1,017.6) | |
Recoveries | [4] | (1.3) | (0.9) | (4.2) | (2.9) |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | |
Balance, end of period | (3,031.7) | (2,874.8) | (3,031.7) | (2,874.8) | |
Allowance for Credit Losses [Member] | Dealer Loans [Member] | |||||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | (2,188.4) | (1,844.8) | (2,000) | (1,767.8) | |
Finance Charges Revenue | (136) | (112.3) | (386.7) | (324.3) | |
Provision for credit losses | (108) | (95.2) | (327.3) | (170) | |
New Consumer Loan Assignments | [1] | 0 | 0 | 0 | 0 |
Proceeds from Collection of Loans Receivable | [2] | 0 | 0 | 0 | 0 |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Loans And Leases Receivable Transfers | [3] | (9.5) | (3.6) | (28.5) | (14.2) |
Allowance for Loan and Lease Losses, Write-offs | (153.7) | (116.1) | (417.2) | (315.8) | |
Recoveries | [4] | (0.4) | (0.1) | (1.3) | (0.6) |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | |
Balance, end of period | (2,269.6) | (1,932.7) | (2,269.6) | (1,932.7) | |
Allowance for Credit Losses [Member] | Purchased Loans [Member] | |||||
Loans and Leases Receivable, Net [Roll Forward] | |||||
Balance, beginning of period | (800.9) | (1,022.1) | (867.8) | (1,245.7) | |
Finance Charges Revenue | (54.4) | (63.2) | (164.4) | (200.6) | |
Provision for credit losses | (76.6) | (85.1) | (245.2) | (181.1) | |
New Consumer Loan Assignments | [1] | 0 | 0 | 0 | 0 |
Proceeds from Collection of Loans Receivable | [2] | 0 | 0 | 0 | 0 |
Accelerated Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Payments of Dealer Holdback | 0 | 0 | 0 | 0 | |
Loans And Leases Receivable Transfers | [3] | (9.5) | (3.6) | (28.5) | (14.2) |
Allowance for Loan and Lease Losses, Write-offs | (180.2) | (232.7) | (546.7) | (701.8) | |
Recoveries | [4] | (0.9) | (0.8) | (2.9) | (2.3) |
Deferral of Loan Origination Costs | 0 | 0 | 0 | 0 | |
Balance, end of period | $ (762.1) | $ (942.1) | $ (762.1) | $ (942.1) | |
[1]The Dealer Loans amount represents advances paid to Dealers on Consumer Loans assigned under our Portfolio Program. The Purchased Loans amount represents one-time payments made to Dealers to purchase Consumer Loans assigned under our Purchase Program.[2]Represents repayments that we collected on Consumer Loans assigned under our programs.[3]Under our 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.[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. |
Loans Receivable Loans Receivab
Loans Receivable Loans Receivable (Summary of Provision for Credit Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | $ 184.6 | $ 180.3 | $ 572.5 | $ 351.1 |
Dealer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 108 | 95.2 | 327.3 | 170 |
Purchased Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 76.6 | 85.1 | 245.2 | 181.1 |
New Consumer Loan Assignments [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 78.3 | 83.4 | 253.1 | 283.5 |
New Consumer Loan Assignments [Member] | Dealer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 37.4 | 37.6 | 108.9 | 130.7 |
New Consumer Loan Assignments [Member] | Purchased Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 40.9 | 45.8 | 144.2 | 152.8 |
Forecast Changes [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 106.3 | 96.9 | 319.4 | 67.6 |
Forecast Changes [Member] | Dealer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | 70.6 | 57.6 | 218.4 | 39.3 |
Forecast Changes [Member] | Purchased Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | $ 35.7 | $ 39.3 | $ 101 | $ 28.3 |
Loans Receivable (Summary of In
Loans Receivable (Summary of Information Related to New Consumer Loan Assignments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Contractual net cash flows at the time of assignment | [1] | $ 1,718.5 | $ 1,546.3 | $ 5,384 | $ 4,713.6 | |||
Expected net cash flows at the time of assignment | [2],[3] | 1,442.7 | 1,279.8 | 4,475.8 | 3,895.3 | |||
Fair value at the time of assignment | [4] | 1,022.2 | 924.9 | 3,173.5 | 2,823.3 | |||
Provision for Loan and Lease Losses | (184.6) | (180.3) | (572.5) | (351.1) | ||||
Expected future finance charges at the time of assignment | [5] | 498.8 | 438.3 | 1,555.4 | 1,355.5 | |||
Expected net Loan income at the time of assignment | [6] | 420.5 | 354.9 | 1,302.3 | 1,072 | |||
Dealer Loans [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Contractual net cash flows at the time of assignment | [1] | 1,140.8 | 998.1 | 3,435.1 | 3,015.3 | |||
Expected net cash flows at the time of assignment | [2],[3] | 1,035.1 | 905.6 | 3,118.1 | 2,736.4 | |||
Fair value at the time of assignment | [4] | 732.5 | 651.9 | 2,202.9 | 1,971.9 | |||
Provision for Loan and Lease Losses | (108) | (95.2) | (327.3) | (170) | ||||
Expected future finance charges at the time of assignment | [5] | 340 | 291.3 | 1,024.1 | 895.2 | |||
Expected net Loan income at the time of assignment | [6] | 302.6 | 253.7 | 915.2 | 764.5 | |||
Purchased Loans [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Contractual net cash flows at the time of assignment | 577.7 | [1] | 548.2 | 1,948.9 | [1] | 1,698.3 | [1] | |
Expected net cash flows at the time of assignment | [2],[3] | 407.6 | 374.2 | 1,357.7 | 1,158.9 | |||
Fair value at the time of assignment | [4] | 289.7 | 273 | 970.6 | 851.4 | |||
Provision for Loan and Lease Losses | (76.6) | (85.1) | (245.2) | (181.1) | ||||
Expected future finance charges at the time of assignment | [5] | 158.8 | 147 | 531.3 | 460.3 | |||
Expected net Loan income at the time of assignment | [6] | 117.9 | 101.2 | 387.1 | 307.5 | |||
New Consumer Loan Assignments [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision for Loan and Lease Losses | (78.3) | (83.4) | (253.1) | (283.5) | ||||
New Consumer Loan Assignments [Member] | Dealer Loans [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision for Loan and Lease Losses | (37.4) | (37.6) | (108.9) | (130.7) | ||||
New Consumer Loan Assignments [Member] | Purchased Loans [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision for Loan and Lease Losses | $ (40.9) | $ (45.8) | $ (144.2) | $ (152.8) | ||||
[1]The Dealer Loans amount represents repayments that we were contractually owed at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program.[2] The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program. |
Loans Receivable Loans Receiv_2
Loans Receivable Loans Receivable (Summary of Changes in Expected Future Net Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Balance, beginning of period | $ 9,676.3 | $ 9,042.2 | $ 9,033.4 | $ 8,948.3 | ||||
New Consumer Loan Assignments | [1],[2] | 1,442.7 | 1,279.8 | 4,475.8 | 3,895.3 | |||
Realized Net Cash Flows | (1,112.4) | [3] | (1,179.5) | (3,431.2) | [3] | (3,773.8) | [3] | |
Forecast changes | (69.4) | (85.4) | (149.3) | (18.6) | ||||
Transfers | [4] | 2 | 1.7 | 10.5 | 7.6 | |||
Balance, end of period | 9,939.2 | 9,058.8 | 9,939.2 | 9,058.8 | ||||
Dealer Loans [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Balance, beginning of period | 6,166.4 | 5,468.6 | 5,637.9 | 5,249.7 | ||||
New Consumer Loan Assignments | [1],[2] | 1,035.1 | 905.6 | 3,118.1 | 2,736.4 | |||
Realized Net Cash Flows | (705.7) | [3] | (730.6) | (2,164.3) | [3] | (2,314.1) | [3] | |
Forecast changes | (40.3) | (37.3) | (89.3) | (17.4) | ||||
Transfers | [4] | (26.5) | (15.2) | (73.4) | (63.5) | |||
Balance, end of period | 6,429 | 5,591.1 | 6,429 | 5,591.1 | ||||
Purchased Loans [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Balance, beginning of period | 3,509.9 | 3,573.6 | 3,395.5 | 3,698.6 | ||||
New Consumer Loan Assignments | [1],[2] | 407.6 | 374.2 | 1,357.7 | 1,158.9 | |||
Realized Net Cash Flows | (406.7) | [3] | (448.9) | (1,266.9) | [3] | (1,459.7) | [3] | |
Forecast changes | (29.1) | (48.1) | (60) | (1.2) | ||||
Transfers | [4] | 28.5 | 16.9 | 83.9 | 71.1 | |||
Balance, end of period | $ 3,510.2 | $ 3,467.7 | $ 3,510.2 | $ 3,467.7 | ||||
[1] The Dealer Loans amount represents repayments that we expected to collect at the time of assignment on Consumer Loans assigned under our 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 our Purchase Program. |
Loans Receivable (Schedule of C
Loans Receivable (Schedule of Consumer Loans Forecasted Collection Percentage) (Details) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Loans Originating In 2014 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 71.70% | 71.70% | 71.70% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 71.80% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.10%) | |||||||||||||
Loans Originating In 2015 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 65.20% | 65.20% | 65.20% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 67.70% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (2.50%) | |||||||||||||
Loans Originating In 2016 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 63.80% | 63.80% | 63.80% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 65.40% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (1.60%) | |||||||||||||
Loans Originating In 2017 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 64.70% | 64.70% | 64.70% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 64% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.70% | |||||||||||||
Loans Originating In 2018 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 65.50% | 65.40% | 65.20% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 63.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.30% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.90% | |||||||||||||
Loans Originating In 2019 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 66.80% | 66.80% | 66.60% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 64% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.20% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 2.80% | |||||||||||||
Loans Originating In 2020 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 67.50% | 67.80% | 67.80% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 63.40% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.30%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.30%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 4.10% | |||||||||||||
Loans Originating In 2021 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 64.90% | 65.50% | 66.20% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 66.30% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.60%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (1.30%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (1.40%) | |||||||||||||
Loans Originating In 2022 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 63.50% | 64.30% | 66.30% | ||||||||||
Initial Forecasted Collection Percentage | [1] | 67.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.80%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (2.80%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (4.00%) | |||||||||||||
Loans Originating In 2023 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1] | 67.60% | 67.50% | |||||||||||
Initial Forecasted Collection Percentage | [1] | 67.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.10% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2014 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 71.60% | 71.60% | 71.60% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 71.90% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.30%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2015 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 64.60% | 64.60% | 64.50% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 67.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.10% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (2.90%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2016 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 63% | 63% | 63% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 65.10% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (2.10%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2017 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 64% | 64% | 64% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 63.80% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.20% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2018 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 64.90% | 64.80% | 64.60% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 63.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.30% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.30% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2019 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 66.50% | 66.50% | 66.30% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 63.90% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.20% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 2.60% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2020 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 67.40% | 67.60% | 67.70% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 63.30% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.20%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.30%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 4.10% | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2021 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 64.60% | 65.20% | 66% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 66.30% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.60%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (1.40%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (1.70%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2022 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 62.90% | 63.70% | 65.80% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 67.30% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.80%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (2.90%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (4.40%) | |||||||||||||
Dealer Loans [Member] | Loans Originating In 2023 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 66.70% | 66.80% | |||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 66.90% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.10%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.20%) | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2014 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 72.50% | 72.50% | 72.50% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 70.90% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.60% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2015 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 68.90% | 68.90% | 68.90% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 68.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.40% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2016 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 66.10% | 66% | 66% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 66.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.10% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.40%) | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2017 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 66.30% | 66.30% | 66.30% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 64.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 1.70% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2018 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 66.80% | 66.70% | 66.40% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 63.50% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.10% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.40% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 3.30% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2019 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 67.50% | 67.50% | 67.20% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 64.20% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0% | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | 0.30% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 3.30% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2020 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 67.80% | 68% | 68% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 63.60% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.20%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (0.20%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 4.20% | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2021 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 65.40% | 66% | 66.70% | ||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 66.30% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.60%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (1.30%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (0.90%) | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2022 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | 65% | [1],[2] | 65.70% | [1],[2] | 67.40% | |||||||||
Initial Forecasted Collection Percentage | [1],[2] | 68% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | (0.70%) | |||||||||||||
Variance In Forecasted Collection Percentage From Prior Year End | (2.40%) | |||||||||||||
Variance In Initial Forecasted Collection Percentage | (3.00%) | |||||||||||||
Purchased Loans [Member] | Loans Originating In 2023 [Member] | ||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||
Forecasted Collection Percentage | [1],[2] | 69.90% | 69.20% | |||||||||||
Initial Forecasted Collection Percentage | [1],[2] | 69.20% | ||||||||||||
Variance In Forecasted Collection Percentage From Prior Quarter End | 0.70% | |||||||||||||
Variance In Initial Forecasted Collection Percentage | 0.70% | |||||||||||||
[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.[2]The forecasted collection rates presented for Dealer Loans and Purchased Loans reflect the Consumer Loan classification at the time of assignment. |
Loans Receivable Loans Receiv_3
Loans Receivable Loans Receivable (Summary of Past-Due Status) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | ||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | $ 9,812.2 | $ 9,165.5 | |
Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 6,415 | 5,583.2 | |
Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 1,609.2 | 1,739.6 | |
Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 1,548.9 | 1,630.3 | |
Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 239.1 | 212.4 | |
Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 6,784.6 | 6,074.8 | |
Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 4,583.9 | [4] | 3,850.7 |
Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 1,098.5 | 1,136 | |
Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 962.7 | 958.8 | |
Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 139.5 | 129.3 | |
Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 3,027.6 | 3,090.7 | |
Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 1,831.1 | [4] | 1,732.5 |
Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 510.7 | 603.6 | |
Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 586.2 | 671.5 | |
Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 99.6 | 83.1 | |
Loans Originating Five Years Prior And Before | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 387.4 | 235.6 | |
Loans Originating Five Years Prior And Before | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 44.7 | 16.1 | |
Loans Originating Five Years Prior And Before | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 27.1 | 9.6 | |
Loans Originating Five Years Prior And Before | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 110.3 | 42.2 | |
Loans Originating Five Years Prior And Before | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 205.3 | 167.7 | |
Loans Originating Five Years Prior And Before | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 207.6 | 135.7 | |
Loans Originating Five Years Prior And Before | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 21.5 | [4] | 7.7 |
Loans Originating Five Years Prior And Before | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 12.9 | 4.5 | |
Loans Originating Five Years Prior And Before | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 53.4 | 20.4 | |
Loans Originating Five Years Prior And Before | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 119.8 | 103.1 | |
Loans Originating Five Years Prior And Before | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 179.8 | 99.9 | |
Loans Originating Five Years Prior And Before | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 23.2 | [4] | 8.4 |
Loans Originating Five Years Prior And Before | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 14.2 | 5.1 | |
Loans Originating Five Years Prior And Before | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 56.9 | 21.8 | |
Loans Originating Five Years Prior And Before | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 85.5 | 64.6 | |
Loans Originating Four Years Prior | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 621 | 449.3 | |
Loans Originating Four Years Prior | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 209.7 | 142.8 | |
Loans Originating Four Years Prior | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 105.2 | 71.7 | |
Loans Originating Four Years Prior | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 275.8 | 197.5 | |
Loans Originating Four Years Prior | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 30.3 | 37.3 | |
Loans Originating Four Years Prior | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 293 | 224.4 | |
Loans Originating Four Years Prior | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 97.7 | [4] | 71.5 |
Loans Originating Four Years Prior | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 48.5 | 34.3 | |
Loans Originating Four Years Prior | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 129.8 | 97.3 | |
Loans Originating Four Years Prior | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 17 | 21.3 | |
Loans Originating Four Years Prior | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 328 | 224.9 | |
Loans Originating Four Years Prior | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 112 | [4] | 71.3 |
Loans Originating Four Years Prior | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 56.7 | 37.4 | |
Loans Originating Four Years Prior | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 146 | 100.2 | |
Loans Originating Four Years Prior | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 13.3 | 16 | |
Loans Originating Three Years Prior | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 944.3 | 1,078.9 | |
Loans Originating Three Years Prior | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 415 | 446.5 | |
Loans Originating Three Years Prior | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 190.3 | 214 | |
Loans Originating Three Years Prior | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 335.8 | 411.9 | |
Loans Originating Three Years Prior | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 3.2 | 6.5 | |
Loans Originating Three Years Prior | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 575.7 | 517 | |
Loans Originating Three Years Prior | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 255.4 | [4] | 215.2 |
Loans Originating Three Years Prior | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 113.9 | 100.7 | |
Loans Originating Three Years Prior | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 203.9 | 196.9 | |
Loans Originating Three Years Prior | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 2.5 | 4.2 | |
Loans Originating Three Years Prior | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 368.6 | 561.9 | |
Loans Originating Three Years Prior | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 159.6 | [4] | 231.3 |
Loans Originating Three Years Prior | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 76.4 | 113.3 | |
Loans Originating Three Years Prior | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 131.9 | 215 | |
Loans Originating Three Years Prior | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 0.7 | 2.3 | |
Loans Originating Two Years Prior | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 1,406.7 | 1,487.4 | |
Loans Originating Two Years Prior | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 728.9 | 732.6 | |
Loans Originating Two Years Prior | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 295 | 332.8 | |
Loans Originating Two Years Prior | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 382.5 | 421.1 | |
Loans Originating Two Years Prior | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 0.3 | 0.9 | |
Loans Originating Two Years Prior | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 948.1 | 926.3 | |
Loans Originating Two Years Prior | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 498.4 | [4] | 461.6 |
Loans Originating Two Years Prior | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 195.6 | 204.6 | |
Loans Originating Two Years Prior | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 253.9 | 259.4 | |
Loans Originating Two Years Prior | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 0.2 | 0.7 | |
Loans Originating Two Years Prior | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 458.6 | 561.1 | |
Loans Originating Two Years Prior | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 230.5 | [4] | 271 |
Loans Originating Two Years Prior | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 99.4 | 128.2 | |
Loans Originating Two Years Prior | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 128.6 | 161.7 | |
Loans Originating Two Years Prior | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 0.1 | 0.2 | |
Loans Originating In The Prior Year | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 2,728.8 | 2,088.3 | |
Loans Originating In The Prior Year | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 1,807 | 1,209.1 | |
Loans Originating In The Prior Year | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 540.2 | 480.4 | |
Loans Originating In The Prior Year | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 381.6 | 398.8 | |
Loans Originating In The Prior Year | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 0 | 0 | |
Loans Originating In The Prior Year | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 1,993.9 | 1,428.9 | |
Loans Originating In The Prior Year | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 1,326.7 | [4] | 836.1 |
Loans Originating In The Prior Year | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 391.9 | 324.8 | |
Loans Originating In The Prior Year | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 275.3 | 268 | |
Loans Originating In The Prior Year | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 0 | 0 | |
Loans Originating In The Prior Year | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 734.9 | 659.4 | |
Loans Originating In The Prior Year | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 480.3 | [4] | 373 |
Loans Originating In The Prior Year | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 148.3 | 155.6 | |
Loans Originating In The Prior Year | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 106.3 | 130.8 | |
Loans Originating In The Prior Year | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | 0 | 0 | |
Loans Originating In The Current Year | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2] | 3,724 | 3,826 | |
Loans Originating In The Current Year | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3],[4] | 3,209.7 | 3,036.1 | |
Loans Originating In The Current Year | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 451.4 | 631.1 | |
Loans Originating In The Current Year | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[3] | 62.9 | 158.8 | |
Loans Originating In The Current Year | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[2],[5] | 0 | 0 | |
Loans Originating In The Current Year | Dealer Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1] | 2,766.3 | 2,842.5 | |
Loans Originating In The Current Year | Dealer Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 2,384.2 | [4] | 2,258.6 |
Loans Originating In The Current Year | Dealer Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 335.7 | 467.1 | |
Loans Originating In The Current Year | Dealer Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[3] | 46.4 | 116.8 | |
Loans Originating In The Current Year | Dealer Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [1],[5] | 0 | 0 | |
Loans Originating In The Current Year | Purchased Loans [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2] | 957.7 | 983.5 | |
Loans Originating In The Current Year | Purchased Loans [Member] | Current, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 825.5 | [4] | 777.5 |
Loans Originating In The Current Year | Purchased Loans [Member] | Past Due 11-90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 115.7 | 164 | |
Loans Originating In The Current Year | Purchased Loans [Member] | Past Due Over 90 Days, Pre-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[3] | 16.5 | 42 | |
Loans Originating In The Current Year | Purchased Loans [Member] | Post-term [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable | [2],[5] | $ 0 | $ 0 | |
[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.[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.[3]Represents the Loan balance attributable to Consumer Loans outstanding within their initial loan terms.[4]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.[5]Represents the Loan balance attributable to Consumer Loans outstanding beyond their initial loan terms. |
Loans Receivable (Write-Offs Se
Loans Receivable (Write-Offs Segmented by Year of Assignment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | $ 53.8 | $ 178.8 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 69.4 | 219.2 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 52.7 | 158.9 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 59 | 166.6 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 70.2 | 196.9 | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year, Writeoff | 28.8 | 43.5 | ||
Allowance for Loan and Lease Losses, Write-offs | 0 | $ 0 | 0 | $ 0 |
Allowance for Credit Losses [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||||
Allowance for Loan and Lease Losses, Write-offs | 333.9 | 348.8 | 963.9 | 1,017.6 |
Dealer Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 29.5 | 95.1 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 26.2 | 76.9 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 28.9 | 80.2 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 30.3 | 75.7 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 31.7 | 78 | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year, Writeoff | 7.1 | 11.3 | ||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 |
Dealer Loans [Member] | Allowance for Credit Losses [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||||
Allowance for Loan and Lease Losses, Write-offs | 153.7 | 116.1 | 417.2 | 315.8 |
Purchased Loans [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 24.3 | 83.7 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 43.2 | 142.3 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 23.8 | 78.7 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 28.7 | 90.9 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 38.5 | 118.9 | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year, Writeoff | 21.7 | 32.2 | ||
Allowance for Loan and Lease Losses, Write-offs | 0 | 0 | 0 | 0 |
Purchased Loans [Member] | Allowance for Credit Losses [Member] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||||
Allowance for Loan and Lease Losses, Write-offs | $ 180.2 | $ 232.7 | $ 546.7 | $ 701.8 |
Loans Receivable (Forecast adju
Loans Receivable (Forecast adjustment) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Forecasted net cash flows | $ 95.7 |
Provision for Credit Losses | (70.6) |
Removal of COVID forecast adjustment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Forecasted net cash flows | 149.5 |
Provision for Credit Losses | (118.5) |
Implementation of enhanced forecasting methodology [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Forecasted net cash flows | (53.8) |
Provision for Credit Losses | $ 47.9 |
Reinsurance (Summary of Reinsur
Reinsurance (Summary of Reinsurance Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Insurance [Abstract] | ||||
Net assumed written premiums | $ 22.6 | $ 18.8 | $ 71.5 | $ 55.6 |
Net premiums earned | 20.8 | 16.4 | 58 | 45.6 |
Provision for claims | 16.5 | 12.9 | 54.1 | 34 |
Amortization of capitalized acquisition costs | $ 0.3 | $ 0.3 | $ 1.3 | $ 1.1 |
Reinsurance (Schedule of Trust
Reinsurance (Schedule of Trust Assets and Reinsurance Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Reinsurance [Line Items] | |||||
Restricted cash and cash equivalents | $ 435.1 | $ 410 | $ 384.7 | $ 410.9 | |
Debt Securities, Available-for-sale, Restricted | 86.2 | 72.3 | |||
Trust Assets [Member] | |||||
Reinsurance [Line Items] | |||||
Restricted cash and cash equivalents | 1.7 | 0.4 | |||
Debt Securities, Available-for-sale, Restricted | 86.2 | 72.3 | |||
Unearned Premium [Member] | |||||
Reinsurance [Line Items] | |||||
Accounts payable and accrued liabilities | 67.9 | 54.4 | |||
Claims Reserve [Member] | |||||
Reinsurance [Line Items] | |||||
Accounts payable and accrued liabilities | [1] | $ 5.7 | $ 3.1 | ||
[1]The claims reserve represents our liability for incurred-but-not-reported claims and is estimated based on historical claims experience. |
Other income (Schedule of Other
Other income (Schedule of Other Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Other income | $ 16.1 | $ 23.3 | $ 48.5 | $ 57.5 |
Ancillary Product Profit Sharing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 7.8 | 13.7 | 24.4 | 41.3 |
Interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 5.3 | 1.9 | 14.3 | 2.9 |
Remarketing Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 2.5 | 7.1 | 8.2 | 11 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | $ 0.5 | $ 0.6 | $ 1.6 | $ 2.3 |
Other Income (Disaggregation of
Other Income (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Other income | $ 16.1 | $ 23.3 | $ 48.5 | $ 57.5 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 13.3 | 39.5 | ||
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 2.8 | 9 | ||
Third Party Providers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 13.2 | 38.8 | ||
Dealers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 2.9 | 9.7 | ||
Ancillary Product Profit Sharing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 7.8 | 13.7 | 24.4 | 41.3 |
Ancillary Product Profit Sharing [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 7.8 | 24.4 | ||
Ancillary Product Profit Sharing [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Ancillary Product Profit Sharing [Member] | Third Party Providers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 7.8 | 24.4 | ||
Ancillary Product Profit Sharing [Member] | Dealers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Interest [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 5.3 | 1.9 | 14.3 | 2.9 |
Interest [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 5.3 | 14.3 | ||
Interest [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Interest [Member] | Third Party Providers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 5.3 | 14.3 | ||
Interest [Member] | Dealers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Remarketing Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 2.5 | 7.1 | 8.2 | 11 |
Remarketing Fees [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Remarketing Fees [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 2.5 | 8.2 | ||
Remarketing Fees [Member] | Third Party Providers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0 | 0 | ||
Remarketing Fees [Member] | Dealers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 2.5 | 8.2 | ||
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.5 | $ 0.6 | 1.6 | $ 2.3 |
Other [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.2 | 0.8 | ||
Other [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.3 | 0.8 | ||
Other [Member] | Third Party Providers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | 0.1 | 0.1 | ||
Other [Member] | Dealers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Other income | $ 0.4 | $ 1.5 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Mar. 07, 2019 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 18, 2019 | Aug. 06, 2018 | |||
Debt Instrument [Line Items] | |||||||||||
Maximum hedging reserve | $ 1 | ||||||||||
Unamortized Debt Issuance Costs | $ (25) | $ (22.4) | |||||||||
Percentage of collections on newer contributed loans | 4% | ||||||||||
Percentage of collections on contributed loans | 6% | ||||||||||
Monthly servicing fee per financing | 6% | ||||||||||
Monthly servicing fee per newer financings | 4% | ||||||||||
Mortgage note | [1] | $ 8.5 | 8.9 | ||||||||
Repayment of senior notes | $ 148.2 | ||||||||||
Senior notes | 796 | 794.5 | |||||||||
Loss on extinguishment of debt | $ 7.4 | $ 1.8 | |||||||||
Carrying Amount | 4,940.8 | 4,590.7 | |||||||||
Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unamortized Debt Issuance Costs | (4) | (5.5) | |||||||||
Carrying Amount | 796 | 794.5 | |||||||||
Mortgages [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | 9 | [2] | $ 9 | ||||||||
Unamortized Debt Issuance Costs | 0 | 0 | |||||||||
Mortgage note | $ 8.5 | $ 8.9 | |||||||||
Debt maturity date | [2] | Aug. 06, 2028 | |||||||||
Senior notes yield to maturity | 6.87% | 5.46% | |||||||||
Carrying Amount | $ 8.5 | $ 8.9 | |||||||||
Revolving Secured Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility | $ 390 | ||||||||||
Percentage of net book value of loans | 80% | ||||||||||
Unamortized Debt Issuance Costs | [3] | $ 0 | 0 | ||||||||
Carrying Amount | [3] | $ 102.1 | $ 30.9 | ||||||||
Warehouse Facilities [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Percentage of net book value of loans | 80% | ||||||||||
Number of warehouse facilities | 5 | ||||||||||
Debt facility financing amount | $ 1,175 | ||||||||||
Warehouse Facility II [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | [2] | $ 400 | |||||||||
Debt maturity date | [2],[4] | Apr. 30, 2026 | |||||||||
Senior notes yield to maturity | 7.60% | 0% | |||||||||
Warehouse Facility IV [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | [2] | $ 300 | |||||||||
Debt maturity date | [2],[4] | May 20, 2025 | |||||||||
Senior notes yield to maturity | 0% | 0% | |||||||||
Warehouse Facility V [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | [2] | $ 200 | |||||||||
Debt maturity date | [2],[5] | Dec. 29, 2025 | |||||||||
Senior notes yield to maturity | 0% | 0% | |||||||||
Warehouse Facility VI [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | [2] | $ 75 | |||||||||
Debt maturity date | [2],[4] | Sep. 30, 2026 | |||||||||
Senior notes yield to maturity | 0% | 0% | |||||||||
Term ABS 2019-2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | [2] | $ 500 | |||||||||
Debt financing close date | Aug. 28, 2019 | ||||||||||
Debt maturity date | [2],[6] | Aug. 15, 2025 | |||||||||
Senior notes yield to maturity | 5.15% | 5.15% | |||||||||
Net Book Value Of Loans Pledged As Collateral | $ 625.1 | ||||||||||
Term ABS 2019-3 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes yield to maturity | 0% | 3% | |||||||||
Term ABS 2020-1 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes yield to maturity | 0% | 2.51% | |||||||||
Term ABS 2020-2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | [2] | $ 481.8 | |||||||||
Debt financing close date | Jul. 23, 2020 | ||||||||||
Debt maturity date | [2],[4] | Jul. 15, 2022 | |||||||||
Senior notes yield to maturity | 2.70% | 1.81% | |||||||||
Net Book Value Of Loans Pledged As Collateral | $ 602.3 | ||||||||||
2021 Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | $ 300 | ||||||||||
Repayment of senior notes | $ 151.8 | ||||||||||
Senior notes yield to maturity | 6.125% | ||||||||||
2024 Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | $ 400 | ||||||||||
Debt maturity date | Dec. 31, 2024 | ||||||||||
Senior notes | $ 400 | $ 400 | $ 400 | ||||||||
Senior notes yield to maturity | 5.125% | 5.125% | 5.125% | ||||||||
2026 Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | $ 400 | $ 400 | |||||||||
Close date, secured financings | Mar. 07, 2019 | ||||||||||
Senior notes stated interest rate | 6.625% | ||||||||||
Debt maturity date | Mar. 15, 2026 | Mar. 15, 2026 | |||||||||
Senior notes | $ 400 | $ 400 | |||||||||
Senior notes yield to maturity | 6.625% | 6.625% | |||||||||
2023 Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes | $ 250 | ||||||||||
Senior notes yield to maturity | 7.375% | ||||||||||
Term ABS 2021-2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt facility financing amount | [2] | $ 500 | |||||||||
Debt financing close date | Feb. 18, 2021 | ||||||||||
Debt maturity date | [2],[4] | Feb. 15, 2023 | |||||||||
Senior notes yield to maturity | 1.25% | 1.12% | |||||||||
Net Book Value Of Loans Pledged As Collateral | $ 625.1 | ||||||||||
Prime Rate [Member] | Revolving Secured Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 87.50% | ||||||||||
[1]Measured at amortized cost with fair value disclosed.[2]Financing made available only to a specified subsidiary of the Company.[3] Excludes deferred debt issuance cost s of $4.6 million and $3.9 million as of September 30, 2023 and December 31, 2022, respectively, which are included in other assets. |
Debt (Schedule of Principal Deb
Debt (Schedule of Principal Debt Outstanding) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 4,968.5 | $ 4,616.5 | |
Unamortized Debt Issuance Costs | (25) | (22.4) | |
Unamortized Discount | 2.7 | 3.4 | |
Carrying Amount | 4,940.8 | 4,590.7 | |
Revolving Secured Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | [1] | 102.1 | 30.9 |
Unamortized Debt Issuance Costs | [1] | 0 | 0 |
Unamortized Discount | [1] | 0 | 0 |
Carrying Amount | [1] | 102.1 | 30.9 |
Secured Financings [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | [2] | 4,057.9 | 3,776.7 |
Unamortized Debt Issuance Costs | [2] | (21) | (16.9) |
Unamortized Discount | [2] | 2.7 | 3.4 |
Carrying Amount | [2] | 4,034.2 | 3,756.4 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 800 | 800 | |
Unamortized Debt Issuance Costs | (4) | (5.5) | |
Unamortized Discount | 0 | 0 | |
Carrying Amount | 796 | 794.5 | |
Mortgages [Member] | |||
Debt Instrument [Line Items] | |||
Principal Outstanding | 8.5 | 8.9 | |
Unamortized Debt Issuance Costs | 0 | 0 | |
Unamortized Discount | 0 | 0 | |
Carrying Amount | 8.5 | 8.9 | |
Other Assets [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Costs | $ (4.6) | $ (3.9) | |
[1] Excludes deferred debt issuance cost s of $4.6 million and $3.9 million as of September 30, 2023 and December 31, 2022, respectively, which are included in other assets. |
Debt (Schedule of General Infor
Debt (Schedule of General Information of Financing Transaction) (Details) - USD ($) $ in Millions | 9 Months Ended | ||||||
Mar. 07, 2019 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 18, 2019 | Aug. 06, 2018 | |||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 796 | $ 794.5 | |||||
Revolving Secured Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit maturity date | Jun. 22, 2026 | ||||||
Financing Amount | $ 390 | ||||||
Revolving Secured Line of Credit [Member] | BSBY [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 187.50% | ||||||
Revolving Secured Line of Credit [Member] | Prime Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 87.50% | ||||||
RTP Facility | |||||||
Debt Instrument [Line Items] | |||||||
Financing Amount | $ 20 | ||||||
Warehouse Facility II [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 7.60% | 0% | |||||
Debt maturity date | [1],[2] | Apr. 30, 2026 | |||||
Debt facility financing amount | [1] | $ 400 | |||||
Warehouse Facility II [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 230% | |||||
Warehouse Facility IV [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | 0% | |||||
Debt maturity date | [1],[2] | May 20, 2025 | |||||
Debt facility financing amount | [1] | $ 300 | |||||
Warehouse Facility IV [Member] | SOFR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 221.40% | |||||
Warehouse Facility V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | 0% | |||||
Debt maturity date | [1],[4] | Dec. 29, 2025 | |||||
Debt facility financing amount | [1] | $ 200 | |||||
Warehouse Facility V [Member] | SOFR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 245% | |||||
Warehouse Facility VI [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | 0% | |||||
Debt maturity date | [1],[2] | Sep. 30, 2026 | |||||
Debt facility financing amount | [1] | $ 75 | |||||
Warehouse Facility VI [Member] | BSBY [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1] | 200% | |||||
Warehouse Facility VIII [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | 0% | |||||
Debt maturity date | [1],[2] | Sep. 21, 2026 | |||||
Debt facility financing amount | [1] | $ 200 | |||||
Warehouse Facility VIII [Member] | SOFR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 225% | |||||
Term ABS 2019-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.15% | 5.15% | |||||
Debt maturity date | [1],[5] | Aug. 15, 2025 | |||||
Debt facility financing amount | [1] | $ 500 | |||||
Term ABS 2019-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | 3% | |||||
Term ABS 2020-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | 2.51% | |||||
Term ABS 2020-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.70% | 1.81% | |||||
Debt maturity date | [1],[2] | Jul. 15, 2022 | |||||
Debt facility financing amount | [1] | $ 481.8 | |||||
Term ABS 2020-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.86% | 1.47% | |||||
Debt maturity date | [1],[2] | Oct. 17, 2022 | |||||
Debt facility financing amount | [1] | $ 600 | |||||
Term ABS 2021-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 7.53% | 6.52% | |||||
Debt maturity date | [1],[5] | Dec. 16, 2024 | |||||
Debt facility financing amount | [1] | $ 100 | |||||
Term ABS 2021-1 [Member] | SOFR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 220% | |||||
Term ABS 2021-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.25% | 1.12% | |||||
Debt maturity date | [1],[2] | Feb. 15, 2023 | |||||
Debt facility financing amount | [1] | $ 500 | |||||
Term ABS 2021-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.19% | 1.14% | |||||
Debt maturity date | [1],[2] | May 15, 2023 | |||||
Debt facility financing amount | [1] | $ 450 | |||||
Term ABS 2021-4 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.44% | 1.44% | |||||
Debt maturity date | [1],[2] | Oct. 16, 2023 | |||||
Debt facility financing amount | [1] | $ 250.1 | |||||
Term ABS 2022-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.03% | 5.03% | |||||
Debt maturity date | [1],[2] | Jun. 17, 2024 | |||||
Debt facility financing amount | [1] | $ 350 | |||||
Term ABS 2022-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 7.76% | 6.65% | |||||
Debt maturity date | [1],[5] | Dec. 15, 2025 | |||||
Debt facility financing amount | [1] | $ 200 | |||||
Term ABS 2022-2 [Member] | SOFR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1],[3] | 235% | |||||
Term ABS 2022-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 7.68% | 7.68% | |||||
Debt maturity date | [1],[2] | Oct. 15, 2024 | |||||
Debt facility financing amount | [1] | $ 389.9 | |||||
Term ABS 2023-1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.92% | ||||||
Debt maturity date | [1],[2] | Mar. 17, 2025 | |||||
Debt facility financing amount | [1] | $ 400 | |||||
Term ABS 2023-2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.39% | ||||||
Debt maturity date | May 15, 2025 | ||||||
Debt facility financing amount | $ 400 | ||||||
Term ABS 2023-3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.86% | ||||||
Debt maturity date | Aug. 15, 2025 | ||||||
Debt facility financing amount | $ 400 | ||||||
2024 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 400 | $ 400 | $ 400 | ||||
Interest rate | 5.125% | 5.125% | 5.125% | ||||
Debt maturity date | Dec. 31, 2024 | ||||||
Debt facility financing amount | $ 400 | ||||||
2026 Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 400 | $ 400 | |||||
Interest rate | 6.625% | 6.625% | |||||
Debt maturity date | Mar. 15, 2026 | Mar. 15, 2026 | |||||
Debt facility financing amount | $ 400 | $ 400 | |||||
Mortgages [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.87% | 5.46% | |||||
Debt maturity date | [1] | Aug. 06, 2028 | |||||
Debt facility financing amount | $ 9 | [1] | $ 9 | ||||
Mortgages [Member] | BSBY [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | [1] | 150% | |||||
[1]Financing made available only to a specified subsidiary of the Company.[2]Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date based on the cash flows of the pledged assets.[3]Interest rate cap agreements are in place to limit the exposure to increasing interest rates[4]Represents the revolving maturity date. The outstanding balance will amortize after the revolving maturity date and any amounts remaining on December 27, 2027 will be due on that date.[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 |
Debt (Schedule of Additional In
Debt (Schedule of Additional Information Related to Debt Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revolving Secured Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | $ 302.2 | $ 356.3 | $ 355.5 | $ 379.7 |
Average outstanding balance | 171.1 | 169.1 | 152.4 | 152.8 |
Warehouse Facility II [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 201 | 100 | 201 | 201 |
Average outstanding balance | 86.2 | 71.7 | 55.2 | 83.1 |
Warehouse Facility IV [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 0 | 0 | 0 | 43.8 |
Average outstanding balance | 0 | 0 | 0 | 5.7 |
Warehouse Facility V [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 0 | 0 | 0 | 0 |
Average outstanding balance | 0 | 0 | 0 | 0 |
Warehouse Facility VI [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 0 | 50 | 0 | 50 |
Average outstanding balance | 0 | 50 | 0 | 17.2 |
Warehouse Facility VIII [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum outstanding balance | 0 | 0 | 0 | 48.2 |
Average outstanding balance | $ 0 | $ 0 | $ 0 | $ 6.3 |
Debt (Summary of Debt) (Details
Debt (Summary of Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 18, 2019 | |
Debt Instrument [Line Items] | ||||||
Revolving secured line of credit balance outstanding | $ 102.1 | $ 30.9 | ||||
Secured Debt | 4,034.2 | 3,756.4 | ||||
Senior notes balance outstanding | 796 | 794.5 | ||||
Restricted cash and cash equivalents pledged as collateral | 435.1 | 410 | $ 384.7 | $ 410.9 | ||
Mortgage note | [1] | 8.5 | 8.9 | |||
Revolving Secured Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving secured line of credit balance outstanding | 102.1 | 30.9 | ||||
Amount available for borrowing | [2] | $ 307.9 | $ 379.1 | |||
Interest rate | 7.26% | 6.25% | ||||
Warehouse Facility II [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 201 | $ 0 | ||||
Amount available for borrowing | [2] | 199 | 400 | |||
Loans pledged as collateral | 244.9 | 0 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 9.7 | $ 1 | ||||
Interest rate | 7.60% | 0% | ||||
Warehouse Facility IV [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 0 | $ 0 | ||||
Amount available for borrowing | [2] | 300 | 300 | |||
Loans pledged as collateral | 0 | 0 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 1 | $ 1 | ||||
Interest rate | 0% | 0% | ||||
Warehouse Facility V [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 0 | $ 0 | ||||
Amount available for borrowing | [2] | 200 | 200 | |||
Loans pledged as collateral | 0 | 0 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 1 | $ 1 | ||||
Interest rate | 0% | 0% | ||||
Warehouse Facility VI [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 0 | $ 0 | ||||
Amount available for borrowing | [2] | 75 | 75 | |||
Loans pledged as collateral | 0 | 0 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 0 | $ 0 | ||||
Interest rate | 0% | 0% | ||||
Warehouse Facility VIII [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 0 | $ 0 | ||||
Amount available for borrowing | [2] | 200 | 200 | |||
Loans pledged as collateral | 0 | 0 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 0 | $ 0 | ||||
Interest rate | 0% | 0% | ||||
Term ABS 2019-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 500 | $ 500 | ||||
Loans pledged as collateral | 554.8 | 627.5 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 45.7 | $ 51 | ||||
Interest rate | 5.15% | 5.15% | ||||
Term ABS 2019-3 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 0 | $ 64.4 | ||||
Loans pledged as collateral | 0 | 200.9 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 0 | $ 24.5 | ||||
Interest rate | 0% | 3% | ||||
Term ABS 2020-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 0 | $ 144.6 | ||||
Loans pledged as collateral | 0 | 362.5 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 0 | $ 38.8 | ||||
Interest rate | 0% | 2.51% | ||||
Term ABS 2020-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 62.9 | $ 307 | ||||
Loans pledged as collateral | 289.1 | 452 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 34.2 | $ 43.9 | ||||
Interest rate | 2.70% | 1.81% | ||||
Term ABS 2020-3 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 196.1 | $ 520.7 | ||||
Loans pledged as collateral | 467.1 | 655.1 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 45.4 | $ 53.9 | ||||
Interest rate | 1.86% | 1.47% | ||||
Term ABS 2021-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 100 | $ 100 | ||||
Loans pledged as collateral | 112.7 | 115 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 8.9 | $ 8.5 | ||||
Interest rate | 7.53% | 6.52% | ||||
Term ABS 2021-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 269 | $ 500 | ||||
Loans pledged as collateral | 460.3 | 572.9 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 39.7 | $ 44.5 | ||||
Interest rate | 1.25% | 1.12% | ||||
Term ABS 2021-3 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 338.9 | $ 450 | ||||
Loans pledged as collateral | 438 | 519.9 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 36.4 | $ 38.8 | ||||
Interest rate | 1.19% | 1.14% | ||||
Term ABS 2021-4 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 250.1 | $ 250.1 | ||||
Loans pledged as collateral | 267.9 | 278.5 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 22 | $ 21.8 | ||||
Interest rate | 1.44% | 1.44% | ||||
Term ABS 2022-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 350 | $ 350 | ||||
Loans pledged as collateral | 379.1 | 434.7 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 26.6 | $ 27.7 | ||||
Interest rate | 5.03% | 5.03% | ||||
Term ABS 2022-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 200 | $ 200 | ||||
Loans pledged as collateral | 214.4 | 229.3 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 15 | $ 25.6 | ||||
Interest rate | 7.76% | 6.65% | ||||
Term ABS 2022-3 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 389.9 | $ 389.9 | ||||
Loans pledged as collateral | 423.9 | 429.2 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 29.3 | $ 27.6 | ||||
Interest rate | 7.68% | 7.68% | ||||
Term ABS 2023-1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 400 | |||||
Loans pledged as collateral | 629.9 | $ 0 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 39.4 | |||||
Interest rate | 6.92% | |||||
Term ABS 2023-2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 400 | |||||
Loans pledged as collateral | 694.6 | 0 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 41.9 | |||||
Interest rate | 6.39% | |||||
Term ABS 2023-3 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 400 | |||||
Loans pledged as collateral | 604.8 | 0 | ||||
Restricted cash and cash equivalents pledged as collateral | $ 37.2 | |||||
Interest rate | 6.86% | |||||
2024 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes balance outstanding | $ 400 | $ 400 | $ 400 | |||
Interest rate | 5.125% | 5.125% | 5.125% | |||
2026 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes balance outstanding | $ 400 | $ 400 | ||||
Interest rate | 6.625% | 6.625% | ||||
Mortgages [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.87% | 5.46% | ||||
Mortgage note | $ 8.5 | $ 8.9 | ||||
[1]Measured at amortized cost with fair value disclosed.[2]Availability may be limited by the amount of assets pledged as collateral. |
Debt (Summary of Term ABS Finan
Debt (Summary of Term ABS Financings) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) | ||
Term ABS 2019-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Aug. 28, 2019 | |
Net Book Value of Loans Contributed at Closing | $ 625.1 | |
Maturity Date | Aug. 15, 2025 | [1],[2] |
Term ABS 2020-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Jul. 23, 2020 | |
Net Book Value of Loans Contributed at Closing | $ 602.3 | |
Maturity Date | Jul. 15, 2022 | [1],[3] |
Term ABS 2020-3 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Oct. 22, 2020 | |
Net Book Value of Loans Contributed at Closing | $ 750.1 | |
Maturity Date | Oct. 17, 2022 | [1],[3] |
Term ABS 2021-1 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Jan. 29, 2021 | |
Net Book Value of Loans Contributed at Closing | $ 125.1 | |
Maturity Date | Dec. 16, 2024 | [1],[2] |
Term ABS 2021-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Feb. 18, 2021 | |
Net Book Value of Loans Contributed at Closing | $ 625.1 | |
Maturity Date | Feb. 15, 2023 | [1],[3] |
Term ABS 2021-3 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | May 20, 2021 | |
Net Book Value of Loans Contributed at Closing | $ 562.6 | |
Maturity Date | May 15, 2023 | [1],[3] |
Term ABS 2021-4 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Oct. 28, 2021 | |
Net Book Value of Loans Contributed at Closing | $ 312.6 | |
Maturity Date | Oct. 16, 2023 | [1],[3] |
Term ABS 2022-1 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Jun. 16, 2022 | |
Net Book Value of Loans Contributed at Closing | $ 437.6 | |
Maturity Date | Jun. 17, 2024 | [1],[3] |
Term ABS 2022-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Dec. 15, 2022 | |
Net Book Value of Loans Contributed at Closing | $ 250.1 | |
Maturity Date | Dec. 15, 2025 | [1],[2] |
Term ABS 2022-3 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Nov. 03, 2022 | |
Net Book Value of Loans Contributed at Closing | $ 500.1 | |
Maturity Date | Oct. 15, 2024 | [1],[3] |
Term ABS 2023-1 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Mar. 16, 2023 | |
Net Book Value of Loans Contributed at Closing | $ 500.2 | |
Maturity Date | Mar. 17, 2025 | [1],[3] |
Term ABS 2023-2 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | May 25, 2023 | |
Net Book Value of Loans Contributed at Closing | $ 500.1 | |
Maturity Date | May 15, 2025 | |
Term ABS 2023-3 [Member] | ||
Debt Instrument [Line Items] | ||
Close Date | Aug. 24, 2023 | |
Net Book Value of Loans Contributed at Closing | $ 500.1 | |
Maturity Date | Aug. 15, 2025 | |
[1]Financing made available only to a specified subsidiary of the Company.[2]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[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. |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments (Schedule of Terms of Interest Rate Cap Agreements) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Interest rate caps, fair value | $ 0.9 | $ 2 | |
Warehouse Facility II [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | [1] | 400 | |
Warehouse Facility II [Member] | 6.50% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | 400 | 400 | |
Notional Amount | $ 205 | $ 205 | |
Cap Interest Rate | [2] | 6.50% | 6.50% |
Warehouse Facility IV [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | [1] | $ 300 | |
Warehouse Facility IV [Member] | 6.50% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | 300 | $ 300 | |
Notional Amount | $ 300 | $ 175 | |
Cap Interest Rate | [2] | 7.50% | 6.50% |
Warehouse Facility V [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | [1] | $ 200 | |
Warehouse Facility V [Member] | 5.44% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | 200 | ||
Notional Amount | $ 94 | ||
Cap Interest Rate | [2] | 5.44% | |
Warehouse Facility V [Member] | 5.50% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | $ 200 | ||
Notional Amount | $ 94 | ||
Cap Interest Rate | [2] | 5.50% | |
Warehouse Facility VIII [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | [1] | $ 200 | |
Notional Amount | $ 200 | ||
Warehouse Facility VIII [Member] | 5.42% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | 200 | ||
Notional Amount | $ 200 | ||
Cap Interest Rate | [2] | 5.42% | |
Warehouse Facility VIII [Member] | 5.50% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | 200 | ||
Notional Amount | $ 116.7 | ||
Cap Interest Rate | [2] | 5.50% | |
Warehouse Facility VIII [Member] | Additional 5.5% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Notional Amount | $ 83.3 | ||
Cap Interest Rate | [2] | 5.50% | |
Term ABS 2021-1 [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | [1] | $ 100 | |
Term ABS 2021-1 [Member] | 5.46% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | 100 | ||
Notional Amount | $ 56.3 | ||
Cap Interest Rate | [2] | 5.46% | |
Term ABS 2021-1 [Member] | 5.50% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | $ 100 | ||
Notional Amount | $ 100 | ||
Cap Interest Rate | [2] | 5.50% | |
Term ABS 2022-2 [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | [1] | $ 200 | |
Term ABS 2022-2 [Member] | 6.50% Cap Interest Rate [Member] | |||
Derivative [Line Items] | |||
Debt facility financing amount | 200 | $ 200 | |
Notional Amount | $ 200 | $ 200 | |
Cap Interest Rate | [2] | 6.50% | 6.50% |
[1]Financing made available only to a specified subsidiary of the Company.[2]Rate excludes the spread over the corresponding benchmark rate. |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of the U.S. Federal Statutory Rate to Effective Tax Rate) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory rate | 21% | 21% | 21% | 21% |
State income taxes | 4.30% | 6.90% | 2.80% | 3.90% |
Excess tax benefits from stock-based compensation plans | 0% | 0% | (2.10%) | (0.10%) |
Other | 1.30% | 1% | 1.70% | 0.80% |
Effective tax rate | 26.60% | 28.90% | 23.40% | 25.60% |
Net Income Per Share (Computati
Net Income Per Share (Computation of Weighted Average Shares Outstanding Basic and Diluted) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Common shares | 12,716,387 | 12,927,081 | 12,785,870 | 13,296,064 |
Vested restricted stock units | 216,990 | 366,143 | 227,474 | 366,114 |
Basic number of weighted average shares outstanding | 12,933,377 | 13,293,224 | 13,013,344 | 13,662,178 |
Dilutive effect of restricted stock and restricted stock units | 106,261 | 70,936 | 55,654 | 75,693 |
Dilutive number of weighted average shares outstanding | 13,039,638 | 13,364,160 | 13,068,998 | 13,737,871 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Awards Excluded from the Computation of Diluted Net income Per Share) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 92,811 | 67,875 | 232,255 | 58,753 |
Equity Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 89,625 | 63,875 | 229,123 | 56,321 |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,186 | 4,000 | 3,132 | 2,432 |
Stock Repurchases (Details)
Stock Repurchases (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 05, 2020 | ||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock repurchased, shares | 305,493 | 1,261,457 | ||||
Common stock repurchased, value | $ 126,300,000 | $ 26,500,000 | $ 149,000,000 | $ 679,200,000 | ||
Increase in number of shares authorized for repurchase | 2,000,000 | |||||
Remaining number of shares authorized for repurchase | 1,886,035 | 1,886,035 | ||||
Open Market [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock repurchased, shares | [1] | 256,232 | 53,769 | 272,034 | 1,259,712 | |
Common stock repurchased, value | [1] | $ 126,300,000 | $ 26,500,000 | $ 133,900,000 | $ 678,200,000 | |
Other [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock repurchased, shares | [2] | 33,459 | 1,745 | |||
Common stock repurchased, value | [2] | $ 15,100,000 | $ 1,000,000 | |||
[1]Represents repurchases under authorizations by the 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 August 21, 2023, the 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 September 30, 2023, we had authorization to repurchase 1,886,035 shares of our common stock.[2]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 conversion of restricted stock units to common stock. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans Stock-Based Compensation Plans (Summary Of Restricted Stock Units Activity) (Details) - Restricted Stock Units [Member] - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Share -based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding | 341,228 | |
Granted | 15,027 | |
Restricted stock units converted to common stock, shares | (101,757) | |
Forfeited | (791) | |
Outstanding | 253,707 | 253,707 |
Weighted Average Grant-Date Fair Value Per Share, Outstanding | $ 169.28 | |
Weighted Average Grant-Date Fair Value Per Share, Non-vested, Granted | $ 466.15 | |
Weighted Average Grant-Date Fair Value Per Share, Non-vested, Converted | 233.39 | |
Weighted Average Grant-Date Fair Value Per Share, Non-vested, Forfeited | 461.95 | |
Weighted Average Grant-Date Fair Value Per Share, Outstanding | $ 160.24 | $ 160.24 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Schedule of Stock Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share -based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 9.3 | $ 8.7 | $ 29 | $ 26.9 |
Total | 61 | 61 | ||
Equity Option [Member] | ||||
Share -based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 8 | 8.1 | 25.1 | 25.1 |
Restricted Stock Units [Member] | ||||
Share -based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1.3 | $ 0.6 | $ 3.9 | $ 1.8 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans Stock-Based Compensation Plans (Schedule Of Future Share-Based Compensation Cost) (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Share -based Compensation Arrangement by Share-based Payment Award [Line Items] | |
2023 | $ 9.9 |
2024 | 38.2 |
2025 | 9.2 |
2026 | 3.6 |
2027 | 0.1 |
Total | $ 61 |