SC - Use Further Market Weakness To Add To Credit Acceptance
Thesis
In spite of the current crisis brought on by COVID-19, Credit Acceptance Corporation (CACC) remains a solid investment due to a number of defensive mechanisms within its business model. These features give the company a degree of resilience that is unmatched by its competitors. In addition, if the current crisis were to intensify, the company should benefit in the long run from reduced competition and improved per unit profitability.
Background
I first wrote an article on Credit Acceptance Corporation on March 16th 2020. The article went into some depth on the company's