Amid its own internal tumult, coupled with unheard of external market conditions, Credit Acceptance Corp. has seen its loan volumes plunge.
The subprime auto lender disclosed in a regulatory filing last week that its May "Consumer Loan assignment unit volume" had declined 44.3 percent from the same month last year, but offered no explanation as for the reason.
The drastic decline in loan volume for the lender, which primarily finances those with low credit scores buying used cars, is likely tied to the ongoing microchip shortage that's halting production of new cars and laying waste to dealer inventories, according to industry analysts.
The cost of previously owned sedans, pickups and SUVs soared 10 percent in April, according to a Bloomberg report, citing data from the U.S. Bureau of Labor Statistics. It makes for the fastest climb ever in data that go back to 1953. It accounted for more than a third of the 0.8 percent increase in the consumer price index, which was four times the level economists estimated.