SOUTHFIELD, Mich. — Subprime lender Credit Acceptance Corp. reported year-over-year improvements in net income and revenue for the first quarter of 2010. The company also added several new dealer partners and reported gains in loan volume and average loan volume per dealer.

Credit Acceptance CEO Brett Roberts said the favorable performance was the result of several factors, including pricing changes.

"Dollar and unit volume increased during the first quarter of 2010 ... due to pricing changes implemented during the last four months of 2009 and the first quarter of 2010 that reduced per unit profitability in exchange for increased unit volume," Roberts said.

The result was an 11.2 percent increase in loan volume, made possible in part by the 216 new dealer partners who signed on with Credit Acceptance between January and March. The lender now counts 2,346 active dealer partners on its roster, each of whom booked an average of 16.6 new loans during the period.

The effects of the 2008 credit crisis were made clear in an overview of loan performance over the past 10 years. Credit Acceptance forecasts a collection percentage of 76.4 percent for 2009 originations and 69.8 percent for contracts purchased in 2008; both are improvements upon the firm’s initial forecasts. Pre-2008 vintages, however, are not expected to perform as well — for instance, the company predicts a collection percentage of 68.1 percent for loans booked in 2007, more than two points lower than its initial forecast.

Credit Acceptance also reported year-over-year improvements in consolidated net income, adjusted net income and total revenue. Roberts indicated that careful planning and further adjustment will give the company a chance to further improve its financial performance.

"We will continue to monitor unit volumes and will make additional pricing changes," he said. "Future growth rates will partially depend on how unit volumes respond to pricing changes, which will be influenced, to a large degree, by how quickly competition returns to our market."