DBRS Rates Credit Acceptance Auto Loan Trust 2010-1

DBRS has assigned a provisional rating of AAA (sf) to the Credit Acceptance Auto Loan Trust 2010-1, Class A $81,000,000 (CAALT 2010-1) transaction. The primary assets of the Issuer will be dealer loans (80.3%) and purchase loans (19.7%), which consist of a group of advances made by the Originator to dealers or cash payments. The proceeds of each advance or cash payment are used by the related dealer to finance its sales of used automobiles, light-duty trucks, minivans and sport utility vehicles, and related ancillary products.

Credit enhancement in the transaction will consist of overcollateralization, subordination and a reserve account. The initial amount of overcollateralization is expected to be 20.0% of the outstanding loan balance of dealer advance or purchase loans. There is also subordination in the transaction as the Class B and C notes are subordinated to the Class A notes. There will also be a reserve account which will have an initial amount of 2% of the initial Class A and B note balance. The required reserve amount going forward will be the lesser of: 2% of the initial Class A and B note balance, and the sum of the Class A plus Class B note balance.

The revolving period begins on the closing date for the transaction and is expected to terminate on October 31, 2012, unless an Early Amortization Event occurs before that date. The Issuer will not make any payments of principal on the notes during the revolving period. Rather, during the revolving period, principal collections will be applied to the acquisition of new collateral.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating U.S. Retail Auto Loan Securitizations, which can be found on our website under Methodologies.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.

The full report providing additional analytical detail is available by clicking on the link below or by contacting us at info@dbrs.com.