2008 Special Finance Hall of Fame Inductees

The next individual award goes to Don Foss, founder and chairman of Credit Acceptance Corporation. Foss is being inducted into the Special Finance Insider’s Hall of Fame for having the foresight, drive and perseverance to found and operate one of the oldest remaining special finance companies (Credit Acceptance Corporation, headquartered in Southfield, Mich.).

Foss opened his first used car lot in 1967 and offered his customers financing on the lot. He grew his operation and continued with his buy here pay here (BHPH) format until 1972, when he consolidated his financing operation into Credit Acceptance Corporation. The establishment of a separate financing operation allowed Foss to continue to expand his business, maintain control of the financing and separate himself from the collections. The business model he created assisted customers, with few financing options, in purchasing needed transportation and gave them the opportunity to build or improve their credit.

In 1986, Foss decided to start offering financing services to other independent dealers, as well as franchise dealers. The advance concept (whereby dealers receive a portion of their expected contract collections up-front) began two years later as a means to help dealers make enough on the front end to continue their growth.

In 1992, Foss took Credit Acceptance (one of the first “real” special finance companies) public in order to expand the business. At that same time, the Company also expanded its services to include credit life and disability insurance and dual interest collateral protection through third-party insurers. Vehicle service contracts, floorplan financing and working capital loans were also offered.

Many competing companies have come and gone since the 1990s, but Credit Acceptance has endured. Though Foss no longer manages the business on a day-to-day basis, he still maintains a presence in the industry as owner of three independent dealerships.