American Credit Acceptance Receivables Trust 2021-1 American Credit Acceptance Receivables Trust 2021-1

Presale:
American Credit Acceptance Receivables Trust

2021-1
January 14, 2021
PRIMARY CREDIT ANALYST
Preliminary Ratings Kenneth D Martens

New York
Preliminary amount (mil.
+ 1 (212) 438 7327
Class Preliminary rating Type Interest rate $)(i) Final maturity
kenneth.martens
A AAA (sf) Senior Fixed 184.00 May 13, 2024 @spglobal.com
B AA (sf) Subordinate Fixed 51.29 March 13, 2025 SECONDARY CONTACT
C A (sf) Subordinate Fixed 85.33 March 15,2027 Sanjay Narine, CFA

Toronto
D BBB (sf) Subordinate Fixed 51.52 March 15,2027
+ 1 (416) 507 2548
E BB- (sf) Subordinate Fixed 28.29 March 15,2027 sanjay.narine
@spglobal.com
F B (sf) Subordinate Fixed 10.35 Nov. 15, 2027
Note: This presale report is based on information as of Jan. 14, 2021. The ratings shown are preliminary. This report does not constitute a
recommendation to buy, hold, or sell securities. Subsequent information may result in the assignment of final ratings that differ from the
preliminary ratings. (i)The actual size of these tranches will be determined on the pricing date.
Profile
Expected closing date Jan. 28, 2021.
Collateral Subprime auto loan receivables.
Originator, servicer, and sponsor American Credit Acceptance LLC.
Depositor American Credit Acceptance Receivables LLC.
Issuer American Credit Acceptance Receivables Trust 2021-1.
Indenture trustee and backup servicer Wells Fargo Bank N.A. (A+/Stable/A-1).
Owner trustee Wilmington Trust N.A. (A/Stable/A-1).
Structuring lead manager Deutsche Bank Securities Inc.
www.standardandpoors.com January 14, 2021 1

© S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings' permission. See Terms of Use/Disclaimer 2579440
on the last page.
Presale: American Credit Acceptance Receivables Trust 2021-1
Credit Enhancement Summary (%)

ACAR 2021-1 ACAR 2020-4 ACAR 2020-3
Initial Target Floor Initial Target Floor Initial Target Floor

(%)(i) (%)(ii) (%)(iii) (%)(i) (%)(ii) (%)(iii) (%)(i) (%)(ii) (%)(iii)
Class A (preliminary 'AAA (sf)')
Subordination 49.30 N/A 49.30 48.45 N/A 48.450 48.80 N/A 48.80
Overcollateralization 10.70 20.00 2.50 12.45 21.00 3.00 12.45 21.65 2.50
Reserve account 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50
Total 61.00 -- 52.80 61.90 -- 52.45 62.75 -- 52.80
Class B (preliminary 'AA (sf)')
Reserve account 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50
Total 49.85 -- 41.65 51.10 -- 41.65 51.75 -- 41.80
Class C (preliminary 'A (sf)')
Reserve account 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50
Total 31.30 -- 23.10 31.10 -- 21.65 33.20 -- 23.25
Class D (preliminary 'BBB (sf)')
Reserve account 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50
Total 20.10 -- 11.90 22.50 -- 13.05 23.95 -- 14.00
Class E (preliminary 'BB- (sf)')
Reserve account 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50
Total 13.95 -- 5.75 15.95 -- 6.50 18.25 -- 8.30
Class F (preliminary 'B (sf) ')
Reserve account 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50
Total 11.70 -- 3.50 13.45 -- 4.00 13.95 -- 4.00
Estimated annual excess 18.54 N/A N/A 18.44 N/A N/A 18.17 N/A N/A
spread(iv)
(i)Percentage of the initial collateral balance. (ii)Percentage of the current collateral balance except the reserve account, which is a percentage
of the initial collateral. (iii)Percentage of the initial balance. (iv)Estimated annual excess spread shown are before pricing for the 2020-4.
ACAR--American Credit Acceptance Receivables Trust. N/A--Not applicable.

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Rationale
The preliminary ratings assigned to American Credit Acceptance Receivables Trust 2021-1's
(ACAR 2021-1) asset-backed notes reflect:
- The availability of approximately 64.67%, 57.93%, 48.70%, 42.17%, 38.65%, and 37.48% credit
support, including excess spread, for the class A, B, C, D, E, and F notes, respectively, based on
stressed cash flow scenarios. These credit support levels provide more than 2.08x, 1.85x, 1.50x,
1.30x, 1.17x, and 1.10x coverage of our expected net loss range of 30.50%-31.50% for the class
A, B, C, D, E, and F notes, respectively (see the Cash Flow Modeling section below for more
information).
- The hard credit enhancement in the form of subordination, overcollateralization, and a reserve
account in addition to excess spread (see the Credit Enhancement Summary table above).
- The expectation that under a moderate ('BBB') stress scenario (1.3x our expected loss level), all
else being equal, our preliminary 'AAA (sf)', 'AA (sf)', 'A (sf)', 'BBB (sf)', 'BB- (sf)', and 'B (sf)'
ratings on the class A, B, C, D, E, and F notes, respectively, will be within the credit stability
limits specified by section A.4 of the Appendix contained in "S&P Global Ratings Definitions,"
published Jan. 5, 2021.
- The timely payment of interest and principal by the designated legal final maturity dates under
our stressed cash flow modeling scenarios that we believe are appropriate for the assigned
preliminary ratings.
- The collateral characteristics of the subprime automobile loans securitized in this transaction.
- The backup servicing arrangement with Wells Fargo Bank N.A. (Wells Fargo).
- The transaction's payment and legal structure.
As vaccine rollouts in several countries continue, S&P Global Ratings believes there remains a
high degree of uncertainty about the evolution of the coronavirus pandemic and its economic
effects. Widespread immunization, which certain countries might achieve by midyear, will help
pave the way for a return to more normal levels of social and economic activity. We use this
assumption in assessing the economic and credit implications associated with the pandemic (see
our research here: www.spglobal.com/ratings). As the situation evolves, we will update our
assumptions and estimates accordingly.
Changes From ACAR 2020-4
General
The target overcollateralization has decreased by 100 basis points (bps) and the floor has
decreased by 50 bps. Estimated excess spread increased by 10 bps. The series 2021-1's
prefunding amount increased to 22.00% of the expected aggregate receivable balance versus
20.00% for the series 2020-4. The proportion of called collateral, primarily from series 2017-1 and
seasoned called collateral from a 2017 private amortizing facility, is about 8.00% of the initial pool
plus expected subsequent receivables to be added during the prefunding period.

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Structure
- Total initial hard credit enhancement (consisting of subordination, overcollateralization, and
the reserve account) decreased for classes A, B, D, E, and F to 61.00%, 49.85%, 20.10%,
13.95% and 11.70% from 61.90%, 51.10%, 22.50%, 15.95% and 13.45% respectively, and
increased for the class C to 31.30% from 31.10%.
- Subordination for classes A, B, and C increased to 49.30%, 38.15%, and 19.60% from 48.45%,
37.65%, and 17.65%, respectively, whereas for class D and E, it has decreased to 8.40% and
2.25% from 9.05% and 2.50%, respectively.
- Target overcollateralization decreased to 20.00% from 21.00% and the floor decreased to
2.50% from 3.00%.
- The reserve remained the same at 1.00% of the initial pool.
- Pre-pricing excess spread is estimated to be higher at 18.54% compared to 18.44%.
Collateral
The collateral composition changes in the ACAR 2021-1 statistical pool, as of Dec. 26, 2020, before
pre-funding, from series 2021-1's closing collateral pool include that the following:
- The transaction will allow for prefunding of approximately 22.00% of the aggregate collateral
balance (the sum of the expected pool balance as of the initial cutoff date of Jan. 19, 2021, and
the expected aggregate principal balance of the subsequent receivables), over an approximate
three-month period after the closing date.
- The series 2021-1 pool has called collateral primarily from series 2017-1 and seasoned called
collateral from a 2017 private amortizing facility of about 10.30%, and is expected to be about
8.00% following prefunding, compared to 4.00%-5.00% in the 2020-4 pool.
- The weighted average seasoning increased to 4.56 months from 4.12 months due to called
collateral.
- The weighted average loan-to-value (LTV) ratio increased slightly to 117.67% from 116.97%.
- The percent of collateral from Tier 1 and Tier 2 origination channels were 64.00% and 36.00%,
respectively, compared to 64.05% and 35.95% with 2020-4.
In our view, the collateral characteristics of the 2021-1 pool (as of Dec. 26, 2020) is slightly better
than 2020-4's pool due to the higher proportion of called collateral.
In our forward-looking view of the economy and particularly, the impact from the COVID-19
pandemic, we expect unemployment levels to increase, which, based on the historical correlation
between credit performance and unemployment, will likely result in increased losses. Therefore,
our expected cumulative net loss for ACAR 2021-1 is 30.50%-31.50% (see "An Already Historic
U.S. Downturn Now Looks Even Worse," published April 16, 2020, and "The Potential Effects Of
COVID-19 On U.S. Auto Loan ABS," published March 26, 2020). This also takes into consideration
securitization performance to date and generally comparable collateral characteristics (see the
S&P Global Ratings' Expected Loss section for more information).
Other factors considered in rating this transaction include the following:
- Management ownership: The management team (including the CEO) has 8.20% ownership in

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the company. We believe this demonstrates a commitment to the business and provides
incentive for senior management to maintain discipline in loan underwriting and pricing.
- Profitability: The company has been consistently profitable since 2009.
- Diversified funding: The company has separate committed revolving warehouse and amortizing
facilities from several established financial institutions, with unused capacity across these
commitments (see table 1).
Table 1
Financing Facilities
Amount (mil. $) Maturity date
Revolving facilities
Wells Fargo 450 June 2021.
JPMorgan/Citizen/Fifth Third/BMO/Regions 575 August 2021.
Deutsche Bank AG 200 May 2022.
Citibank N.A. 200 February 2021(i).
Flagstar Bank FSB 50 January 2022.
Total 1,475
Amortizing facilities
Deutsche Bank AG 288.54
Wells Fargo 20.29
Total 308.83
(i)Renewal underway.
- Centralized servicing: The company has been servicing loans on its own centralized collection
system since 2010. In addition to functioning offshore collection and servicing sites,
approximately 98.00% of onshore staff have work-from-home capabilities, which ensures
service continuity.
- A backup servicer: Wells Fargo, the backup servicer, indenture trustee, and loan file
subcustodian, completed the data mapping for American Credit Acceptance LLC's (ACA)
servicing system. We believe this enables a smoother servicing transition to the backup
servicer, if necessary.
Transaction And Legal Overview

ACAR 2021-1 is ACA's 34th term ABS transaction. The transaction is structured as a true sale of
the receivables to American Credit Acceptance Receivables LLC (ACA Receivables; the depositor)
from ACA. ACA Receivables is a multiuse, special-purpose Delaware limited liability company and
a wholly owned, limited-purpose subsidiary of ACA.
ACA Receivables will transfer the receivables to ACAR 2021-1, the issuer, a newly formed
special-purpose Delaware statutory trust. The issuer will pledge its interest in the receivables and
its security interests in the financed vehicles to the trustee on the noteholders' behalf. The trust
will issue the class A, B, C, D, E, and F notes, which will have fixed-interest rates. Interest and
principal on the notes are scheduled to be paid on each monthly payment date beginning March

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15, 2021.
Wells Fargo will be the backup servicer and indenture trustee for the series 2021-1 transaction
(see chart 1 for the transaction structure).
Chart 1
In rating this transaction, S&P Global Ratings will review the legal matters that it believes are
relevant to its analysis, as outlined in its criteria.
Transaction Structure
ACAR 2021-1 incorporates the following structural features:
- A senior-subordinated sequential-pay structure in which the senior-most notes outstanding

are paid first.
- Overcollateralization that can build to a target of 20.00% of the outstanding pool balance from
10.70% of the initial pool balance by using any excess spread that is available after covering net
losses to pay principal on the outstanding notes. The target overcollateralization amount is
subject to a floor of 2.50% of the initial collateral balance.
- Total initial hard credit enhancement levels for the class A, B, C, D, E, and F notes at 61.00%,
49.85%, 31.30%, 20.10%, 13.95%, and 11.70% initial pool balance, respectively.
- A nonamortizing reserve account amount that will equal 1.00% of the cut-off date pool balance

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as of the closing date. On each subsequent receivables purchase date, the depositor will
deposit an amount equal to 1.00% of the principal balance of the related subsequent
receivables being purchased as of the related subsequent receivables' cut-off date.
Prefunding
ACAR 2021-1, similar to 2020-4, has a three-month prefunding period that will end on March 31,
2021. On the closing date, the issuer will deposit approximately $90.4 million of the proceeds from
the sale of the notes into the prefunding account. This amount will be used to purchase the
prefunding collateral, which represents approximately 22.00% of the sum of the closing date pool
balance and the subsequent receivables' expected aggregate initial principal balance.
During the prefunding period, the issuer may use the funds, if any, on deposit in the prefunding
account to acquire additional receivables from the depositor for an amount equal to the product of
89.30% and the subsequent receivables' aggregate principal balances, as of the related
subsequent cut-off date on each transfer date, which will occur no more than once a week.
No subsequent receivables being added during the prefunding period may cause:
- The aggregate principal balance of the receivables originated through the Tier 1 program to
account for less than 62.00% of the aggregate principal balance of all of the receivables;
- The weighted average FICO score of all subsequent receivables to be less than 535;
- The weighted average original maturity of all of the receivables to be greater than 72 months;
- The weighted average remaining maturity of all of the receivables to be greater than 68 months;
and
- The weighted average annual percentage rate of all subsequent receivables to be less than
24.25%.
Payment Structure
Payment distributions before an event of default

Before an event of default, distributions will be made from available funds according to the priority
shown in table 2.
Table 2
Payment Waterfall Before An Event Of Default
Priority Payment
1 A 4.00% annual servicing fee to the servicer. To the successor servicer, if any, the transition expenses
incurred from it becoming the successor servicer to the extent not previously paid by the predecessor
servicer and capped at $200,000.
2 The backup servicing fee along with trustee fees, capped at $100,000 annually for the owner trustee and
$200,000 annually for the indenture trustee and the backup servicer.
3 The class A note interest to the class A noteholders.

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Table 2
Payment Waterfall Before An Event Of Default (cont.)
Priority Payment
4 The class A notes' parity deficit amount to the principal distribution account (the amount, if any, by which
the class A note balance is greater than the collateral balance's sum; and during the prefunding period,
the amount on deposit in the prefunding account). On and after the final scheduled distribution date, the
amount necessary to reduce the note balance to zero.
5 The class B note interest to the class B noteholders.
6 The class B notes' parity deficit amount to the principal distribution account (the amount, if any, by
which the class A and B notes' aggregate balances are greater than the collateral balance's sum; and
during the prefunding period, the amount on deposit in the prefunding account). On and after the final
scheduled distribution date, the amount necessary to reduce the note balance to zero.
7 The class C note interest to the class C noteholders.
8 The class C notes' parity deficit amount to the principal distribution account (the amount, if any, by which
the class A, B, and C notes' aggregate balances are greater than the collateral balance's sum; and during
the prefunding period, the amount on deposit in the prefunding account). On and after the final
9 The class D note interest to the class D noteholders.
10 The class D notes' parity deficit amount to the principal distribution account (the amount, if any, by
which the class A, B, C, and D notes' aggregate balances are greater than the collateral balance's sum;
and during the prefunding period, the amount on deposit in the prefunding account). On and after the
final scheduled distribution date, the amount necessary to reduce the note balance to zero.
11 The class E note interest to the class E noteholders.
12 The class E notes' parity deficit amount to the principal distribution account (the amount, if any by which
the class A, B, C, D, and E notes' aggregate balances are greater than the collateral balance's sum; and
13 The class F note interest to the class F noteholders.
14 The class F notes' parity deficit amount to the principal distribution account (the amount, if any by which
the class A, B, C, D, E, and F notes' aggregate balances are greater than the collateral balance's sum; and
15 The amounts needed to achieve the required reserve account amount.
16 The aggregate principal distributable amount up to the target overcollateralization amount.
17 Any amounts owed to the backup servicer, trustee, and owner trustee to the extent not previously paid.
18 Any remaining funds to the residual noteholders.
On each payment date, the amounts deposited into the principal distribution account will be
distributed to the noteholders in the priority outlined in table 3.
Table 3
Principal Waterfall
Priority Payment
1 The class A noteholders' principal distributable amount to the class A noteholders until the notes'
outstanding principal balance has been reduced to zero.
2 The class B noteholders' principal distributable amount to the class B noteholders until the notes'

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Table 3
Principal Waterfall (cont.)
Priority Payment
3 The class C noteholders' principal distributable amount to the class C noteholders until the class'
4 The class D noteholders' principal distributable amount to the class D noteholders until the class'
5 The class E noteholders' principal distributable amount to the class E noteholders until the class'
6 The class F noteholders' principal distributable amount to the class F noteholders until the class'
The principal amounts paid in the principal waterfall are designed to use all principal collections
and available excess spread to reduce the notes' outstanding principal balances to the requisite
overcollateralization target level. In addition, excess spread will not be released from the
transaction unless the overcollateralization target level has been reached and if the excess spread
is not used to cover losses.
Events of default
Any of the following will constitute an event of default:
- A default in the interest payment on the controlling class of notes that remains uncured for five
days;
- A default in the principal payment on any note on its final scheduled distribution date;
- A default in the issuer's observance or performance of any material covenant or agreement that
is not cured for 45 days (up to 90 days in certain cases);
- Any of the issuer's representations or warranties are materially incorrect and not cured for 45
days (up to 90 days in certain cases); or
- The issuer becomes insolvent.
The third and fourth items above require that notice, on the noteholders' behalf, be given
representing at least 25.00% of the controlling class of notes' balance.
Payment distributions after an event of default

On each payment date following an event of default related to a breach of a covenant, agreement,
representation, or warranty, and the acceleration of the notes, available funds will be distributed
as described in table 2. However, the payment in item 16 in table 2 will include all available funds
until the total note balance has been reduced to zero, and there will be no limitation on fees,
expenses, and indemnities in item 2.
On each payment date following an event of default (other than an event of default related solely
to a covenant, agreement, representation, or warranty breach) and the acceleration of the notes or
upon the trust assets' liquidation, available funds will instead be distributed according to the
priority shown in table 4.

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Table 4
Payment Waterfall After An Event Of Default
Priority Payment
1 The amounts due, pro rata, to the servicer, the trustees, and the backup servicer, disregarding
the caps and limitations.
2 The class A note interest to the class A noteholders.
3 The class A note principal to the class A noteholders until the class A note balance has been
reduced to zero.
4 The class B note interest to the class B noteholders.
5 The class B note principal to the class B noteholders until the class B note balance has been
reduced to zero.
6 The class C note interest to the class C noteholders.
7 The class C note principal to the class C noteholders until the class C note balance has been
reduced to zero.
8 The class D note interest to the class D noteholders.
9 The class D note principal to the class D noteholders until the class D note balance has been
reduced to zero.
10 The class E note interest to the class E noteholders.
11 The class E note principal to the class E noteholders until the class E note balance has been
reduced to zero.
12 The class F note interest to the class F noteholders.
13 The class F note principal to the class F noteholders until the class F note balance has been
reduced to zero.
14 Any remaining funds to the residual noteholders.
Servicer termination event

Any of the following will constitute a servicer termination:
- The servicer's failure to make any required payment or deposit that remains unremedied
beyond the earlier of five business days following the due date and the distribution or deposit
dates;
- The servicer's failure to deliver the investor report for any collection period to the indenture
trustee, which remains unremedied beyond the earlier of two business days after the investor
report was required to be delivered and the related distribution date;
- Any servicer representation or warranty proves to be materially incorrect and is not eliminated
or otherwise cured within 45 days;
- The servicer's failure to observe or perform in any material respect any other covenant or
agreement that materially and adversely affects the noteholders' rights and continues
unremedied for 45 days; or
- The servicer becomes insolvent.
The first four servicer termination events also require that notice be given to the servicer by
holders of at least 25.00% of the controlling class' note balance. Replacing the servicer requires
consent from holders of at least 51.00% of the controlling class' note balance.

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Managed Portfolio
Through 12 months ending Dec. 31, 2020, the portfolio grew by approximately 25% to $3.97 billion
from $3.18 billion a year earlier. During the same period, annualized net losses decreased to
9.09% from 11.57%. Total delinquencies decreased to 20.94% as of 12 months ending Dec. 31,
2020, compared to 21.74% a year earlier. The decrease in net losses reflects the
recommencement of repossessions and reopened auction markets since May 2020 due to the
COVID-19 pandemic. Similarly, total delinquencies decreased early on during the COVID-19
pandemic, partially reflecting the increased COVID-19 payment extensions, which would remove
the contract from delinquency status, but in the second half of the year, extension rates
normalized and delinquencies continued to remain low, while payment rates remained strong.
Table 5
Managed Portfolio
As of Dec. 31
2020 2019 2018 2017 2016 2015
Delinquency experience(i)
Portfolio at end of period (mil. $)(i) 3,969.88 3,184.56 2,399.09 2,012.25 1,661.31 1,375.78
Total delinquencies as a % of the portfolio 20.94 21.74 20.86 20.86 20.38 21.02
Loan loss experience(i)
Avg. month-end amount outstanding during 3,639.06 2,892.65 2,216.99 1,876.38 1,544.46 1,321.66
the period (mil. $)
Net charge-offs as a % of the average 9.09 11.57 13.15 13.37 14.94 14.65
amount outstanding
(i)The information does not include certain portfolio purchases by American Credit Acceptance LLC.
There has also been a shift in loan originations, with a trend of originating a greater percentage of
loans out of ACA's tier 1 channel, which is expected to perform better than those originated out of
the tier 2 channel. We believe the lower losses in 2020, 2019, 2018, and 2017 reflect this change.
Additionally, ACA's improved mix of loans may also be contributing to lower delinquencies relative
to peak levels in 2014.
Origination Static Pool Analysis

In our analysis, we reviewed ACA's origination static pool cumulative net loss (CNL) performance
for its lines of business (see charts 2 and 3).
Tier 1 channel (CarMax)

- Given the upward trend in losses beginning with the second-quarter 2011 vintage, our loss
proxies rely more heavily on the more-recent vintages (see chart 3). Performance for the 2010
vintages may reflect the absence of competition during and shortly after the last recession.
- We reviewed the tier 1 loans' performance and considered this subset's composition as a
portion of the series 2021-1 pool. The origination static pool data show that the tier 1 loans
have performed better than the tier 2 loans.

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Chart 2
Tier 2 channel (Non-CarMax)

- The 2015 and 2016 vintages are generally performing worse than the 2013 and 2014 vintages,
while the performance of the 2017 vintage is more in line with the 2013 and 2014 vintages. We
believe that performance for the 2015 and 2016 vintages resulted from ACA's expansion into
new markets and the addition of more franchise dealerships, including motorcycle dealerships.
The expansion led to higher losses and higher delinquencies. Since 2017, losses have steadily
decreased. Over the past few years, origination volume for the tier 2 channel has grown.
- We reviewed the tier 2 loans' performance and considered this subset's composition in the
portion of the series 2021-1 pool. The origination static pool data show that the tier 2 loans
have performed worse than the tier 1 loans.

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Chart 3
In deriving our expected loss level for the aggregate pool, we considered the pool composition and
each channel's performance.
Collateral
As of the Dec. 26, 2020, statistical cut-off date, the collateral pool comprised approximately
$209.17 million in automobile loans: 64.00% are tier 1 and 36.00% are tier 2, which is similar to
series 2020-4. There is called collateral in the pool equal to 8% of the initial pool plus expected
subsequent receivables to be added during the prefunding period, primarily from the series
2017-1 and seasoned called collateral from a 2017 private amortizing facility, compared to 7.00%
in series 2020-4, which was from series 2016-4. The weighted average annual percentage rate
(APR) and seasoning remained the same at 24.55%. Contracts with original terms of 61-72 months
were 94.39% compared to 93.68% in series 2020-4. State concentrations were generally
unchanged. Overall, we believe the series 2021-1 collateral pool is slightly better than series
2020-4 due to the higher proportion of called collateral(see table 6).
Table 6
Collateral
Initial pool
(i) 2021-1 2020-4 2020-3 2020-2 2020-1 2019-4 2019-3 2019-2 2019-1
Receivables 209.17 499.83 505.4 366.67 258.5 269.1 257.43 234 218.4
balance
(mil. $)
Tier 1 (%) 64.00 64.05 59.50 57.43 59.53 60.98 64.20 59.82 68.51
Tier 2 (%) 36.00 35.95 40.50 42.57 38.93 37.70 34.96 38.55 29.74
Core (ii) 0.00 0.00 0.00 0.00 1.54 1.32 0.84 1.63 1.75

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Table 6
Collateral (cont.)
Initial pool
(i) 2021-1 2020-4 2020-3 2020-2 2020-1 2019-4 2019-3 2019-2 2019-1
No. of 13,188 32,072 33,524 23,328 16,695 17,083 15,619 15,716 13,590
receivables
Avg. loan 15,861 15,585 15,076 15,718 15,484 15,753 16,482 14,889 16,071
balance ($)
Weighted 24.55 24.55 24.48 24.34 23.60 23.70 23.59 23.69 23.70
avg. APR
(%)
Weighted 70.77 70.54 70.19 69.94 70.29 70.18 70.23 69.98 69.74
avg. original
term (mos.)
Weighted 66.21 66.42 66.26 68.57 65.51 66.43 68.43 65.35 69.13
avg.
remaining
term (mos.)
Weighted 4.56 4.12 3.93 1.36 4.79 3.74 1.80 4.63 0.61
avg.
seasoning
(mos.)
Weighted 117.67 116.97 119.57 122.42 124.66 126.22 123.99 124.37 122.16
avg. LTV (%)
Weighted 543 541 539 532 538 539 542 539 543
avg. FICO
score
% of loans 14.05 13.18 12.32 11.36 10.32 10.23 10.60 11.70 10.77
with no
FICO score
% of loans 21.06 21.81 22.70 26.92 24.93 24.89 22.18 23.90 22.32
with a FICO
score of
500 or
below
% of loans 51.27 52.46 53.09 51.76 52.10 51.77 53.96 51.43 51.83
with a FICO
score of
501-600
% of loans 13.62 12.55 11.90 9.96 12.65 13.12 13.27 12.98 15.08
with a FICO
score above
600
% of loans 94.39 93.68 92.29 91.16 93.01 92.22 92.32 91.42 90.24
with an
original
term of
61-72 mos.
Weighted 52,155 52,403 53,591 55,711 53,121 54,520 51,109 52,829 53,046
avg.
mileage

on the last page.
Table 6
Collateral (cont.)
Initial pool
(i) 2021-1 2020-4 2020-3 2020-2 2020-1 2019-4 2019-3 2019-2 2019-1
Original 30.50-31.50 31.50- 31.50- 32.00-33.00 27.25-28.25 27.25-28.25 27.75-28.75 27.00-28.00 28.00-29.00
ECNL (%) 32.50 32.50
(i)As of the closing collateral pool for ACAR 2019-4 and earlier, 2020-2 and 2020-4. The statisical pool for 2020-1 and 2020-3. (ii) For 2020-2 and later,
CORE is included in Tier 2. APR--Annual percentage rate. LTV--Loan-to-value ratio. ECNL--Expected cumulative net loss. N/ A-–Not applicable.
ACAR Performance: Surveillance Update

We currently have outstanding ratings on 15 ACAR transactions that were issued between 2017
and 2020 (see table 7). On May 12, 2020, we placed our ratings on the class E and F notes from
series 2019-4 and 2020-1 on CreditWatch with negative implications (see "Thirty-Three U.S.
Subprime Auto ABS Ratings From 26 Transactions Placed On CreditWatch Negative," published
May 12, 2020).
On July 8, 2020, we reviewed six ACAR transactions that were issued between 2016 and 2019 (see
"Seventeen Ratings Raised And Seven Affirmed On Six American Credit Acceptance Receivables
Trust Deals," published July 8, 2020). We raised our ratings on 17 classes and affirmed the ratings
on seven classes from series 2016-4, 2017-3, 2017-4, 2018-4, 2019-1, and 2019-2, and also
included an upward adjustment to losses to account for the extensions.
On Oct 26, 2020, we affirmed our rating on 10 classes from the series 2019-4 and 2020-1 and also
removed four ratings from CreditWatch negative (see "Ten American Credit Acceptance Auto
Receivables Trust Ratings Affirmed, Four Removed From CreditWatch Negative", published on Oct.
26, 2020). This rating action followed our review of all ABS transactions backed by subprime auto
loan receivables against the background of the evolving economic downturn, which is expected to
impact the performance of all auto loan originators.
On Nov. 6, 2020, we reviewed six ACAR transactions that were issued between 2017 and 2019 (see
"Fifteen American Credit Acceptance Receivables Trust Ratings Raised, Seven Affirmed From Six
Deals," published Nov 6, 2020). We raised our ratings on 15 classes and affirmed the ratings on
seven classes from series 2017-1, 2017-2, 2018-1, 2018-2, and 2018-3
Table 7
American Credit Acceptance Receivables Trust's Outstanding Transaction Pool

Information
Current Pool Current Initial expected Former expected Current expected

Transaction month factor (%) CNL (%) lifetime CNL (%) lifetime CNL (%)(i) lifetime CNL (%)(ii)
2017-1 45 15.52 26.26 27.50-28.50 27.00-28.00 Up to 27.25
2017-2 42 17.23 25.31 28.50-29.50 27.00-28.00 Up to 26.75
2017-3 39 17.12 20.44 26.75-27.75 26.00-27.00 24.50-25.50
2017-4 36 23.75 20.79 28.25-29.25 28.00-29.00 26.50-27.50
2018-1 33 28.95 20.25 28.25-29.25 28.00-29.00 26.50-27.50
2018-2 30 36.40 19.19 28.00-29.00 28.00- 29.00 27.50-28.50
2018-3 27 37.88 18.16 27.00-28.00 27.00-28.00 27.00-28.00

on the last page.
Table 7
American Credit Acceptance Receivables Trust's Outstanding Transaction Pool

Information (cont.)
Current Pool Current Initial expected Former expected Current expected

Transaction month factor (%) CNL (%) lifetime CNL (%) lifetime CNL (%)(i) lifetime CNL (%)(ii)
2018-4 24 43.60 16.42 27.00-28.00 N/A 27.50-28.50
2019-1 21 52.61 14.51 28.00-29.00 N/A 30.50-31.50
2019-2 19 55.63 12.91 27.00-28.00 N/A 29.50-30.50
2019-3 16 64.35 10.66 27.75-28.75 N/A 28.50-29.50
2019-4 13 71.06 7.94 27.25-28.25 N/A 28.00-29.00
2020-1 10 79.41 4.82 27.25-28.25 N/A 28.50-29.50
2020-2 7 86.50 3.46 32.00-33.00 N/A N/A
2020-3 4 93.76 0.56 31.50-32.50 N/A N/A
2020-4 1 98.38 0.01 31.50-32.50 N/A N/A
(i)Former expected lifetime CNLs for series 2017-3 and 2017-4 were revised in March 2019. Series 2017-1, 2017-2, 2018-1, 2018-2, and 2018-3
were revised in November 2019. (ii)Current expected lifetime CNLs for series 2017-3, 2017-4, 2018-4, and 2019-1 were revised in July 2020.
Series 2017-1, 2017-2, 2018-1, 2018-2, 2018-3, and 2019-3 were revised in November 2020. Series 2019-4 and 2020-1 were revised in October
2020. CNL--Cumulative net losses. N/A--Not applicable.
We will continue to monitor these transactions' performance to determine if the assigned ratings
remain sufficient, and we will take any rating actions we deem appropriate.
S&P Global Ratings' Expected Loss: 30.50%-31.50%

To derive the expected loss for ACAR 2021-1, we analyzed the CNL performance through the two
different channels of origination and the outstanding ACAR transactions. In addition, the backdrop
of the economic shutdown in the face of the COVID-19 pandemic and the expectation of weaker
performance in its wake caused us to revise our base-case loss estimate higher.
We expect the collateral pool backing the ACAR 2021-1 notes to experience lifetime CNLs of
30.50%-31.50% based on our analysis of the programs' loss performance for the origination static
pools applied to the series 2021-1 pool's program composition, the amount of expected called
collateral in the pool, prefunding guidelines, prior ACAR securitizations' performances (see table
7), peer comparison (table 8), and our forward-looking view of the economy and measures taken to
contain and ease the financial dislocation of the COVID-19 pandemic.
Table 8
Collateral Peer Comparison
ACAR 2021-1 DRIVE 2020-2 DTAOT 2020-3
Initial pool (mil. $) 209.17 1,271.51 450.00
Weighted avg. loan ($) 15,861 20,246 26,203
Weighted avg. non-zero FICO 543 583 542

score
Loans with no FICO score (% of 14.05 15.27 11.87

pool)
Weighted avg. APR (%) 24.55 18.98 21.90

on the last page.
Table 8
Collateral Peer Comparison (cont.)
ACAR 2021-1 DRIVE 2020-2 DTAOT 2020-3
Weighted avg. original term (mos.) 71 71 67
Weighted avg. remaining term 66 67 64

(mos.)
Weighted avg. seasoning 5 4 3
Loans with an original term of 61+ 94.39 92.46 92.21

mos. (% of pool)
Weighted avg. new/used (%) 3.07/96.93 29.00/71.00 100% used
Top five states Texas, Calif., Fla., Ga., and Texas, Fla., Calif., Ga., and Texas, Fla., Ga., Calif., and
N.C. N.C. Ariz.
Expected CNL (%) 30.50-31.50 28.00-29.00(i) 32.75-33.75(i)
(i)Expected CNLs are from June 2020 for DRIVE 2020-2 and September 2020 for DTAOT 2020-3. ACAR--American Credit Acceptance Receivables
Trust. DRIVE--Drive Auto Receivables Trust. DTAOT--DT Auto Owner Trust. APR--Annual percentage rate. CNL--Cumulative net loss.
Cash Flow Modeling Assumptions And Results

We modeled ACAR 2021-1 to simulate stress scenarios that we believe are appropriate for the
assigned preliminary ratings under front- and back-loaded loss curves (see table 9).
Table 9
Cash Flow Assumptions And Results

Class
A B C D E F
Front-loaded loss curve
Stress scenario (preliminary AAA AA (sf) A (sf) BBB (sf) BB- (sf) B (sf)
rating) (sf)
CNL timing by mos. outstanding 87/13 59/41 44/37/15/5 43/37/15/5 43/37/15/5 43/37/15/5
(12/24/36/48) (%)
ABS voluntary prepayments (%) 0.65 0.65 0.65 0.65 0.65 0.65
Recoveries (%) 31 35 35 35 35 35
Charge-off and recovery lag 4 4 4 4 4 4

(mos.)
Servicing fee (% per year) 4 4 4 4 4 4
Approximate break-even CNL 64.67 57.93 48.70 42.17 38.65 37.48

levels (%)(i)
Approximate break-even 93.72 89.13 74.92 64.87 59.46 57.67

cumulative gross loss levels
(%)(i)
Back-loaded loss curve
Stress scenario (preliminary AAA AA (sf) A (sf) BBB (sf) BB- (sf) B (sf)
rating) (sf)
CNL timing by mos. outstanding 87/13 56/44 34/36/22/8 30/32/20/14/4 29/32/20/14/5 29/32/20/14/5
(12/24/36/48/60) (%)

on the last page.
Table 9
Cash Flow Assumptions And Results (cont.)

Class
A B C D E F
ABS voluntary prepayments (%) 0.65 0.65 0.65 0.65 0.65 0.65
Recoveries (%) 31 35 35 35 35 35
Charge-off and recovery lag 4 4 4 4 4 4

(mos.)
Servicing fee (% per year) 4 4 4 4 4 4
Approximate break-even CNL 64.73 58.04 49.90 44.20 40.69 37.74

levels (%)(i)
Approximate break-even 93.81 89.29 76.77 68.00 62.26 58.06

cumulative gross loss levels
(%)(i)
(i)The maximum cumulative loss on the pool that the transaction can withstand without triggering a payment default on the relevant classes.
CNL--Cumulative net loss. ABS--Absolute prepayment speed.
Based on our cash flow runs in which we applied the aforementioned stresses, the break-even
results show that the class A, B, C, D, E, and F notes are credit-enhanced to the degree necessary
to withstand a stressed net loss level that is consistent with the assigned preliminary ratings.
Sensitivity Analysis
In addition to running break-even cash flows, we undertook sensitivity analyses to determine
whether under a moderate ('BBB') stress scenario, all else being equal, our preliminary ratings will
be within the credit stability limits specified by section A.4 of the Appendix contained in "S&P
Global Ratings Definitions" published Jan. 5, 2021 (see table 10).
Table 10
Maximum Projected Deterioration Associated With Rating Levels For One- And
Three-Year Horizons Under Moderate Stress Conditions
AAA AA A BBB BB
One-year AA A BB B CCC
Three-year BBB BB B CCC D
Table 11
Scenario Analysis Summary
Loss level (%) 40.30
Cumulative loss timing (12/24/36/48/60 mos.)
Front-loaded loss curve (%) 45/35/15/5/0
Back-loaded loss curve (%) 30/30/20/15/5
Voluntary ABS (%) 0.65
Recoveries (%) 35
Charge-off and recovery lag (mos.) 4

on the last page.
Table 11
Scenario Analysis Summary (cont.)
Servicing fee (% per year) 4
Haircut to excess spread (%) 10
ABS--Absolute prepayment speed.
Chart 4
Chart 5

on the last page.
Legal Final Maturity

To test the legal final maturity dates set for classes A through E, we determined the date when the
respective notes would be fully amortized in a zero-loss, zero-prepayment scenario and then
added three months to the result. To test the legal final maturity date for class F, which is the
longest-dated security, we determined the latest maturing loan's distribution date, assuming all
of the prefunded loans are originated on the last day of the prefunding period, and then added the
three months prefunding period plus six months to accommodate extensions. Furthermore, in the
break-even scenario for each respective rating level, we confirmed that there was sufficient credit
enhancement to cover losses and repay the related notes in full by the legal final maturity date.
ACA
ACA is a subprime auto finance company headquartered in Spartanburg, S.C. It was established in
2007 with its purchase of Sonic Automotive's in-house finance company, formerly known as
Cornerstone Acceptance. ACA is 79.4% owned by three trusts whose beneficiaries are George D.
Johnson Jr., Susanna P. Johnson, and George D. Johnson III. The remaining ownership is divided
among other investors (12.4%) and ACA management (8.2%).
Based on the company's unaudited Dec. 31, 2020, financial statements, it had $4.1 billion in
assets, $509.0 million in equity, and $164.5 million in subordinated debt provided by a mix of
shareholders associated with the Johnson family.
As of Dec. 31, 2020, the company had 983 employees, had purchased loans from approximately
2,850 dealerships across 50 U.S. states, and is servicing a portfolio of approximately $4.0 billion in
indirect auto receivables, excluding its Spartan letter of credit lines and Spartan bulk receivables.
ACA's current originations in third-quarter 2020 are split so that tier 1 loans make up
approximately 65.00% and tier 2 loans make up approximately 35.00%. The company's portfolio
has concentrations in Texas, California, Florida, Georgia, and North Carolina.
Table 12 shows the underwriting characteristics for tier 1 and tier 2 loans as of third-quarter 2020.
ACA has steadily increased purchasing loans from strategic partners while decreasing those from
independent dealerships.
Table 12
Underwriting Characteristics As Of Fourth-Quarter 2020
Tier 1 loans Tier 2 loans
Weighted avg. amount financed ($) 17,364 16,125
Weighted avg. PTI (%) 15.2 15.1
Weighted avg. original term (mos.) 72 70
Weighted avg. FICO score 538 550
Weighted avg. LTV ratio (%) 108.7 133.6
PTI--Payment-to-income. LTV--Loan-to-value.
ACA utilizes an internal proprietary scoring model to underwrite its loans. All loans are evaluated
based on the internal scoring model. According to management, more than 90.00% of the loans
are automatically approved or rejected using credit bureau information and the loan structure, as
well as vehicle and customer information, while less than 10.00% need manual underwriting.

on the last page.
A loan processing specialist verifies the applicant's employment, income, and residency
information before a loan officer makes the final underwriting decision. Calls are also made to the
obligors before funding to verify certain items on the application and contract. Loan terms,
insurance coverages, and other information are also verified or confirmed with the obligor and/or
third parties. Once the final approval is completed, the loan is cleared for funding.
ACA conducts its collection operations out of its Spartanburg and Atlanta servicing centers. As of
Dec. 31, 2020, there were approximately 644 fully dedicated employees (domestic and offshore) on
the servicing and collection team. Obligors with delinquent accounts are called starting the first
day past due. When an account reaches a certain delinquency level, the advanced collection
employees take over the collection process. According to management, typically, if the delinquent
obligors do not make satisfactory payment arrangements by the 75th day of delinquency,
repossession orders are generally sent out, subject to certain exceptions, and the related finance
vehicle is repossessed, on average, at 87 days delinquent.
Related Criteria
- Criteria | Structured Finance | General: Global Framework For Payment Structure And Cash
Flow Analysis Of Structured Finance Securities, Dec. 22, 2020
- Criteria | Structured Finance | Legal: U.S. Structured Finance Asset Isolation And
Special-Purpose Entity Criteria, May 15, 2019
- Criteria | Structured Finance | General: Counterparty Risk Framework: Methodology And

Assumptions, March 8, 2019
- Criteria | Structured Finance | General: Incorporating Sovereign Risk In Rating Structured

Finance Securities: Methodology And Assumptions, Jan. 30, 2019
- Criteria | Structured Finance | General: Global Framework For Assessing Operational Risk In
Structured Finance Transactions, Oct. 9, 2014
- General Criteria: Global Investment Criteria For Temporary Investments In Transaction

Accounts, May 31, 2012
- General Criteria: Principles Of Credit Ratings, Feb. 16, 2011
- Criteria | Structured Finance | ABS: General Methodology And Assumptions For Rating U.S. Auto
Loan Securitizations, Jan. 11, 2011
- Criteria | Structured Finance | General: Methodology For Servicer Risk Assessment, May 28,
2009
Related Research
- S&P Global Ratings Definitions, Jan. 5, 2021
- Economic Research: U.S. Real-Time Data: The Recovery Backtracks, Dec. 18, 2020
- COVID-19 Activity In Global Structured Finance As Of Dec. 11, 2020, Dec. 18, 2020
- SF Credit Brief: U.S. Auto Loan ABS Extension Patterns Continued To Deviate In October: Prime
Deferrals Declined, But Subprime Deferrals Rose For The Second Straight Month, Dec. 17, 2020
- Economic Research: U.S. Biweekly Economic Roundup: Not Much To Be Cheerful About, Dec. 4,
2020

on the last page.
- Credit Conditions North America: Some Relief, Sizable Risks, Dec. 3, 2020
- Global Economic Outlook: Limping Into A Brighter 2021, Dec. 3, 2020
- Fifteen American Credit Acceptance Receivables Trust Ratings Raised, Seven Affirmed From Six
Deals, Nov. 6, 2020
- Ten American Credit Acceptance Auto Receivables Trust Ratings Affirmed, Four Removed From
CreditWatch Negative, Oct. 26, 2020
- Global Structured Finance: Credit Concerns Loom On COVID-19 Resurgence, Oct. 21, 2020
- Seventeen Ratings Raised and Seven Affirmed On Six American Credit Acceptance Receivables
Trust Deals, July 8, 2020
- Thirty-Three U.S. Subprime Auto ABS Ratings From 26 Transactions Placed On CreditWatch
Negative, May 12, 2020
- Global Structured Finance Scenario And Sensitivity Analysis 2016: The Effects Of The Top Five
Macroeconomic Factors, Dec. 16, 2016
The analyst would like to thank Reema Kakkar for assisting in the preparation of this report.

on the last page.
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American Credit Acceptance Receivables Trust

PRIMARY CREDIT ANALYST

Preliminary Ratings Kenneth D Martens

B AA (sf) Subordinate Fixed 51.29 March 13, 2025 SECONDARY CONTACT

C A (sf) Subordinate Fixed 85.33 March 15,2027 Sanjay Narine, CFA

Expected closing date Jan. 28, 2021.

Collateral Subprime auto loan receivables.

Originator, servicer, and sponsor American Credit Acceptance LLC.

Depositor American Credit Acceptance Receivables LLC.

Issuer American Credit Acceptance Receivables Trust 2021-1.

Owner trustee Wilmington Trust N.A. (A/Stable/A-1).

Structuring lead manager Deutsche Bank Securities Inc.

www.standardandpoors.com January 14, 2021 1

Credit Enhancement Summary (%)

Initial Target Floor Initial Target Floor Initial Target Floor

Class A (preliminary 'AAA (sf)')

Total 61.00 -- 52.80 61.90 -- 52.45 62.75 -- 52.80

Class B (preliminary 'AA (sf)')

Total 49.85 -- 41.65 51.10 -- 41.65 51.75 -- 41.80

Class C (preliminary 'A (sf)')

Total 31.30 -- 23.10 31.10 -- 21.65 33.20 -- 23.25

Class D (preliminary 'BBB (sf)')

Total 20.10 -- 11.90 22.50 -- 13.05 23.95 -- 14.00

Class E (preliminary 'BB- (sf)')

Total 13.95 -- 5.75 15.95 -- 6.50 18.25 -- 8.30

Class F (preliminary 'B (sf) ')

Total 11.70 -- 3.50 13.45 -- 4.00 13.95 -- 4.00

www.standardandpoors.com January 14, 2021 2

- The transaction's payment and legal structure.

Changes From ACAR 2020-4

www.standardandpoors.com January 14, 2021 3

- The reserve remained the same at 1.00% of the initial pool.

- Pre-pricing excess spread is estimated to be higher at 18.54% compared to 18.44%.

Other factors considered in rating this transaction include the following:

www.standardandpoors.com January 14, 2021 4

- Profitability: The company has been consistently profitable since 2009.

Amount (mil. $) Maturity date

Wells Fargo 450 June 2021.

JPMorgan/Citizen/Fifth Third/BMO/Regions 575 August 2021.

Deutsche Bank AG 200 May 2022.

Citibank N.A. 200 February 2021(i).

Flagstar Bank FSB 50 January 2022.

Deutsche Bank AG 288.54

Wells Fargo 20.29

Transaction And Legal Overview

www.standardandpoors.com January 14, 2021 5

- A senior-subordinated sequential-pay structure in which the senior-most notes outstanding

www.standardandpoors.com January 14, 2021 6

Payment distributions before an event of default

Payment Waterfall Before An Event Of Default

3 The class A note interest to the class A noteholders.

www.standardandpoors.com January 14, 2021 7

Payment Waterfall Before An Event Of Default (cont.)

5 The class B note interest to the class B noteholders.

7 The class C note interest to the class C noteholders.

9 The class D note interest to the class D noteholders.

11 The class E note interest to the class E noteholders.