THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Credit Acceptance Corporation (CACC)

4/18/2006 Proxy Information

Mr. Foss was formally named Chairman and Chief Executive Officer of Credit Acceptance Corporation in March 1992 and vacated the Chief Executive Officer position effective January 2002.

In the normal course of business, the Company has maintained business relationships and engaged in certain transactions with companies owned by Donald Foss, the Company's majority shareholder and Chairman and a member of Mr. Foss' immediate family (the "Foss Companies"), and with certain automotive dealerships owned by Keith McCluskey, the Company's President (the "McCluskey Dealerships").

CONTRACT ASSIGNMENTS AND FEES

In the normal course of its business, the Company makes Dealer Loans to the Foss Companies, which totaled approximately $8.9 million at December 31, 2005. The total amount of cash advanced for the year ended December 31, 2005 was $6.0 million. The Company makes Dealer Loans to the Foss Companies and nonaffiliated dealer-partners on the same basis.

In the normal course of its business, the Company makes Dealer Loans to the McCluskey Dealerships, which totaled approximately $4.0 million at December 31, 2005. The total amount of cash advanced for the year ended December 31, 2005 was $3.6 million. The Company makes Dealer Loans to the McCluskey Dealerships and nonaffiliated dealer-partners on the same basis.

Total CAPS (the Company's patented Internet-based Credit Approval Processing System) and dealer enrollment fees earned from the Foss Companies and the McCluskey Dealerships during 2005 were $28,000 and $30,000, respectively.

INDEBTEDNESS

Pursuant to an employment agreement with the Company's President dated April 19, 2001, the Company loaned the McCluskey Dealerships approximately $850,000. The note, including all principal and interest, is due on April 19, 2011, bears interest at 5.22%, is unsecured, and is personally guaranteed by the Company's President. The balance of the note including accrued but unpaid interest was $1,154,147 as of March 31, 2006. In addition, pursuant to the employment agreement, the Company loaned the President $478,000. The note, including all principal and interest, is due on April 19, 2011, bears interest at 5.22% beginning January 1, 2002, and is unsecured. The balance of the note including accrued interest was approximately $585,283 as of March 31, 2006.

OTHER

The Company paid for air transportation services provided by a company owned by the Company's majority shareholder and Chairman totaling $0.1 million for the year ended December 31, 2005.

Beginning in 2000, the Company offered a line of credit arrangement to certain dealerships who were not participating in the Company's core program. The Company ceased offering this program to new dealerships in the third quarter of 2001 and has been reducing the amount of capital invested in this program since that time. Beginning in 2002, entities owned by the Company's majority shareholder and Chairman began offering secured lines of credit to third parties in a manner similar to the Company's prior program. In December of 2004, the Company's majority shareholder and Chairman sold his ownership interest in these entities but he continues to have indirect control over these entities and has the right or obligation to reacquire the entities under certain circumstances until December 31, 2014 or the repayment of the related purchase money note.