BACKUP SERVICING AGREEMENT



          BACKUP SERVICING AGREEMENT (the "Agreement"), dated as of April 12,

2007, among WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking

association organized under the laws of the United States, as backup servicer

(the "Backup Servicer"), and as trust collateral agent (the "Trust Collateral

Agent"), XL CAPITAL ASSURANCE INC., a New York corporation (the "Class A

Insurer"), CREDIT ACCEPTANCE CORPORATION, a Michigan corporation ("Credit

Acceptance" or the "Servicer"), CREDIT ACCEPTANCE FUNDING LLC 2007-1, a Delaware

limited liability company (the "Seller") and CREDIT ACCEPTANCE AUTO DEALER LOAN

TRUST 2007-1, a Delaware statutory trust (the "Trust" or the "Issuer").



                                   WITNESSETH:



          WHEREAS, Credit Acceptance, the Seller, the Backup Servicer, the

Issuer and the Trust Collateral Agent have entered into a Sale and Servicing

Agreement, dated as of the Closing Date (as amended, restated, supplemented or

otherwise modified from time to time, the "Sale and Servicing Agreement");



          WHEREAS, the parties to the Sale and Servicing Agreement desire to

obtain the services of the Backup Servicer to perform certain servicing

functions and assume certain obligations with respect to the Sale and Servicing

Agreement, all as set forth herein, and the Backup Servicer has agreed to

perform such functions and assume such obligations; and



          WHEREAS, for its services hereunder and with respect to the Sale and

Servicing Agreement, the Backup Servicer will receive a fee payable as described

herein;



          NOW THEREFORE, in consideration for the mutual agreements contained

herein and for other good and valuable consideration, the receipt and adequacy

of which are hereby acknowledged, the parties hereto agree as follows:



                                    ARTICLE 1

                                   DEFINITIONS



     SECTION 1.1. Definitions. All capitalized terms not otherwise defined

herein shall have the meanings specified in, or incorporated by reference to,

the Sale and Servicing Agreement. The following terms shall have the meanings

specified below:



          "Aggregate Basis" means verification of only such aggregated amounts

as are stated in the Servicer's Certificate, and not as to any amount related to

any Dealer Loan or Contract.



          "Assumption Date" has the meaning specified in Section 2.3(a).



          "Backup Servicer Event of Default" has the meaning specified in

Section 4.1.



{PAGE}



          "Backup Servicer's Certificate" has the meaning specified in Section

2.10.



          "Backup Servicing Fee" means, as to each Distribution Date, $4,000;

provided, however, that if the Backup Servicer becomes the successor Servicer,

such fee shall no longer be paid.



          "Continued Errors" has the meaning specified in Section 2.2(c)(iii).



          "Errors" has the meaning specified in Section 2.2(c)(iii).



          "Liability" has the meaning specified in Section 2.2(c)(i).



          "Live Data Files" has the meaning specified in Section 2.6(a).



          "Material Adverse Change" means any circumstance or event which in the

reasonable judgment of the Class A Insurer: (a) may be reasonably expected to

cause a material adverse change to the validity or enforceability of this

Agreement or the Sale and Servicing Agreement; or (b) may be reasonably expected

to materially impair the ability of the Backup Servicer to fulfill its

obligations under this Agreement or the Sale and Servicing Agreement.



          "Servicer's Data File" has the meaning specified in Section 2.1(a).



          "Service-Related Activities" means the services and service-related

activities and the servicer-related responsibilities of the Servicer provided

for under the Sale and Servicing Agreement as modified or eliminated herein with

respect to the Backup Servicer.



          "Servicing Fee" has the meaning given such term in Section 1.01 of the

Sale and Servicing Agreement.



          "Successor Backup Servicer" has the meaning specified in Section

2.4(b).



          "Third Party" has the meaning specified in Section 2.9(d).



     SECTION 1.2. Usage of Terms. With respect to all terms in this Agreement,

the singular includes the plural and the plural the singular; words importing

any gender include the other gender; references to "writing" include printing,

typing, lithography, and other means of reproducing words in a visible form;

references to agreements and other contractual instruments include all

subsequent amendments thereto or changes therein entered into in accordance with

their respective terms and not prohibited by this Agreement; references to

Persons include their permitted successors and assigns; and the term "including"

means "including without limitation."



     SECTION 1.3. Section References. All section references shall be to

Sections in this Agreement (unless otherwise provided).

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