<PAGE>

                                                                     Exhibit 4.2




                               FORM OF SECURITIES

THIS RENEWABLE UNSECURED SUBORDINATE NOTE (THE "NOTE") OF ONYX ACCEPTANCE
CORPORATION (THE "COMPANY") IS SUBJECT TO THE TERMS OF THE INDENTURE, WHICH
AMONG OTHER PROVISIONS, CONTAINS REQUIREMENTS FOR THE HOLDER TO TRANSFER THIS
NOTE, INCLUDING THE PRIOR CONSENT OF THE COMPANY TO ANY SUCH TRANSFER. THE
INDENTURE HAS BEEN FILED AS EXHIBIT 4.1 TO THE COMPANY'S REGISTRATION STATEMENT
ON FORM S-3 DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION ON OR
ABOUT ____________, 2002, PURSUANT TO WHICH THIS NOTE HAS BEEN ISSUED BY THE
COMPANY.

THE COMPANY MAY REDEEM THIS NOTE, IN WHOLE OR IN PART, IN ACCORDANCE WITH THE
TERMS OF THE INDENTURE.

                           [OID LEGEND, IF APPLICABLE]

                           ONYX ACCEPTANCE CORPORATION

                     Incorporated Under the Laws of Delaware

                     RENEWABLE UNSECURED SUBORDINATED NOTES

Registered No.:______________________  Registered Principal Amount: $___________

Issue Date:__________________________  Interest Rate:___________________________

Term:________________________________  Interest Payment Schedule:_______________

Maturity Date:_______________________  Payment Date (for interest):_____________

         Onyx Acceptance Corporation, a corporation created under the laws of
the State of Delaware (the "Company," which term includes any successor
corporation under the Indenture hereinafter referred to), for value received,
hereby promises to pay to _______________________________________, or registered
assigns, the principal sum of ____________ Dollars ($________) on the Maturity
Date and to pay accrued and unpaid interest hereon from the Issue Date set forth
above, or from the most recent Payment Date to which interest has been paid or
duly provided for, beginning on the first Payment Date after the Issue Date (the
"Initial Payment Date") and on each subsequent Payment Date thereafter at the
Interest Rate set forth above, until the principal hereof is paid or made
available for payment. Interest shall accrue on the principal amount for the
period from the later of the Issue Date of this Note or the last Payment Date
upon which an interest payment was made until and including the day before the
following Payment Date. Initially capitalized terms used but not defined herein
shall have the respective meanings given such terms in the Indenture.

         The principal hereof is subject to optional redemption by the Company
and optional repurchase at the request of the Holder, as provided in the
Indenture, and if not so redeemed or repurchased, shall be due and payable in
full on the Maturity Date, which also shall constitute a




Page 1
<PAGE>
Payment Date. The principal and interest so payable and punctually paid or duly
provided for on any Payment Date, as provided in the Indenture, will be paid to
the Person in whose name this Note is registered (the "Holder") at the close of
business on the Regular Record Date for such Payment Date. Payment of the
principal of and interest on this Note will be made at the office of the Paying
Agent, or in such other office as may be selected in accordance with the
Indenture, in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts,
provided, however, that at the option of the Company payment of interest may be
made in United States dollars by wire or by check mailed to the address of the
Person entitled thereto as such address shall appear in the Securities Register.

         Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the Certificate of Authentication hereon has been executed by or
on behalf of the Trustee referred to on the reverse hereof by manual or
facsimile signature, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

         No recourse shall be had for the payment of the principal or interest
of this Note against any Company incorporator, stockholder, officer, director,
employee or agent by virtue of any statute or by enforcement of any assessment
or otherwise; and any and all liability of incorporators, stockholders,
directors, officers, employees and agents of the Company being released hereby.

         IN WITNESS WHEREOF, the Company has caused this Renewable Unsecured
Subordinated Note to be signed in its name by the manual or facsimile signature
of its President and attested to by the manual or facsimile signature of its
Secretary.

Dated:_____________________         ONYX ACCEPTANCE CORPORATION



                                    By____________________________________
                                    Name:

                                     Title:

Attest:



------------------------------------
___________, Secretary



Page 2
<PAGE>
                          CERTIFICATE OF AUTHENTICATION

         This Note is one of the Renewable Unsecured Subordinated Notes,
referred to in the within-mentioned Indenture.

Dated:_________                      U.S. Bank National Association, as Trustee


                                     By
                                       ---------------------------------------
                                              Authorized Signature




Page 3
<PAGE>
                              REVERSE SIDE OF NOTE

         This Note is one of a duly authorized issue of Renewable Unsecured
Subordinated Notes of the Company designated as its Renewable Unsecured
Subordinated Notes (the "Notes") in the maximum aggregate principal amount of up
to $50,000,000, issued and to be issued under an Indenture, dated as of
________________, 2002 (the "Indenture"), between the Company and U.S. Bank
National Association, as Trustee (the "Trustee," which term includes any
successor Trustee under the Indenture). Reference is hereby made to the
Indenture and all indentures supplemental thereto for a statement of the
respective rights, limitation of rights, duties and immunities thereunder of the
Company, the Trustee and the Holders, and for a statement of the terms upon
which the Notes are, and are to be, authenticated and delivered. Capitalized and
certain other terms used herein and not otherwise defined have the meanings set
forth in the Indenture.

         The Notes are general unsecured obligations of the Company. The payment
of the principal of and interest on this Note is expressly subordinated, as
provided in the Indenture, to the payment of all Senior Debt and, by the
acceptance of this Note, the Holder hereof agrees, expressly for the benefit of
the present and future holders of Senior Debt, to be bound by the provisions of
the Indenture relating to such subordination and authorizes and appoints as such
Holder's attorney-in-fact the Trustee to take such action on such Holder's
behalf as may be necessary or appropriate to effectuate such subordination.

         The Company may, at its option, at any time redeem this Note either in
whole or from time to time in part prior to the Maturity Date by providing at
least thirty (30) days written notice to the Holder.

         If this Note shall be redeemed by call for redemption and payment be
duly provided therefor as specified in the Indenture, interest shall cease to
accrue on this Note.

         This Note may be transferred and exchanged only as provided in the
Indenture. This Note may not be assigned, transferred or otherwise alienated
without the prior written consent of the Company and shall be subject to the
Company's right to demand and receive an opinion of Holder's legal counsel
(which counsel shall be reasonably acceptable to the Company) that the transfer
does not violate any applicable securities laws. The Company may also require a
signature guarantee.

         Approximately fifteen (15) but not less than ten (10) days prior to the
Maturity Date, the Company will send the Holder a Notice of Maturity to notify
the Holder of the Maturity Date. If in the Notice of Maturity the Company does
not notify the Holder of its intention to repay this Note, and unless within
fifteen (15) days after the Maturity Date, the Holder has not demanded repayment
of this Note, this Note shall be automatically renewed for an additional term
equal to the term of the maturing Note and shall be deemed to have been renewed
by the Holder and the Company as of the Maturity Date, such that a new Note
shall be deemed to have been issued as of such Maturity Date. This Note will
continue to renew as described herein absent some action permitted under the
Indenture and this Note by either the Holder or the Company. Interest on the
renewed Note shall accrue from the Issue Date thereof, which is the first day of
such renewed term. This renewed Note will be deemed to have identical terms and
provisions as the maturing



Page 4
<PAGE>
Note, including provisions relating to payment, except that the interest rate
payable during the term of the renewed Note shall be the interest rate which is
being offered by the Company on other Notes with the same term as of the Issue
Date of such renewal. If other Notes with the same term are not then being
offered on the Issue Date of such renewal, the interest rate upon renewal will
be the rate specified by the Company on or before the Maturity Date, or the
Note's existing rate if no such rate is specified. If the Company gives notice
to the Holder of the Company's intention to repay the Note at maturity, the
Company shall pay the Holder the principal amount and accrued and unpaid
interest thereon on the Maturity Date, and, provided such payment is timely
made, no interest will accrue after the Maturity Date. Otherwise, if the Holder
requests repayment within fifteen (15) days after the Maturity Date, no interest
will accrue after the Maturity Date and the Holder will be sent payment upon the
later of the Maturity Date or five (5) days following the date the Company
receives such notice from Holder; provided that any interest paid to the Holder
accruing after the Maturity Date shall be deducted from such payment

         If an Event of Default shall occur and be continuing, the outstanding
principal of this Note may be declared due and payable in the manner and with
the effect provided in the Indenture. The Company shall pay all costs of
collection, whether or not judicial proceedings are instituted, in the manner
provided in the Indenture. The Indenture provides that such declaration and its
consequences may, in certain events, be waived by the Holders of a majority in
principal amount of the Notes outstanding.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Notes at the time outstanding. The Indenture
also contains provisions permitting the Holders of specified percentages of
aggregate principal amount of the Notes at the time outstanding, on behalf of
the Holders of all of the Notes, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture or amendment or modification hereof or thereof shall alter or
impair the obligation of the Company to pay the principal of and interest on
this Note at the times, place and rate and in the coin or currency herein
prescribed.

         In the event of a consolidation or merger of the Company into, or of
the transfer of its assets substantially as an entirety to, a successor entity
in accordance with the Indenture, such successor entity shall assume payment of
the Notes and the performance of every covenant of the Indenture on the part of
the Company, and in the event of any such transfer, the Company (or the
successor entity in the event of a subsequent consolidation, merger or transfer)
shall be discharged from all obligations and covenants in respect of the Notes
and the Indenture and may be dissolved and liquidated, all as more fully set
forth in the Indenture.




Page 5
<PAGE>
         The Notes are originally issuable in such denominations as may be
designated from time to time by the Company, but in no event in an original
denomination less than $1,000. As provided in the Indenture and subject to
certain limitations therein set forth, the Notes are exchangeable for a like
aggregate principal amount of Notes of a different authorized denomination
(i.e., $1,000 or any amount in excess thereof). Subject to the provisions of the
Indenture (including without limitation Section 2.6 thereof), the transfer of
this Note is registerable in the Securities Register, upon surrender of this
Note for registration of transfer at the office or agency of the Registrar duly
endorsed by or accompanied by a written instrument of transfer in the form
printed on this Note or in another form satisfactory to the Company and the
Registrar duly executed by the Holder hereof or such Holder's attorney, duly
authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees. The Registrar may assess service charges
for any such registration or transfer or exchange, and the Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

         Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         This Note shall be governed by and construed in accordance with the
laws of the State of New York, without giving effect to the conflict of law
provisions thereof.



Page 6
<PAGE>
                               FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer this
                                     Note)

  FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

------------------------------------------------------------------------------

------------------------------------------------------------------------------

------------------------------------------------------------------------------
(Please print name and address of transferee)

this Note, together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint __________________, as Attorney-in-Fact, to
transfer the within Note on the books kept for registration thereof, with full
power of substitution.

Dated:___________

Signature:_________________________________
            (Signature must conform in all
             respects to name of holder as
             specified on the face of the Note)

Social Security
or Other Identifying
Number of Transferee: ______________________________

Signature Guaranteed:





Page 7