Document:

EX-4.(f)(138)

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

$81,000,000 CLASS A ASSET BACKED NOTES

$19,500,000 CLASS B ASSET BACKED NOTES

$900,442 CLASS C ASSET BACKED NOTES

INDENTURE

Dated as of November 4, 2010

WELLS FARGO BANK, NATIONAL ASSOCIATION

as the Trust Collateral Agent/Indenture Trustee

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

as the Issuer

	 	 	 	 	 	 	 	 	 
	ARTICLE I
	 	Definitions and Incorporation by Reference
	 		2	
	SECTION 1.1.
	 	Definitions
	 		2	
	SECTION 1.2.
	 	Rules of Construction
	 		8	
	ARTICLE II
	 	The Notes
	 		9	
	SECTION 2.1.
	 	Form
	 		9	
	SECTION 2.2.
	 	Execution, Authentication and Delivery
	 		9	
	SECTION 2.3.
	 	Registration of Transfer and Exchange of Notes
	 		10	
	SECTION 2.4.
	 	Mutilated, Destroyed, Lost, or Stolen Notes
	 		12	
	SECTION 2.5.
	 	Persons Deemed Owners
	 		12	
	SECTION 2.6.
	 	Access to List of Noteholders’ Names and Addresses
	 		12	
	SECTION 2.7.
	 	Maintenance of Office or Agency
	 		13	
	SECTION 2.8.
	 	Payment of Principal and Interest; Defaulted Interest
	 		13	
	SECTION 2.9.
	 	Release of Collateral
	 		14	
	ARTICLE III
	 	Covenants, Representations and Warranties
	 		14	
	SECTION 3.1.
	 	Payment of Principal and Interest
	 		14	
	SECTION 3.2.
	 	Maintenance of Office or Agency
	 		14	
	SECTION 3.3.
	 	Money for Payments to be Held in Trust
	 		14	
	SECTION 3.4.
	 	Existence
	 		16	
	SECTION 3.5.
	 	Protection of Trust Property
	 		16	
	SECTION 3.6.
	 	Opinions as to Trust Property
	 		17	
	SECTION 3.7.
	 	Performance of Obligations; Servicing of Contracts
	 		17	
	SECTION 3.8.
	 	Negative Covenants
	 		18	
	SECTION 3.9.
	 	Annual Statement as to Compliance
	 		19	
	SECTION 3.10.
	 	Issuer May Consolidate, Etc. Only on Certain Terms
	 		19	
	SECTION 3.11.
	 	Successor or Transferee
	 		21	
	SECTION 3.12.
	 	No Other Business
	 		21	
	SECTION 3.13.
	 	No Borrowing
	 		21	
	SECTION 3.14.
	 	Guarantees, Loans, Advances and Other Liabilities
	 		22	
	SECTION 3.15.
	 	Capital Expenditures
	 		22	
	SECTION 3.16.
	 	Compliance with Laws
	 		22	
	SECTION 3.17.
	 	Restricted Payments
	 		22	
	SECTION 3.18.
	 	Notice of Indenture Events of Default
	 		22	
	SECTION 3.19.
	 	Further Instruments and Acts
	 		22	
	SECTION 3.20.
	 	Amendments of Sale and Servicing Agreement and Trust Agreement
	 		23	
	SECTION 3.21.
	 	Income Tax Characterization
	 		23	
	SECTION 3.22.
	 	Perfection Representations, Warranties and Covenants
	 		23	
	ARTICLE IV
	 	Satisfaction and Discharge
	 		23	
	SECTION 4.1.
	 	Satisfaction and Discharge of Indenture
	 		23	
	SECTION 4.2.
	 	Application of Trust Money
	 		24	
	SECTION 4.3.
	 	Repayment of Moneys Held by Paying Agent
	 		25	
	ARTICLE V
	 	Events of Default; Remedies
	 		25	
	SECTION 5.1.
	 	Indenture Events of Default
	 		25	
	SECTION 5.2.
	 	Rights Upon Indenture Event of Default
	 		27	
	SECTION 5.3.
	 	Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
	 		28	
	SECTION 5.4.
	 	Remedies
	 		30	
	SECTION 5.5.
	 	Optional Preservation of the Trust Property
	 		31	
	SECTION 5.6.
	 	[Reserved]	 		32	
	SECTION 5.7.
	 	Limitation of Suits
	 		32	
	SECTION 5.8.
	 	Unconditional Rights of Noteholders To Receive Principal and Interest
	 		33	
	SECTION 5.9.
	 	Restoration of Rights and Remedies
	 		33	
	SECTION 5.10.
	 	Rights and Remedies Cumulative
	 		33	
	SECTION 5.11.
	 	Delay or Omission Not a Waiver
	 		33	
	SECTION 5.12.
	 	[Reserved]	 		33	
	SECTION 5.13.
	 	Undertaking for Costs
	 		33	
	SECTION 5.14.
	 	Waiver of Stay or Extension Laws
	 		34	
	SECTION 5.15.
	 	Action on Notes
	 		34	
	SECTION 5.16.
	 	Performance and Enforcement of Certain Obligations
	 		34	
	SECTION 5.17.
	 	[Reserved]	 		35	
	ARTICLE VI
	 	The Indenture Trustee
	 		35	
	SECTION 6.1.
	 	Duties of Indenture Trustee
	 		35	
	SECTION 6.2.
	 	Rights of Indenture Trustee
	 		36	
	SECTION 6.3.
	 	Individual Rights of Indenture Trustee
	 		38	
	SECTION 6.4.
	 	Indenture Trustee’s Disclaimer
	 		38	
	SECTION 6.5.
	 	Notice of Indenture Events of Default
	 		38	
	SECTION 6.6.
	 	Reports by Indenture Trustee to Holders
	 		38	
	SECTION 6.7.
	 	Compensation
	 		39	
	SECTION 6.8.
	 	Replacement of Indenture Trustee
	 		39	
	SECTION 6.9.
	 	Successor Indenture Trustee by Merger
	 		41	
	SECTION 6.10.
	 	Appointment of Trust Collateral Agent
	 		41	
	SECTION 6.11.
	 	Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	 		41	
	SECTION 6.12.
	 	Eligibility
	 		43	
	SECTION 6.13.
	 	Trust Collateral Agent to Follow Indenture Trustee’s Directions
	 		43	
	SECTION 6.14.
	 	Representations and Warranties of the Indenture Trustee
	 		43	
	SECTION 6.15.
	 	Waiver of Setoffs
	 		44	
	SECTION 6.16.
	 	Reserved
	 		44	
	SECTION 6.17.
	 	Disqualification of the Indenture Trustee
	 		44	
	SECTION 6.18.
	 	Authorization and Direction
	 		44	
	SECTION 6.19.
	 	Action under the Intercreditor Agreement
	 		44	
	ARTICLE VII
	 	Noteholders’ Lists and Reports
	 		44	
	SECTION 7.1.
	 	Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders
	 		45	
	SECTION 7.2.
	 	Preservation of Information; Communications to Noteholders
	 		45	
	ARTICLE VIII
	 	Accounts, Disbursements and Releases
	 		45	
	SECTION 8.1.
	 	Collection of Money
	 		45	
	SECTION 8.2.
	 	Release of Trust Property
	 		45	
	SECTION 8.3.
	 	Opinion of Counsel
	 		46	
	ARTICLE IX
	 	Supplemental Indentures
	 		46	
	SECTION 9.1.
	 	Supplemental Indentures Not Adversely Affecting Rights of Noteholders
	 		46	
	SECTION 9.2.
	 	Supplemental Indentures Modifying Rights of Noteholders
	 		47	
	SECTION 9.3.
	 	Execution of Supplemental Indentures
	 		49	
	SECTION 9.4.
	 	Effect of Supplemental Indenture
	 		49	
	SECTION 9.5.
	 	Reference in Notes to Supplemental Indentures
	 		49	
	ARTICLE X
	 	Redemption of Notes
	 		49	
	SECTION 10.1.
	 	Redemption
	 		49	
	SECTION 10.2.
	 	Form of Redemption Notice
	 		50	
	SECTION 10.3.
	 	Notes Payable on Redemption Date
	 		50	
	ARTICLE XI
	 	Miscellaneous
	 		51	
	SECTION 11.1.
	 	Compliance Certificates and Opinions, etc
	 		51	
	SECTION 11.2.
	 	Form of Documents Delivered to Indenture Trustee
	 		52	
	SECTION 11.3.
	 	Acts of Noteholders
	 		53	
	SECTION 11.4.
	 	Notices, etc. to Indenture Trustee, Issuer,  and Rating Agencies
	 		53	
	SECTION 11.5.
	 	Notices to Noteholders; Waiver
	 		54	
	SECTION 11.6.
	 	Alternate Payment and Notice Provisions
	 		55	
	SECTION 11.7.
	 	Effect of Headings and Table of Contents
	 		55	
	SECTION 11.8.
	 	Successors and Assigns
	 		55	
	SECTION 11.9.
	 	Separability
	 		55	
	SECTION 11.10.
	 	Benefits of Indenture
	 		55	
	SECTION 11.11.
	 	Legal Holidays
	 		56	
	SECTION 11.12.
	 	GOVERNING LAW
	 		56	
	SECTION 11.13.
	 	Counterparts
	 		56	
	SECTION 11.14.
	 	Recording of Indenture
	 		56	
	SECTION 11.15.
	 	Trust Obligation
	 		56	
	SECTION 11.16.
	 	No Petition
	 		57	
	SECTION 11.17.
	 	Inspection
	 		57	
	SECTION 11.18.
	 	Maximum Interest Payable
	 		57	
	SECTION 11.19.
	 	No Legal Title in Holders
	 		58	
	SECTION 11.20.
	 	Third Party Beneficiary
	 		58	
	SECTION 11.21.
	 	Multiple Roles
	 		59	

	 	 	 
	EXHIBIT A-1

EXHIBIT A-2

EXHIBIT A-3

EXHIBIT B

EXHIBIT C

	 	Form of Class A Note......................................................A-1-1

Form of Class B Note......................................................A-2-1

Form of Class C Note......................................................A-3-1

Form of Transferee Representation Letter................................. B-1

Form of Investment Letter................................................... C-1

INDENTURE dated as of November 4, 2010, between CREDIT ACCEPTANCE AUTO LOAN TRUST
2010-1, a Delaware statutory trust (the “Issuer”), and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association organized under the laws of the United States, as trust
collateral agent (the “Trust Collateral Agent”) and as indenture trustee (the
“Indenture Trustee”).

Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Issuer’s $81,000,000 Class A 2.06% Asset Backed Notes (the “Class
A Notes”), the $19,500,000 Class B 3.63% Asset Backed Notes (the “Class B Notes”) and
$900,442 Class C Principal-Only Asset Backed Notes (the “Class C Notes,” and together with
the Class A Notes and Class B Notes, the “Notes”):

GRANTING CLAUSE

The Issuer hereby grants to the Indenture Trustee for the benefit of itself and the
Noteholders, as their respective interests may appear, a first-priority perfected security interest
in all of the Issuer’s right, title and interest in and to all assets and personal property of the
Issuer, including but not limited to, all of the Issuer’s accounts, chattel paper, goods, deposit
accounts, documents, general intangibles, instruments, investment property, letter of credit
rights, money and supporting obligations and all proceeds of the foregoing (as each such term is
defined in the UCC, collectively, the “Collateral”) now owned or hereafter acquired, which
Collateral shall be held by the Trust Collateral Agent on behalf of the Indenture Trustee, subject
to the lien of this Indenture.

Such grant shall include all rights, powers and options (but none of the obligations) of the
Issuer, including the immediate and continuing right to claim for, collect, receive and give
receipt for principal and interest payments in respect of the Collateral and all other moneys
payable thereunder, to give and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring proceedings in the name of the Issuer or
otherwise and generally to do and receive anything that the Issuer is or may be entitled to do or
receive thereunder or with respect thereto.

The Indenture Trustee hereby acknowledges such grant, accepts the trusts under this Indenture
in accordance with the provisions of this Indenture and agrees to perform its duties required in
this Indenture to the best of its ability in order that the interests of the parties and the
Noteholders, recognizing the priorities of their respective interests, may be adequately and
effectively protected.

The Indenture Trustee, solely in its capacity as the named secured party or assignee of
secured party on financing statements naming Credit Acceptance, the Seller or the Issuer as debtor
or seller, acknowledges that in such capacity it is acting as a representative, within the meaning
of Section 9-502(a)(2) of the UCC, for itself, the Trust Collateral Agent, the Noteholders, the
Issuer and the Seller, to the extent and as their interests as secured parties with security
interests in the collateral indicated on such financing statements may be.

It is the intention of the Issuer and the Indenture Trustee that this grant constitutes a
grant or assignment of a valid, first priority security interest in the Issuer’s rights in the
Collateral, free and clear of all Liens (other than the security interest granted herein) to the
Indenture Trustee. This Agreement shall be deemed to create a security interest and deemed to be a
security agreement with respect to the Collateral within the meaning of Article 1, Article 8 and
Article 9 of the Uniform Commercial Code as in effect in the States of New York and Delaware and
under the law of all jurisdictions governing the creation and perfection of security interests in
the Collateral.

ARTICLE I

Definitions and Incorporation by Reference

SECTION 1.1. Definitions.

(a) Except as otherwise specified herein, the following terms have the respective meanings set
forth below for all purposes of this Indenture.

(b) Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to them in the Sale and Servicing Agreement or the Trust Agreement.

“Act” has the meaning specified in Section 11.3(a).

“Authorized Officer” means, with respect to the Issuer, any officer or agent acting
pursuant to a power of attorney of the Owner Trustee or, with respect to the Servicer, any officer
or agent of the Servicer, and who is identified on the list of Authorized Officers delivered by
each of the Owner Trustee and the Servicer to the Indenture Trustee, the Trust Collateral Agent and
the Backup Servicer on the Closing Date (as such list may be modified or supplemented from time to
time thereafter).

“Certificate Interest” has the meaning given to such term in the Trust Agreement.

“Class A Notes” means the 2.06% Class A Asset Backed Notes of the Issuer,
substantially in the form of Exhibit A-1 hereto.

“Class A Note Rate” means 2.06% per annum.

“Class B Notes” means the 3.63% Class B Asset Backed Notes of the Issuer,
substantially in the form of Exhibit A-2 hereto.

“Class B Note Rate” means 3.63% per annum.

“Class C Notes” means the Class C Asset Backed Notes of the Issuer, substantially in
the form of Exhibit A-3 hereto.

“Clearing Agency” means the Depository Trust Company or its successor, which shall be
an organization registered as a “clearing agency” pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended.

“Clearing Agency Participant” means the Depository Trust Company, and its successors,
each of which shall be a broker, dealer, bank or other financial institution or other Person for
whom from time to time a Clearing Agency effects book-entry transfers and pledges of securities
deposited with the Clearing Agency.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and
treasury regulations promulgated thereunder.

“Collateral” has the meaning set forth in Granting Clause.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Excluded Dealer Agreement Rights” means, with respect to any Dealer Agreement listed
on Schedule A to the Sale and Servicing Agreement, or listed on any addendum thereto, the rights of
Credit Acceptance thereunder related to loans made to the related Dealer which are not Dealer Loans
owned by the Issuer, including rights of set-off and rights of indemnification, related to such
Dealer Loans.

“Indebtedness” means, with respect to any Person at any time, (a) indebtedness or
liability of such Person for borrowed money whether or not evidenced by bonds, debentures, notes or
other instruments, or for the deferred purchase price of property or services (including trade
obligations); (b) obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded as capital leases;
(c) current liabilities of such Person in respect of unfunded vested benefits under plans covered
by Title IV of ERISA; (d) obligations issued for or liabilities incurred on the account of such
Person; (e) obligations or liabilities of such Person arising under acceptance facilities; (f)
obligations of such Person under any guarantees, endorsements (other than for collection or deposit
in the ordinary course of business) and other contingent obligations to purchase, to provide funds
for payment, to supply funds to invest in any Person or otherwise to assure a creditor against
loss; (g) obligations of such Person secured by any lien on property or assets of such Person,
whether or not the obligations have been assumed by such Person; provided that the amount of such
indebtedness if not so assumed shall in no event be deemed to be greater than the fair market value
from time to time (as reasonably determined in good faith by the Issuer) of the property subject to
such lien; or (h) obligations of such Person under any interest rate or currency exchange
agreement.

“Indenture” means this Indenture as amended and supplemented from time to time.

“Indenture Default” means any occurrence that is, or with notice or the lapse of time
or both would become, an Indenture Event of Default.

“Indenture Event of Default” has the meaning given such term in Section 5.1
herein.

“Indenture Trustee” means Wells Fargo Bank, National Association, a national banking
association organized under the laws of the United States, not in its individual capacity but as
trustee under this Indenture, or any successor trustee under this Indenture.

“Independent” means, when used with respect to any specified Person, that the Person
(a) is in fact independent of the Issuer, the Originator, any other obligor upon the Notes, the
Seller and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial
interest or any material indirect financial interest in the Issuer, the Originator, any such other
obligor, the Seller or any Affiliate of any of the foregoing Persons and (c) is not connected with
the Issuer, the Originator, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or
Person performing similar functions.

“Independent Certificate” means a certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying with, the
applicable requirements of Section 11.1, prepared by an Independent appraiser or other
expert appointed by an Issuer Order, in the exercise of reasonable care, which opinion or
certificate shall state that the signer has read the definition of “Independent” in this Indenture
and that the signer is Independent within the meaning thereof.

“Institutional Accredited Investor” shall have the meaning given to that term in
Section 2.3(a) hereof.

“Interest Period” means the period from and including the preceding Distribution Date
(or in the case of the first Distribution Date, the Closing Date) to, but excluding the current
Distribution Date.

“Issuer” means the party named as such in this Indenture until a successor replaces it
and, thereafter, means the successor and, for purposes of any provision contained herein, each
other obligor on the Notes.

“Issuer Order” and “Issuer Request” means a written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

“Issuer Secured Obligations” means all amounts and obligations which the Issuer may at
any time owe to or on behalf of the Indenture Trustee for the benefit of the Indenture Trustee and
the Noteholders under this Indenture, the Notes or the other Basic Documents.

“Majority Noteholders” means the Holders of a majority by principal amount of the most
senior then outstanding class of Notes.

“Note” means a Class A Note, Class B Note or Class C Note.

“Note Owner” means, with respect to any Note registered in the name of the Clearing
Agency or its nominee, the Person who is the beneficial owner of such Note, as reflected on the
books of the Clearing Agency (directly as a Clearing Agency Participant or as an indirect
participant, in each case in accordance with the rules of such Clearing Agency).

“Note Register” and “Note Registrar” mean the register maintained and the
registrar appointed pursuant to Section 2.3 hereof.

“Noteholder” or “Holder” means the Person in whose name a Note shall be
registered in the Note Register, except that, solely for the purposes of giving any consent,
waiver, request, or demand pursuant to the Basic Documents, the interest evidenced by any Note
registered in the name of the Seller, the Servicer, or any person controlling, controlled by, or
under common control with the Seller or the Servicer, shall not be taken into account in
determining whether the requisite percentage necessary to effect any such consent, waiver, request,
or demand shall have been obtained.

“Officer’s Certificate” means a certificate signed by any Authorized Officer of the
Owner Trustee, under the circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.1 hereof.

“Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in this Indenture, or as otherwise required by the Indenture Trustee,
be employees of or counsel to the Issuer and who shall be reasonably satisfactory to the Indenture
Trustee, and which shall comply with any applicable requirements of Section 11.1 hereof,
and shall be in form and substance reasonably satisfactory to the Indenture Trustee.

“Outstanding” means, as of the date of determination, all Notes theretofore
authenticated and delivered under this Indenture except:

(i) Notes theretofore canceled by the Note Registrar or delivered to the Note Registrar
for cancellation;

(ii) Notes or portions thereof the payment for which money in the necessary amount has
been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the
Holders of such Notes (provided, however, that if such Notes are to be
redeemed, notice of such redemption has been duly given pursuant to this Indenture); and

(iii) Notes in exchange for or in lieu of other Notes which have been authenticated and
delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is
presented that any such Notes are held by a bona fide purchaser;

provided, however, that (x) in determining whether the Holders of the requisite
Outstanding Amount of the Notes have given any request, demand, authorization, direction, notice,
consent or waiver hereunder or under any Basic Document, Notes owned by the Issuer, the Servicer,
any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons shall
be disregarded and deemed not to be Outstanding, except that, in determining whether the Indenture
Trustee shall be fully protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture
Trustee either actually knows to be so owned or has received written notice thereof shall be so
disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s right so to act
with respect to such Notes and that the pledgee is not the Issuer, any other obligor upon the
Notes, the Seller or any Affiliate of any of the foregoing Persons and (y) to the extent that the
Indenture Trustee is a Noteholder, Notes owned by the Indenture Trustee shall be disregarded for
purposes of Section 6.8(b) hereof.

“Outstanding Amount” means the aggregate principal amount of all Notes, or class of
Notes, as applicable, Outstanding at any date of determination.

“Paying Agent” means the Indenture Trustee (so long as Wells Fargo Bank, National
Association is acting as the Indenture Trustee) or any other Person that meets the eligibility
standards for the Indenture Trustee specified in Section 6.12 and is authorized by the
Issuer to make the payments to and distributions from the Collection Account, the Note Distribution
Account, the Reserve Account, the Principal Distribution Account and the Certificate Distribution
Account including payment of principal of or interest on the Notes on behalf of the Issuer.

“Predecessor Note” means, with respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for
the purpose of this definition, any Note authenticated and delivered under Section 2.4 in
lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as
the mutilated, lost, destroyed or stolen Note.

“Proceeding” means any suit in equity, action at law or other judicial or
administrative proceeding.

“Qualified Institutional Buyer” shall have the meaning given to that term in Section
2.3(a) hereof.

“Rating Agency Condition” means, with respect to any action, that each Rating Agency
shall have been given ten (10) days (or such shorter period as shall be acceptable to such Rating
Agency) prior notice thereof and that such Rating Agency shall have notified the Seller, the
Servicer, the Indenture Trustee, the Owner Trustee and the Issuer that such action will not result
in a reduction or withdrawal of its then current rating of the then-rated Notes.

“Record Date” means, with respect to a Distribution Date and a class of Notes, (i) if
such class of Notes is held in book-entry form, the day immediately preceding such Distribution
Date; or (ii) if such class of Notes is held in definitive form, the last day of the calendar month
preceding such Distribution Date; provided that the Record Date with respect to the First
Distribution Date shall be the Closing Date.

“Redemption Date” means, in the case of a redemption of the Notes pursuant to
Section 10.1 hereof, the Distribution Date specified by the Servicer or the Issuer pursuant
to Section 10.1 hereof.

“Redemption Price” means in the case of a redemption of the Notes pursuant to
Section 10.1 hereof an amount equal to the unpaid principal amount of the Outstanding Notes
being redeemed plus accrued and unpaid interest thereon to but excluding the Redemption Date plus
all amounts due to the Indenture Trustee, the Backup Servicer and the Owner Trustee under the Basic
Documents.

“Related Security” means the property described in clauses (ii) through (xii) of the
Granting Clause.

“Required Long-Term Debt Rating” shall be a rating on long-term unsecured debt
obligations of “Aa3” by Moody’s and “AA-” by S&P (or other equivalent rating by a nationally
recognized rating agency), and any requirement that long-term unsecured debt obligations have the
“Required Long-Term Debt Rating” shall mean that such long-term unsecured debt obligations have the
foregoing required rating.

“Responsible Officer” means, with respect to the Indenture Trustee, the Trust
Collateral Agent, the Paying Agent or the Owner Trustee, any officer within the Corporate Trust
Office of the Indenture Trustee, the Trust Collateral Agent, the Paying Agent, or the Owner
Trustee, as the case may be, including any Vice President, Assistant Vice President, Assistant
Treasurer, Assistant Secretary, Associate, Trust Officer or any other officer of the Indenture
Trustee, the Trust Collateral Agent, the Paying Agent, or the Owner Trustee customarily performing
functions similar to those performed by any of the above designated officers, in each case with
direct responsibility for the administration of the Indenture.

“Retained Noteholder” shall mean any Person in whose name a Retained Note of any Class
is registered in the Note Register.

“Retained Notes” shall mean the Class C Notes retained on the Closing Date by Credit
Acceptance Corporation or one of its Affiliates, for so long as such Notes are retained by Credit
Acceptance Corporation or one of its Affiliates and, if transferred or assigned by Credit
Acceptance Corporation or one of its Affiliates, until an Opinion of Counsel has been rendered with
respect to the Class of such Notes that the Notes of such Class or any interest therein will be
treated as debt for U.S. federal income tax purposes.

“Rule 144A” means Rule 144A of the Securities Act.

“Sale and Servicing Agreement” means the Sale and Servicing Agreement dated as of the
Closing Date, among the Issuer, the Seller, Credit Acceptance Corporation, in its individual
capacity and as the Servicer, the Trust Collateral Agent, Indenture Trustee and the Backup
Servicer, as the same may be amended or supplemented from time to time in accordance with its
terms.

“Subsidiary” means, with respect to any Person, any corporation or other Person (a) of
which securities or other ownership interests having ordinary voting power to elect a majority of
the board of directors or other Persons performing similar functions are at the time directly or
indirectly owned by such Person or (b) that is directly or indirectly controlled by such Person
within the meaning of control under Section 15 of the Securities Act.

“Targeted Holder” shall mean each holder of (i) a right to receive interest or
principal with respect to the Retained Notes, (ii) any interest in the Trust with respect to which
an Opinion of Counsel has not been rendered that such interest will be treated as debt for federal
income tax purposes, and (iii) a right to receive any amount in respect of the Trust Certificate;
provided, however, that any Person holding more than one right or interest each of
which would cause such Person to be a Targeted Holder shall be treated as a single Targeted Holder.

“Tax Opinion” shall mean, with respect to any action, an Opinion of Counsel to the
effect that, for federal income tax purposes, (a) such action will not cause the Notes of any
outstanding class of Notes that were characterized as debt at the time of their issuance to be
characterized as other than debt, (b) such action will not cause the Trust to be deemed to be an
association (or publicly traded partnership) taxable as a corporation and (c) such action will not
cause or constitute an event in which gain or loss would be recognized by any Holder.

“Termination Date” means the date on which all amounts owing to the Noteholders and,
as certified in writing by the relevant party to the Owner Trustee, the Indenture Trustee, the
Trust Collateral Agent, the Owner Trustee and the Backup Servicer under the Basic Documents are
paid in full.

“Trust Certificate” has the meaning set forth in the Trust Agreement.

“Trust Collateral Agent” means, initially, Wells Fargo Bank, National Association, in
its capacity as collateral agent on behalf of the Indenture Trustee for the benefit of the
Noteholders, until and unless a successor Person shall have become the Trust Collateral Agent
pursuant to the Sale and Servicing Agreement, and thereafter “Trust Collateral Agent” shall mean
such successor Person.

“Trust Property” has the meaning set forth in the Sale and Servicing Agreement.

SECTION 1.2. Rules of Construction.

Unless the context otherwise requires:

(i) a term has the meaning assigned to it;

(ii) an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from time to time;

(iii) “or” is not exclusive;

(iv) “including” means including without limitation; and

(v) words in the singular include the plural and words in the plural include the
singular.

ARTICLE II

The Notes

SECTION 2.1. Form.

The Class A Notes, the Class B Notes and the Class C Notes, in each case together with the
Indenture Trustee’s certificate of authentication, shall be in substantially the form set forth in
Exhibits A-1, A-2 and A-3 hereto, respectively, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture and may have such
letters, numbers or other marks of identification and such legends or endorsements placed thereon
as may, consistently herewith, be determined by the officers executing such Notes, as evidenced by
their execution of the Notes. Any portion of the text of any Note may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Note.

The Notes shall be typewritten, printed, lithographed or engraved or produced by any
combination of these methods (with or without steel engraved borders), all as determined by the
officers executing such Notes, as evidenced by their execution of such Notes.

Each Note shall be dated the date of its authentication. The terms of each of the Class A
Notes set forth in Exhibit A-1 hereto, the Class B Notes set forth in Exhibit A-2 hereto and the
Class C Notes set forth in Exhibit A-3 hereto are part of the terms of this Indenture.

SECTION 2.2. Execution, Authentication and Delivery.

The Notes shall be executed on behalf of the Issuer by any of the Authorized Officers of the Owner
Trustee. The signature of any such Authorized Officer on the Notes may be manual or facsimile.

Notes bearing the manual or facsimile signature of individuals who were at any time Authorized
Officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

The Indenture Trustee shall upon receipt of the Issuer Order authenticate and deliver the
Class A Notes for original issue in an aggregate principal amount of $81,000,000, Class B Notes for
original issue in the aggregate principal amount of $19,500,000 and Class C Notes for original
issue in the aggregate principal amount of $900,442. The Class A Notes, Class B Notes and Class C
Notes outstanding at any time may not exceed such amounts.

Each Note shall be dated the date of its authentication. The Class A Notes and Class B Notes
(other than those held by Institutional Accredited Investors) shall be issuable as registered Notes
in the minimum denomination of $250,000 and integral multiples of $1,000 thereafter. Notes that
are held by persons who are Institutional Accredited Investors will be required to be issued in the
form of one or more physical notes, registered in the name of the beneficial owner thereof and only
in minimum denominations of U.S.$250,000.

It is intended that the Class A Notes and Class B Notes be registered so as to participate in
a book-entry system with the Clearing Agency as set forth herein. The Class A Notes and Class B
Notes shall each be initially issued in the form of a single fully-registered note with a
denomination equal to the original principal balance of such class of Notes. Upon initial
issuance, the ownership of such Notes shall be registered in the Note Register in the name of Cede
& Co., or any successor thereto, as nominee for the Clearing Agency.

No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose, unless there appears on such Note a certificate of authentication substantially in the
form provided for herein executed by the Indenture Trustee by the manual signature of one of its
Responsible Officers, and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder.

SECTION 2.3. Registration of Transfer and Exchange of Notes.

(a) The Note Registrar shall keep or cause to be kept, at the office or agency maintained
pursuant to Section 2.7, a Note Register in which, subject to such reasonable regulations
as it may prescribe, the Indenture Trustee shall provide for the registration of Notes and for
transfers and exchanges of Notes as herein provided. The Indenture Trustee shall be the initial
Note Registrar. Wells Fargo Bank, National Association shall be the Note Registrar so long as it
is acting as Indenture Trustee hereunder. In the event that, subsequent to the Closing Date, the
Indenture Trustee notifies the Seller that it is unable to act as Note Registrar, the Seller shall
appoint another bank or trust company, having an office or agency located in Minneapolis, Minnesota
or the Borough of Manhattan, The City of New York, agreeing to act in accordance with the
provisions of this Indenture applicable to it, and otherwise acceptable to the Indenture Trustee,
to act as successor Note Registrar under this Indenture. If at any time the Indenture Trustee is
not the Note Registrar, the Note Registrar shall make available to the Indenture Trustee ten (10)
days prior to each Distribution Date and at such other times as the Indenture Trustee may
reasonably request the names and addresses of the Holders as they appear in the Note Register.

No sale, conveyance, assignment, hypothecation, pledge, participation, or any other transfer
(each a “Transfer”) of a Note shall be made unless such Transfer is (A) pursuant to an effective
registration statement under the Securities Act, (B) for so long as the such Notes are eligible for
resale pursuant to Rule 144A to a Person the transferor reasonably believes after due inquiry is a
“qualified institutional buyer” as defined in Rule 144A (“Qualified Institutional Buyer”)
that purchases for its own account or for the account of a qualified institutional buyer to whom
notice is given that the transfer is being made in reliance on Rule 144A, (C) made in a transfer
exempt from the registration requirements of the Securities Act, to a Person that is an
institutional “accredited investor” within the meaning of paragraphs (1), (2), (3) and (7) of Rule
501(a) of the Securities Act (an “Institutional Accredited Investor”) that purchases for
its own account or for the account or accounts of an Institutional Accredited Investor, or (D)
pursuant to another available exemption from the registration requirements of the Securities Act
and any applicable state securities and blue sky laws or is made in accordance with said Act and
state laws. The Indenture Trustee may require an Opinion of Counsel to be delivered to it in
connection with any transfer of Notes pursuant to clauses (A), (C) or (D) of this paragraph.

Under no circumstances may an Institutional Accredited Investor take delivery in the form of a
beneficial interest in a book-entry Note if such purchaser is not a Qualified Institutional Buyer.
The Notes that are sold to Persons that, at the time of acquisition, purported acquisition or
proposed acquisition of any such Note are Institutional Accredited Investors shall be issued in the
form of definitive, fully registered physical notes substantially in the form attached as Exhibit
A-1 or A-2, which shall be registered in the name of the beneficial owner or a nominee thereof,
duly executed by the Issuer and authenticated by the Indenture Trustee as hereinafter provided (the
“Physical Notes”). Any purchaser of the Physical Notes (other than the Initial Purchasers)
will be required to deliver to the Indenture Trustee a transferee representation letter
substantially in the form of Exhibit B attached hereto. If any Holder of a Physical Note is
determined not to have been an Institutional Accredited Investor when it acquired such Physical
Note, the Issuer may demand that such Holder sell its Physical Note to an Institutional Accredited
Creditor permitted under the Indenture within thirty (30) days after notice of such demand is
given. If the Holder fails to effect the sale within such 30-day period, upon direction from the
Servicer or the Issuer, the Indenture Trustee, on behalf of and at the expense of the Issuer, will
cause such Holder’s Physical Note to be transferred in a commercially reasonable sale (which may be
conducted by an investment banker selected by the Indenture Trustee in accordance with Section
9-504(3) of the Uniform Commercial Code as in effect in the State of New York as applied to
securities that are sold on a recognized market or that may decline speedily in value) to an
Institutional Accredited Creditor in accordance with the requirements of this Indenture.

No portion of the Retained Notes or any interest therein may be transferred, directly or
indirectly, to any Person (other than Credit Acceptance Funding LLC 2010-1 in the initial offering,
which shall not be subject to any of the transfer restrictions set forth herein that relate
specifically to each initial purchaser) except in accordance with this Section 2.3(a). No portion
of the Retained Notes or any interest therein may be Transferred to any Person (each, an
“Assignee”), unless the Assignee shall have executed and delivered the certifications
referred to in this Section 2.3 and, except in connection with the initial Transfer of the Retained
Notes to the Retained Noteholders, the Indenture Trustee has received a Tax Opinion with respect to
such Transfer. Any attempted Transfer that would cause the number of Targeted Holders to exceed
ninety-five shall be void. Upon request by a Retained Noteholder, the number of Targeted Holders
shall be disclosed to such requesting Retained Noteholder.

All Opinions of Counsel required in connection with any transfer shall be by counsel
reasonably acceptable to the Indenture Trustee.

Only upon receipt by the Indenture Trustee of the written consent of each of the Seller and
the Servicer to such Transfer shall the Retained Notes (or such portion thereof) be transferred
upon the Note Register; provided, however, that such consent shall only be withheld
based upon the reasonable belief of the Seller or the Servicer that such Transfer may cause the
number of Targeted Holders to exceed ninety-five. Such Transfers of all or any portion of the
Retained Notes shall be subject to the restrictions set forth in this Section 2.3(a) and to such
other restrictions as shall be set forth in the investment letter, substantially in the form
attached hereto as Exhibit C, executed by the purchasing Retained Noteholder. Successive
registrations and registrations of Transfers as aforesaid may be made from time to time as desired,
and each such registration shall be noted on the Note Register. No Transfer of the Retained Notes
will be effective and the Transfer Agent and Note Registrar shall not register such Transfer,
unless the Assignee has delivered an investment letter substantially in the form attached hereto as
Exhibit C to the Indenture Trustee. Any purported Transfer or registration of Transfer of a
Retained Note in violation of the preceding sentence shall be absolutely null and void and shall
vest no rights in the purported Assignee.

Each Assignee shall certify to the Seller, the Servicer, and the Indenture Trustee that it is,
for federal income tax purposes, (i) a citizen or resident of the United States, (ii) a corporation
or partnership organized in or under the laws of the United States or any state or the District of
Columbia which, if such entity is a tax-exempt entity, recognizes that payments with respect to the
Retained Notes may constitute unrelated business taxable income, (iii) an estate the income of
which is includible in gross income for U.S. federal income tax purposes regardless of its source,
or (iv) (a) a trust for which a court within the United States is able to exercise primary
supervision over its administration and for which one or more persons described in this paragraph
are able to control all substantial decisions or (b) a trust for which a valid election has been
made to be treated as a United States person. Each Assignee also shall agree that it will furnish
to the Person from whom it is acquiring any interest in the Retained Notes, the Seller, the
Servicer, and the Indenture Trustee, a properly executed U.S. Internal Revenue Service Form W-9
(and will agree to furnish a new Form W-9, or any successor applicable form, upon the expiration or
obsolescence of any previously delivered form) and such other certifications, representations or
Opinions of Counsel as may be requested by the Indenture Trustee.

Each Assignee shall certify to the Seller, the Servicer, and the Indenture Trustee that it has
not acquired and it will not Transfer any interest in the Retained Notes, or cause an interest in
the Retained Notes to be marketed, on or through an “established securities market” within the
meaning of Section 7704(b)(1) of the Code and any Treasury regulations thereunder, including,
without limitation, an over-the-counter market or an interdealer quotation system that regularly
disseminates firm buy or sell quotations. In addition, any Assignee shall certify to the Seller,
the Servicer, and the Indenture Trustee, prior to any delivery or Transfer to it of any Retained
Notes, (i) that it is not and will not become (and that, if it is disregarded as an entity separate
from its owner within the meaning of Treasury Regulations Section 301.7701-3(a) (a “DRE”),
its owner is not and will not become), for so long as it holds an interest in the Retained Notes, a
partnership, Subchapter S corporation or grantor trust for U.S. federal income tax purposes (a
“Flow-Thru Entity”), or (ii) that if it (or, if it is a DRE, its owner) is, or becomes, a
Flow-Thru Entity, for so long as it (or, if it is a DRE, its owner) is a Flow-Thru Entity and it
holds an interest in the Retained Notes, not more than 50% of the value of any interests in it (or,
if it is a DRE, its owner) will be attributable to interests in the Trust held by it. Each initial
purchaser of an interest in the Retained Notes acknowledges that the Opinion of Counsel to the
effect that the Trust will not be treated as an association or publicly traded partnership taxable
as a corporation is dependent in part on the accuracy of its certifications described in this
Section 2.3(a).

Each Assignee shall certify to the Seller, the Servicer, and the Indenture Trustee (i) that it
has purchased its interest in the Retained Notes for investment only and not with a view to any
public distribution thereof and (ii) that it will not offer, sell, pledge or otherwise transfer its
interest in all or any portion of the Retained Notes, except in compliance with the Securities Act
and other applicable laws and only (1) to the Seller, (2) pursuant to Rule 144A to a person who it
reasonably believes is a QIB in a transaction meeting the requirements of Rule 144A, purchasing for
its own account or for the account of a QIB, whom it has informed that such offer, sale or other
transfer is being made in reliance on Rule 144A or (3) pursuant to an exemption from the
registration requirements of the Securities Act to a person that is an Institutional Accredited
Investor in a transaction meeting such exemption purchasing for its own account or one or more
accounts of an Institutional Accredited Investor in reliance upon such exemption. No Retained
Noteholders will have the right to require the Seller to register the Retained Notes or any other
securities under the Securities Act or any other securities laws.

The purchaser or transferee of each Note or any interest therein shall be deemed to represent
and warrant that, with respect to the source of funds to be used by such transferee to acquire such
Note or any interest therein (the “Source”) either (a) such Source is not, and is not directly or
indirectly acting for, on behalf of or with any assets of, an employee benefit plan or other
arrangement subject to Title I of ERISA, a “plan” to which Section 4975 of the Code applies, or a
plan or other arrangement that is subject to any provision of any federal, state, local or other
laws or regulations that are substantively similar to the foregoing provisions of ERISA or the Code
(“Similar Law”), or (b) the acquisition and holding of such Notes or interest therein by such
Source will not constitute or result in a non-exempt prohibited transaction under Section 406 of
ERISA or Section 4975 of the Code, or a violation of Similar Law.

Neither the Issuer nor the Indenture Trustee is obligated to register the Notes under the
Securities Act or any other securities law. Any transfer in violation of the provisions of this
Section 2.3 shall be void ab initio.

(b) If an election is made to hold the Class A Notes or the Class B Notes in book-entry form,
such class of Notes shall be registered in the name of a nominee designated by the Clearing Agency
(and may be aggregated as to denominations with other Notes of such class held by the Clearing
Agency). With respect to Notes held in book-entry form:

(i) the Note Registrar, the Trust Collateral Agent and the Indenture Trustee will be
entitled to deal with the Clearing Agency for all purposes of this Indenture (including the
payment of principal of and interest on such class or classes of Notes and the giving of
instructions or directions hereunder) as the sole holder of such class or classes of Notes,
and shall have no obligation to the Note Owners;

(ii) the rights of such Note Owners will be exercised only through the Clearing Agency
and will be limited to those established by law and agreements between such Note Owners and
the Clearing Agency and/or the Clearing Agency Participants pursuant to the Depository
Agreement;

(iii) whenever this Indenture or any of the Basic Documents requires or permits
actions to be taken based upon instructions or directions of Holders of such class or
classes of Notes evidencing a specified percentage of the Class A Note Balance, the Class B
Note Balance, or the Class C Note Balance, as applicable, the Clearing Agency will be
deemed to represent such percentage only to the extent that it has received instructions to
such effect from Note Owners and/or Clearing Agency Participants owning or representing,
respectively, such required percentage of the beneficial interest in the relevant class of
Notes and has delivered such instructions to the Indenture Trustee; and

(iv) without the consent of the Seller and the Indenture Trustee, no such class of
Notes may be transferred by the Clearing Agency except to a successor Clearing Agency that
agrees to hold such Note for the account of the Note Owners or except upon the election of
the Note Owner thereof or a subsequent transferee to hold such Note in physical form.

Neither the Indenture Trustee nor the Note Registrar shall have any responsibility to monitor
or restrict the transfer of beneficial ownership in any Note an interest in which is transferable
through the facilities of the Clearing Agency.

If (i)(A) the Issuer advises the Indenture Trustee in writing that the Clearing Agency is no
longer willing or able to properly discharge its responsibilities with respect to the Class A Notes
or the Class B Notes as described in the Depository Agreement and (B) the Issuer is unable to
locate a qualified successor, (ii) the Issuer at its option advises the Indenture Trustee in
writing that it elects to terminate the book-entry system through the Clearing Agency, or (iii)
Note Owners representing beneficial interests in Class A Notes aggregating not less than a majority
of the Class A Note Balance, in respect of the Class A Notes, or Note Owners representing
beneficial interests in the Class B Notes aggregating not less than a majority of the Class B Note
Balance, in respect of the Class B Notes, advise the Indenture Trustee and the Clearing Agency
through the Clearing Agency Participants in writing that the continuation of a book-entry system
through the Clearing Agency with respect to such class is no longer in the best interests of the
related Note Owners, then the Indenture Trustee shall notify all such Note Owners, through the
Clearing Agency, of the occurrence of any such event and of the availability of definitive Class A
Notes or definitive Class B Notes, as applicable, to such Note Owners requesting the same. Upon
surrender to the Indenture Trustee of the related Notes by the Clearing Agency accompanied by
registration instructions from the Clearing Agency, the Indenture Trustee shall issue definitive
Notes of the related class and deliver such definitive Notes in accordance with the instructions of
the Clearing Agency. None of the Issuer, the Note Registrar nor the Indenture Trustee shall be
liable for any delay in delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of definitive Class A Notes or
definitive Class B Notes, the Indenture Trustee shall recognize the Holders of the definitive Class
A Notes or definitive Class B Notes, as applicable, as Noteholders hereunder. The Indenture
Trustee shall not be liable if the Seller is unable to locate a qualified successor Clearing
Agency.

(c) In order to preserve the exemption for resales and transfers provided by Rule 144A, the
Issuer shall provide to any Holder of a Class A Note or Class B Note and any prospective purchaser
designated by such Holder, upon request of such Holder or such prospective purchaser, such
information required by Rule 144A as will enable the resale of such Note to be made pursuant to
Rule 144A. The Servicer and the Indenture Trustee shall cooperate with the Issuer in providing the
Issuer such information regarding the Class A Notes and Class B Notes, the Collateral and other
matters regarding the Trust as the Issuer shall reasonably request to meet its obligations under
the preceding sentence.

(d) Upon surrender for registration of transfer of any Note at the Corporate Trust Office, the
Indenture Trustee shall, subject to Section 2.3(a), authenticate, and deliver, in the name
of the designated transferee or transferees, one or more new Notes in authorized denominations of a
like class and aggregate amount dated the date of authentication by the Indenture Trustee. At the
option of a Holder, Notes may be exchanged for other Notes of the same class in authorized
denominations of a like aggregate amount upon surrender of the Notes to be exchanged at the
Corporate Trust Office.

(e) Every Note presented or surrendered for registration of transfer or exchange shall be
accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee and
the Note Registrar duly executed by the Holder or his or her attorney duly authorized in writing.
Each Note surrendered for registration of transfer or exchange shall be canceled and subsequently
disposed of by the Indenture Trustee in accordance with its customary practice.

Any Holder of a physical note may transfer such Note or exchange a certificate representing
such Note in whole or in part (in a number equal to any authorized denomination) by surrendering
the physical note at the corporate trust office of the Indenture Trustee, together with an executed
instrument of assignment and a transferee representation letter substantially in the form attached
as Exhibit B hereto. In exchange for any physical notes properly presented for transfer with all
necessary accompanying documentation, the Indenture Trustee, will within five (5) Business Days of
such request, deliver at the corporate trust office of the Indenture Trustee, to the transferee or
send by first-class mail at the risk of the transferee to such address as the transferee may
request, a physical notes for a like amount of such physical notes as may be requested. The
presentation for transfer of any physical notes will not be valid unless made at the corporate
trust office of the Indenture Trustee by the registered Holder in person, or by a duly authorized
attorney-in-fact. The Holder of a physical note will not be required to bear the costs and expenses
of effecting any transfer or registration of transfer, except that the relevant Holder will be
required to bear (i) the expenses of delivery by other than regular mail (if any) and (ii) if the
Issuer so requires, the payment of a sum sufficient to cover any duty, stamp tax or governmental
charge or insurance charges that may be imposed in relation to such transfer.

(f) No service charge shall be made for any registration of transfer or exchange of Notes, but
the Indenture Trustee may require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any transfer or exchange of Notes.

(g) Subject to Article IX hereof, the Notes and this Indenture may be amended or supplemented
from time to time, prior to the Termination Date, without the consent of any of the Noteholders, to
modify restrictions on and procedures for resale and other transfers of the Notes to reflect any
change in applicable law or regulations (or the interpretation thereof) or practices relating to
the resale or transfer of restricted securities generally.

SECTION 2.4. Mutilated, Destroyed, Lost, or Stolen Notes.

If (a) any mutilated Note shall be surrendered to the Note Registrar, or if the Note Registrar
shall receive evidence to its satisfaction of the destruction, loss, or theft of any Note and (b)
there shall be delivered to the Note Registrar, the Issuer and the Indenture Trustee such security
or indemnity (an unsecured indemnity agreement of a Noteholder with a net worth at least equal to
$200,000,000 containing terms reasonably satisfactory to the Indenture Trustee being sufficient for
such security or indemnity requirement), as may be required by them to save each of them and the
Issuer harmless, then in the absence of notice that such Note shall have been acquired by a bona
fide purchaser, the Owner Trustee on behalf of the Issuer shall execute and the Indenture Trustee
shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost,
or stolen Note, a new Note of like tenor and denomination. In connection with the issuance of any
new Note under this Section, the Indenture Trustee and the Note Registrar may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
therewith. The Indenture Trustee may charge such Holder for its expenses (including without
limitation the fees and expenses of its counsel) in replacing a Note. Any duplicate Note issued
pursuant to this Section shall constitute conclusive evidence of ownership of such Note, as if
originally issued, whether or not the lost, stolen, or destroyed Note shall be found at any time.

SECTION 2.5. Persons Deemed Owners.

The Issuer, the Indenture Trustee, the Trust Collateral Agent, the Note Registrar and any agent of
the Issuer, the Indenture Trustee or the Note Registrar may treat the Person in whose name any Note
is registered as the owner of such Note for the purpose of receiving distributions pursuant to
Section 5.08 of the Sale and Servicing Agreement and Section 5.2 hereof and for all other
purposes whatsoever, and neither the Issuer, the Indenture Trustee, the Trust Collateral Agent nor
the Note Registrar nor any such agent shall be bound by any notice to the contrary.

SECTION 2.6. Access to List of Noteholders’ Names and Addresses.

The Indenture Trustee shall furnish or cause to be furnished to the Servicer, within fifteen (15)
days after receipt by the Indenture Trustee of a request therefor from the Servicer in writing, a
list, in such form as the Servicer may reasonably require, of the names and addresses of the
Noteholders as of the most recent Record Date. If three or more Noteholders, or one or more
Holders of Notes aggregating not less than 10% of the Aggregate Note Balance, apply in writing to
the Indenture Trustee, and such application states that the applicants desire to communicate with
other Noteholders with respect to their rights under this Indenture or under the Notes and such
application shall be accompanied by a copy of the communication that such applicants propose to
transmit, then the Indenture Trustee shall, within five (5) Business Days after the receipt of such
application, make available to such Noteholders access during normal business hours to the current
list of Noteholders. Each Holder, by receiving and holding a Note, shall be deemed to have agreed
to hold neither the Servicer nor the Indenture Trustee accountable by reason of the disclosure of
its name and address, regardless of the source from which such information was derived.

SECTION 2.7. Maintenance of Office or Agency.

The Indenture Trustee shall maintain in Minneapolis, Minnesota, an office or offices or agency or
agencies where Notes may be surrendered for registration of transfer or exchange and an office in
Minneapolis, Minnesota, where notices and demands to or upon the Indenture Trustee in respect of
the Notes and this Indenture may be served. The Indenture Trustee initially designates the
Corporate Trust Office as specified in this Indenture as its office for such purposes. The
Indenture Trustee shall give prompt written notice to the Servicer and to Noteholders of any change
in the location of the Note Register or any such office or agency.

SECTION 2.8. Payment of Principal and Interest; Defaulted Interest.

(a) The Class A Notes shall accrue interest as provided in the form of the Class A Note set
forth in Exhibit A-1 hereto and the Class B Notes shall accrue interest as provided in the form of
the Class B Note set forth in Exhibit A-2 hereto, such respective interest shall be due and payable
on each Distribution Date as specified therein. The Class C Notes shall not accrue interest. Any
installment of interest or principal, if any, payable on any Note which is punctually paid or duly
provided for by the Issuer on the applicable Distribution Date or on the Stated Final Maturity
shall be paid as set forth in Section 5.09(a) of the Sale and Servicing Agreement.

(b) The principal of each Note shall be payable in installments on each Distribution Date as
provided in the forms of the Class A Note, the Class B Note and the Class C Note, as set forth in
Exhibits A-1, A-2 and A-3 hereto, respectively. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes, and all accrued interest thereon (if any), shall become due and
payable, if not previously paid, upon the acceleration thereof after the occurrence of an Indenture
Event of Default in the manner provided in Section 5.2. All principal payments on each
class of Notes shall be made as provided in Section 5.2 and in Section 5.09(a) of the Sale
and Servicing Agreement, as applicable. Upon written notice from the Issuer, the Indenture Trustee
shall notify the Person in whose name a Note is registered at the close of business on the Record
Date preceding the Distribution Date on which the Issuer expects that the final installment of
principal of and interest on such Note will be paid. Such notice shall be mailed or transmitted by
facsimile prior to such final Distribution Date and shall specify that such final installment will
be payable only upon presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment. Notices in connection with
redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2.

(c) If the Issuer defaults in a payment of interest on any class of Notes entitled thereto,
such defaulted interest shall itself bear interest (to the extent lawful) at the Class A Note Rate
or Class B Note Rate, as applicable. Such defaulted interest (and such interest thereon) shall be
paid on subsequent Distribution Dates pursuant to Section 5.09 of the Sale and Servicing Agreement,
or as otherwise set forth below.

SECTION 2.9. Release of Collateral.

The Indenture Trustee shall, on or after the Termination Date and subject to the provisions of
Section 4.1 hereof, release and shall cause the Trust Collateral Agent to release any
remaining portion of the Trust Property from the lien created by this Indenture and shall cause the
Trust Collateral Agent to deposit in the Collection Account any funds then on deposit in any other
Trust Account. The Indenture Trustee shall release property from the lien created by this
Indenture pursuant to this Section 2.9 only upon receipt by the Indenture Trustee of an Issuer
Request accompanied by an Officer’s Certificate and an Opinion of Counsel meeting the applicable
requirements of Section 11.1.

ARTICLE III

Covenants, Representations and Warranties

SECTION 3.1. Payment of Principal and Interest.

The Issuer will duly and punctually pay the principal of and interest on the Notes in accordance
with the terms of the Notes and this Indenture. Without limiting the foregoing and in accordance
with the terms set forth in Section 5.09(a) of the Sale and Servicing Agreement, the Issuer will
cause to be distributed to the Noteholders all amounts on deposit in the Note Distribution Account
on each Distribution Date deposited therein pursuant to the Sale and Servicing Agreement (i) for
the benefit of the Class A Notes, to the Class A Noteholders, (ii) for the benefit of the Class B
Notes, to the Class B Noteholders and (iii) for the benefit of the Class C Notes, to the Class C
Noteholders. Amounts properly withheld under the Code by any Person from a payment to any
Noteholder of interest and/or principal shall be considered as having been paid by the Issuer to
such Noteholder for all purposes of this Indenture.

SECTION 3.2. Maintenance of Office or Agency.

For so long as the Indenture Trustee is the transfer agent, the Issuer will maintain in
Minneapolis, Minnesota, an office or agency where Notes may be surrendered for registration of
transfer or exchange, and an office in Minneapolis, Minnesota where notices and demands to or upon
the Issuer in respect of the Notes and this Indenture may be served. The Issuer hereby initially
appoints the Indenture Trustee to serve as its agent for the foregoing purposes. The Issuer will
give prompt written notice to the Indenture Trustee of the location, and of any change in the
location, of any such office or agency. If at any time the Issuer shall fail to maintain any such
office or agency or shall fail to furnish the Indenture Trustee with the address thereof, such
surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Issuer
hereby appoints the Indenture Trustee as its agent to receive all such surrenders, notices and
demands.

SECTION 3.3. Money for Payments to be Held in Trust.

On or before each Distribution Date and Redemption Date, subject to Section 5.08 of the Sale and
Servicing Agreement, the Issuer shall deposit or cause to be deposited in the Note Distribution
Account from the Collection Account, an aggregate sum sufficient to pay the amounts then becoming
due under the Notes, such sum to be held in trust for the benefit of the Persons entitled thereto
and (unless the Paying Agent is the Indenture Trustee) shall promptly notify the Indenture Trustee
of its action or failure so to act.

The Issuer will cause each Paying Agent other than the Indenture Trustee to execute and
deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject
to the provisions of this Section, that such Paying Agent will:

(i) hold all sums held by it for the payment of amounts due with respect to the Notes
in trust for the benefit of the Persons entitled thereto until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and pay such sums to such Persons
as herein provided;

(ii) give the Indenture Trustee written notice of any default by the Issuer of which a
Responsible Officer has actual knowledge (or any other obligor upon the Notes) in the
making of any payment required to be made with respect to the Notes;

(iii) at any time during the continuance of any such default by the Issuer, upon the
written request of the Indenture Trustee, forthwith pay to the Indenture Trustee all sums
so held in trust by such Paying Agent;

(iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee
all sums held by it in trust for the payment of Notes if at any time it ceases to meet the
standards required to be met by a Paying Agent at the time of its appointment specified in
Section 6.12 hereof; and

(v) comply with all requirements of the Code with respect to the withholding from any
payments made by it on any Notes of any applicable withholding taxes imposed thereon and
with respect to any applicable reporting requirements in connection therewith in each case,
as instructed by the Issuer.

The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, by Issuer Order direct any Paying Agent to pay to the
Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the
Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent;
and upon such a payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

Subject to applicable laws with respect to the escheat of funds, any money held by the
Indenture Trustee or any Paying Agent in trust for the payment of any amount due with respect to
any Note and remaining unclaimed for two years after such amount has become due and payable shall
be discharged from such trust and be paid to the Issuer on Issuer Request; and the Holder of such
Note shall thereafter, as an unsecured general creditor, look only to the Issuer for payment
thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the
Indenture Trustee or such Paying Agent with respect to such trust money shall thereupon cease;
provided, however, that the Indenture Trustee or such Paying Agent, before being
required to make any such repayment, shall at the expense of the Issuer cause to be published once,
in a newspaper published in the English language, customarily published on each Business Day and of
general circulation in The City of New York, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than thirty (30) days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid to the Issuer. The
Indenture Trustee shall also adopt and employ, at the expense of the Issuer, any other reasonable
means of notification of such repayment (including, but not limited to, mailing notice of such
repayment to Holders whose Notes have been called but have not been surrendered for redemption or
whose right to or interest in moneys due and payable but not claimed is determinable from the
records of the Indenture Trustee or of any Paying Agent, at the last address of record for each
such Holder).

SECTION 3.4. Existence.

Except as otherwise permitted by the provisions of Section 3.10, the Issuer will keep in
full effect its existence, rights and franchises as a statutory trust under the laws of the State
of Delaware and will obtain and preserve its qualification to do business in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and enforceability of
this Indenture, the Notes, the Collateral and each other instrument or agreement included in the
Trust Property.

SECTION 3.5. Protection of Trust Property.

The Issuer intends the security interest granted pursuant to this Indenture in favor of the
Indenture Trustee and the Noteholders to be prior to all other liens in respect of the Trust
Property, and the Issuer shall take all actions necessary to obtain and maintain, in favor of the
Indenture Trustee, for the benefit of the Noteholders, a first lien on and a first priority,
perfected security interest in the Trust Property. The Issuer will from time to time prepare (or
shall cause to be prepared), execute, file and deliver all such supplements and amendments hereto
and all such financing statements, continuation statements, instruments of further assurance and
other instruments, and will take such other action necessary or advisable to:

(i) grant more effectively all or any portion of the Trust Property;

(ii) maintain or preserve the lien and security interest (and the priority thereof) in
favor of the Indenture Trustee for the benefit of the Noteholders created by this Indenture
or carry out more effectively the purposes hereof;

(iii) perfect, publish notice of or protect the validity of any grant made or to be
made by this Indenture;

(iv) enforce any of the Trust Property;

(v) preserve and defend title to the Trust Property and the rights of the Indenture
Trustee in such Trust Property against the claims of all persons and parties; and

(vi) pay all taxes or assessments levied or assessed upon the Trust Property when due.

The Issuer hereby designates and authorizes the Indenture Trustee its agent and
attorney-in-fact to execute or authorize, as applicable, upon Issuer request, any financing
statement, continuation statement or other instrument required to be executed or authorized, as
applicable, by the Issuer pursuant to this Section. The Issuer authorizes the filing of financing
statements in all appropriate jurisdictions describing the Collateral as “all assets of the Debtor”
or words of similar effect, or being of equal or lesser scope or with greater detail.

SECTION 3.6. Opinions as to Trust Property.

(a) On the Closing Date, the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has been taken with
respect to this Indenture with respect to the filing of any financing statements and continuation
statements, as are necessary to perfect and make effective the first priority lien and security
interest in favor of the Indenture Trustee, created by this Indenture and reciting the details of
such action, or stating that, in the opinion of such counsel, no such action is necessary to make
such lien and security interest effective.

(b) Within thirty (30) days after the beginning of each quarter, beginning with the first
quarter after the Closing Date, the Issuer shall cause an Opinion of Counsel, dated as of a date
during such 30-day period, to be delivered to the Indenture Trustee with respect to the creation of
the Seller’s security interest under the Sale and Contribution Agreement and the perfection and
creation of the lien and security interest in favor of the Indenture Trustee in the Subsequent
Conveyed Property transferred from Credit Acceptance to the Seller during such quarter.

(c) The Issuer will deliver or cause to be delivered to the Indenture Trustee within 90 days
after the beginning of each calendar year beginning with 2012, an Opinion of Counsel for the
Issuer, dated as of a date during such 90-day period, stating that, in the opinion of such counsel,
the existing financing statement naming the Issuer as debtor and the Indenture Trustee as secured
party and any related continuation statement or amendment (the “Financing Statement”) will remain
effective and no additional financing statements, continuation statements or amendments with
respect to the Financing Statement (other than a continuation statement to be filed within the
period that is six months prior to the expiration of the Financing Statement, as applicable) will
be required to be filed from the date of such opinion through the date that is the one year
anniversary of the date of such opinion to maintain the perfection of the security interest of the
Indenture Trustee as such lien otherwise exists on the date of such opinion. Such Opinion of
Counsel shall (i) describe the filing of any financing statements and continuation statements that
will, in the opinion of such counsel, be required to preserve and protect the security interest of
the Indenture Trustee in the Collateral, until the 90th day in the following calendar year and (ii)
specify any action necessary (as of the date of such opinion) to be taken in the following calendar
year to preserve perfection of such interest.

SECTION 3.7. Performance of Obligations; Servicing of Contracts.

(a) The Issuer will not take any action and will use its best efforts not to permit any action
to be taken by others that would release any Person from any of such Person’s material covenants or
obligations under any instrument or agreement included in the Trust Property or that would result
in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity
or effectiveness of, any such instrument or agreement, except as ordered by any bankruptcy or other
court or as expressly provided in this Indenture, the Basic Documents or such other instrument or
agreement.

(b) The Issuer may contract with other Persons acceptable to the Indenture Trustee, to assist
it in performing its duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be deemed to be
action taken by the Issuer. Initially, the Servicer has agreed to assist the Issuer in performing
its duties under this Indenture.

(c) The Issuer will punctually perform and observe all of its obligations and agreements
contained in this Indenture, the Basic Documents and in the instruments and agreements included in
the Trust Property, including, but not limited to, preparing (or causing to be prepared) and filing
(or causing to be filed) all UCC financing statements and continuation statements required to be
filed by the terms of this Indenture and the Sale and Servicing Agreement in accordance with and
within the time periods provided for herein and therein.

(d) Upon a Responsible Officer of the Owner Trustee having actual knowledge or written notice
thereof, the Issuer shall promptly notify the Indenture Trustee and the Rating Agencies of the
occurrence of a Servicer Default in accordance with Section 11.4 hereof, and shall specify
in such notice the action, if any, the Issuer is taking in respect of such default. If a Servicer
Default shall arise from the failure of the Servicer to perform any of its duties or obligations
under the Sale and Servicing Agreement with respect to the Loans or Contracts, the Issuer shall
take all reasonable steps available to it to remedy such failure.

(e) The Issuer agrees that it will not waive timely performance or observance by the Servicer
or the Seller of their respective duties under the Basic Documents if the effect thereof would
adversely affect the Holders of the Notes.

SECTION 3.8. Negative Covenants.

So long as any Notes are Outstanding, the Issuer shall not:

(i) except as expressly permitted by this Indenture or the Basic Documents, sell,
transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Trust Property, unless directed to do so by the Indenture
Trustee, at the direction of the Majority Noteholders;

(ii) claim any credit on, or make any deduction from the principal or interest payable
in respect of, the Notes (other than amounts properly withheld from such payments under the
Code) or assert any claim against any present or former Noteholder by reason of the payment
of the taxes levied or assessed upon any part of the Trust Property; or

(iii) (A) permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien in favor of the Indenture Trustee created by this Indenture to be amended,
hypothecated, subordinated, terminated or discharged, or permit any Person to be released
from any covenants or obligations with respect to the Notes under this Indenture except as
may be expressly permitted hereby, (B) permit any lien, charge, excise, claim, security
interest, mortgage or other encumbrance (other than the lien of this Indenture) to be
created on or extend to or otherwise arise upon or burden the Trust Property or any part
thereof or any interest therein or the proceeds thereof (other than tax liens, mechanics’
liens and other liens that arise by operation of law, in each case on a Financed Vehicle
and arising solely as a result of an action or omission of the related Obligor), (C) permit
the lien of this Indenture not to constitute a valid perfected first priority security
interest in the Trust Property, (D) change its name, identity, state of organization or
structure as a statutory trust in any manner that would, could or might make any financing
statement or continuation statement filed with respect to it seriously misleading within
the meaning of Section 9-507 of the UCC or (E) waive, amend, modify, supplement or
terminate any Basic Document or any provision thereof, or fail to comply with the
provisions of the Basic Documents, in each case, prior to the Termination Date, without the
prior written consent of the Indenture Trustee, at the direction of the Majority
Noteholders.

SECTION 3.9. Annual Statement as to Compliance.

The Issuer will deliver to the Indenture Trustee, the Rating Agencies and the Noteholders on or
before April 30th of each year beginning in the year 2011, an Officer’s Certificate
dated as of the previous December 31st stating, as to the Authorized Officer signing
such Officer’s Certificate, that:

(i) a review of the activities of the Issuer during the preceding 12-month period (or,
for the initial certificate, for such shorter period as may have elapsed from the initial
issuance of the Notes to such December 31st) and of performance under this
Indenture has been made under such Authorized Officer’s supervision; and

(ii) to the best of such Authorized Officer’s knowledge, based on such review, the
Issuer has complied with all conditions and covenants under this Indenture throughout such
year, or, if there has been a default in the compliance of any such condition or covenant,
specifying each such default known to such Authorized Officer and the nature and status
thereof.

SECTION 3.10. Issuer May Consolidate, Etc. Only on Certain Terms.

(a) The Issuer shall not consolidate or merge with or into any other Person, unless:

(i) the Person (if other than the Issuer) formed by or surviving such consolidation or
merger shall be a Person organized and existing under the laws of the United States of
America or any State and shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture
Trustee, the due and punctual payment of the principal of and interest on all Notes and the
performance or observance of every agreement and covenant of this Indenture on the part of
the Issuer to be performed or observed, all as provided herein;

(ii) immediately after giving effect to such transaction, no Early Amortization Event,
Indenture Default or Indenture Event of Default shall have occurred and be continuing;

(iii) the Rating Agency Condition shall have been satisfied with respect to such
transaction;

(iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered
copies thereof to the Indenture Trustee) to the effect that such transaction will not have
any material adverse tax consequence to the Trust, any Noteholder or any Certificateholder;

(v) any action as is necessary to maintain the Lien and security interest created by
this Indenture shall have been taken; and

(vi) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
and an Opinion of Counsel each stating that such consolidation or merger and such
supplemental indenture comply with this Section 3.10(a) and that all conditions
precedent herein provided for relating to such transaction have been complied with.

(b) The Issuer shall not convey or transfer all or substantially all of its properties or
assets, including those included in the Trust Property, to any Person, unless

(i) the Person that acquires by conveyance or transfer the properties and assets of
the Issuer the conveyance or transfer of which is hereby restricted shall (A) be a United
States citizen or a Person organized and existing under the laws of the United States of
America or any State, (B) expressly assume, by an indenture supplemental hereto, executed
and delivered to the Indenture Trustee, the due and punctual payment of the principal of
and interest on all Notes and the performance or observance of every agreement and covenant
of this Indenture and each of the Basic Documents on the part of the Issuer to be performed
or observed, all as provided herein, (C) expressly agree by means of such supplemental
indenture that all right, title and interest so conveyed or transferred shall be subject
and subordinate to the rights of Holders of the securities and (D) unless otherwise
provided in such supplemental indenture, expressly agree to indemnify, defend and hold
harmless the Issuer against and from any loss, liability or expense arising under or
related to this Indenture and the Notes;

(ii) immediately after giving effect to such transaction, no Early Amortization Event,
Indenture Default or Indenture Event of Default shall have occurred and be continuing;

(iii) the Rating Agency Condition shall have been satisfied with respect to such
transaction;

(iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered
copies thereof to the Indenture Trustee) to the effect that such transaction will not have
any material adverse tax consequence to the Trust, any Noteholder or any Certificate
holder;

(v) any action as is necessary to maintain the Lien and security interest created by
this Indenture shall have been taken; and

(vi) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
and an Opinion of Counsel each stating that such conveyance or transfer and such
supplemental indenture comply with this Section 3.10(b) and that all conditions
precedent herein provided for relating to such transaction have been complied with.

SECTION 3.11. Successor or Transferee.

(a) Upon any consolidation or merger of the Issuer in accordance with Section
3.10(a), the Person formed by or surviving such consolidation or merger (if other than the
Issuer) shall succeed to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been named as the Issuer
herein.

(b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to
Section 3.10(b), Credit Acceptance Auto Loan Trust 2010-1 will be released from every
covenant and agreement of this Indenture to be observed or performed on the part of the Issuer with
respect to the Notes immediately upon the delivery of written notice from the Issuer to the
Indenture Trustee stating that Credit Acceptance Auto Loan Trust 2010-1 is to be so released.

SECTION 3.12. No Other Business.

The Issuer shall not engage in any business other than financing, purchasing, owning, selling and
managing the Contracts in the manner contemplated by this Indenture and the Basic Documents and
activities incidental thereto and any other activities permitted under the Trust Agreement.

SECTION 3.13. No Borrowing.

The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or
indirectly, for any Indebtedness except for: (i) the Notes; and (ii) any other Indebtedness
permitted by or arising under the Basic Documents. The proceeds of the Notes shall be used
exclusively to fund the Issuer’s purchase of the Loans and the other assets specified in the Sale
and Servicing Agreement, to fund the Reserve Account and to pay the Issuer’s organizational,
transactional and start-up expenses.

SECTION 3.14. Guarantees, Loans, Advances and Other Liabilities.

Except as contemplated by the Sale and Servicing Agreement or this Indenture, the Issuer shall not
make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument
having the effect of assuring another’s payment or performance on any obligation or capability of
so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire
(or agree contingently to do so) any stock, obligations, assets or securities of, or any other
interest in, or make any capital contribution to, any other Person.

SECTION 3.15. Capital Expenditures.

The Issuer shall not make any expenditure (by long-term or operating lease or otherwise) for
capital assets (either realty or personalty) except as contemplated by the Basic Documents.

SECTION 3.16. Compliance with Laws.

The Issuer shall comply with the requirements of all applicable laws, the non-compliance with which
would, individually or in the aggregate, materially and adversely affect the ability of the Issuer
to perform its obligations under the Notes, this Indenture or any Basic Document.

SECTION 3.17. Restricted Payments.

The Issuer shall not, directly or indirectly, (i) pay any dividend or make any distribution (by
reduction of capital or otherwise), whether in cash, property, securities or a combination thereof,
to the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise with respect
to any ownership or equity interest or security in or of the Issuer or to the Servicer, (ii)
redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or
security or (iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, distributions to
the Servicer, the Owner Trustee, the Indenture Trustee, the Trust Collateral Agent, the Backup
Servicer and the Certificateholders as permitted by, and to the extent funds are available for such
purpose under, the Sale and Servicing Agreement and the Trust Agreement. The Issuer will not,
directly or indirectly, make payments to or distributions from the Collection Account except in
accordance with this Indenture and the Basic Documents.

SECTION 3.18. Notice of Indenture Events of Default.

Upon a Responsible Officer of the Owner Trustee having actual knowledge or receipt of written
notice thereof, the Issuer agrees to give the Indenture Trustee, the Trust Collateral Agent, the
Backup Servicer and the Rating Agencies prompt written notice of each Indenture Event of Default
hereunder and each default on the part of the Servicer or the Seller of its obligations under the
Sale and Servicing Agreement.

SECTION 3.19. Further Instruments and Acts.

Upon request of the Indenture Trustee, the Issuer will execute and deliver such further instruments
and do such further acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

SECTION 3.20. Amendments of Sale and Servicing Agreement and Trust Agreement.

The Issuer shall not agree to any amendment to Section 11.01 of the Sale and Servicing Agreement or
Section 11.1 of the Trust Agreement to eliminate the requirements thereunder that the Indenture
Trustee or the Holders of the Notes consent to amendments thereto as provided therein.

SECTION 3.21. Income Tax Characterization.

For purposes of federal income, state and local income and franchise and any other income taxes,
the Issuer will, and each Noteholder by such Noteholder’s acceptance of any such Notes (and each
Person who acquires an interest in any Notes through such Noteholder, by the acceptance by such
Person of an interest in the applicable Notes) agrees to, treat the Notes that are characterized as
indebtedness at the time of their issuance, and hereby instructs the Issuer to treat such Notes, as
indebtedness for federal, state and other tax reporting purposes. Each Noteholder agrees that it
will cause any Person acquiring an interest in a Note through it to comply with this agreement as
to treatment as indebtedness under applicable tax law, as described in this Section 3.21.

The Notes will be issued with the intention that, for federal, state and local income and
franchise tax purposes the Trust shall not be treated as an association or publicly traded
partnership taxable as a corporation. The parties hereto agree that they shall not cause or
permit the making, as applicable, of any election under Treasury Regulation Section 301.7701-3 (or
any successor provision) whereby the Trust or any portion thereof would be treated as a corporation
for federal income tax purposes. The provisions of this Indenture shall be construed in
furtherance of the foregoing intended tax treatment.

SECTION 3.22. Perfection Representations, Warranties and Covenants.

The perfection representations, warranties and covenants made by the Issuer and set forth on
Schedule A hereto shall be a part of this Indenture for all purposes.

ARTICLE IV

Satisfaction and Discharge

SECTION 4.1. Satisfaction and Discharge of Indenture.

This Indenture shall cease to be of further effect with respect to the Notes except as to: (i)
rights of registration of transfer and exchange; (ii) substitution of mutilated, destroyed, lost or
stolen Notes; (iii) rights of Noteholders to receive payments of principal thereof and interest
thereon; (iv) Sections 3.3, 3.4, 3.5, 3.7, 3.8,
3.10, 3.12, 3.13, 3.14, 3.15, 3.16, 3.17,
3.19, 3.20 and 3.21; (v) the rights, obligations and immunities of the
Indenture Trustee hereunder (including the rights of the Indenture Trustee under Section
6.7 and the obligations of the Indenture Trustee under Section 4.2); and (vi) the
rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee, or the Trust Collateral Agent, payable to all or any of them, and the Indenture
Trustee, on written demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when

(A) either

(1) all Notes theretofore authenticated and delivered (other than (i)
Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 2.4 and (ii) Notes for whose payment
money has theretofore been deposited in trust or segregated and held in
trust by the Issuer and thereafter repaid to the Issuer or discharged from
such trust, as provided in Section 3.3) have been delivered to the
Indenture Trustee for cancellation; or

(2) all Notes not theretofore delivered to the Indenture Trustee for
cancellation

(i) have become due and payable,

(ii) will become due and payable at their respective stated
final maturity dates within one year, or

(iii) are to be called for redemption within one year under
arrangements satisfactory to the Indenture Trustee for the giving of
notice of redemption by the Indenture Trustee in the name, and at the
expense, of the Issuer,

and the Issuer, in the case of (i), (ii) or (iii) of this clause (2), has irrevocably deposited or
caused to be irrevocably deposited with the Trust Collateral Agent cash or direct obligations of or
obligations guaranteed by the United States of America (which will mature prior to the date such
amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the
entire indebtedness on such Notes not theretofore delivered to the Indenture Trustee for
cancellation when due to the Stated Final Maturity or Redemption Date (if Notes shall have been
called for redemption pursuant to Section 10.1), as the case may be;

(B) the Issuer has paid or caused to be paid all Issuer Secured Obligations;
and

(C) the Issuer has delivered to the Indenture Trustee an Officer’s Certificate,
an Opinion of Counsel and if required by the Indenture Trustee an Independent
Certificate from a firm of certified public accountants, each meeting the applicable
requirements of Section 11.1(a) and each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with.

Upon the satisfaction and discharge of the Indenture pursuant to this Section 4.1, the
Indenture Trustee shall deliver to the Owner Trustee a certificate of a Responsible Officer stating
that the Noteholders and the Indenture Trustee have been paid all amounts owed to them.

SECTION 4.2. Application of Trust Money.

All moneys deposited with the Indenture Trustee pursuant to Section 4.1 hereof shall be
held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture,
to the payment, either directly or through any Paying Agent, as the Indenture Trustee may
determine, to the Holders of the particular Notes for the payment or redemption of which such
moneys have been deposited with the Indenture Trustee, of all sums due and to become due thereon
for principal and interest; but such moneys need not be segregated from other funds except to the
extent required herein or in the Sale and Servicing Agreement or required by law.

SECTION 4.3. Repayment of Moneys Held by Paying Agent.

In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all
moneys then held by any Paying Agent other than the Indenture Trustee under the provisions of this
Indenture with respect to such Notes shall, upon demand of the Issuer, be paid to the Indenture
Trustee to be held and applied according to Section 3.3 and thereupon such Paying Agent
shall be released from all further liability with respect to such moneys.

ARTICLE V

Events of Default; Remedies

SECTION 5.1. Indenture Events of Default.

“Indenture Event of Default”, wherever used herein or in the other Basic Documents, means any one
of the following events (whatever the reason for such Indenture Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any administrative or governmental
body):

(i) default by the Issuer in the payment of any interest on either (x) the Class A
Notes or (y) the Class B Notes when the same becomes due and payable, and such default
shall continue for a period of five (5) days or more; or

(ii) default by the Issuer in the payment of the principal of or any installment of
the principal of any class of Notes when the same becomes due and payable on the applicable
stated final maturity date; or

(iii) default in the observance or performance of any covenant or agreement of the
Issuer made under this Indenture (other than a covenant or agreement, a default in the
observance or performance of which is specifically dealt with elsewhere in this Section
5.1), or any representation or warranty of the Issuer made in this Indenture or in any
certificate or other writing delivered pursuant to this Indenture or in connection with
this Indenture proving to have been incorrect in any material respect as of the time when
the same shall have been made, and such default shall continue or not be cured, or the
circumstance or condition in respect of which such misrepresentation or warranty was
incorrect shall not have been eliminated or otherwise cured, for a period of thirty (30)
days (or a longer period, not in excess of sixty (60) days as may be reasonably necessary
to remedy such default, if the default is capable of remedy within sixty (60) days or less,
and the Servicer, on behalf of the Issuer, delivers an officer’s certificate to the
Indenture Trustee to the effect that the Issuer has commenced, or will promptly commence
and diligently pursue, all reasonable efforts to remedy the default) after there shall have
been given to the Issuer by the Indenture Trustee at the direction of the Majority
Noteholders, a written notice specifying such default or incorrect representation or
warranty and requiring it to be remedied and stating that such notice is a “Notice of
Default” pursuant to this Indenture; or

(iv) the filing of a decree or order for relief by a court having jurisdiction over
the Seller, the Issuer or any substantial part of the Trust Property in an involuntary case
under any applicable Federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Seller or the Issuer, as applicable, or for any
substantial part of the Trust Property, or ordering the winding-up or liquidation of the
Seller’s affairs or the Issuer’s affairs, as applicable, and such decree or order shall
remain unstayed and in effect for a period of sixty (60) consecutive days; or

(v) the commencement by the Seller or the Issuer of a voluntary case under any
applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in
effect, or the consent by the Issuer to the entry of an order for relief in an involuntary
case under any such law, or the consent by the Issuer to the appointment or taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Seller or Issuer, as applicable, or for any substantial part of the Trust
Property, or the making by the Seller or Issuer, as applicable, of any general assignment
for the benefit of creditors, or the failure by the Seller or Issuer, as applicable,
generally to pay its debts as such debts become due, or the taking of action by the Issuer
in furtherance of any of the foregoing; or

(vi) cumulative Collections through the end of the related Collection Period,
expressed as a percentage of the cumulative Forecasted Collections through the end of the
related Collection Period, are less than 65.0% for any three (3) consecutive Collection
Periods; or

(vii) the Seller sells or otherwise transfers ownership of the Certificate except as
permitted by the Basic Documents; or

(viii) the Seller fails to observe or perform in any material respect any of its
separateness or limited purpose covenants in the Basic Documents to which it is a party
(after notice and after giving effect to any applicable grace periods set forth therein) or
its organizational documents; or

(ix) the Indenture Trustee ceases to have a valid and perfected first priority
security interest in the Trust Property and such failure has not been remedied within ten
(10) Business Days; or

(x) the Issuer becomes an “investment company” within the meaning of the Investment
Company Act of 1940; or

(xi) any Basic Document (in its entirety) ceases to be in full force and effect.

SECTION 5.2. Rights Upon Indenture Event of Default.

(a) If an Indenture Event of Default described in clause (iv) or (v) of Section
5.1 shall have occurred, the entire unpaid principal balance of the Notes, all interest
accrued and unpaid thereon and all other amounts payable under this Indenture and the Basic
Documents shall automatically become immediately due and payable. If any other Indenture Event of
Default shall have occurred, the Indenture Trustee, if so requested in writing by the Majority
Noteholders, shall declare by written notice to the Issuer that the entire principal balance of the
Notes, all interest accrued and unpaid thereon and all other amounts payable under this Indenture
and the other Basic Documents to be immediately due and payable.

(b) If an Indenture Event of Default occurs and the Notes have been accelerated, the Indenture
Trustee may exercise any of the remedies specified in Section 5.4(a). Payments in
accordance with Section 5.2(a) hereof following acceleration of the Notes shall be applied
by the Indenture Trustee:

FIRST:  pari passu (x) pari passu, to the Servicer or the Backup Servicer, the
Servicing Fee and any indemnification amounts owed to the Backup Servicer, and to the Trust
Collateral Agent, the Indenture Trustee and the Owner Trustee, their related accrued and
unpaid fees or Indenture Trustee Fee, as applicable, indemnification amounts and expenses
and (y) to any successor servicer, any unpaid Transition Expenses which may be due to it
pursuant to the terms of the Sale and Servicing Agreement;

SECOND:  to the Note Distribution Account, amounts to be applied sequentially
(i) first, to the Class A Noteholders, the Class A Interest Distributable Amount due and
payable on such Distribution Date and the Class A Interest Carryover Shortfall, if any, from
any prior Distribution Date and (ii) second, to the Class B Noteholders, the Class B
Interest Distributable Amount due and payable on such Distribution Date and the Class B
Interest Carryover Shortfall, if any, from any prior Distribution Date; and

THIRD:  to the Note Distribution Account, amounts to be applied sequentially
(i) first, to the Class A Noteholders, the Class A Principal Distributable Amount until the
Class A Note Balance has been reduced to zero, (ii) second, to the Class B Noteholders, the
Class B Principal Distributable Amount until the Class B Note Balance has been reduced to
zero, and (iii) third, to the Class C Noteholders, the Class C Principal Distributable
Amount until the Class C Note Balance has been reduced to zero.

(c) At any time after declaration of acceleration of maturity has been made in accordance with
Section 5.2(a) hereof and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, the Majority
Noteholders by written notice to the Issuer and the Indenture Trustee, may rescind and annul such
declaration and its consequences if:

(i) the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to
pay:

(A) all payments of principal of and interest on all Notes and all other
amounts that would then be due hereunder or upon such Notes if the Indenture Event
of Default giving rise to such acceleration had not occurred, which funds shall be
deposited into the Note Distribution Account; and

(B) all sums paid or advanced by the Indenture Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel, which funds shall be deposited into the
Collection Account.

(ii) all Indenture Events of Default, other than the nonpayment of the interest on or
the principal of the Notes that has become due solely by such acceleration, have been cured
or waived.

No such rescission shall affect any subsequent default or impair any right relating to or
resulting from such default.

SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by Indenture
Trustee.

(a) The Issuer hereby irrevocably and unconditionally appoints the Indenture Trustee as the
true and lawful attorney-in-fact of the Issuer, with full power of substitution, to execute,
acknowledge and deliver any notice, document, certificate, paper, pleading or instrument and to do
in the name of the Indenture Trustee as well as in the name, place and stead of the Issuer such
acts, things and deeds for or on behalf of and in the name of the Issuer under this Indenture
(including specifically under Section 5.4) and under the Basic Documents which the Issuer
could or might do or which may be necessary, desirable or convenient in the Indenture Trustee’s
sole discretion to effect the purposes contemplated hereunder and under the Basic Documents and,
without limitation, following the occurrence of an Indenture Event of Default, acting at the
instruction or with the consent of the Majority Noteholders, in accordance with the terms of
Article V hereof, exercise full right, power and authority to take, or defer from taking, any and
all acts with respect to the administration, maintenance or disposition of the Trust Property.

(b) Notwithstanding anything to the contrary contained in this Indenture (including, without
limitation, Sections 5.4(a), 5.13 and 5.16), the Indenture Trustee, prior
to the Termination Date, may with the prior written consent of the Majority Noteholders, or shall,
at the direction of the Majority Noteholders, and thereafter may at its discretion, proceed to
protect and enforce its rights and the rights of the Noteholders by such appropriate proceedings as
the Indenture Trustee or the Majority Noteholders shall deem most effective to protect and enforce
any such rights, whether for specific performance of any covenant or agreement in this Indenture or
in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal
or equitable right vested in the Indenture Trustee by this Indenture or by law.

(c) In case there shall be pending, relative to the Issuer or any other obligor upon the Notes
or any Person having or claiming an ownership interest in the Trust Property, proceedings under
Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency
or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or taken possession of
the Issuer or its property or such other obligor or Person, or in case of any other comparable
judicial proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or
property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to
the provisions of this Section, shall be entitled and empowered, at the expense of the Seller by
intervention in such proceedings or otherwise:

(i) to file and prove a claim or claims for the whole amount of principal and interest
owing and unpaid in respect of the Notes and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the Indenture Trustee (including
any claim for reasonable compensation to the Indenture Trustee and each predecessor
Indenture Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made, by the
Indenture Trustee and each predecessor Indenture Trustee, except as a result of negligence,
bad faith or willful misconduct) and of the Noteholders allowed in such proceedings;

(ii) unless prohibited by applicable law and regulations, to vote on behalf of the
Holders of Notes in any election of a trustee, a standby trustee or person performing
similar functions in any such proceedings;

(iii) to collect and receive any moneys or other property payable or deliverable on
any such claims and to distribute all amounts received with respect to the claims of the
Noteholders and the Indenture Trustee on their behalf; and

(iv) to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee or the Holders of Notes
allowed in any judicial proceedings relative to the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in any such proceeding
is hereby authorized by each of such Noteholders to make payments to the Indenture Trustee, and, in
the event that the Indenture Trustee shall consent to the making of payments directly to such
Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their
respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all
advances made, by the Indenture Trustee and each predecessor Indenture Trustee except as a result
of negligence, bad faith or willful misconduct.

(d) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize
or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar person.

(e) All rights of action and of asserting claims under this Indenture or under any of the
Notes, may be enforced by the Indenture Trustee without the possession of any of the Notes or the
production thereof in any trial or other proceedings relative thereto, and any such action or
proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements
and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective
agents and attorneys, shall be for the ratable benefit of the Holders of the Notes.

(f) In any proceedings brought by the Indenture Trustee (and also any proceedings involving
the interpretation of any provision of this Indenture), the Indenture Trustee shall be held to
represent all the Holders of the Notes, and it shall not be necessary to make any Noteholder a
party to any such proceedings.

SECTION 5.4. Remedies.

(a) If an Indenture Event of Default shall have occurred and the maturity of the Notes shall
been accelerated pursuant to the terms of Section 5.2(a) hereof, the Indenture Trustee at the
written direction of the Majority Noteholders may do any one or more of the following:

(i) institute Proceedings in its own name and as trustee of an express trust for the
collection of all amounts then payable on the Notes or under this Indenture with respect
thereto, whether by declaration or otherwise, enforce any judgment obtained, and collect
from the Issuer and any other obligor upon such Notes moneys adjudged due;

(ii) institute Proceedings from time to time for the complete or partial foreclosure
of this Indenture with respect to the Trust Property;

(iii) exercise any remedies of a secured party under the UCC and take any other
appropriate action to protect and enforce the rights and remedies of the Indenture Trustee
and the Holders of the Notes; and

(iv) direct the Indenture Trustee to sell the Trust Property or any portion thereof or
rights or interest therein, at one or more public or private sales called and conducted in
any manner permitted by law; provided, however, that the Indenture Trustee
shall not, and shall not be directed by the Majority Noteholders to, sell or otherwise
liquidate the Trust Property following an Indenture Event of Default unless:

(A) such Indenture Event of Default is of the type described in Section
5.1(iv) or (v); or

(B) such Indenture Event of Default is of the type described in any other
clause of Section 5.1 and the consent of the Noteholders to such sale or
liquidation of the Trust Property in writing has been obtained; or

(C) either (i) the proceeds of such sale or liquidation would be in an amount
sufficient to discharge in full all amounts then due and unpaid upon such Notes for
principal and interest or (ii) the Indenture Trustee determines that the Trust
Property will not continue to provide sufficient funds for the payment of principal
of and interest on the Notes as they would have become due if they had not been
declared due and payable (it being understood that for purposes of making such
determinations, the Indenture Trustee may conclusively rely on an independent
auditor);

provided, however, that, subject to Section 6.1, the Indenture Trustee
shall have the right to decline to follow any such direction if it, being advised by counsel,
determines that the action so directed may not lawfully be taken, or if it, in good faith shall, by
a Responsible Officer, determine that the proceedings so directed would be illegal or subject it to
personal liability.

(b) If the Indenture Trustee sells all or a portion of the Trust Property, following an
Indenture Event of Default, the Trust Collateral Agent shall give Credit Acceptance at least ten
(10) days’ prior notice of such sale, and Credit Acceptance may, but is not required to, make a bid
for the portion, or all, of the Trust Property being sold by the Indenture Trustee.

SECTION 5.5. Optional Preservation of the Trust Property.

If the Notes have been declared to be due and payable under Section 5.2 following an
Indenture Event of Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, with the prior written consent of the Majority Noteholders,
but need not unless directed in writing by the Majority Noteholders, maintain possession of the
Trust Property which is in its possession and elect to direct the Trust Collateral Agent to
maintain possession of the Trust Property which is in the possession of the Trust Collateral Agent.
It is the desire of the parties hereto and the Noteholders that there be at all times sufficient
funds for the payment of principal of and interest on the Notes, and the Majority Noteholders,
shall take such desire into account when determining whether or not to direct the Indenture Trustee
or the Trust Collateral Agent, as applicable, to maintain possession of the Trust Property. In
determining whether to direct the Indenture Trustee or the Trust Collateral Agent, as applicable,
to obtain possession of the Trust Property, the Majority Noteholders may, but need not maintain and
conclusively rely upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the sufficiency of the
Trust Property for such purpose.

	 	 	 
	SECTION 5.6.

	 	[Reserved].
	
 
	 	 
	SECTION 5.7.

	 	Limitation of Suits.
	
 
	 	 

Subject to Section 5.8 and Section 6.8, no Holder of any Note shall have any right
to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:

(i) such Holder has previously given written notice to the Indenture Trustee of a
continuing Indenture Event of Default;

(ii) (A) the Indenture Event of Default arises from the Seller’s or the Servicer’s
failure to remit payments under the Sale and Servicing Agreement when due or (B) the
Majority Noteholders shall have made written request to the Indenture Trustee to institute
such proceeding in respect of such Indenture Event of Default in its own name as Indenture
Trustee hereunder;

(iii) such Holder or Holders have offered to the Indenture Trustee indemnity
reasonably satisfactory to it against the costs, expenses and liabilities to be incurred in
complying with such request;

(iv) the Indenture Trustee for thirty (30) days after its receipt of such notice,
request and offer of indemnity has failed to institute such proceedings; and

(v) no direction inconsistent with such written request has been given to the
Indenture Trustee during such 30-day period;

it being understood and intended that no one or more Holders of Notes shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other Holders of Notes or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all Noteholders.

In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes, each representing less than a majority of
the Outstanding Amount of the Notes, the Indenture Trustee in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of this Indenture.

SECTION 5.8. Unconditional Rights of Noteholders To Receive Principal and Interest.

Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal of and interest, if
any, on such Note on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired without the consent
of such Holder.

SECTION 5.9. Restoration of Rights and Remedies.

If the Indenture Trustee or any Noteholder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason
or has been determined adversely to the Indenture Trustee or such Noteholder, then and in every
such case the Issuer, the Indenture Trustee and the Noteholders shall, subject to any determination
in such proceeding, be restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Indenture Trustee and the Noteholders shall continue as
though no such proceeding had been instituted.

SECTION 5.10. Rights and Remedies Cumulative.

Except as provided in Section 5.7, no right or remedy herein conferred upon or reserved for
the Indenture Trustee or the Noteholders is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not
prevent the concurrent assertion or employment of any other appropriate right or remedy.

SECTION 5.11. Delay or Omission Not a Waiver.

No delay or omission of the Indenture Trustee or any Holder of any Note to exercise any right or
remedy accruing upon any Indenture Default or Indenture Event of Default shall impair any such
right or remedy or constitute a waiver of any such Indenture Default or Indenture Event of Default
or an acquiescence therein. Every right and remedy given by this Article V or by law to the
Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be
deemed expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

	 	 	 
	SECTION 5.12.

	 	[Reserved].
	
 
	 	 
	SECTION 5.13.

	 	Undertaking for Costs.
	
 
	 	 

All parties to this Indenture agree, and each Holder of any Note by such Holder’s acceptance
thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit against the
Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing
by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such
court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against
any party litigant in such suit, having due regard to the merits and good faith of the claims or
defenses made by such party litigant.

SECTION 5.14. Waiver of Stay or Extension Laws.

The Issuer covenants (to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in any manner whatsoever, claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, that may affect the
covenants or the performance of this Indenture; and the Issuer (to the extent that it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but
will suffer and permit the execution of every such power as though no such law had been enacted.

SECTION 5.15. Action on Notes.

The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture
shall not be affected by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the
Indenture Trustee or the Noteholders shall be impaired by the recovery of any judgment by the
Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any
portion of the Trust Property or upon any of the assets of the Issuer.

SECTION 5.16. Performance and Enforcement of Certain Obligations.

(a) Promptly following a request from the Indenture Trustee at the direction of the Majority
Noteholders to do so and at the Issuer’s expense, the Issuer agrees to take all such lawful action
as the Indenture Trustee may request to compel or secure the performance and observance by the
Seller and the Servicer, as applicable, of each of their obligations to the Issuer under or in
connection with the Sale and Servicing Agreement, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection with the Sale and
Servicing Agreement to the extent and in the manner directed by the Indenture Trustee, including
the transmission of notices of default on the part of the Seller or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or secure performance by
the Seller or the Servicer of each of their obligations under the Sale and Servicing Agreement.

(b) If an Indenture Event of Default has occurred, the Indenture Trustee may, with the prior
written consent of the Majority Noteholders, but need not unless directed in writing by the
Majority Noteholders, exercise all rights, remedies, powers, privileges and claims of the Issuer
against the Seller or the Servicer under or in connection with the Sale and Servicing Agreement,
including the right or power to take any action to compel or secure performance or observance by
the Seller or the Servicer of each of their obligations to the Issuer thereunder and to give any
consent, request, notice, direction, approval, extension or waiver under the Sale and Servicing
Agreement, and any right of the Issuer to take such action shall be suspended.

ARTICLE VI

The Indenture Trustee

SECTION 6.1. Duties of Indenture Trustee.

(a) If an Indenture Event of Default has occurred and is continuing, the Indenture Trustee
shall follow such instructions and directions as it may receive pursuant to Section 5.2
hereof and use the same degree of care and skill in its exercise as a prudent person would exercise
or use under the circumstances in the conduct of such person’s own affairs.

(b) Except during the continuance of an Indenture Event of Default:

(i) the Indenture Trustee undertakes to perform such duties and only such duties as
are specifically set forth in this Indenture and the Basic Documents and no implied
covenants or obligations shall be read into this Indenture or the Basic Documents against
the Indenture Trustee; and

(ii) in the absence of bad faith, the Indenture Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Indenture Trustee and conforming to the
requirements of this Indenture and the Basic Documents; however, the Indenture Trustee
shall examine the certificates and opinions to determine whether or not they conform on
their face to the requirements of this Indenture and the Basic Documents.

(c) The Indenture Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own bad faith or willful misconduct, except that:

(i) this paragraph does not limit the effect of paragraph (b) of this Section 6.1; and

(ii) the Indenture Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer of the Indenture Trustee unless it is proved that the
Indenture Trustee was negligent in ascertaining the pertinent facts.

(d) Money held in trust by the Indenture Trustee need not be segregated from other funds
except to the extent required by law or the terms of this Indenture.

(e) No provision of this Indenture shall require the Indenture Trustee to expend or risk its
own funds or otherwise incur liability (financial or otherwise) in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable
grounds to believe that repayment of such funds or indemnity satisfactory to it against such risk
or liability is not reasonably assured to it.

(f) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Indenture Trustee shall be subject to the provisions of this Section
6.1.

(g) Without limiting the generality of this Section, the Indenture Trustee shall have no duty
(A) to see to any recording, filing or depositing of this Indenture or any agreement referred to
herein or any financing statement or continuation statement evidencing a security interest in the
Financed Vehicles, or to see to the maintenance of any such recording or filing or depositing or to
any rerecording, refiling or redepositing of any thereof, (B) to see to any insurance on the
Financed Vehicles or Obligors or to effect or maintain any such insurance, (C) to see to the
payment or discharge of any tax, assessment or other governmental charge or any Lien or encumbrance
of any kind owing with respect to, assessed or levied against any part of the Trust, (D) to confirm
or verify the contents of any reports or certificates delivered to the Indenture Trustee pursuant
to this Indenture or the Sale and Servicing Agreement believed by the Indenture Trustee to be
genuine and to have been signed or presented by the proper party or parties, or (E) to inspect the
Financed Vehicles at any time or ascertain or inquire as to the performance or observance of any of
the Issuer’s, the Seller’s or the Servicer’s representations, warranties or covenants or the
Servicer’s duties and obligations as Servicer and as custodian of the original Certificates of
Title of the Financed Vehicles under the Sale and Servicing Agreement.

(h) In no event shall Wells Fargo Bank, National Association, in any of its capacities
hereunder, be deemed to have assumed any duties of the Owner Trustee under the Delaware Statutory
Trust Act, common law, or the Trust Agreement.

SECTION 6.2. Rights of Indenture Trustee.

Except as otherwise provided in Section 6.1:

(a) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate and/or an Opinion of Counsel. The Indenture Trustee shall not be liable for any action
it takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of
Counsel.

(b) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys or a custodian or nominee and
shall not be responsible for the misconduct or negligence of any agent, attorney, custodian or
nominee appointed with due care.

(c) The Indenture Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers; provided,
however, that the Indenture Trustee’s conduct does not constitute willful misconduct,
negligence or bad faith.

(d) The Indenture Trustee shall not be deemed to have knowledge of an Indenture Event of
Default unless a Responsible Officer of the Indenture Trustee has actual knowledge or has received
written notice of such Indenture Event of Default.

(e) The Indenture Trustee may consult with counsel, and the written advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Notes shall be full and
complete authorization and protection from liability in respect to any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the written advice or opinion of such
counsel.

(f) The Indenture Trustee shall be under no obligation to exercise any of the rights and
powers vested in it by this Indenture or the other Basic Documents, or to institute, conduct or
defend any litigation under this Indenture or in relation to this Indenture, at the request, order
or direction of any of the Holders of Notes, pursuant to the provisions of this Indenture, unless
it shall have been offered security or indemnity reasonably satisfactory to it against the costs,
expenses and liabilities that may be incurred therein or thereby; provided,
however, that the Indenture Trustee shall, upon the occurrence of an Indenture Event of
Default (that has not been cured), exercise the rights and powers vested in it by this Indenture
with the same degree of care and skill in its exercise as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs.

(g) Except during the continuance of an Indenture Event of Default, the Indenture Trustee
shall not be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent, order, approval,
bond or other paper or document, unless requested in writing to do so by the Majority Noteholders;
provided, however, that if the payment within a reasonable time to the Indenture
Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Indenture Trustee, not reasonably assured to the Indenture
Trustee by the security afforded to it by the terms of this Indenture, the Indenture Trustee may
require indemnity reasonably satisfactory to the Indenture Trustee against such cost, expense or
liability as a condition to so proceeding; the reasonable expense of every such examination shall
be paid by the requesting Holders or the instructing party, as the case may be, or, if paid by the
Indenture Trustee, shall be reimbursed by the requesting Holders or the instructing party, as the
case may be, upon demand.

(h) In no event shall the Indenture Trustee be liable for any indirect, consequential,
punitive or special damages, regardless of the form of action and whether or not any such damages
were foreseeable or contemplated.

(i) Delivery of any reports, information and documents to the Indenture Trustee provided for
herein is for informational purposes only (unless otherwise expressly stated herein) and the
Indenture Trustee’s receipt of such shall not constitute constructive knowledge of any information
contained therein or determinable from information contained therein, including the Issuer’s
compliance with any of its representations, warranties or covenants hereunder (as to which the
Indenture Trustee is entitled to rely exclusively on Officers’ Certificates).

(j) The Indenture Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties.

(k) In the event the Indenture Trustee is also acting in the capacity of Trust Collateral
Agent, Paying Agent, transfer agent or Note Registrar, it shall be afforded all of the rights,
protections, immunities and indemnities afforded to the Indenture Trustee hereunder in each of its
capacities hereunder.

(l) In no event shall the Indenture Trustee be liable for any act or omission on the part of
the Issuer, the Seller or the Servicer or any other Person. The Indenture Trustee shall not be
responsible for monitoring or supervising the Issuer, the Seller, the Servicer or any other Person.

SECTION 6.3. Individual Rights of Indenture Trustee.

The Indenture Trustee in its individual or any other capacity may become the owner or pledgee of
Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have
if it were not Indenture Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying
agent may do the same with like rights. However, the Indenture Trustee must comply with
Section 6.15.

SECTION 6.4. Indenture Trustee’s Disclaimer.

The Indenture Trustee shall not be responsible for and makes no representation as to the validity,
sufficiency or adequacy of this Indenture, the Trust Property or the Notes, shall not be
accountable for the Issuer’s use of the proceeds from the Notes, and shall not be responsible for
any statement of the Issuer in the Indenture or in any document issued in connection with the sale
of the Notes or in the Notes other than, the Indenture Trustee’s certificate of authentication.

SECTION 6.5. Notice of Indenture Events of Default.

If an Indenture Event of Default occurs and is continuing and if written notice of the existence
thereof has been delivered to a Responsible Officer of the Indenture Trustee or a Responsible
Officer of the Indenture Trustee has actual knowledge thereof, the Indenture Trustee shall mail to
the Rating Agencies and each Noteholder notice of the Indenture Event of Default within five (5)
Business Days after such knowledge or notice occurs.

SECTION 6.6. Reports by Indenture Trustee to Holders.

The Indenture Trustee shall on behalf of the Issuer deliver to each Noteholder such information as
may be reasonably required to enable such Holder to prepare its federal and state income tax
returns. Such obligation shall be satisfied if the Indenture Trustee provides such Noteholder a
Form 1099.

SECTION 6.7. Compensation.

(a) The Issuer shall pay to the Indenture Trustee from time to time compensation for its
services as agreed in writing and in accordance with Section 5.08(a) of the Sale and Servicing
Agreement. The Indenture Trustee’s compensation shall not be limited by any law on compensation of
a trustee of an express trust. The Issuer shall reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the
compensation for its services, except any such expense as may be attributable to its willful
misconduct, negligence or bad faith. Such expenses shall include securities transaction charges
relating to the investment of funds (net of investment earnings) on behalf of the Indenture Trustee
or the Trust Collateral Agent on deposit in the Trust Accounts (except for the Certificate
Distribution Account) and the reasonable compensation and reasonable expenses, disbursements and
advances of the Indenture Trustee’s counsel and of all persons not regularly in its employ;
provided, however, that the securities transaction charges referred to above shall,
in the case of certain Eligible Investments selected by the Servicer, be waived for a particular
investment in the event that any amounts are received by the Trust Collateral Agent from a
financial institution in connection with the purchase of such Eligible Investments. The Issuer
agrees to indemnify the Indenture Trustee and Trust Collateral Agent as set forth in Section 6.05
of the Sale and Servicing Agreement. The Indenture Trustee agrees that its recourse to the Issuer,
the Seller and the Trust Property shall be limited to the right to receive distributions in
accordance with Section 5.08(a) of the Sale and Servicing Agreement and Article V hereof and shall
not be recourse to the assets of any Noteholder.

(b) The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall
survive the discharge of this Indenture and the earlier resignation or removal of the Indenture
Trustee. When the Indenture Trustee incurs expenses after the occurrence of an Indenture Event of
Default specified in Section 5.1(iv) or (v) with respect to the Issuer, the
expenses are intended to constitute expenses of administration under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or similar law.
Notwithstanding anything else set forth in this Indenture or the Basic Documents, the Indenture
Trustee agrees that the obligations of the Issuer to the Indenture Trustee hereunder and under the
Basic Documents shall not be recourse to the assets of any Noteholder.

SECTION 6.8. Replacement of Indenture Trustee.

(a) The Indenture Trustee may resign at any time by so notifying the Issuer in writing at
least sixty (60) days prior and upon the appointment and assumption of its obligations by a
successor Indenture Trustee.

(b) The Issuer, with the prior written consent of the Majority Noteholders, may remove the
Indenture Trustee by written notice if:

(i) the Indenture Trustee fails to comply with Section 6.17 hereof;

(ii) a court having jurisdiction over the Indenture Trustee in an involuntary case or
proceeding under federal or state banking or bankruptcy laws, as now or hereafter
constituted, or any other applicable federal or state bankruptcy, insolvency or other
similar law, shall have entered a decree or order granting relief or appointing a receiver,
liquidator, assignee, custodian, trustee, conservator, sequestrator (or similar official)
for the Indenture Trustee or for any substantial part of the Indenture Trustee’s property,
or ordering the winding-up or liquidation of the Indenture Trustee’s affairs;

(iii) an involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future federal or state bankruptcy, insolvency or similar law
is commenced with respect to the Indenture Trustee and such case is not dismissed within
sixty (60) days;

(iv) the Indenture Trustee commences a voluntary case under any federal or state
banking or bankruptcy laws, as now or hereafter constituted, or any other applicable
federal or state bankruptcy, insolvency or other similar law, or consents to the
appointment of or taking possession by a receiver, liquidator, assignee, custodian,
trustee, conservator, sequestrator (or other similar official) for the Indenture Trustee or
for any substantial part of the Indenture Trustee’s property, or makes any assignment for
the benefit of creditors or fails generally to pay its debts as such debts become due or
takes any corporate action in furtherance of any of the foregoing;

(v) the Indenture Trustee fails to comply with any material covenant hereunder; or

(vi) the Indenture Trustee otherwise becomes legally incapable of acting.

(c) [Reserved].

(d) If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of
Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as
the retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee.

A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the retiring
Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the retiring Indenture Trustee under this Indenture subject to
satisfaction of the Rating Agency Condition. The successor Indenture Trustee shall mail a notice
of its succession to Noteholders and the Rating Agencies. The retiring Indenture Trustee shall
promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.

If a successor Indenture Trustee does not take office within sixty (60) days after the
retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or
Majority Noteholders may petition any court of competent jurisdiction for the appointment of a
successor Indenture Trustee that meets the eligibility requirements set forth in Section
6.12 hereof.

If the Indenture Trustee fails to comply with Section 6.15, any Noteholder may
petition any court of competent jurisdiction for the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee.

Any resignation or removal of the Indenture Trustee and appointment of a successor Indenture
Trustee pursuant to any of the provisions of this Section shall not become effective until
acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.8
and payment of all fees and expenses owed to the outgoing Indenture Trustee by the Servicer and the
Issuer.

Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, the
Issuer’s and the Servicer’s obligations under Section 6.7 shall continue for the benefit of
the retiring Indenture Trustee.

SECTION 6.9. Successor Indenture Trustee by Merger.

If the Indenture Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation, provided it meets the eligibility
requirements of Section 6.12, without any further act shall be the successor Indenture
Trustee. The Indenture Trustee shall provide the Rating Agencies and the Noteholders written
notice of any such transaction.

In case at the time such successor or successors by merger, conversion or consolidation to the
Indenture Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have
been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the
certificate of authentication of any predecessor trustee, and deliver such Notes so authenticated;
and in case at that time any of the Notes shall not have been authenticated, any successor to the
Indenture Trustee may authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Indenture Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Notes or in this Indenture provided that the
certificate of the Indenture Trustee shall have.

SECTION 6.10. Appointment of Trust Collateral Agent.

The Issuer and the Indenture Trustee do hereby appoint Wells Fargo Bank, National Association to
act as the initial trust collateral agent on behalf of the Indenture Trustee and Wells Fargo Bank,
National Association hereby accepts such appointment.

SECTION 6.11. Appointment of Co-Indenture Trustee or Separate Indenture Trustee.

(a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the Trust may at the time be
located, the Issuer and the Indenture Trustee acting jointly and at the expense of the Issuer shall
have the power and may execute and deliver all instruments to appoint one or more Persons to act as
a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person or Persons, in such capacity and for the benefit of the
Noteholders, such title to the Trust, or any part thereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the Issuer and the Indenture
Trustee may consider necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section 6.12 and no
notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required
under Section 6.8 hereof.

(b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed
and act subject to the following provisions and conditions:

(i) all rights, powers, duties and obligations conferred or imposed upon the Indenture
Trustee shall be conferred or imposed upon and exercised or performed by the Indenture
Trustee and such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without the Indenture
Trustee joining in such act), except to the extent that under any law of any jurisdiction
in which any particular act or acts are to be performed the Indenture Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such rights, powers,
duties and obligations (including the holding of title to the Trust or any portion thereof
in any such jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the direction of the Indenture Trustee;

(ii) no trustee hereunder shall be personally liable by reason of any act or omission
of any other trustee hereunder, including acts or omissions of predecessor or successor
trustees; and

(iii) the Indenture Trustee may at any time accept the resignation of or remove any
separate trustee or co-trustee.

(c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to
have been given to each of the then separate trustees and co-trustees as effectively as if given to
each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this
Agreement and the conditions of this Article VI. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property specified in its
instrument of appointment, either jointly with the Indenture Trustee or separately, as may be
provided therein, subject to all the provisions of this Indenture, specifically including every
provision of this Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed with the Indenture
Trustee.

(d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee, its
agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do
any lawful act under or in respect of this Agreement on its behalf and in its name. If any
separate trustee or co-trustee shall die, dissolve, become insolvent, become incapable of acting,
resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and
be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a
new or successor trustee.

SECTION 6.12. Eligibility.

The Indenture Trustee under this Indenture shall at all times be a corporation or banking
association having an office in the same state as the location of the Corporate Trust Office as
specified in this Indenture; organized and doing business under the laws of such state or the
United States of America; authorized under such laws to exercise corporate trust powers; having a
combined capital and surplus of at least $100,000,000; having long-term unsecured debt obligations
which have at least the Required Long-Term Debt Rating and subject to supervision or examination by
federal or state authorities. If such corporation shall publish reports of its condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purpose of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Indenture Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Indenture Trustee shall resign
immediately.

SECTION 6.13. Trust Collateral Agent to Follow Indenture Trustee’s Directions.

The Indenture Trustee hereby authorizes the Trust Collateral Agent to take such action on its
behalf, and to exercise such rights, remedies, powers and privileges hereunder, as the Indenture
Trustee may direct and as are specifically authorized to be exercised by the Trust Collateral Agent
by the terms hereof, together with such actions, rights, remedies, powers and privileges as are
reasonably incidental thereto.

SECTION 6.14. Representations and Warranties of the Indenture Trustee.

The Indenture Trustee represents and warrants to the Issuer as follows:

(i) The Indenture Trustee is a national banking association, duly organized and
validly existing under the laws of the United States and is authorized and licensed to
conduct and engage in a banking and trust business under such laws.

(ii) The Indenture Trustee has full corporate power, authority, and legal right to
execute, deliver, and perform this Indenture, and has taken all necessary action to
authorize the execution, delivery, and performance by it of this Indenture and the other
Basic Documents to which it is a party.

(iii) Each of this Indenture, and the other Basic Documents to which it is a party,
has been duly executed and delivered by the Indenture Trustee.

(iv) Each of this Indenture, and the other Basic Documents to which it is a party, is
a legal, valid and binding obligation of the Indenture Trustee enforceable in accordance
with its terms, subject to the effects of bankruptcy, insolvency, reorganization, or other
similar laws affecting the enforcement of creditors’ rights generally and to general
principles of equity.

(v) The execution, delivery and performance of this Indenture, and each other Basic
Document to which it is a party, by the Indenture Trustee will not constitute a violation,
to the best of the Indenture Trustee’s knowledge, with respect to any order or decree of
any court or any order, regulation or demand of any federal, State, municipal or
governmental agency binding on the Indenture Trustee, which violation might have
consequences that would materially and adversely affect the performance of its duties under
this Indenture or under any other Basic Document to which it is a party.

(vi) The execution, delivery and performance of this Indenture, and each other Basic
Document to which it is a party, by the Indenture Trustee do not require any approval or
consent of any Person, do not conflict with the articles of incorporation or bylaws of the
Indenture Trustee.

SECTION 6.15. Waiver of Setoffs.

Each of the Indenture Trustee and the Trust Collateral Agent hereby expressly waives any and all
rights of setoff that the Indenture Trustee or the Trust Collateral Agent may otherwise at any time
have under applicable law with respect to any Trust Account and agrees that amounts in the Trust
Accounts shall at all times be held and applied solely in accordance with the provisions hereof and
of the Sale and Servicing Agreement.

	 	 	 
	SECTION 6.16.

	 	Reserved.
	
 
	 	 
	SECTION 6.17.

	 	Disqualification of the Indenture Trustee.
	
 
	 	 

If the Indenture Trustee has or shall acquire a conflicting interest within the meaning of the
Trust Indenture Act of 1939, as amended, the Indenture Trustee shall either eliminate such interest
or resign to the extent in the manner provided by and subject to the provisions of this Indenture.

SECTION 6.18. Authorization and Direction.

The Issuer hereby authorizes and directs the Indenture Trustee to execute the Basic Documents to
which it is a party.

SECTION 6.19. Action under the Intercreditor Agreement.

Before taking or omitting to take any action under the Intercreditor Agreement, the Indenture
Trustee may request and shall be entitled to receive direction from the Majority Noteholders with
respect to any action required to be taken by it thereunder. The Indenture Trustee shall not be
required to take any action or omit to take any action in the absence of such consent.

ARTICLE VII

Noteholders’ Lists and Reports

SECTION 7.1. Issuer To Furnish To Indenture Trustee Names and Addresses of
Noteholders.

The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five
(5) days after each Record Date, a list, in such form as the Indenture Trustee may reasonably
require, of the names and addresses of the Holders as of such Record Date, (b) at such other times
as the Indenture Trustee may request in writing, within thirty (30) days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not more than ten (10)
days prior to the time such list is furnished; provided, however, that so long as
the Indenture Trustee is the Note Registrar, no such list shall be required to be furnished.

SECTION 7.2. Preservation of Information; Communications to Noteholders.

The Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of the Holders contained in the most recent list furnished to the Indenture Trustee
as provided in Section 7.1 and the names and addresses of Holders received by the Indenture
Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to
it as provided in such Section 7.1 upon receipt of a new list so furnished.

ARTICLE VIII

Accounts, Disbursements and Releases

SECTION 8.1. Collection of Money.

Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery
of, and shall receive and collect, directly and without intervention or assistance of any fiscal
agent or other intermediary, all money and other property payable to or receivable by the Trust
Collateral Agent pursuant to the Sale and Servicing Agreement. The Indenture Trustee shall apply
all such money received by it, or cause the Trust Collateral Agent to apply all money received by
it as provided in this Indenture and the Sale and Servicing Agreement. Except as otherwise
expressly provided in this Indenture or in the Sale and Servicing Agreement, if any default occurs
in the making of any payment or performance under any agreement or instrument that is part of the
Trust Property, the Indenture Trustee may at the expense of the Issuer take such action as may be
appropriate to enforce such payment or performance, including the institution and prosecution of
appropriate proceedings. Any such action shall be without prejudice to any right to claim an
Indenture Default or Indenture Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

SECTION 8.2. Release of Trust Property.

Subject to the payment of its fees and expenses pursuant to Section 6.7, the Indenture
Trustee (a) after the Termination Date, may and (b) when required by the provisions of this
Indenture or from time to time when required by the provisions of the Sale and Servicing Agreement
shall release, and shall cause the Trust Collateral Agent to execute instruments as may be
necessary to release, property from the lien of this Indenture, in a manner and under circumstances
that are not inconsistent with the provisions of this Indenture. No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound to
ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.

SECTION 8.3. Opinion of Counsel.

The Indenture Trustee shall receive at least seven (7) days’ written notice when requested by the
Issuer to take any action pursuant to Section 8.2, accompanied by copies of any instruments
involved, and the Indenture Trustee shall also require as a condition to such action, an Opinion of
Counsel in form and substance satisfactory to the Indenture Trustee, stating the legal effect of
any such action, outlining the steps required to complete the same, and concluding that all
conditions precedent to the taking of such action have been complied with and such action will not
materially and adversely impair the security for the Notes or the rights of each of the Noteholders
in contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair value of the Trust
Property. Counsel rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the Indenture Trustee in
connection with any such action.

ARTICLE IX

Supplemental Indentures

SECTION 9.1. Supplemental Indentures Not Adversely Affecting Rights of Noteholders.

(a) Without the consent of the Holders of any Notes and with prior notice to the Rating
Agencies by the Issuer, as evidenced to the Indenture Trustee, the Issuer and the Indenture
Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one
or more indentures supplemental hereto, in form satisfactory to the Indenture Trustee for any of
the purposes set forth in clauses (i)-(vi) below; provided, however, if any party
to this Indenture is unable to sign any amendment due to its dissolution, winding up or comparable
circumstances, then the consent of the Majority Noteholders shall be sufficient to amend this
Agreement without such party’s signature:

(i) to correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the Indenture Trustee
any property subject or required to be subjected to the lien of this Indenture, or to
subject to the lien of this Indenture additional property;

(ii) to evidence the succession, in compliance with the applicable provisions hereof,
of another person to the Issuer, and the assumption by any such successor of the covenants
of the Issuer herein and in the Notes contained;

(iii) to add to the covenants of the Issuer, for the benefit of the Holders of the
Notes, or to surrender any right or power herein conferred upon the Issuer;

(iv) to convey, transfer, assign, mortgage or pledge any property to or with the Trust
Collateral Agent;

(v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture which may be inconsistent with any other provision herein or in any
supplemental indenture or to add any other provisions with respect to matters or questions
arising under this Indenture or in any supplemental indenture; provided that such action
shall not adversely affect the interests of the Holders of the Notes; or

(vi) to evidence and provide for the acceptance of the appointment hereunder by a
successor Indenture Trustee with respect to the Notes and to add to or change any of the
provisions of this Indenture as shall be necessary to facilitate the administration of the
trusts hereunder by more than one Indenture Trustee, pursuant to the requirements of
Article VI.

The Indenture Trustee is hereby authorized to join in the execution of any such supplemental
indenture and to make any further appropriate agreements and stipulations that may be therein
contained provided that such action shall not adversely affect the interests of the Holders of the
Notes.

(b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes and with prior notice to the Rating Agencies
by the Issuer, as evidenced to the Indenture Trustee, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of
the Holders of the Notes under this Indenture; provided, however, that such action
shall not, as evidenced by an Opinion of Counsel which may be based on a certificate of the Seller,
adversely affect in any material respect the interests of any Noteholder.

SECTION 9.2. Supplemental Indentures with Consent of Noteholders.

The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with prior
notice to the Rating Agencies by the Issuer and with the consent of the Majority Noteholders (which
consent of any Holder of a Note given pursuant to this Agreement or pursuant to any other provision
of this Agreement shall be conclusive and binding on such Holder and on all future Holders of such
Note and of any Not e issued upon the registration of transfer thereof or in exchange thereof or in
lieu thereof whether or not notation of such consent is made upon the Note), enter into an
indenture or indentures supplemental hereto for the purpose of modifying in any manner the rights
of the Holders of the Notes under this Indenture; provided, however, if any party
to this Indenture is unable to sign any amendment due to its dissolution, winding up or comparable
circumstances, then the consent of the Majority Noteholders shall be sufficient to amend this
Agreement without such party’s signature; provided further, however, that,
no such supplemental indenture shall, without the consent of the Holder of each Outstanding Note
affected thereby:

(i) change the time of payment of any installment of principal of or interest on any
Note, or reduce the principal amount thereof, the interest rate thereon or the Redemption
Price with respect thereto, change the provision of this Indenture relating to the
application of collections on, or the proceeds of the sale of, the Trust Property to
payment of principal of or interest on the Notes;

(ii) impair the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor, as provided in Article V,
to the payment of any such amount due on the Notes on or after the respective due dates
thereof (or, in the case of redemption, on or after the Redemption Date);

(iii) reduce the percentage of the Outstanding Amount of the Notes, the consent of the
Holders of which is required for any such supplemental indenture, or the consent of the
Holders of which is required for any waiver of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences provided for in this
Indenture;

(iv) modify or alter the provisions of the proviso to the definition of the term
“Outstanding Amount” or “Majority Noteholders”;

(v) reduce the percentage of the Outstanding Amount of the Notes required to direct
the Indenture Trustee to direct the Issuer to sell or liquidate the Trust Property pursuant
to Section 5.4;

(vi) modify any provision of this Section except to increase any percentage specified
herein or to provide that certain additional provisions of this Indenture or the Basic
Documents cannot be modified or waived without the consent of the Holder of each
Outstanding Note affected thereby;

(vii) modify any of the provisions of this Indenture in such manner as to affect the
calculation of the amount of any payment of interest or principal due on any Note on any
Distribution Date (including the calculation of any of the individual components of such
calculation) or to affect the rights of the Holders of Notes to the benefit of any
provisions for the mandatory redemption of the Notes contained herein; or

(viii) permit the creation of any Lien ranking prior to or on a parity with the Lien
of this Indenture with respect to any part of the Trust Property or, except as otherwise
permitted or contemplated herein or in any of the Basic Documents, terminate the Lien of
this Indenture on any property at any time subject hereto or deprive the Holder of any Note
of the security provided by the Lien of this Indenture.

The Issuer may determine whether or not any Notes would be affected by any supplemental
indenture and any such determination shall be conclusive upon the Holders of all Notes, whether
theretofore or thereafter authenticated and delivered hereunder. The Indenture Trustee shall not
be liable for any such determination made in good faith.

Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental
indenture pursuant to this Section, the Indenture Trustee shall mail to the Holders of the Notes a
copy of such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or
any defect therein, shall not, however, in any way impair or affect the validity of any such
supplemental indenture.

SECTION 9.3. Execution of Supplemental Indentures.

In executing, or permitting the additional trusts created by, any supplemental indenture permitted
by this Article IX or the modifications thereby of the trusts created by this Indenture, the
Indenture Trustee shall be entitled to receive, and subject to Sections 6.1 and
6.2, shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture. The
Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture
that affects the Indenture Trustee’s own rights, duties, liabilities or immunities under this
Indenture or otherwise.

SECTION 9.4. Effect of Supplemental Indenture.

Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with respect to the Notes
affected thereby, and the respective rights, limitations of rights, obligations, duties,
liabilities and immunities under this Indenture of the Indenture Trustee, the Issuer and the
Holders of the Notes shall thereafter be determined, exercised and enforced hereunder subject in
all respects to such modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

SECTION 9.5. Reference in Notes to Supplemental Indentures.

Notes authenticated and delivered after the execution of any supplemental indenture pursuant to
this Article IX may, and if required by the Indenture Trustee shall, bear a notation in
form approved by the Indenture Trustee as to any matter provided for in such supplemental
indenture. If the Issuer or the Indenture Trustee shall so determine, new Notes so modified as to
conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture
may be prepared and executed by the Issuer and authenticated and delivered by the Indenture Trustee
in exchange for Outstanding Notes.

ARTICLE X

Redemption of Notes

SECTION 10.1. Redemption.

The Notes are subject to redemption in whole, but not in part, at the direction of the Servicer
pursuant to Section 10.01(a) of the Sale and Servicing Agreement, on any Distribution Date on which
the Servicer exercises its option to reacquire the Trust Property pursuant to Section 10.01(a) of
the Sale and Servicing Agreement for a redemption price equal to the Redemption Price;
provided, however, that the Indenture Trustee on behalf of the Issuer has received
funds sufficient to pay the Redemption Price. The Issuer shall furnish the Rating Agencies notice
of such redemption. If the Notes are to be redeemed pursuant to this Section, the Issuer shall
furnish notice of such election to the Trust Collateral Agent and the Indenture Trustee not later
than twenty (20) days prior to the Redemption Date and promptly upon giving such notice, the Issuer
shall designate amounts on deposit in the Collection Account and/or shall deposit or cause to be
deposited with the Indenture Trustee in the Note Distribution Account the Redemption Price of the
Notes to be redeemed whereupon all outstanding Notes shall be due and payable on the Redemption
Date, together with other amounts due and owing at such time under the Basic Documents, upon the
furnishing of a notice complying with Section 10.2 to each Holder of Notes;
provided, however, that if the Class C Notes are being redeemed, if the Servicer is
the holder of the Class C Notes and if the Servicer delivers the Class C Notes as part of the
redemption price being paid by the Servicer to so re-acquire the Trust Property, then the Class C
Notes so delivered shall be canceled and such portion of the Redemption Price representing the
unpaid Class C Note Balance shall be deemed to have been paid in full to the Servicer as holder of
the Class C Notes.

SECTION 10.2. Form of Redemption Notice.

Notice of redemption under Section 10.1 shall be given by the Indenture Trustee by
facsimile or by first-class mail, postage prepaid, transmitted or mailed prior to the applicable
Redemption Date to each Holder of the Notes, as of the close of business on the Record Date
preceding the applicable Redemption Date, at such Holder’s address appearing in the Note Register.

All notices of redemption shall state:

(i) the Redemption Date;

(ii) the Redemption Price;

(iii) that the Record Date otherwise applicable to such Redemption Date is not
applicable and that payments shall be made only upon presentation and surrender of such
Notes and the place where such Notes are to be surrendered for payment of the Redemption
Price (which shall be the office or agency of the Issuer to be maintained as provided in
Section 2.7); and

(iv) that interest on the Class A Notes and Class B Notes shall cease to accrue on the
Redemption Date.

Notice of redemption of the Notes shall be given by the Indenture Trustee in the name and at
the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any
Holder of any Note shall not impair or affect the validity of the redemption of any other Note.

SECTION 10.3. Notes Payable on Redemption Date.

The Notes to be redeemed shall, following notice of redemption as required by Section 10.2
(in the case of redemption pursuant to Section 10.1), on the Redemption Date become due and
payable at the Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any period after the date to
which accrued interest is calculated for purposes of calculating the Redemption Price.

ARTICLE XI

Miscellaneous

SECTION 11.1. Compliance Certificates and Opinions, etc.

(a) Upon any application or request by the Issuer to the Indenture Trustee or the Trust
Collateral Agent to take any action under any provision of this Indenture, the Issuer shall furnish
to the Indenture Trustee, or the Trust Collateral Agent, as the case may be, if such request is
made by the Issuer, an Officer’s Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with.

Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

(i) a statement that each signatory of such certificate or opinion has read or has
caused to be read such covenant or condition and the definitions herein relating thereto;

(ii) a statement that, in the opinion of each such signatory, such signatory has made
such examination or investigation as is necessary to enable such signatory to express an
informed opinion as to whether or not such covenant or condition has been complied with;
and

(iii) a statement as to whether, in the opinion of each such signatory, such condition
or covenant has been complied with.

(b) Prior to the deposit of any Collateral or other property or securities with the Trust
Collateral Agent that is to be made the basis for the release of any property or securities subject
to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in
Section 11.1(a) or elsewhere in this Indenture, furnish to the Indenture Trustee and the
Trust Collateral Agent an Officer’s Certificate certifying or stating the opinion of each person
signing such certificate (which may be based upon a certification of the Seller or the Servicer) as
to the fair value (within ninety (90) days of such deposit) to the Issuer of the Collateral or
other property or securities to be so deposited.

(c) Whenever the Issuer is required to furnish to the Indenture Trustee and the Trust
Collateral Agent an Officer’s Certificate certifying or stating the opinion of any signer thereof
as to the matters described in clause (b) above, the Issuer shall also deliver to the
Indenture Trustee and the Trust Collateral Agent an Independent Certificate as to the same matters,
if the fair value to the Issuer of the securities to be so deposited and of all other such
securities made the basis of any such withdrawal or release since the commencement of the
then-current fiscal year of the Issuer, as set forth in the certificates delivered pursuant to
clause (b) above and this clause (c), is 10% or more of the Outstanding Amount of
the Notes, but such a certificate need not be furnished with respect to any securities so
deposited, if the fair value thereof to the Issuer as set forth in the related Officer’s
Certificate is less than $25,000.

(d) Other than with respect to the release of any Repurchased Loans, whenever any property or
securities are to be released from the Lien of this Indenture, the Issuer shall also furnish to the
Trust Collateral Agent and the Indenture Trustee an Officer’s Certificate certifying or stating the
opinion of each person signing such certificate as to the fair value (within ninety (90) days of
such release) of the property or securities proposed to be released and stating that in the opinion
of such person the proposed release will not impair the security under this Indenture in
contravention of the provisions hereof.

(e) Whenever the Issuer is required to furnish to the Trust Collateral Agent and the Indenture
Trustee an Officer’s Certificate certifying or stating the opinion of any signer thereof as to the
matters described in clause (d) above, the Issuer shall also furnish to the Trust
Collateral Agent and the Indenture Trustee an Independent Certificate as to the same matters if the
fair value of the property or securities and of all other property other than Purchased Loans, or
securities released from the Lien of this Indenture since the commencement of the then current
calendar year, as set forth in the certificates required by clause (d) above and this
clause (e), equals 10% or more of the Outstanding Amount of the Notes, but such certificate
need not be furnished in the case of any release of property or securities if the fair value
thereof as set forth in the related Officer’s Certificate is less than $25,000.

(f) Notwithstanding Section 2.9 or any other provision of this Section, the Issuer
may, without delivering any Officer’s Certificates or Independent Certificates (A) collect,
liquidate, sell or otherwise dispose of Contracts as and to the extent required by the Basic
Documents and (B) instruct the Trust Collateral Agent to make cash payments out of the Trust
Accounts as and to the extent permitted or required by the Basic Documents.

SECTION 11.2. Form of Documents Delivered to Indenture Trustee.

In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which his or her certificate or opinion
is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be
based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Servicer, the Seller or the Issuer, stating that
the information with respect to such factual matters is in the possession of the Servicer, the
Seller or the Issuer, unless such counsel knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to such matters are erroneous.

Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

Whenever in this Indenture, in connection with any application or certificate or report to the
Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the
granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is
intended that the truth and accuracy, at the time of the granting of such application or at the
effective date of such certificate or report (as the case may be), of the facts and opinions stated
in such document shall in such case be conditions precedent to the right of the Issuer to have such
application granted or to the sufficiency of such certificate or report. The foregoing shall not,
however, be construed to affect the Indenture Trustee’s right to conclusively rely upon the truth
and accuracy of any statement or opinion contained in any such document as provided in Article
VI.

SECTION 11.3. Acts of Noteholders.

(a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Noteholders may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such Noteholders in person or by
agents duly appointed in writing; and except as herein otherwise expressly provided such action
shall become effective when such instrument or instruments are delivered to the Indenture Trustee,
and, where it is hereby expressly required, to the Issuer. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 6.1) conclusive in favor of the Indenture Trustee
and the Issuer, if made in the manner provided in this Section.

(b) The fact and date of the execution by any person of any such instrument or writing may be
proved in any customary manner of the Indenture Trustee.

(c) The ownership of Notes shall be proved by the Note Register.

(d) Any request, demand, authorization, direction, notice, consent, waiver or other action by
the Holder of any Notes shall bind the Holder of every Note issued upon the registration thereof or
in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be
done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

SECTION 11.4. Notices, etc. to Indenture Trustee, Issuer, and Rating Agencies.

Any request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or
other documents provided or permitted by this Indenture to be made upon, given or furnished to or
filed with:

(a) The Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for every
purpose hereunder if personally delivered, delivered by overnight courier, mailed certified mail,
return receipt requested or by telecopy to: Wells Fargo Bank, National Association, MAC #9311-161,
Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust
Services – Asset-Backed Administration, Telephone: (612) 667-8058, Telecopy: (612) 667-3464 and
shall be deemed to have been duly given upon receipt to the Indenture Trustee at its principal
Corporate Trust Office;

(b) The Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for every
purpose hereunder if personally delivered, delivered by overnight courier, mailed certified mail,
return receipt requested or by telecopy to: Credit Acceptance Corporation, Silver Triangle
Building, 25505 West Twelve Mile Road, Suite 3000, Southfield, Michigan 48034-8339, Attention: Doug
Busk, Telephone: (248) 353-2700 (ext. 4432), Telecopy: (866) 743-2704. The Issuer shall promptly
transmit any notice received by it from the Noteholders to the Indenture Trustee;

(c) [Reserved]; and

(d) Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee
or the Owner Trustee shall be in writing, electronically delivered, personally delivered, delivered
by overnight courier, or mailed certified mail, return receipt requested to the following
addresses: (i) S&P, via electronic delivery to Servicer—reports@sandp.com (or for any information
not available in electronic format, send hard copies to: 55 Water Street, New York, New York 10041)
and (ii) in the case of DBRS, Inc., via electronic delivery to abs—surveillance@dbrs.com (or for
any information not available in electronic format, send hard copies to: DBRS, ABS Surveillance,
140 Broadway, New York, NY 10005);

or, in each case, to such other address as shall be designated by written notice from the
applicable notice party to the other parties.

SECTION 11.5. Notices to Noteholders; Waiver.

Where this Indenture provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class, postage prepaid to each Noteholder affected by such event, at his or her address as it
appears on the Note Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to Noteholders is given
by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any
particular Noteholder shall affect the sufficiency of such notice with respect to other
Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be
presumed to have been duly given.

Where this Indenture provides for notice in any manner, such notice may be waived in writing
by any Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the
Indenture Trustee but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

In case, by reason of the suspension of regular mail service as a result of a strike, work
stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders
when such notice is required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

Where this Indenture provides for notice to the Rating Agencies, failure to give such notice
shall not affect any other rights or obligations created hereunder, and shall not under any
circumstance constitute an Indenture Default or Indenture Event of Default.

SECTION 11.6. Alternate Payment and Notice Provisions.

Notwithstanding any provision of this Indenture or any of the Notes to the contrary, the Issuer may
enter into any agreement with any Holder of a Note providing for a method of payment, or notice by
the Indenture Trustee or any Paying Agent to such Holder, that is different from the methods
provided for in this Indenture for such payments or notices, provided that such methods are
reasonable and consented to by the Indenture Trustee (which consent shall not be unreasonably
withheld). The Issuer will furnish to the Indenture Trustee a copy of each such agreement and the
Indenture Trustee will cause payments to be made and notices to be given in accordance with such
agreements.

SECTION 11.7. Effect of Headings and Table of Contents.

The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

SECTION 11.8. Successors and Assigns.

All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its
successors and assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors.

SECTION 11.9. Separability.

In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable,
the validity, legality, and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

SECTION 11.10. Benefits of Indenture.

Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than
the parties hereto and their successors hereunder, and the Noteholders, and any other party secured
hereunder, and any other person with an Ownership interest in any part of the Trust Property, any
benefit or any legal or equitable right, remedy or claim under this Indenture.

SECTION 11.11. Legal Holidays.

In any case where the date on which any payment is due shall not be a Business Day, then
(notwithstanding any other provision of the Notes or this Indenture) payment need not be made on
such date, but may be made on the next succeeding Business Day with the same force and effect as if
made on the date an which nominally due, and no interest shall accrue for the period from and after
any such nominal date.

SECTION 11.12. GOVERNING LAW.

THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.

SECTION 11.13. Counterparts.

This Indenture may be executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute but one and the same
instrument.

SECTION 11.14. Recording of Indenture.

If this Indenture is subject to recording in any appropriate public recording offices, such
recording is to be effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably acceptable to the
Indenture Trustee) to the effect that such recording is necessary either for the protection of the
Noteholders or any other person secured hereunder or for the enforcement of any right or remedy
granted to the Indenture Trustee under this Indenture.

SECTION 11.15. Trust Obligation.

No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer,
the Seller, the Owner Trustee, the Trust Collateral Agent or the Indenture Trustee on the Notes or
under this Indenture or any certificate or other writing delivered in connection herewith or
therewith, against: (i) the Seller, the Indenture Trustee or the Trust Collateral Agent or the
Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Issuer,
the Seller, the Servicer, the Indenture Trustee or the Trust Collateral Agent or the Owner Trustee
in its individual capacity, any holder of a beneficial interest in the Issuer or of any successor
or assign of the Seller, the Servicer, the Indenture Trustee or the Trust Collateral Agent or the
Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee or the Trust Collateral Agent and the Owner Trustee
have no such obligations in their individual capacity) and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity. For all purposes of this Indenture, in the performance of any duties or
obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

SECTION 11.16. No Petition.

Each of the Indenture Trustee, by entering into this Indenture, and each Noteholder, by accepting a
Note, hereby covenants and agrees that, until one year and one day after such time as the Notes
issued under the Indenture are paid in full, it shall not: (i) institute the filing of a bankruptcy
petition against the Seller or the Issuer based upon any claim in its favor arising hereunder or
under the Basic Documents; (ii) file a petition or consent to a petition seeking relief on behalf
of the Seller or the Issuer under the Bankruptcy Law; or (iii) consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or similar official) of the Seller or the
Issuer or any portion of the property of the Seller or the Issuer. The parties hereto agree that
all obligations of the Issuer and the Seller are non-recourse to the Issuer and the Seller except
as specifically set forth in the Basic Documents.

SECTION 11.17. Inspection.

The Issuer agrees that, on reasonable prior notice, it will permit any representative of the
Indenture Trustee, during the Issuer’s normal business hours, to examine all the books of account,
records, reports, and other papers of the Issuer, to make copies and extracts therefrom, to cause
such books to be audited by independent certified public accountants, and to discuss the Issuer’s
affairs, finances and accounts with the Issuer’s officers, employees, and independent certified
public accountants, all at such reasonable times and as often as may be reasonably requested. The
Indenture Trustee shall and shall cause its representatives to hold in confidence all such
information except to the extent disclosure may be required by law or in connection with
litigation, and except to the extent that the Indenture Trustee may reasonably determine that such
disclosure is consistent with its obligations hereunder and under the Basic Documents.

SECTION 11.18. Maximum Interest Payable.

The Issuer, the Indenture Trustee and the Holders of the Notes specifically intend and agree to
limit contractually the amount of interest payable under this Indenture, the Notes and all other
instruments and agreements related hereto and thereto to the maximum amount of interest lawfully
permitted to be charged under applicable law. Therefore, none of the terms of this Indenture, the
Notes or any instrument pertaining to or relating to or executed in connection with this Indenture
or the Notes shall ever be construed to create a contract to pay interest (or amounts deemed to be
interest under applicable law) at a rate in excess of the maximum rate permitted to be charged
under applicable law, and neither the Issuer nor any other party liable or to become liable
hereunder, under the Notes or under any other instruments and agreements related hereto and thereto
shall ever be liable for interest in excess of the amount determined at such maximum rate, and the
provisions of this Section shall control over all other provisions of this Indenture, the Notes or
any other instrument pertaining to or relating to the transactions herein or therein contemplated.
If any amount of interest taken or received by the Indenture Trustee or any Holder of a Note shall
be in excess of said maximum amount of interest which, under applicable law, could lawfully have
been collected by the Indenture Trustee or such Holder incident to such transactions, then such
excess shall be deemed to have been the result of a mathematical error by all parties hereto and
shall be automatically applied to the reduction of the principal amount owing under the Notes or if
such excessive interest exceeds the unpaid principal balance of the Notes, such excess shall be
refunded promptly by the Person receiving such amount to the party paying such amount. All amounts
paid or agreed to be paid in connection with such transactions which would under applicable law be
deemed “interest” shall, to the extent permitted by such applicable law, be amortized, prorated,
allocated and spread throughout the stated term of the Indenture. “Applicable law” as used in this
paragraph means that law in effect from time to time which permits the charging and collection of
the highest permissible lawful, nonusurious rate of interest on the transactions herein
contemplated including laws of each State which may be held to be applicable and of the United
States of America, and “maximum rate” as used in this paragraph means, with respect to each of the
Notes, the maximum lawful, nonusurious rates of interest (if any) which under applicable law may be
charged to the Issuer from time to time with respect to such Notes.

SECTION 11.19. No Legal Title in Holders.

No Holder of a Note shall have legal title to any part of the Trust Property. No transfer, by
operation of law or otherwise, of any Note or other right, title and interest of any Holder of a
Note in and to the Trust Property or hereunder shall operate to terminate this Indenture or the
trusts hereunder or entitle any successor or transferee of such Holder to an accounting or to the
transfer to it of legal title to any part of the Trust Property.

SECTION 11.20. Third Party Beneficiary.

The parties hereto acknowledge and agree that the Noteholders are express third party beneficiaries
of this Indenture.

SECTION 11.21. Multiple Roles.

The parties expressly acknowledge and consent to Wells Fargo Bank, National Association acting in
the possible dual capacity of successor Servicer and in the capacities of Indenture Trustee and
Trust Collateral Agent. Wells Fargo Bank, National Association may, in such dual capacity,
discharge its separate functions fully, without hindrance or regard to conflict of interest
principles, duty of loyalty principles or other breach of fiduciary duties to the extent that any
such conflict or breach arises from the performance by Wells Fargo Bank, National Association of
express duties set forth in this Indenture or any other Basic Document in any of such capacities,
all of which defenses, claims or assertions are hereby expressly waived by the other parties hereto
except in the case of negligence (other than errors in judgment) and willful misconduct by Wells
Fargo Bank, National Association.

[THIS SPACE LEFT INTENTIONALLY BLANK]

IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture to be duly
executed by their respective officers, hereunto duly authorized, all as of the day and year first
above written.

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

By: U.S. Bank Trust National Association, not in its

individual capacity but solely as Owner Trustee,

By: /s/ Annette Morgan

Name: Annette E. Morgan

Title: Assistant Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION,

not in its individual capacity but solely as Indenture

Trustee,

By: /s/ Marianna Sterchic

Name: Marianna C. Sterchic

Title: Vice President

[Indenture Signature Page]

EXHIBIT A-1

FORM OF CLASS A NOTE

THIS CLASS A NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. ACCORDINGLY,
TRANSFER OF THIS CLASS A NOTE IS SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN THE INDENTURE. BY
ITS ACCEPTANCE OF THIS CLASS A NOTE THE HOLDER OF THIS CLASS A NOTE IS DEEMED TO REPRESENT TO THE
SELLER AND THE INDENTURE TRUSTEE THAT IT (I) IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE
ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED
INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING GIVEN ON RELIANCE ON RULE
144A OR (II) IS AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF PARAGRAPHS (1), (2),
(3) AND (7) OF RULE 501(A) OF THE SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) AND IS
ACQUIRING SUCH NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR
AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED INVESTORS).

NO SALE, PLEDGE OR OTHER TRANSFER OF A CLASS A NOTE SHALL BE MADE UNLESS SUCH SALE, PLEDGE OR
OTHER TRANSFER IS (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B)
FOR SO LONG AS THE CLASS A NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT TO A PERSON THE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (C) IS OTHERWISE MADE IN A TRANSFER EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF
PARAGRAPHS (1), (2), (3) AND (7) OF RULE 501(A) OF THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OR ACCOUNTS OF AN INSTITUTIONAL ACCREDITED INVESTOR OR (D) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IS MADE IN
ACCORDANCE WITH SAID ACT AND THE APPLICABLE STATE SECURITIES AND BLUE SKY LAWS. IN CONNECTION WITH
A TRANSFER UNDER CLAUSE (C) OR (D) ABOVE, THE INDENTURE TRUSTEE SHALL REQUIRE THAT THE PROSPECTIVE
TRANSFEREE CERTIFY TO THE INDENTURE TRUSTEE AND THE SELLER, IN WRITING THE FACTS SURROUNDING SUCH
TRANSFER, WHICH CERTIFICATION SHALL BE IN FOR AND SUBSTANCE DESCRIBED IN THE INDENTURE. THE
INDENTURE TRUSTEE MAY REQUIRE AN OPINION OF COUNSEL TO BE DELIVERED TO IT IN CONNECTION WITH ANY
TRANSFER OF THE NOTES PURSUANT TO CLAUSES (A), (C) OR (D) ABOVE. ALL OPINIONS OF COUNSEL REQUIRED
IN CONNECTION WITH ANY TRANSFER SHALL BE BY COUNSEL REASONABLY ACCEPTABLE TO THE INDENTURE TRUSTEE.
ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE IMMEDIATELY PRECEDING RESTRICTION WILL BE VOID AB
INITIO AND THE PURPORTED TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER OF THE NOTES FOR ALL
PURPOSES.

EACH TRANSFEREE OF THIS CLASS A NOTE OR ANY INTEREST THEREIN IS DEEMED TO REPRESENT AND
WARRANT THAT, WITH RESPECT TO THE SOURCE OF FUNDS TO BE USED BY SUCH TRANSFEREE TO ACQUIRE THIS
CLASS A NOTE OR ANY INTEREST THEREIN (THE “SOURCE”) EITHER (A) SUCH SOURCE IS NOT, AND IS NOT
DIRECTLY OR INDIRECTLY ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR
OTHER ARRANGEMENT SUBJECT TO TITLE I OF ERISA, A “PLAN” TO WHICH SECTION 4975 OF THE CODE APPLIES,
OR A PLAN OR OTHER ARRANGEMENT THAT IS SUBJECT TO ANY PROVISION OF ANY FEDERAL, STATE, LOCAL OR
OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR
THE CODE (“SIMILAR LAW”), OR (B) THE ACQUISITION AND HOLDING OF SUCH NOTES OR INTEREST THEREIN BY
SUCH SOURCE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406
OF ERISA OR SECTION 4975 OF THE CODE, OR A VIOLATION OF SIMILAR LAW.

[UNLESS THIS CLASS A NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS A NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

1

REGISTERED

CUSIP 22532GAA3

No. A-1

THE PRINCIPAL OF THIS CLASS A NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

2.06% CLASS A ASSET BACKED NOTES

Credit Acceptance Auto Loan Trust 2010-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to [      ], or registered assigns, the principal sum of
[      ] DOLLARS ($[      ]) payable on each Distribution Date in an amount
equal to the aggregate amount, if any, payable from the Class A Note Distribution Account in
respect of principal on the Class A Notes pursuant to Section 3.1 of the Indenture and Section 5.09
of the Sale and Servicing Agreement until the Class A Note Balance is reduced to zero;
provided, however, that the entire unpaid principal amount of this Class A Note
shall be due and payable on April 16, 2018 (the “Class A Stated Final Maturity Date”). The Issuer
will pay interest on this Class A Note at the rate per annum shown above (the “Class A Note Rate”),
which shall be due and payable on each Distribution Date until the principal of this Class A Note
is paid, on the principal amount of this Class A Note outstanding on the last day of the
immediately preceding Collection Period. Interest on this Class A Note will accrue for each
Distribution Date from the preceding Distribution Date to (or, in the case of the initial
Distribution Date, from the Closing Date) but excluding the current Distribution Date. Interest
will be computed on the basis of a 360-day year and twelve thirty day months.

This Class A Note is one of a duly authorized issue of notes of the Issuer, designated as its
2.06% Class A Asset Backed Notes (the “Class A Notes”), issued under an Indenture dated as of
November 4, 2010 (such indenture, as supplemented or amended, is herein called the “Indenture”),
between the Issuer and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture
Trustee”, which term includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders
of the Class A Notes. The Class A Notes are subject to all terms of the Indenture and the Sale and
Servicing Agreement. All terms used in this Class A Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture,
as so supplemented or amended.

The Class A Notes are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture.

On each Distribution Date, Holders of the Class A Notes will be entitled to the Class A
Interest Distributable Amount and its Class A Principal Distributable Amount in accordance with the
terms of the Indenture. “Distribution Date” means the fifteenth day of each month, or, if any such
date is not a Business Day, the next succeeding Business Day, commencing November 15, 2010.

As described above, the entire unpaid principal amount of this Class A Note shall be due and
payable on the earlier of the Class A Stated Final Maturity Date and the Redemption Date, if any,
pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire
unpaid principal amount of the Class A Notes shall be due and payable if an Indenture Event of
Default shall have occurred and be continuing, and the Class A Notes have been accelerated subject
to the terms of the Indenture.

All principal payments on the Class A Notes shall be made pro rata to the Class A Noteholders
entitled thereto.

Upon written notice from the Issuer, the Indenture Trustee shall notify the Person in whose
name a Class A Note is registered at the close of business on the Record Date preceding the
Distribution Date on which the Issuer expects that the final installment of principal of and
interest on such Class A Note will be paid. Such notice shall be mailed or transmitted by facsimile
prior to such final Distribution Date and shall specify that such final installment will be payable
only upon presentation and surrender of such Class A Note and shall specify the place where such
Class A Note may be presented and surrendered for payment of such installment. Notices in
connection with purchases of Class A Notes shall be mailed to Class A Noteholders as provided in
the Indenture.

Distributions required to be made to Class A Noteholders on any Distribution Date shall be
made to each Class A Noteholder of record on the preceding Record Date either by wire transfer, in
immediately available funds, to the account of such Holder at a bank or other entity having
appropriate facilities therefor, if (i) such Class A Noteholder shall have provided to the Note
Registrar appropriate written instructions at least ten (10) Business Days prior to such
Distribution Date and such Holder’s Notes in the aggregate evidence a denomination of not less than
$250,000 and integral multiples of $1,000 or (ii) such Class A Noteholder is the Seller, or an
Affiliate thereof, or, if not, by check mailed to such Class A Noteholder at the address of such
holder appearing in the Note Register.

The Issuer shall pay interest on overdue installments of interest on the Class A Notes at the
Class A Note Rate to the extent lawful.

As provided in the Indenture, the Class A Notes may be redeemed pursuant to Section
10.1 of the Indenture, in whole, but not in part, at the option of the Servicer, on any
Distribution Date on or after the date on which the sum of the Class A Note Balance and the Class B
Note Balance is less than or equal to 10% of the sum of the initial Class A Note Balance plus the
initial Class B Note Balance.

As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Class A Note may be registered on the Note Register upon surrender of this Class A
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, (i) accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee and the Note Registrar duly executed by, the Holder hereof or his or her attorney
duly authorized in writing, and (ii) accompanied by such other documents as the Indenture Trustee
may require, and thereupon one or more new Class A Notes of authorized denominations and in the
same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Class A Note,
but the Indenture Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such transfer or exchange of the
Class A Notes.

Each Noteholder, by acceptance of a Class A Note covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer, the Seller, the
Servicer, the Owner Trustee, the Indenture Trustee or the Trust Collateral Agent under the
Indenture or any certificate or other writing delivered in connection herewith or therewith,
against (i) the Seller, the Servicer, the Indenture Trustee or the Trust Collateral Agent or the
Owner Trustee, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Issuer, the Seller, the Servicer, the
Indenture Trustee or the Trust Collateral Agent or the Owner Trustee in its individual capacity,
any holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or
the Indenture Trustee or the Trust Collateral Agent or of any successor or assign of the Seller,
the Servicer, the Indenture Trustee, the Owner Trustee in its individual capacity, or the Trust
Collateral Agent except as any such Person may have expressly agreed (it being understood that the
Indenture Trustee or the Trust Collateral Agent and the Owner Trustee have no such obligations in
their individual capacity) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such entity.

Each Class A Noteholder, by acceptance of a Class A Note, covenants and agrees that by
accepting the benefits of the Indenture that such Class A Noteholder will not at any time institute
against the Seller or the Issuer or join in any institution against the Seller or the Issuer of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Class A Notes, the Indenture or the Basic Documents. In addition,
each Class A Noteholder, by acceptance of a Class A Note, agrees to treat the Class A Notes as
indebtedness of the Issuer.

Prior to the due presentment for registration of transfer of this Class A Note, the Issuer,
the Indenture Trustee and the Note Registrar and any agent of the Issuer, the Indenture Trustee and
the Note Registrar may treat the Person in whose name this Class A Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Class A Note be overdue, and neither the Issuer,
the Indenture Trustee, the Note Registrar nor any such agent shall be bound by notice to the
contrary.

The term “Issuer” as used in this Class A Note includes any successor to the Issuer under the
Indenture.

The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Class A Notes under
the Indenture.

The Class A Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

This Class A Note and the Indenture shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

No reference herein to the Indenture and no provision of this Class A Note or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Class A Note at the times, place, and rate, and in the coin or
currency herein prescribed.

Anything herein to the contrary notwithstanding, except as expressly provided in the Indenture
or the Basic Documents, neither U.S. Bank Trust National Association in its individual capacity,
any owner of a beneficial interest in the Issuer, nor any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally
liable for, nor shall recourse be had to any of them for, the payment of principal of or interest
on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Class A Note or the Indenture, it being expressly understood
that said covenants, obligations and indemnifications have been made by the Owner Trustee for the
sole purposes of binding the interests of the Owner Trustee in the assets of the Issuer. The
Holder of this Class A Note by the acceptance hereof agrees that except as expressly provided in
the Indenture or the Basic Documents, in the case of an Indenture Event of Default, the Holder
shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent recourse
to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class A Note.

The principal of and interest on this Class A Note are payable 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. All payments made by the Issuer with respect to this Class A Note shall be applied
first to interest due and payable on this Class A Note as provided above and then to the unpaid
principal of this Class A Note.

Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class A Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

2

IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer as of the date set forth below.

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

	 	 	 	By: U.S. BANK TRUST
NATIONAL ASSOCIATION, not in its individual capacity but
solely as Owner Trustee under the Trust Agreement

By:

Name:

Title:

Dated: 

3

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes designated above and referred to in the within-mentioned
Indenture.

	 	 	 
	Date:
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity

but solely as Indenture Trustee,

by:

	 	 	 

	 	 	Authorized Signatory

4

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

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

(name and address of assignee)

the within Class A Note and all rights thereunder, and hereby irrevocably constitutes and appoints,
attorney, to transfer said Class A Note on the books kept for registration thereof, with full power
of substitution in the premises.

Dated: 1

EXHIBIT A-2

FORM OF CLASS B NOTE

THIS CLASS B NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. ACCORDINGLY,
TRANSFER OF THIS CLASS B NOTE IS SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN THE INDENTURE. BY
ITS ACCEPTANCE OF THIS CLASS B NOTE THE HOLDER OF THIS CLASS B NOTE IS DEEMED TO REPRESENT TO THE
SELLER AND THE INDENTURE TRUSTEE THAT IT (I) IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE
ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED
INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING GIVEN ON RELIANCE ON RULE
144A OR (II) IS AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF PARAGRAPHS (1), (2),
(3) AND (7) OF RULE 501(A) OF THE SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) AND IS
ACQUIRING SUCH NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR
AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED INVESTORS).

NO SALE, PLEDGE OR OTHER TRANSFER OF A CLASS B NOTE SHALL BE MADE UNLESS SUCH SALE, PLEDGE OR
OTHER TRANSFER IS (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B)
FOR SO LONG AS THE CLASS B NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT TO A PERSON THE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (C) OTHERWISE MADE IN A TRANSFER EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF PARAGRAPHS
(1), (2), (3) AND (7) OF RULE 501(A) OF THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OR ACCOUNTS OF AN INSTITUTIONAL ACCREDITED INVESTOR OR (D) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IS MADE IN
ACCORDANCE WITH SAID ACT AND THE APPLICABLE STATE SECURITIES AND BLUE SKY LAWS. IN CONNECTION WITH
A TRANSFER UNDER CLAUSE (C) OR (D) ABOVE, THE INDENTURE TRUSTEE SHALL REQUIRE THAT THE PROSPECTIVE
TRANSFEREE CERTIFY TO THE INDENTURE TRUSTEE AND THE SELLER, IN WRITING THE FACTS SURROUNDING SUCH
TRANSFER, WHICH CERTIFICATION SHALL BE IN FOR AND SUBSTANCE DESCRIBED IN THE INDENTURE. THE
INDENTURE TRUSTEE MAY REQUIRE AN OPINION OF COUNSEL TO BE DELIVERED TO IT IN CONNECTION WITH ANY
TRANSFER OF THE NOTES PURSUANT TO CLAUSES (A), (C) OR (D) ABOVE. ALL OPINIONS OF COUNSEL REQUIRED
IN CONNECTION WITH ANY TRANSFER SHALL BE BY COUNSEL REASONABLY ACCEPTABLE TO THE INDENTURE TRUSTEE.
ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE IMMEDIATELY PRECEDING RESTRICTION WILL BE VOID AB
INITIO AND THE PURPORTED TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER OF THE NOTES FOR ALL
PURPOSES.

EACH TRANSFEREE OF THIS CLASS B NOTE OR ANY INTEREST THEREIN IS DEEMED TO REPRESENT AND
WARRANT THAT, WITH RESPECT TO THE SOURCE OF FUNDS TO BE USED BY SUCH TRANSFEREE TO ACQUIRE THIS
CLASS B NOTE OR ANY INTEREST THEREIN (THE “SOURCE”) EITHER (A) SUCH SOURCE IS NOT, AND IS NOT
DIRECTLY OR INDIRECTLY ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR
OTHER ARRANGEMENT SUBJECT TO TITLE I OF ERISA, A “PLAN” TO WHICH SECTION 4975 OF THE CODE APPLIES,
OR A PLAN OR OTHER ARRANGEMENT THAT IS SUBJECT TO ANY PROVISION OF ANY FEDERAL, STATE, LOCAL OR
OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR
THE CODE (“SIMILAR LAW”), OR (B) THE ACQUISITION AND HOLDING OF SUCH NOTES OR INTEREST THEREIN BY
SUCH SOURCE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406
OF ERISA OR SECTION 4975 OF THE CODE, OR A VIOLATION OF SIMILAR LAW.

[UNLESS THIS CLASS B NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CLASS B NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

        .

1NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Class A Note in every particular, without alteration, enlargement or
any change whatsoever.

5

REGISTERED

CUSIP 22532GAB1

No. B-1

THE PRINCIPAL OF THIS CLASS B NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS B NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF. IN ADDITION, THE PAYMENT OF PRINCIPAL AND INTEREST, RESPECTIVELY,
ON THIS CLASS B NOTE IS SUBORDINATE TO THE PRIOR PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE
CLASS A NOTES, RESPECTIVELY, AS PROVIDED IN THE INDENTURE.

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

3.63% CLASS B ASSET BACKED NOTES

Credit Acceptance Auto Loan Trust 2010-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to [      ], or registered assigns, the principal sum of
[      ] DOLLARS ($[      ]) payable on each Distribution Date in an amount
equal to the aggregate amount, if any, payable from the Class B Note Distribution Account in
respect of principal on the Class B Notes pursuant to Section 3.1 of the Indenture and Section 5.09
of the Sale and Servicing Agreement until the Class B Note Balance is reduced to zero;
provided, however, that the entire unpaid principal amount of this Class B Note
shall be due and payable on October 15, 2018 (the “Class B Stated Final Maturity Date”). The
Issuer will pay interest on this Class B Note at the rate per annum shown above (the “Class B Note
Rate”), which shall be due and payable on each Distribution Date until the principal of this Class
B Note is paid, on the principal amount of this Class B Note outstanding on the last day of the
immediately preceding Collection Period. Interest on this Class B Note will accrue for each
Distribution Date from the preceding Distribution Date to (or, in the case of the initial
Distribution Date, from the Closing Date) but excluding the current Distribution Date. Interest
will be computed on the basis of a 360-day year and twelve thirty day months.

This Class B Note is one of a duly authorized issue of notes of the Issuer, designated as its
3.63% Class B Asset Backed Notes (the “Class B Notes”), issued under an Indenture dated as of
November 4, 2010 (such indenture, as supplemented or amended, is herein called the “Indenture”),
between the Issuer and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture
Trustee”, which term includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders
of the Class B Notes. The Class B Notes are subject to all terms of the Indenture and the Sale and
Servicing Agreement. All terms used in this Class B Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture,
as so supplemented or amended.

The Class B Notes are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture.

On each Distribution Date, Holders of the Class B Notes will be entitled to the Class B
Interest Distributable Amount and its Class B Principal Distributable Amount in accordance with the
terms of the Indenture. “Distribution Date” means the fifteenth day of each month, or, if any such
date is not a Business Day, the next succeeding Business Day, commencing November 15, 2010.

As described above, the entire unpaid principal amount of this Class B Note shall be due and
payable on the earlier of the Class B Stated Final Maturity Date and the Redemption Date, if any,
pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire
unpaid principal amount of the Class B Notes shall be due and payable if an Indenture Event of
Default shall have occurred and be continuing, and the Class B Notes have been accelerated subject
to the terms of the Indenture.

All principal payments on the Class B Notes shall be made pro rata to the Class B Noteholders
entitled thereto.

Upon written notice from the Issuer, the Indenture Trustee shall notify the Person in whose
name a Class B Note is registered at the close of business on the Record Date preceding the
Distribution Date on which the Issuer expects that the final installment of principal of and
interest on such Class B Note will be paid. Such notice shall be mailed or transmitted by facsimile
prior to such final Distribution Date and shall specify that such final installment will be payable
only upon presentation and surrender of such Class B Note and shall specify the place where such
Class B Note may be presented and surrendered for payment of such installment. Notices in
connection with purchases of Class B Notes shall be mailed to Class B Noteholders as provided in
the Indenture.

Distributions required to be made to Class B Noteholders on any Distribution Date shall be
made to each Class B Noteholder of record on the preceding Record Date either by wire transfer, in
immediately available funds, to the account of such Holder at a bank or other entity having
appropriate facilities therefor, if (i) such Class B Noteholder shall have provided to the Note
Registrar appropriate written instructions at least ten (10) Business Days prior to such
Distribution Date and such Holder’s Notes in the aggregate evidence a denomination of not less than
$250,000 and integral multiples of $1,000 or (ii) such Class B Noteholder is the Seller, or an
Affiliate thereof, or, if not, by check mailed to such Class B Noteholder at the address of such
holder appearing in the Note Register.

The Issuer shall pay interest on overdue installments of interest on the Class B Notes at the
Class B Note Rate to the extent lawful.

As provided in the Indenture, the Class B Notes may be redeemed pursuant to Section
10.1 of the Indenture, in whole, but not in part, at the option of the Servicer, on any
Distribution Date on or after the date on which the sum of the Class A Note Balance and the Class B
Note Balance is less than or equal to 10% of the sum of the initial Class A Note Balance plus the
initial Class B Note Balance.

As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Class B Note may be registered on the Note Register upon surrender of this Class B
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, (i) accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee and the Note Registrar duly executed by, the Holder hereof or his or her attorney
duly authorized in writing, and (ii) accompanied by such other documents as the Indenture Trustee
may require, and thereupon one or more new Class B Notes of authorized denominations and in the
same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Class B Note,
but the Indenture Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such transfer or exchange of the
Class B Notes.

Each Noteholder, by acceptance of a Class B Note covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer, the Seller, the
Servicer, the Owner Trustee, the Indenture Trustee or the Trust Collateral Agent under the
Indenture or any certificate or other writing delivered in connection herewith or therewith,
against (i) the Seller, the Servicer, the Indenture Trustee or the Trust Collateral Agent or the
Owner Trustee, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Issuer, the Seller, the Servicer, the
Indenture Trustee or the Trust Collateral Agent or the Owner Trustee in its individual capacity,
any holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or
the Indenture Trustee or the Trust Collateral Agent or of any successor or assign of the Seller,
the Servicer, the Indenture Trustee, the Owner Trustee in its individual capacity, or the Trust
Collateral Agent except as any such Person may have expressly agreed (it being understood that the
Indenture Trustee or the Trust Collateral Agent and the Owner Trustee have no such obligations in
their individual capacity) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such entity.

Each Class B Noteholder, by acceptance of a Class B Note, covenants and agrees that by
accepting the benefits of the Indenture that such Class B Noteholder will not at any time institute
against the Seller or the Issuer or join in any institution against the Seller or the Issuer of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Class B Notes, the Indenture or the Basic Documents. In addition,
each Class B Noteholder, by acceptance of a Class B Note, agrees to treat the Class B Notes as
indebtedness of the Issuer.

Prior to the due presentment for registration of transfer of this Class B Note, the Issuer,
the Indenture Trustee and the Note Registrar and any agent of the Issuer, the Indenture Trustee and
the Note Registrar may treat the Person in whose name this Class B Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Class B Note be overdue, and neither the Issuer,
the Indenture Trustee, the Note Registrar nor any such agent shall be bound by notice to the
contrary.

The term “Issuer” as used in this Class B Note includes any successor to the Issuer under the
Indenture.

The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Class B Notes under
the Indenture.

The Class B Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

This Class B Note and the Indenture shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

No reference herein to the Indenture and no provision of this Class B Note or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Class B Note at the times, place, and rate, and in the coin or
currency herein prescribed.

Anything herein to the contrary notwithstanding, except as expressly provided in the Indenture
or the Basic Documents, neither U.S. Bank Trust National Association in its individual capacity,
any owner of a beneficial interest in the Issuer, nor any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally
liable for, nor shall recourse be had to any of them for, the payment of principal of or interest
on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Class B Note or the Indenture, it being expressly understood
that said covenants, obligations and indemnifications have been made by the Owner Trustee for the
sole purposes of binding the interests of the Owner Trustee in the assets of the Issuer. The
Holder of this Class B Note by the acceptance hereof agrees that except as expressly provided in
the Indenture or the Basic Documents, in the case of an Indenture Event of Default, the Holder
shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent recourse
to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class B Note.

The principal of and interest on this Class B Note are payable 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. All payments made by the Issuer with respect to this Class B Note shall be applied
first to interest due and payable on this Class B Note as provided above and then to the unpaid
principal of this Class B Note.

Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class B Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

6

IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer as of the date set forth below.

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

	 	 	 	By: U.S. BANK TRUST
NATIONAL ASSOCIATION, not in its individual capacity but
solely as Owner Trustee under the Trust Agreement

By:

Name:

Title:

Dated: 

7

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class B Notes designated above and referred to in the within-mentioned
Indenture.

	 	 	 
	Date:
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity

but solely as Indenture Trustee,

by:

	 	 	 

	 	 	Authorized Signatory

8

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

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

(name and address of assignee)

the within Class B Note and all rights thereunder, and hereby irrevocably constitutes and appoints,
attorney, to transfer said Class B Note on the books kept for registration thereof, with full power
of substitution in the premises.

Dated: 2EXHIBIT A-3

FORM OF CLASS C NOTE

THIS CLASS C NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY STATE. ACCORDINGLY,
TRANSFER OF THIS CLASS C NOTE IS SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN THE INDENTURE. BY
ITS ACCEPTANCE OF THIS CLASS C NOTE THE HOLDER OF THIS CLASS C NOTE IS DEEMED TO REPRESENT TO THE
SELLER AND THE INDENTURE TRUSTEE THAT IF IT IS THE INITIAL HOLDER, IT IS THE SELLER OR IF IT IS A
SUBSEQUENT HOLDER, IT IS (I) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS)
OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) OR
(II) AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF PARAGRAPHS (1), (2), (3) AND (7)
OF RULE 501(A) OF THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR ITS OWN ACCOUNT (AND NOT FOR
THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL
ACCREDITED INVESTORS).

NO SALE, PLEDGE OR OTHER TRANSFER OF A CLASS C NOTE SHALL BE MADE UNLESS SUCH SALE, PLEDGE OR OTHER
TRANSFER IS (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) FOR
SO LONG AS THE CLASS C NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT
TO A PERSON THE TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (C) OTHERWISE MADE IN A TRANSFER EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, TO A PERSON THAT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF PARAGRAPHS
(1), (2), (3) AND (7) OF RULE 501(A) OF THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OR ACCOUNTS OF AN INSTITUTIONAL ACCREDITED INVESTOR OR (D) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IS MADE IN
ACCORDANCE WITH SAID ACT AND THE APPLICABLE STATE SECURITIES AND BLUE SKY LAWS. THE INDENTURE
TRUSTEE MAY REQUIRE AN OPINION OF COUNSEL TO BE DELIVERED TO IT IN CONNECTION WITH ANY TRANSFER OF
THE NOTES PURSUANT TO CLAUSES (A), (C) OR (D) ABOVE. THIS NOTE IS SUBJECT TO ADDITIONAL
RESTRICTIONS ON RESALE OR TRANSFER SET FORTH IN SECTION 2.3 OF THE INDENTURE (AS DEFINED HEREIN).

ALL OPINIONS OF COUNSEL REQUIRED IN CONNECTION WITH ANY TRANSFER SHALL BE BY COUNSEL
REASONABLY ACCEPTABLE TO THE INDENTURE TRUSTEE.

EACH TRANSFEREE OF THIS CLASS C NOTE OR INTEREST THEREIN IS DEEMED TO REPRESENT AND WARRANT
THAT, WITH RESPECT TO THE SOURCE OF FUNDS TO BE USED BY SUCH TRANSFEREE TO ACQUIRE THIS CLASS C
NOTE OR INTEREST THEREIN (THE “SOURCE”) EITHER (A) SUCH SOURCE IS NOT, AND IS NOT DIRECTLY OR
INDIRECTLY ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER
ARRANGEMENT SUBJECT TO TITLE I OF ERISA, A “PLAN” TO WHICH SECTION 4975 OF THE CODE APPLIES, OR A
PLAN OR OTHER ARRANGEMENT THAT IS SUBJECT TO ANY PROVISION OF ANY FEDERAL, STATE, LOCAL OR OTHER
LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE
(“SIMILAR LAW”), OR (B) THE ACQUISITION AND HOLDING OF SUCH NOTES OR INTEREST THEREIN BY SUCH
SOURCE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE, OR A VIOLATION OF SIMILAR LAW.

ANY TRANSFER IN VIOLATION OF THE FOREGOING OR THE RESTRICTIONS SET FORTH IN SECTIONS 2.3 OF THE
INDENTURE (AS DEFINED HEREIN) WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT
OPERATE TO TRANSFER ANY RIGHTS TO THE PURCHASER OR TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO
THE CONTRARY TO THE ISSUER, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY.

2NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Class B Note in every particular, without alteration, enlargement or
any change whatsoever.

9

No. C-1

THE PRINCIPAL OF THIS CLASS C NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS C NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF. IN ADDITION, THE PAYMENT OF PRINCIPAL ON THIS CLASS C NOTE IS
SUBORDINATE TO THE PRIOR PAYMENT OF THE PRINCIPAL OF THE CLASS A NOTES AND THE CLASS B NOTES AS
PROVIDED IN THE INDENTURE.

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

CLASS C PRINCIPAL-ONLY ASSET BACKED NOTES

Credit Acceptance Auto Loan Trust 2010-1, a statutory trust organized and existing under the
laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to Credit Acceptance Funding LLC 2010-1, or registered assigns, the principal sum
of [      ] DOLLARS ($[      ]) payable on each Distribution Date in an
amount equal to the aggregate amount, if any, payable from the Class C Note Distribution Account in
respect of principal on the Class C Notes pursuant to Section 3.1 of the Indenture and Section 5.09
of the Sale and Servicing Agreement until the Class C Note Balance is reduced to zero;
provided, however, that the entire unpaid principal amount of this Class C Note
shall be due and payable on April 15, 2019 (the “Class C Stated Final Maturity Date”).

This Class C Note is one of a duly authorized issue of notes of the Issuer, designated as the
Class C Principal-Only Asset Backed Notes (the “Class C Notes”), issued under an Indenture dated as
of November 4, 2010 (such indenture, as supplemented or amended, is herein called the “Indenture”),
between the Issuer and Wells Fargo Bank, National Association, as indenture trustee (the “Indenture
Trustee”, which term includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders
of the Class C Notes. The Class C Notes are subject to all terms of the Indenture and the Sale and
Servicing Agreement. All terms used in this Class C Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture,
as so supplemented or amended.

The Class C Notes are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture.

On each Distribution Date, Holders of the Class C Notes will be entitled to its Class C
Principal Distributable Amount in accordance with the terms of the Indenture. “Distribution Date”
means the fifteenth day of each month, or, if any such date is not a Business Day, the next
succeeding Business Day, commencing November 15, 2010.

As described above, the entire unpaid principal amount of this Class C Note shall be due and
payable on the earlier of the Class C Stated Final Maturity Date and the Redemption Date, if any,
pursuant to Section 10.1 of the Indenture. Notwithstanding the foregoing, the entire
unpaid principal amount of the Class C Notes shall be due and payable if an Indenture Event of
Default shall have occurred and be continuing, and the Class C Notes have been accelerated subject
to the terms of the Indenture.

All principal payments on the Class C Notes shall be made pro rata to the Class C Noteholders
entitled thereto.

Upon written notice from the Issuer, the Indenture Trustee shall notify the Person in whose
name a Class C Note is registered at the close of business on the Record Date preceding the
Distribution Date on which the Issuer expects that the final installment of principal of such Class
C Note will be paid. Such notice shall be mailed or transmitted by facsimile prior to such final
Distribution Date and shall specify that such final installment will be payable only upon
presentation and surrender of such Class C Note and shall specify the place where such Class C Note
may be presented and surrendered for payment of such installment. Notices in connection with
purchases of Class C Notes shall be mailed to Class C Noteholders as provided in the Indenture.

Distributions required to be made to Class C Noteholders on any Distribution Date shall be
made to each Class C Noteholder of record on the preceding Record Date either by wire transfer, in
immediately available funds, to the account of such Holder at a bank or other entity having
appropriate facilities therefor, if (i) such Class C Noteholder shall have provided to the Note
Registrar appropriate written instructions at least ten (10) Business Days prior to such
Distribution Date and such Holder’s Notes in the aggregate evidence a denomination of not less than
$250,000 and integral multiples of $1,000 or (ii) such Class C Noteholder is the Seller, or an
Affiliate thereof, or, if not, by check mailed to such Class C Noteholder at the address of such
holder appearing in the Note Register.

As provided in the Indenture, the Class C Notes may be redeemed pursuant to Section
10.1 of the Indenture, in whole, but not in part, at the option of the Servicer, on any
Distribution Date on or after the date on which the sum of the Class A Note Balance and the Class B
Note Balance is less than or equal to 10% of the sum of the initial Class A Note Balance plus the
initial Class B Note Balance.

As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Class C Note may be registered on the Note Register upon surrender of this Class C
Note for registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, (i) accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee and the Note Registrar duly executed by, the Holder hereof or his or her attorney
duly authorized in writing, and (ii) accompanied by such other documents as the Indenture Trustee
may require, and thereupon one or more new Class C Notes of authorized denominations and in the
same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Class C Note,
but the Indenture Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such transfer or exchange of the
Class C Notes.

Each Noteholder, by acceptance of a Class C Note covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer, the Seller, the
Servicer, the Owner Trustee, the Indenture Trustee or the Trust Collateral Agent under the
Indenture or any certificate or other writing delivered in connection herewith or therewith,
against (i) the Seller, the Servicer, the Indenture Trustee or the Trust Collateral Agent or the
Owner Trustee, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Issuer, the Seller, the Servicer, the
Indenture Trustee or the Trust Collateral Agent or the Owner Trustee in its individual capacity,
any holder of a beneficial interest in the Issuer, the Seller, the Servicer, the Owner Trustee or
the Indenture Trustee or the Trust Collateral Agent or of any successor or assign of the Seller,
the Servicer, the Indenture Trustee, the Owner Trustee in its individual capacity, or the Trust
Collateral Agent except as any such Person may have expressly agreed (it being understood that the
Indenture Trustee or the Trust Collateral Agent and the Owner Trustee have no such obligations in
their individual capacity) and except that any such partner, owner or beneficiary shall be fully
liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any installment or call owing to such entity.

Each Class C Noteholder, by acceptance of a Class C Note, covenants and agrees that by
accepting the benefits of the Indenture that such Class C Noteholder will not at any time institute
against the Seller or the Issuer or join in any institution against the Seller or the Issuer of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Class C Notes, the Indenture or the Basic Documents. In addition,
each Class C Noteholder, by acceptance of a Class C Note, agrees to treat the Class C Notes as
indebtedness of the Issuer.

Prior to the due presentment for registration of transfer of this Class C Note, the Issuer,
the Indenture Trustee and the Note Registrar and any agent of the Issuer, the Indenture Trustee and
the Note Registrar may treat the Person in whose name this Class C Note (as of the day of
determination or as of such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Class C Note be overdue, and neither the Issuer,
the Indenture Trustee, the Note Registrar nor any such agent shall be bound by notice to the
contrary.

The term “Issuer” as used in this Class C Note includes any successor to the Issuer under the
Indenture.

The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Class C Notes under
the Indenture.

The Class C Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth.

This Class C Note and the Indenture shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

No reference herein to the Indenture and no provision of this Class C Note or of the Indenture
shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of this Class C Note at the times and place, and in the coin or currency herein
prescribed.

Anything herein to the contrary notwithstanding, except as expressly provided in the Indenture
or the Basic Documents, neither U.S. Bank Trust National Association in its individual capacity,
any owner of a beneficial interest in the Issuer, nor any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally
liable for, nor shall recourse be had to any of them for, the payment of principal of, or
performance of, or omission to perform, any of the covenants, obligations or indemnifications
contained in this Class C Note or the Indenture, it being expressly understood that said covenants,
obligations and indemnifications have been made by the Owner Trustee for the sole purposes of
binding the interests of the Owner Trustee in the assets of the Issuer. The Holder of this Class C
Note by the acceptance hereof agrees that except as expressly provided in the Indenture or the
Basic Documents, in the case of an Indenture Event of Default, the Holder shall have no claim
against any of the foregoing for any deficiency, loss or claim therefrom; provided,
however, that nothing contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Class C Note.

The principal of this Class C Note are payable 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. All
payments made by the Issuer with respect to this Class C Note shall be applied to the unpaid
principal of this Class C Note.

Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Class C Note shall not be entitled to any
benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

10

IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer as of the date set forth below.

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

	 	 	 	By: U.S. BANK TRUST
NATIONAL ASSOCIATION, not in its individual capacity but
solely as Owner Trustee under the Trust Agreement

By:

Name:

Title:

Dated: 

11

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Class C Notes designated above and referred to in the within-mentioned
Indenture.

	 	 	 
	Date:
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity

but solely as Indenture Trustee,

by:

	 	 	 

	 	 	Authorized Signatory

12

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

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

(name and address of assignee)

the within Class C Note and all rights thereunder, and hereby irrevocably constitutes and appoints,
attorney, to transfer said Class C Note on the books kept for registration thereof, with full power
of substitution in the premises.

Dated: 3

EXHIBIT B

FORM OF TRANSFEREE REPRESENTATION LETTER

Date:       

Credit Acceptance Corporation

Silver Triangle Building

25505 West Twelve Mile Road

Suite 3000

Southfield, Michigan 48034-8339

Wells Fargo Bank, National Association

MAC #9311-161

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Re: Credit Acceptance Auto Loan Trust 2010-1, $81,000,000 Class A Asset Backed Notes and
$19,500,000 Class B Asset Backed Notes

Ladies and Gentlemen:

In connection with our acquisition of the above Class A Asset Backed Notes and/or Class B
Asset Backed Notes (“Notes”) we certify that: (a) we understand that the Notes have not
been and will not be registered under the Securities Act of 1933, as amended (the “Securities
Act”), or any state securities laws, are being transferred to us in a transaction that is
exempt from the registration requirements of the Securities Act and any such laws and the Notes are
being transferred to it in a transaction not involving any public offering within the meaning of
the Securities Act; (b) we have such knowledge and experience in financial and business matters,
and we are a sophisticated institutional investor capable of evaluating the merits and risks of
investments in the Notes; (c) we are aware that we (or any investor account on behalf of which the
Notes may be purchased) may be required to bear the economic risk of an investment in the Notes for
an indefinite period of time, and we are (or such account is) able to bear such risk for an
indefinite period; (d) we have received and reviewed a copy of the Private Placement Memorandum,
dated October 27, 2010, relating to the Notes, and we have had the opportunity to ask questions of
and receive answers from the Issuer concerning the purchase of the Notes and all matters relating
thereto or any additional information deemed necessary to our decision to purchase the Notes; (e)
we represent and warrant that, with respect to the source of funds to be used by us to acquire the
Notes or any interest therein (the “Source”) either (i) such Source is not, and is not directly or
indirectly acting for, on behalf of or with any assets of, an employee benefit plan or other
arrangement subject to Title I of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), a “plan” to which Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”) applies, or a plan or other arrangement that is subject to any provision of any federal,
state, local or other laws or regulations that are substantively similar to the foregoing
provisions of ERISA or the Code (“Similar Law”), or (ii) the acquisition and holding of such Notes
or interest therein by such Source will not constitute or result in a non-exempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code, or a violation of Similar Law;
(f) we have not, nor has anyone acting on our behalf offered, transferred, pledged, sold or
otherwise disposed of the Notes, any interest in the Notes or any other similar security to, or
solicited any offer to buy or accept a transfer, pledge or other disposition of the Notes, any
interest in the Notes or any other similar security from, or otherwise approached or negotiated
with respect to the Notes, any interest in the Notes or any other similar security with, any person
in any manner, or made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the Notes under the
Securities Act or that would render the disposition of the Notes a violation of Section 5 of the
Securities Act or require registration pursuant thereto, nor will we act, nor have we authorized or
will we authorize any person to act, in such manner with respect to the Notes; (g) we are: (i) a
“qualified institutional buyer” within the meaning of Rule 144A under the Securities Act (“Rule
144A”) and are acquiring the Notes for our own institutional account or for the account or accounts
of a qualified institutional buyer; (ii) an institutional “accredited investor” within the meaning
of paragraphs (1), (2), (3) and (7) of Rule 501(a) under the Securities Act and are acquiring the
Notes for our own institutional account or one or more accounts of an institutional accredited
investor; or (iii) purchasing the Notes in a transaction exempt from registration under the
Securities Act and in compliance with the provisions of the Indenture and in compliance with the
legends placed on the Notes; and have completed the form of certification to that effect attached
hereto as Annex 1, in the case of clause (i) and Annex 2, in the case of clause (ii); and (h) we
have had the opportunity to ask questions and request information regarding the Notes, and we have
received responses satisfactory to us.

We are aware that the sale to us is being made in reliance on Rule 144A or another exemption
from the registration requirements of the Securities Act. We are acquiring the Notes for our own
account or for resale pursuant to Rule 144A or another exemption from the registration requirements
of the Securities Act and further understand that such Notes may be resold, pledged or transferred
only in accordance with applicable state securities laws and (i) in a transaction meeting the
requirements of Rule 144A, to a person reasonably believed to be a qualified institutional buyer
that purchases for its own account (or for the account or accounts of a qualified institutional
buyer) and to whom notice is given that the resale, pledge or transfer is being made in reliance on
Rule 144A, (ii) in a transaction meeting an exemption from the registration requirements of the
Securities Act, to a person that is an institutional accredited investor that purchases for its own
account (or for the account or accounts of an institutional accredited investor), or (iii) to a
person that is taking delivery of such Notes pursuant to a transaction that is otherwise exempt
from registration requirements under the Securities Act, as confirmed in an opinion of counsel.

       The Purchaser is a “U.S. Person” and it has attached hereto an Internal
Revenue Service (“IRS”) Form W-9 (or successor form).*

       The Purchaser is not a “U.S. Person” and under applicable law in effect on
the date hereof, no Taxes will be required to be withheld by the Note Registrar (or
its agent) with respect to Distributions to be made on the Note(s). The Purchaser
has attached hereto either (i) a duly executed IRS Form W 8BEN (or successor form),
which identifies such Purchaser as the beneficial owner of the Note(s) and states
that such Purchaser is not a U.S. Person or (ii) two duly executed copies of IRS
Form W-8ECI (or successor form), which identify such Purchaser as the beneficial
owner of the Note(s) and state that interest and original issue discount on the
Notes is, or is expected to be, effectively connected with a U.S. trade or business.
The Purchaser agrees to provide to the Note Registrar updated IRS Forms W-8BEN or
IRS Forms W-8ECI, as the case may be, any applicable successor IRS forms, or such
other certifications as the Note Registrar may reasonably request, on or before the
date that any such IRS form or certification expires or becomes obsolete, or
promptly after the occurrence of any event requiring a change in the most recent IRS
form of certification furnished by it to the Note Registrar.*

For this purpose, “U.S. Person” means a citizen or resident of the United States, a
corporation or partnership created or organized in or under the laws of the United States, any
state thereof or the District of Columbia (unless, in the case of a partnership, regulations are
adopted that provide otherwise), including an entity treated as a corporation or partnership for
federal income tax purposes, an estate the income of which is subject to U.S. federal income
taxation regardless of its source, or a trust if a court within the United States is able to
exercise primary supervision over the administration of such trust, and one or more such United
States persons have the authority to control all substantial decisions of such trust (or, to the
extent provided in applicable Treasury Regulations, certain trusts in existence on August 20, 1996
which are eligible to elect to be treated as U.S. Persons).

We acknowledge that restrictive legends have been placed on our Notes relating to the
foregoing and we not in violation thereof; and we understand the above addressees and others are
relying on our acknowledgments, representations, warranties or agreements in this letter and agree
to promptly notify such addressees if any of the acknowledgments, representations, warranties or
agreements made or deemed to have been made by us in connection with our purchase of the Notes are
no longer accurate.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

3NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Class C Note in every particular, without alteration, enlargement or
any change whatsoever.

* Select the applicable paragraph.

13

Very truly yours,

[      ]

By:

      Name:

      Title:

ANNEX 1

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule 144A
Transferee Certificate to which this certification relates with respect to the Notes described
therein:

1. As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice
President or other executive officer of the Buyer.

2. In connection with purchases by the Buyer, the Buyer is a “qualified institutional buyer” within
the meaning of Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”),
because (i) the Buyer owned and/or invested on a discretionary basis $10,000,000.004 in
securities (except for the excluded securities referred to below) as of the end of the Buyer’s most
recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Buyer
satisfies the criteria in the category marked below.

	 	 	 	       Corporation, etc. The Buyer is a corporation (other
than a bank, savings and loan association or similar institution),
Massachusetts or similar business trust, partnership, or charitable
organization described in Section 501(c) (3) of the Internal Revenue Code of
1986, as amended.

	 	 	 	       Bank. The Buyer (a) is a national bank or banking
institution organized under the laws of any state or territory of the United
States or the District of Columbia, the business of which is substantially
confined to banking and is supervised by the state or territorial banking
commission or similar official or is a foreign bank or equivalent institution,
and (b) has an audited net worth of at least $25,000,000.00 as demonstrated in
its latest annual financial statements, a copy of which is attached
hereto.

	 	 	 	       Savings and Loan. The Buyer (a) is a savings and loan
association, building and loan association, cooperative bank, homestead
association or similar institution, which is supervised and examined by a state
or federal authority having supervision over any such institutions or is a
foreign savings and loan association or equivalent institution, and (b) has an
audited net worth of at least $25,000,000.00 as demonstrated in its latest
annual financial statements, a copy of which is attached hereto.

	 	 	 	       Broker dealer. The Buyer is a dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934, as amended.

	 	 	 	       Insurance Company. The Buyer is an insurance company
whose primary and predominant business activity is the writing of insurance or
the reinsuring of risks underwritten by insurance companies and which is
subject to supervision by the insurance commissioner or a similar official or
agency of a state or territory of the United States or the District of
Columbia.

	 	 	 	       State or Local Plan. The Buyer is a plan established
and maintained by a state, its political subdivisions, or any agency or
instrumentality of the state or its political subdivisions, for the benefit of
its employees.

	 	 	 	       ERISA Plan. The Buyer is an employee benefit plan
within the meaning of Title I of the Employee Retirement Income Security Act of
1974, as amended.

	 	 	 	       Investment Advisor. The Buyer is an investment
advisor registered under the Investment Advisors Act of 1940, as amended.

	 	 	 	       Small Business Investment Company. The Buyer is a
small business investment company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business Investment Act
of 1958.

	 	 	 	       Business Development Company. The Buyer is a business
development company as defined in Section 202(a)(22) of the Investment Advisors
Act of 1940, as amended.

	 	 	 	       Other. The Buyer is an entity all of the equity
holders of which are qualified institutional buyers.

3. The term “securities” as used herein does not include (i) securities of issuers that are
affiliated with the Buyer; (ii) securities that are part of an unsold allotment to or subscription
by the Buyer, if the Buyer is a dealer; (iii) securities issued or guaranteed by the United States
or any instrumentality thereof; (iv) bank deposit notes and certificates of deposit; (v) loan
participations; (vi) repurchase agreements; (vii) securities owned but subject to a repurchase
agreement; and (viii) currency, interest rate and commodity swaps.

4. For purposes of determining the aggregate amount of securities owned and/or invested on a
discretionary basis by the Buyer, the Buyer used the cost of such securities to the Buyer and did
not include any of the securities referred to in the preceding paragraph, except (i) where the
Buyer reports its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those securities has been
published. If clause (ii) in the preceding sentence applies, the securities may be valued at
market. Further, in determining such aggregate amount, the Buyer may have included securities
owned by subsidiaries of the Buyer, but only if such subsidiaries are consolidated with the Buyer
in its financial statements prepared in accordance with generally accepted accounting principles
and if the investments of such subsidiaries are managed under the Buyer’s direction. However, such
securities were not included if the Buyer is a majority owned, consolidated subsidiary of another
enterprise and the Buyer is not itself a reporting company under the Securities Exchange Act of
1934, as amended.

5. The Buyer acknowledges that it is familiar with Rule 144A and understands that the seller to it
and other parties related to the Notes are relying and will continue to rely on the statements made
herein because one or more sales to the Buyer may be in reliance on Rule 144A.

6. Until the date of purchase of the Notes, the Buyer will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein. Until such notice
is given, the Buyer’s purchase of the Notes will constitute a reaffirmation of this certification
as of the date of such purchase. In addition, if the Buyer is a bank or savings and loan as
provided above, the Buyer agrees that it will furnish to such parties updated annual financial
statements promptly after they become available.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

	4	 	Buyer must own and/or invest on a
discretionary basis at least $100,000,000.00 in securities unless Buyer is a
dealer, and, in that case, Buyer must own and/or invest on a discretionary
basis at least $10,000,000.00 in securities.

14

[      ]

By:

      Name:

      Title:ANNEX 2

INSTITUTIONAL ACCREDITED INVESTOR STATUS

[For Transferees Other Than Registered Investment Companies]

The undersigned (the “Purchaser”) hereby certifies as follows to the parties listed in the
Transferee Certificate to which this certification relates with respect to the Notes described
therein:

1. As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice
President or other executive officer of the Purchaser.

2. In connection with purchases by the Purchaser, the Purchaser is an institutional “accredited
investor” within the meaning of paragraphs (1), (2), (3) and (7) of Rule 501(a) of the Securities
Act of 1933, as amended (the “Securities Act”), because the Purchaser satisfies the criteria in the
category marked below.

	 	 	 	       Corporation, etc. The Purchaser (i) is a corporation
(other than a bank, savings and loan association or similar institution),
partnership, limited liability company, business trust or tax-exempt
organization described in Section 501(c) (3) of the Internal Revenue Code of
1986, as amended; (ii) has total assets in excess of $5,000,000 and (iii) was
not formed for the purpose of investing in the Credit Acceptance Auto Loan
Trust 2010-1 (the “Trust”).

	 	 	 	       Non-Business Trust. The Purchaser (i) is a personal
(non-business) trust other than an employee benefit trust and whose decision to
invest in the Trust has been directed by a person who has such knowledge and
experience in financial and business matters that he or she is capable of
evaluating the merits and risks of the investment; (ii) has total assets in
excess of $5,000,000 and (iii) was not formed for the purpose of investing in
the Trust.

	 	 	 	       Bank. The Purchaser (a) is a national bank or banking
institution organized under the laws of any state or territory of the United
States or the District of Columbia, the business of which is substantially
confined to banking and is supervised by the state or territorial banking
commission or similar official or is a foreign bank or equivalent institution,
and (b) has an audited net worth of at least $25,000,000.00 as demonstrated in
its latest annual financial statements, a copy of which is attached
hereto.

	 	 	 	       Savings and Loan. The Purchaser (a) is a savings and
loan association, building and loan association, cooperative bank, homestead
association or similar institution, which is supervised and examined by a state
or federal authority having supervision over any such institutions or is a
foreign savings and loan association or equivalent institution, and (b) has an
audited net worth of at least $25,000,000.00 as demonstrated in its latest
annual financial statements, a copy of which is attached hereto.

	 	 	 	       Broker dealer. The Purchaser is a dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934, as amended.

	 	 	 	       Insurance Company. The Purchaser is an insurance
company whose primary and predominant business activity is the writing of
insurance or the reinsuring of risks underwritten by insurance companies and
which is subject to supervision by the insurance commissioner or a similar
official or agency of a state or territory of the United States or the District
of Columbia.

	 	 	 	       State or Local Plan. The Purchaser (i) is a plan
established and maintained by a state, its political subdivisions, or any
agency or instrumentality of the state or its political subdivisions, for the
benefit of its employees and (ii) has total assets in excess of $5,000,000.

	 	 	 	.       ERISA Plan. The Purchaser is an employee benefit plan within the
meaning of Title I of the Employee Retirement Income Security Act of 1974, as
amended.

	 	 	 	       Investment Advisor. The Purchaser is an investment
advisor registered under the Investment Advisors Act of 1940, as amended.

	 	 	 	       Small Business Investment Company. The Purchaser is a
small business investment company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business Investment Act
of 1958.

	 	 	 	       Business Development Company. The Purchaser is a
business development company as defined in Section 202(a)(22) of the Investment
Advisors Act of 1940, as amended.

	 	 	 	       Other. The Purchaser is an entity in which all of the
equity holders are institutional accredited investors.

3. The Purchaser acknowledges that it is familiar with the exemption that is being relied upon in
connection with the sale to it and understands that the seller to it and other parties related to
the Notes are relying and will continue to rely on the statements made herein.

4. Until the date of purchase of the Notes, the Purchaser will notify each of the parties to which
this certification is made of any changes in the information and conclusions herein. Until such
notice is given, the Purchaser’s purchase of the Notes will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Purchaser is a bank or savings
and loan as provided above, the Purchaser agrees that it will furnish to such parties updated
annual financial statements promptly after they become available.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

15

[      ]

By:

      Name:

      Title:EXHIBIT C

FORM OF INVESTMENT LETTER

	 	 	 
	[Date]

	 	

	Credit Acceptance Corporation,

	as Originator and Servicer

[Address]

	 	

	Credit Acceptance Funding LLC 2010-1

	as Seller

[Address]

	 	

	Wells Fargo Bank, National Association,

	as the Trust Collateral Agent and Indenture Trustee

	[Address]

Re:

	 	

Credit Acceptance Auto Loan Trust 2010-1
	
 
	 	 

Ladies and Gentlemen:

This letter (the “Investment Letter”) is delivered by the undersigned (the
“Purchaser”) pursuant to Section 2.3(a) of the Series 2010-1 Indenture (the
“Indenture”), dated as of November 4, 2010, between Credit Acceptance Auto Loan Trust
2010-1, a Delaware statutory trust, and Wells Fargo Bank, National Association, a national banking
association organized under the laws of the United States, as trust collateral agent and as
indenture trustee. Capitalized terms used herein without definition shall have the meanings set
forth or incorporated by reference in the Indenture.

The Purchaser hereby represents, warrants and agrees as follows with the Seller, the Servicer
and the Indenture Trustee and their respective counsel (which representations, warranties and
agreements will be deemed to be repeated by the Purchaser for their benefit as of the date on which
the Purchaser purchases the Class C Notes):

	 	(a)	 	The Purchaser is authorized to purchase, take a participation in or take an
assignment of the Class C Notes.

	 	(b)	 	The Purchaser has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of its investment in the
Class C Note and is able to bear the economic risk of such investment. The Purchaser
has, independently and without reliance upon any person, and based on such documents
and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other condition
and creditworthiness of the Issuer, the Seller and the Servicer and made its own
decision to purchase its interest in the Class C Note.

	 	(c)	 	The Purchaser is either (i) a Qualified Institutional Buyer within the meaning
of Rule 144A under the Securities Act (a “QIB”) purchasing for its own account or a QIB
purchasing for the account of a QIB, whom the Holder has informed, in each case, that
the reoffer, resale, pledge or other transfer is being made in reliance on Rule 144A or
(ii) an Institutional Accredited Investor within the meaning of paragraphs (1), (2),
(3) and (7) of Rule 501(a) of the Securities Act purchasing for its own account or one
or more accounts of an Institutional Accredited Investor. The Purchaser understands
that the offering and sale of the Class C Notes has not been and will not be registered
under the Securities Act and has not and will not be registered or qualified under any
applicable “blue sky” law, and that the offering and sale of the Class C Notes has not
been reviewed by, passed on or submitted to any federal or state agency or commission,
securities exchange or other regulatory body.

	 	(d)	 	This Investment Letter has been duly executed and delivered and constitutes the
legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser
in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable
principles affecting the enforcement of creditors’ rights generally and general
principles of equity.

	 	(e)	 	The Purchaser is, for federal income tax purposes, (i) a citizen or resident of
the United States, (ii) a corporation or partnership organized in or under the laws of
the United States or any state or the District of Columbia which, if such entity is a
tax-exempt entity, recognizes that payments with respect to the Class C Notes may
constitute unrelated business taxable income, (iii) an estate the income of which is
includible in gross income for U.S. federal income tax purposes regardless of its
source, or (iv) either (x) a trust for which a court within the United States is able
to exercise primary supervision over its administration and for which one or more
persons described in this paragraph are able to control all substantial decisions or
(y) a trust for which a valid election has been made to be treated as a United States
person. The Purchaser will furnish to the Person from whom it is acquiring any
interest in the Class C Notes, the Servicer and the Indenture Trustee, the appropriate
and properly executed U.S. Internal Revenue Service Form (and will furnish new forms,
or any successor applicable form, upon the expiration or obsolescence of any previously
delivered form) and such other certifications, representations or Opinions of Counsel
as may be requested by the Indenture Trustee.

	 	(f)	 	The Purchaser has not acquired and it will not Transfer any interest in the
Class C Notes, or cause an interest in the Class C Notes to be marketed, on or through
an “established securities market” within the meaning of Section 7704(b)(1) of the Code
and any Treasury regulations thereunder, including, without limitation, an
over-the-counter market or an interdealer quotation system that regularly disseminates
firm buy or sell quotations. In addition, (i) the Purchaser is not and will not become
(and, if it is disregarded as an entity separate from its owner within the meaning of
Treasury Regulations Section 301.7701-3(a) (a “DRE”), its owner is not and will
not become), for so long as it holds an interest in the Class C Notes, a partnership,
Subchapter S corporation or grantor trust for U.S. federal income tax purposes (a
“Flow-Thru Entity”) or (ii) if the it (or, if it is a DRE, its owner) is, or
becomes, a Flow-Thru Entity, for so long as it (or, if it is a DRE, its owner) is a
Flow-Thru Entity and it holds an interest in the Class C Notes, not more than 50% of
the value of any interests in it (or, if it is a DRE, its owner) will be attributable
to interests in the Trust held by it. The Opinion of Counsel to the effect that the
Trust will not be treated as an association or publicly traded partnership taxable as a
corporation is dependent in part on the accuracy of the Purchaser’s certifications
described in this paragraph.

	 	(g)	 	The Purchaser (i) has purchased its interest in the Class C Notes for
investment only and not with a view to any public distribution thereof, (ii) will not
offer, sell, pledge or otherwise transfer its interest in all or any portion of the
Class C Notes, except in compliance with the Securities Act and other applicable laws
and only (1) to the Seller, (2) pursuant to Rule 144A to a person who the Purchaser
reasonably believes is a QIB in a transaction meeting the requirements of Rule 144A,
purchasing for its own account or for the account of a QIB, whom it has informed that
such offer, sale or other transfer is being made in reliance on Rule 144A or (3)
pursuant to an exemption from the registration requirements under the Securities Act to
a person that is an Institutional Accredited Investor in a transaction meeting the
requirements of such exemption. In connection therewith, the Purchaser will not resell
or otherwise transfer the Class C Notes or any interest therein unless the proposed
transferee provides to the addressees hereof a letter substantially in the form hereof.
No Class C Noteholders, including the Purchaser, will have the right to require the
Seller to register the Class C Notes or any other securities under the Securities Act
or any other securities laws.

	 	(h)	 	The Purchaser acknowledges (for the benefit of the Issuer, the Indenture
Trustee, the Seller, the Servicer and the Rating Agencies) that various provisions of
the Transaction Documents limit the voting rights of the Class C Noteholders.

	 	(i)	 	The Purchaser of the Class C Note or any interest therein shall be deemed to
represent and warrant that, with respect to the source of funds to be used by such
transferee to acquire such Note or any interest therein (the “Source”) either (a) such
Source is not, and is not directly or indirectly acting for, on behalf of or with any
assets of, an employee benefit plan or other arrangement subject to Title I of ERISA, a
“plan” to which Section 4975 of the Code applies, or a plan or other arrangement that
is subject to any provision of any federal, state, local or other laws or regulations
that are substantively similar to the foregoing provisions of ERISA or the Code
(“Similar Law”), or (b) the acquisition and holding of such Notes or interest therein
by such Source will not constitute or result in a non-exempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code, or a violation of Similar Law.

16

Very truly yours,

[NAME OF PURCHASER]

By:

Name:

Title:

SCHEDULE A

to Indenture

Perfection Representations, Warranties And Covenants

In addition to the representations, warranties and covenants contained in the Indenture, the
Issuer hereby represents, warrants, and covenants to the Trust, the Trust Collateral Agent and the
Indenture Trustee as follows on the Closing Date and on each Distribution Date on which the Trust
purchases Loans, in each case only with respect to the Collateral pledged to the Indenture Trustee
on the Closing Date or the relevant Distribution Date:

General

1. The Indenture creates a valid and continuing security interest (as defined in UCC Section 9-102)
in the Collateral in favor of the Indenture Trustee, which security interest is prior to all other
Liens, and is enforceable as such as against creditors of and purchasers from and assignees of the
Trust.

2. Each Contract constitutes “tangible chattel paper” or a “payment intangible”, within the meaning
of UCC Section 9-102. Each Loan constitutes a “payment intangible” or a “general intangible”
within the meaning of UCC Section 9-102.

3. Each Dealer Agreement and Purchase Agreement constitutes either a “general intangible” or
“tangible chattel paper” within the meaning of UCC Section 9-102.

4. The Trust has taken or will take all necessary actions with respect to the Loans to perfect the
security interest of the Indenture Trustee in the Loans and in the property securing the Loans.

Creation

1. The Trust owns and has good and marketable title to the Collateral, free and clear of any Lien,
claim or encumbrance of any Person, excepting only liens for taxes, assessments or similar
governmental charges or levies incurred in the ordinary course of business that are not yet due and
payable or as to which any applicable grace period shall not have expired, or that are being
contested in good faith by proper proceedings and for which adequate reserves have been
established, but only so long as foreclosure with respect to such a lien is not imminent and the
use and value of the property to which the Lien attaches is not impaired during the pendency of
such proceeding.

Perfection

1. The Trust has caused or will have caused, within ten (10) days after the effective date of the
Indenture, the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the security interest in the
Collateral granted to the Indenture Trustee under the Indenture.

2. With respect to Collateral that constitutes tangible chattel paper, such tangible chattel paper
is in the possession of the Servicer, in its capacity as custodian for the Trust and the Trust
Collateral Agent, and the Trust Collateral Agent has received a written acknowledgment from the
Servicer, in its capacity as custodian, that it is holding such tangible chattel paper solely on
its behalf and for the benefit of the Trust Collateral Agent, the Seller, the Trust and the
relevant Dealer(s). All financing statements filed or to be filed against the Trust in favor of
the Indenture Trustee in connection with this Indenture describing the Trust Property contain a
statement to the following effect: “A purchase of or security interest in any collateral described
in this financing statement will violate the rights of the Secured Party.”

Priority

1. Other than the security interest granted to the Indenture Trustee pursuant to the Indenture, the
Trust has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of
the Trust Property. None of the Originator, the Servicer nor the Seller has authorized the filing
of, or is aware of any financing statements against either the Seller, the Originator or the Trust
that includes a description of the Collateral and proceeds related thereto other than any financing
statement: (i) relating to the sale of the Originator Property by the Originator to the Seller
under the Sale and Contribution Agreement; (ii) relating to the security interest granted to the
Trust under the Sale and Servicing Agreement; (iii) relating to the security interest granted to
the Indenture Trustee under the Indenture; or (iv) that has been terminated or amended to reflect a
release of the Collateral.

2. Neither the Seller, the Originator nor the Trust is aware of any judgment, ERISA or tax lien
filings against either the Seller, the Originator or the Trust.

3. None of the tangible chattel paper that constitutes or evidences the Contracts, the Dealer
Agreements or the Purchase Agreements has any marks or notations indicating that it has been
pledged, assigned or otherwise conveyed to any Person other than the Originator, the Servicer, the
Seller, the Trust, a collection agent or the Indenture Trustee.

Survival of Perfection Representations

1. Notwithstanding any other provision of the Agreement, the Sale and Contribution Agreement, the
Indenture or any other Basic Document, the Perfection Representations, Warranties and Covenants
contained in this Schedule shall be continuing, and remain in full force and effect
(notwithstanding any replacement of the Servicer or termination of Servicer’s rights to act as
such) until such time as all obligations under the Sale and Servicing Agreement, Sale and
Contribution Agreement and the Indenture have been finally and fully paid and performed.

No Waiver

1. The parties hereto: (i) shall not, without obtaining a confirmation of the then-current ratings
of the Notes, waive any of the Perfection Representations, Warranties or Covenants; (ii) shall
provide the Rating Agencies with prompt written notice of any breach of the Perfection
Representations, Warranties or Covenants, and shall not, without obtaining a confirmation of the
then-current rating of the Notes as determined after any adjustment or withdrawal of the ratings
following notice of such breach, waive a breach of any of the Perfection Representations,
Warranties or Covenants.

17EX-4.(f)(139)

________________________________________

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1

CLASS A ASSET BACKED NOTES

CLASS B ASSET BACKED NOTES

CLASS C ASSET BACKED NOTES

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1,

as the Issuer

CREDIT ACCEPTANCE FUNDING LLC 2010-1,

as the Seller

CREDIT ACCEPTANCE CORPORATION,

as the Servicer and in its individual capacity

WELLS FARGO BANK, NATIONAL ASSOCIATION

as the Trust Collateral Agent/Indenture Trustee/Backup Servicer

SALE AND SERVICING AGREEMENT

Dated as of November 4, 2010

	 	 	 	 	 	 	 	 	 
	ARTICLE I
	 	DEFINITIONS
	 		1	
	SECTION 1.01.
	 	Definitions
	 		1	
	SECTION 1.02.
	 	Usage of Terms
	 		28	
	SECTION 1.03.
	 	Closing Date and Record Date
	 		28	
	SECTION 1.04.
	 	Section References
	 		28	
	SECTION 1.05.
	 	Compliance Certificates
	 		28	
	SECTION 1.06.
	 	[Reserved]	 		29	
	ARTICLE II
	 	CONVEYANCE OF SELLER PROPERTY; FURTHER ENCUMBRANCE THEREOF
	 		29	
	SECTION 2.01.
	 	Sale of the Initial Seller Property to the Trust
	 		29	
	SECTION 2.02.
	 	Revolving Period; Principal Collection Account
	 		30	
	SECTION 2.03.
	 	Title to Trust Property
	 		31	
	ARTICLE III
	 	THE LOANS AND THE CONTRACTS
	 		35	
	SECTION 3.01.
	 	Representations and Warranties of Seller with respect to the Seller Property
	 		35	
	SECTION 3.02.
	 	Payment Upon Breach
	 		37	
	SECTION 3.03.
	 	Custody of Dealer Agreements, Purchase Agreements and Contract Files
	 		39	
	ARTICLE IV
	 	ADMINISTRATION AND SERVICING OF LOANS AND CONTRACTS
	 		42	
	SECTION 4.01.
	 	Appointment; Duties of Servicer
	 		42	
	SECTION 4.02.
	 	Collection and Application of Payments on the Loans and Contracts
	 		44	
	SECTION 4.03.
	 	Realization Upon Contracts
	 		44	
	SECTION 4.04.
	 	Physical Damage Insurance
	 		45	
	SECTION 4.05.
	 	Maintenance of Security Interests in Financed Vehicles
	 		45	
	SECTION 4.06.
	 	Covenants of Servicer
	 		45	
	SECTION 4.07.
	 	Payments in Respect of Loans or Contracts Upon Breach
	 		50	
	SECTION 4.08.
	 	Servicer Fee
	 		51	
	SECTION 4.09.
	 	Servicer’s Certificate
	 		51	
	SECTION 4.10.
	 	Annual Statement as to Compliance; Notice of Default
	 		53	
	SECTION 4.11.
	 	Annual Independent Certified Public Accountant’s Report
	 		53	
	SECTION 4.12.
	 	Access to Certain Documentation and Information Regarding Loans and Contracts
	 		54	
	SECTION 4.13.
	 	Servicer Expenses
	 		55	
	SECTION 4.14.
	 	Servicer Not to Resign as Servicer
	 		55	
	SECTION 4.15.
	 	The Backup Servicer
	 		55	
	SECTION 4.16.
	 	Fidelity Bond
	 		56	
	SECTION 4.17.
	 	Obligations in Respect of the Owner Trustee
	 		56	
	ARTICLE V
	 	TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS
	 		57	
	SECTION 5.01.
	 	Establishment of Trust Accounts
	 		57	
	SECTION 5.02.
	 	Collections; Allocation
	 		59	
	SECTION 5.03.
	 	Certain Reimbursements to the Servicer
	 		60	
	SECTION 5.04.
	 	Additional Deposits
	 		60	
	SECTION 5.05.
	 	Reserve Account
	 		61	
	SECTION 5.06.
	 	Reserved
	 		62	
	SECTION 5.07.
	 	Reserved
	 		62	
	SECTION 5.08.
	 	Transfers and Distributions
	 		62	
	SECTION 5.09.
	 	Distributions from the Note Distribution Account
	 		64	
	SECTION 5.10.
	 	Certificate Distribution Account
	 		65	
	SECTION 5.11.
	 	Statements to Certificateholders and Noteholders
	 		66	
	ARTICLE VI
	 	THE SELLER AND THE ISSUER
	 		69	
	SECTION 6.01.
	 	Representations and Warranties of the Seller
	 		69	
	SECTION 6.02.
	 	Limitation on Liability of Seller and Others
	 		72	
	SECTION 6.03.
	 	Seller May Own Notes
	 		73	
	SECTION 6.04.
	 	Additional Covenants of the Seller
	 		73	
	SECTION 6.05.
	 	Indemnities of the Issuer
	 		74	
	ARTICLE VII
	 	THE SERVICER
	 		75	
	SECTION 7.01.
	 	Representations of Servicer
	 		75	
	SECTION 7.02.
	 	Indemnities of Servicer
	 		78	
	 
	 	Merger or Consolidation of, or Assumption of the Obligations of, Servicer;
	 	 	 	 
	SECTION 7.03.
	 	Resignation
	 		80	
	SECTION 7.04.
	 	Limitation on Liability of Servicer and Others
	 		80	
	SECTION 7.05.
	 	Delegation of Duties
	 		81	
	SECTION 7.06.
	 	Certification Upon Satisfaction
	 		81	
	ARTICLE VIII
	 	DEFAULT
	 		81	
	SECTION 8.01.
	 	Servicer Defaults
	 		81	
	SECTION 8.02.
	 	Appointment of Successor
	 		83	
	SECTION 8.03.
	 	Notification to Noteholders and Certificateholders
	 		84	
	SECTION 8.04.
	 	Waiver of Past Defaults
	 		85	
	ARTICLE IX
	 	THE TRUST COLLATERAL AGENT
	 		85	
	SECTION 9.01.
	 	Duties of the Trust Collateral Agent
	 		85	
	SECTION 9.02.
	 	Rights of the Trust Collateral Agent
	 		87	
	SECTION 9.03.
	 	Individual Rights of Trust Collateral Agent
	 		88	
	SECTION 9.04.
	 	Reports by Trust Collateral Agent to Holders
	 		89	
	SECTION 9.05.
	 	Compensation
	 		89	
	SECTION 9.06.
	 	Eligibility
	 		89	
	SECTION 9.07.
	 	Trust Collateral Agent’s Disclaimer
	 		90	
	SECTION 9.08.
	 	Limitation on Liability
	 		90	
	SECTION 9.09.
	 	Reliance Upon Documents
	 		90	
	SECTION 9.10.
	 	Successor Trust Collateral Agent
	 		91	
	SECTION 9.11.
	 	Representations and Warranties of the Trust Collateral Agent
	 		93	
	SECTION 9.12.
	 	Waiver of Setoffs
	 		94	
	ARTICLE X
	 	TERMINATION
	 		94	
	SECTION 10.01.
	 	Optional Purchase
	 		94	
	SECTION 10.02.
	 	Termination
	 		95	
	ARTICLE XI
	 	MISCELLANEOUS PROVISIONS
	 		96	
	SECTION 11.01.
	 	Amendment
	 		96	
	SECTION 11.02.
	 	Protection of Title to Trust
	 		97	
	SECTION 11.03.
	 	Limitation on Rights of Noteholders
	 		99	
	SECTION 11.04.
	 	Governing Law
	 		100	
	SECTION 11.05.
	 	Notices
	 		100	
	SECTION 11.06.
	 	Severability of Provisions
	 		101	
	SECTION 11.07.
	 	Assignment
	 		101	
	SECTION 11.08.
	 	Further Assurances
	 		101	
	SECTION 11.09.
	 	No Waiver; Cumulative Remedies
	 		101	
	SECTION 11.10.
	 	Third-Party Beneficiaries
	 		102	
	SECTION 11.11.
	 	Actions by Noteholders
	 		102	
	SECTION 11.12.
	 	Corporate Obligation
	 		102	
	SECTION 11.13.
	 	Covenant Not to File a Bankruptcy Petition
	 		102	
	SECTION 11.14.
	 	Multiple Roles
	 		103	

	 	 	 
	EXHIBITS

Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

Exhibit G

Exhibit H

	 	

Financial Covenants

Servicer’s Certificate

Form of Dealer Agreement

Form of Purchase Agreement

Form of Servicer’s Acknowledgment

RESERVED

Form of Dealer Loan Contract and Purchased Loan Contract

Credit and Collection Guidelines

1

	 	 	 
	SCHEDULE

Schedule A

Schedule B

Schedule C

	 	S

Loans, Dealer Agreements, Purchase Agreements and Contracts

Forecasted Collections

Perfection Representations, Warranties and Covenants

This Sale and Servicing Agreement, dated as of November 4, 2010, among CREDIT
ACCEPTANCE AUTO LOAN TRUST 2010-1 (the “Issuer” or the “Trust”), CREDIT ACCEPTANCE
FUNDING LLC 2010-1, a Delaware limited liability company, as Seller (the “Seller”), CREDIT
ACCEPTANCE CORPORATION, a Michigan corporation, in its individual capacity (“Credit
Acceptance”) and as Servicer (the “Servicer”) and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association organized under the laws of the United States, in its
capacity as Backup Servicer, Trust Collateral Agent and Indenture Trustee (the “Backup
Servicer,” “Trust Collateral Agent” and “Indenture Trustee”).

WITNESSETH THAT: In consideration of the premises and of the mutual agreements herein
contained, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.01. Definitions.

Whenever used in this Agreement, the following words and phrases, unless the context otherwise
requires, shall have the following meanings. Terms used herein but not defined herein shall have
the meaning given such terms in the Indenture.

“Adjusted Collateral Amount” means, on any Distribution Date, during the Revolving
Period, an amount equal to the sum of: (i) the Collateral Amount; and (ii) the amount on deposit
in the Principal Collection Account.

“Administrator” means the Servicer or Credit Acceptance, in its capacity as agent of
the Trust pursuant to Section 4.01(d).

“Advance Rate” means, on any Distribution Date, the ratio, expressed as a percentage,
where the numerator is equal to the Aggregate Note Balance and the denominator is equal to the
Collateral Amount.

“Affiliate” means, with respect to any specified Person, any other Person controlling
or controlled by or under common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing. A Person shall not be deemed to be an Affiliate of any person solely
because such other Person has the contractual right or obligation to manage such Person unless such
other Person controls such Person through equity ownership or otherwise.

“Aggregate Note Balance” equals at all times, the sum of the Class A Note Balance, the
Class B Note Balance and the Class C Note Balance.

“Aggregate Outstanding Eligible Loan Balance” means, on any date of determination, the
sum of the Outstanding Balances of all Eligible Loans on such day.

“Aggregate Outstanding Net Eligible Loan Balance” means, on any date of determination,
the Aggregate Outstanding Eligible Loan Balance less the related Loan Loss Reserves at the end of
the most recent Collection Period.

“Agreement” means this Sale and Servicing Agreement, as the same may be amended or
supplemented from time to time.

“Amortization Period” means the period of time beginning on the earlier of (i) the
close of business on the October 2012 Distribution Date, and (ii) the close of business on the
Business Day before the day on which an Early Amortization Event automatically occurs or is
declared pursuant to Section 2.02 hereof.

“Amortization Period Additional Contract Collateral Amount” has the meaning assigned
to such term in Section 3.02(d)(i) hereof.

“Amortization Period Additional Loan Collateral Amount” has the meaning assigned to
such term in Section 3.02(d)(i) hereof.

“Amortization Period Payment Obligations” has the meaning assigned to such term in
Section 3.02(d)(ii) hereof.

“Applicable Law” means, for any Person, all existing and future applicable laws,
rules, regulations (including proposed, temporary and final income tax regulations), statutes,
treaties, codes, ordinances, permits, certificates, orders and licenses of and interpretations by
any Governmental Authority, and applicable judgments, decrees, injunctions, writs, orders, or
action of any Court, arbitrator or other administrative, judicial, or quasi-judicial tribunal or
agency of competent jurisdiction.

“Assumption Date” has the meaning assigned to such term in Section 2.3(a) of the
Backup Servicing Agreement.

“Automatic Amortization Event” has the meaning assigned to such term in Section
2.02(b) hereof.

“Available Funds” means, with respect to any Distribution Date: (i) all Collections
(other than Dealer Collections and Repossession Expenses) received by the Servicer, the Seller or
the Originator during the related Collection Period with respect to the Contracts and the Loans and
paid over to the Issuer, (ii) all Purchase Amounts paid by the Seller, the Servicer or the
Originator during the related Collection Period, (iii) all investment earnings and interest on
amounts on deposit in the Reserve Account, the Principal Collection Account and the Collection
Account during the related Collection Period, (iv) any amounts remaining in the Principal
Collection Account after the conclusion of the Revolving Period, and (v) on any Distribution Date,
any amounts on deposit in the Reserve Account in excess of the Reserve Account Requirement, after
giving effect to all deposits to and withdrawals from the Reserve Account on such Distribution
Date.

“Backup Servicer” means Wells Fargo Bank, National Association and its permitted
successors and assigns.

“Backup Servicing Agreement” means the Backup Servicing Agreement dated as of the
Closing Date, among the Backup Servicer, Credit Acceptance, the Seller, the Issuer and the Trust
Collateral Agent.

“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.

“Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978 (11 U.S.C.
§ 101, et seq.), as amended from time to time.

“Basic Documents” means this Agreement, the Certificate of Trust (as defined in the
Trust Agreement), the Trust Agreement, the Backup Servicing Agreement, the Indenture, the Sale and
Contribution Agreement, the Initial Purchaser Agreement, the Intercreditor Agreement, the Notes and
all other documents and certificates delivered in connection therewith.

“Benefit Plan” has the meaning given such term in the Trust Agreement.

“Business Day” means any day other than a Saturday or a Sunday on which banking
institutions are not required or authorized to be closed in New York, New York, Detroit, Michigan
or Minneapolis, Minnesota.

“Capped Backup Servicer and Trustee Fees and Expenses” means, with respect to any
Distribution Date, in respect of fees, indemnification amounts and expenses due to the Backup
Servicer, the Owner Trustee, the Indenture Trustee and the Trust Collateral Agent: (i) on any
Distribution Date on which (X) no Indenture Event of Default has occurred or (Y) an Indenture Event
of Default has occurred but is no longer continuing or has been waived, an amount not to exceed
$15,000 for any Distribution Date, in the aggregate; and (ii) on any Distribution Date on which an
Indenture Event of Default has occurred and is continuing and has not been waived (A) to the Backup
Servicer, the Indenture Trustee and the Trust Collateral Agent, an amount not to exceed $20,850 for
any Distribution Date, in the aggregate; and (B) to the Owner Trustee, an amount not to exceed
$5,000 for any Distribution Date, except with respect to reasonable and necessary expenses of the
Owner Trustee (including reasonable attorneys’ fees and costs) incurred by the Owner Trustee in
connection with any pending or threatened action, suit or proceeding, whether civil or criminal,
administrative or investigative in which the Owner Trustee is identified as a subject or named as a
party and faces potential liability, censure or penalties, other than as a result of the gross
negligence or willful misconduct of the Owner Trustee.

“Capped Servicing Fee” means, with respect to the Servicing Fee payable to the Backup
Servicer if it has become Servicer and with respect to any Distribution Date, an amount equal to
the product of (i) 10.00% and (ii) Collections for the related Collection Period.

“Certificate” has the meaning given such term in the Trust Agreement.

“Certificate Distribution Account” has the meaning assigned to such term in
Section 5.01(a)(iii) hereof.

“Certificateholder” has the meaning given such term in the Trust Agreement.

“Certificate Interest” means the allocable percentage interest of a Certificate held
by a Certificateholder.

“Certificate of Title” means, with respect to any Financed Vehicle, the certificate of
title or other documentary evidence of ownership of such Financed Vehicle as issued by the
department, agency or official of the jurisdiction (whether in paper or electronic form) in which
such Financed Vehicle is titled, responsible for accepting applications for, and maintaining
records regarding, certificates of title and liens thereon.

“Certificate Register” and “Certificate Registrar” means the register
mentioned and the registrar appointed pursuant to Section 3.4 of the Trust Agreement.

“Class A Interest Carryover Shortfall” means, as of the close of business on any
Distribution Date, the excess of the Class A Interest Distributable Amount for such Distribution
Date plus any outstanding Class A Interest Carryover Shortfall from the preceding Distribution Date
plus interest on such outstanding Class A Interest Carryover Shortfall, to the extent permitted by
law, at the Class A Note Rate from and including such preceding Distribution Date to but excluding
the current Distribution Date, over the amount actually deposited in the Note Distribution Account
on such current Distribution Date and available to pay interest on the Class A Notes.

“Class A Interest Distributable Amount” means, with respect to any Distribution Date,
interest accrued from and including the 15th day of the prior month (or, in the case of
the first Distribution Date, the Closing Date) to, but excluding the 15th day of the
month in which such Distribution Date occurs, at the Class A Note Rate on the Class A Note Balance
immediately prior to such Distribution Date. Interest on the Class A Notes shall be due and
payable on each Distribution Date and shall be computed on the basis of a 360-day year consisting
of twelve 30-day months.

“Class A Note Balance” equals, initially, $81,000,000, and thereafter equals the
initial Class A Note Balance reduced by all amounts allocable to principal and previously
distributed to the Class A Noteholders.

“Class A Noteholder” means the Person in whose name a Class A Note shall be registered
in the Note Register, except that, solely for the purposes of giving any consent, waiver, request,
or demand pursuant to the Basic Documents, the interest evidenced by any Class A Note registered in
the name of the Seller, the Servicer, or any person controlling, controlled by, or under common
control with the Seller or the Servicer, shall not be taken into account in determining whether the
requisite percentage necessary to effect any such consent, waiver, request, or demand shall have
been obtained.

“Class A Note Rate” means 2.06% per annum.

“Class A Principal Distributable Amount” means, for any Distribution Date: (A) during
the Revolving Period, zero; and (B) during the Amortization Period, an amount equal to the lesser
of: (i) Available Funds remaining after payment of the amounts set forth in clauses (i) through
(v) of Section 5.08(a) hereto and (ii) the Class A Note Balance; provided,
however, on the Class A Stated Final Maturity Date, the Class A Principal Distributable
Amount will equal the Class A Note Balance.

“Class A Stated Final Maturity Date” means April 16, 2018.

“Class B Interest Carryover Shortfall” means, as of the close of business on any
Distribution Date, the excess of the Class B Interest Distributable Amount for such Distribution
Date plus any outstanding Class B Interest Carryover Shortfall from the preceding Distribution Date
plus interest on such outstanding Class B Interest Carryover Shortfall, to the extent permitted by
law, at the Class B Note Rate from and including such preceding Distribution Date to but excluding
the current Distribution Date, over the amount actually deposited in the Note Distribution Account
on such current Distribution Date and available to pay interest on the Class B Notes.

“Class B Interest Distributable Amount” means, with respect to any Distribution Date,
interest accrued from and including the 15th day of the prior month (or, in the case of
the first Distribution Date, the Closing Date) to, but excluding the 15th day of the
month in which such Distribution Date occurs, at the Class B Note Rate on the Class B Note Balance
immediately prior to such Distribution Date. Interest on the Class B Notes shall be due and
payable on each Distribution Date and shall be computed on the basis of a 360-day year consisting
of twelve 30-day months.

“Class B Note Balance” equals, initially, $19,500,000, and thereafter equals the
initial Class B Note Balance reduced by all amounts allocable to principal and previously
distributed to the Class B Noteholders.

“Class B Noteholder” means the Person in whose name a Class B Note shall be registered
in the Note Register, except that, solely for the purposes of giving any consent, waiver, request,
or demand pursuant to the Basic Documents, the interest evidenced by any Class B Note registered in
the name of the Seller, the Servicer, or any person controlling, controlled by, or under common
control with the Seller or the Servicer, shall not be taken into account in determining whether the
requisite percentage necessary to effect any such consent, waiver, request, or demand shall have
been obtained.

“Class B Note Rate” means 3.63% per annum.

“Class B Principal Distributable Amount” means, for any Distribution Date: (A) during
the Revolving Period, zero; and (B) during the Amortization Period, an amount equal to the lesser
of: (i) the positive difference of (x) Available Funds remaining after payment of the amounts set
forth in clauses (i) through (v) of Section 5.08(a) hereto minus (y) the Class A
Principal Distributable Amount and (ii) the Class B Note Balance; provided,
however, on the Class B Stated Final Maturity Date, the Class B Principal Distributable
Amount will equal the Class B Note Balance.

“Class B Stated Final Maturity Date” means October 15, 2018.

“Class C Note Balance” equals, initially, $900,442, and thereafter equals the initial
Class C Note Balance reduced by all amounts allocable to principal and previously distributed to
the Class C Noteholders.

“Class C Noteholder” means the Person in whose name a Class C Note shall be registered
in the Note Register, except that, solely for the purposes of giving any consent, waiver, request,
or demand pursuant to the Basic Documents, the interest evidenced by any Class C Note registered in
the name of the Seller, the Servicer, or any person controlling, controlled by, or under common
control with the Seller or the Servicer, shall not be taken into account in determining whether the
requisite percentage necessary to effect any such consent, waiver, request, or demand shall have
been obtained.

“Class C Principal Distributable Amount” means, for any Distribution Date: (A) during
the Revolving Period, zero; and (B) during the Amortization Period, an amount equal to the lesser
of: (i) the positive difference of (x) Available Funds remaining after payment of the amounts set
forth in clauses (i) through (v) of Section 5.08(a) hereto minus (y) the sum of the
Class A Principal Distributable Amount and the Class B Principal Distributable Amount and (ii) the
Class C Note Balance; provided, however, on the Class C Stated Final Maturity Date,
the Class C Principal Distributable Amount will equal the Class C Note Balance.

“Class C Stated Final Maturity Date” means April 15, 2019.

“Closing Date” means November 4, 2010.

“Collateral Amount” means, on any Distribution Date, an amount equal to the Aggregate
Outstanding Net Eligible Loan Balance less the aggregate of the Overconcentration Loan Amounts and
the aggregate of the Loan Excess Advance Amounts, if any, after giving effect to all purchases of
Loans on such date. Solely for purposes of calculating the “Collateral Amount,” the determination
of whether a Loan is an “Eligible Loan” shall be made as if such Loan were transferred on the date
of such calculation; provided, however, that a Dealer Loan relating to a Dealer
that has become insolvent after the transfer of such Dealer Loan to the Issuer shall continue to
constitute an “Eligible Dealer Loan” (assuming that such Dealer Loan would otherwise be an
“Eligible Dealer Loan” on such date of determination if the applicable Dealer had not become
insolvent) for purposes of calculating the “Collateral Amount” so long as (i) the characterization
of such Dealer Loan as an “Eligible Dealer Loan” would not cause the percentage of the aggregate
Outstanding Balance of all Dealer Loans relating to Dealers who are insolvent to exceed 2.5% of the
Aggregate Outstanding Net Eligible Loan Balance and (ii) no bankruptcy court has entered an order
(whether or not final), which order has not been vacated or overturned, stating that a person other
than the Issuer (or the Servicer on the Issuer’s behalf) is entitled to receive any collections on
such Dealer Loans or the Contracts relating thereto.

“Collection Account” means the account designated as such, established and maintained
pursuant to Section 5.01(a)(i) hereof.

“Collection Guidelines” means, with respect to Credit Acceptance, the policies and
procedures of the Servicer in effect on the Closing Date relating to the collection of amounts due
on the Contracts and the Loans and as amended from time to time in accordance with the Basic
Documents, and with respect to the Backup Servicer, as successor Servicer, the usual and customary
servicing policies and procedures of the Backup Servicer.

“Collection Period” means, with respect to each Distribution Date, the immediately
preceding calendar month. Any amount stated “as of the close of business on the last day of a
Collection Period” shall give effect to all collections, charge-offs, reserve adjustments and other
account activity during such Collection Period.

“Collections” means, with respect to any Collection Period, all payments (including
Dealer Collections, recoveries on defaulted contracts, credit-related insurance proceeds and
proceeds of the Related Security and, so long as Credit Acceptance is the Servicer, excluding
certain recovery and repossession expenses, in accordance with the terms of the Dealer Agreements
and Purchase Agreements) received by the Servicer, the Originator, the Issuer or the Seller on or
after the Cut-off Date in respect of the Loans and Contracts in the form of cash, checks, wire
transfers or other form of payment in accordance with the Loans, the Dealer Agreements, the
Purchase Agreements and the Contracts.

“Comerica Credit Agreement” means that certain Fourth Amended and Restated Credit
Acceptance Corporation Credit Agreement, dated as of February 7, 2006, with Comerica Bank, as
administrative agent and collateral agent, and the banks signatory thereto, as amended from time to
time.

“Computer Tape” means a computer tape or diskette (or other means of electronic
transmission acceptable to the Backup Servicer) in a readable format acceptable to the Backup
Servicer.

“Continued Errors” has the meaning given such term in the Backup Servicing Agreement.

“Contract” means any Dealer Loan Contract or Purchased Loan Contract.

“Contract Buy-Back Rate” means on any date of determination, a fraction, expressed as
a percentage, the numerator of which is the Aggregate Note Balance as of the last day of the
preceding Collection Period and the denominator of which is the Outstanding Balance of all Eligible
Contracts as of the last day of the preceding Collection Period.

“Contract File” means with respect to each Contract, the physical and/or electronic
files in which Credit Acceptance maintains the fully executed original counterpart (for UCC
purposes) of the Contract (to the extent required in accordance with Section 3.03 of this
Agreement), either a standard assurance in the form commonly used in the industry relating to the
provision of a certificate of title or other evidence of lien, the original instruments modifying
the terms and conditions of such Contract and the original endorsements or assignments of such
Contract.

“Corporate Trust Office” has the meaning given such term in the Trust Agreement.

“Credit Acceptance” means Credit Acceptance Corporation, a Michigan corporation.

“Credit Guidelines” means the policies and procedures of Credit Acceptance, relating
to the extension of credit to automobile, light-duty truck, minivan and/or sport utility dealers
and consumers in respect of retail installment contracts for the sale of automobiles, light-duty
trucks, minivans and/or sport utility vehicles including the policies and procedures for
determining creditworthiness of such dealers and consumers and otherwise relating to the extension
of credit to dealers and consumers and the maintenance of installment sale contracts, as in effect
on the Cut-off Date and as amended from time to time in accordance with the Basic Documents,
attached hereto as Exhibit H.

“Cut-off Date” means, (i) with respect to Loans and related collateral to be
transferred to the Issuer on the Closing Date, the close of business on August 31, 2010, and (ii)
with respect to Loans and related collateral purchased by the Issuer on each Distribution Date
during the Revolving Period, the close of business on the last day of the immediately preceding
Collection Period.

“DBRS” means DBRS, Inc.

“Dealer” means any new or used automobile, light-duty truck, minivan and/or sport
utility vehicle dealer who has entered into a Dealer Agreement or a Purchase Agreement with Credit
Acceptance.

“Dealer Agreement” means, each Dealer Agreement between the Originator and the related
Dealer substantially in one of the forms included as part of Exhibit C attached hereto;
provided, however, that the term “Dealer Agreement” shall, for the purposes of this
Agreement, include only those Dealer Agreements identified from time to time on Schedule A
hereto, as amended or supplemented from time to time in accordance herewith.

“Dealer Collections” means, with respect to any Collection Period and any Dealer Loan,
collections received by the Servicer during such Collection Period which pursuant to the terms of
the related Dealer Agreement, are required to be remitted to the applicable Dealer.

“Dealer Concentration Limit” means, with respect to the Eligible Dealer Loans, with
respect to: (i) any of the ten largest Dealers (measured by the Aggregate Outstanding Net Eligible
Loan Balance of each such Dealer), an amount equal to: (A) with respect to the Closing Date, 3.50%
of the Aggregate Outstanding Net Eligible Loan Balance of Dealer Loans as of the initial Cut-off
Date; and (B) with respect to each Distribution Date during the Revolving Period on which Dealer
Loans are purchased by the Issuer, 3.50% of the Aggregate Outstanding Net Eligible Loan Balance of
Dealer Loans as of such Distribution Date, after giving effect to all Collections from the related
Collection Period and the purchase of Dealer Loans on such Distribution Date; provided
however, that after giving effect to the foregoing, the sum of the aggregate of the Outstanding
Balances of the Eligible Dealer Loans of the ten largest Dealers (measured by the Aggregate
Outstanding Net Eligible Loan Balance of each such Dealer) shall not exceed 18.0% of the Aggregate
Outstanding Net Eligible Loan Balance of all Dealer Loans on the initial Cut-off Date or each
Distribution Date during the Revolving Period on which Dealer Loans are purchased by the Issuer, as
the case may be; and (ii) any other Dealer, an amount equal to (A) with respect to the Closing
Date, 2.50% of the Aggregate Outstanding Net Eligible Loan Balance of Dealer Loans as of the
initial Cut-off Date; and (B) with respect to each Distribution Date during the Revolving Period on
which Dealer Loans are purchased by the Issuer, 2.50% of the Aggregate Outstanding Net Eligible
Loan Balance of Dealer Loans as of such Distribution Date, after giving effect to all Collections
from the related Collection Period and the purchase of Dealer Loans on such Distribution Date.

“Dealer Loan” means a group of advances made by the Originator to a Dealer in respect
of an identified group of Dealer Loan Contracts, all of which secure repayment thereof, plus
revenue accrued with respect to such Dealer Loan in accordance with Credit Acceptance’s accounting
policies set forth in its periodic reports filed with the Securities and Exchange Commission and
the payment of monies to a Dealer under the related Dealer Agreement plus recoveries on Dealer
Loans that have been written off, less Collections on the related Contracts securing such Dealer
Loan applied to the reduction of the balance of such Dealer Loan and write-offs of such Dealer
Loan; provided, however, that the term “Dealer Loan” shall, for the purposes of
this Agreement, include only those Dealer Loans identified from time to time on Schedule A
hereto, as amended or supplemented from time to time in accordance with the terms of this
Agreement.

“Dealer Loan Contract” means each retail installment sales contract, in substantially
one of the forms attached hereto as Exhibit G, relating to the sale of a used automobile,
light-duty truck, minivan or sport utility vehicle originated by a Dealer and in which Credit
Acceptance shall have been granted a security interest and shall have acquired certain other rights
under a related Dealer Agreement to secure the related Dealer’s obligation to repay one or more
related Dealer Loans.

“Declared Discretionary Amortization Event” has the meaning assigned to such term in
Section 2.02(c) hereof.

“Delivery” when used with respect to property forming a part of a Trust Account means:

(a) with respect to bankers’ acceptances, commercial paper, negotiable certificates of
deposit and other obligations that constitute “instruments” within the meaning of Section
9-102(a)(47) of the UCC and are susceptible of physical delivery, transfer thereof by
physical delivery to the Trust Collateral Agent indorsed to, or registered in the name of,
the Trust Collateral Agent or its nominee or indorsed in blank, and, with respect to a
certificated security (as defined in Section 8-102 of the UCC) transfer thereof (i) by
delivery of such certificated security to the Trust Collateral Agent or by delivery of such
certificated security to a securities intermediary indorsed to, or registered in the name
of, the Trust Collateral Agent or its nominee or indorsed in blank to a securities
intermediary (as defined in Section 8-102(a)(14) of the UCC) and the making by such
securities intermediary of entries on its books and records identifying such certificated
securities as belonging to the Trust Collateral Agent and the sending by such securities
intermediary of a confirmation of the purchase of such certificated security by the Trust
Collateral Agent, or (ii) by delivery thereof to a “clearing corporation” (as defined in
Section 8-102(a)(5) of the UCC) and the making by such clearing corporation of appropriate
entries on its books reducing the appropriate securities account of the originator and
increasing the appropriate securities account of a securities intermediary by the amount of
such certificated security, the identification by the clearing corporation of the
certificated securities for the sole and exclusive account of the securities intermediary,
the maintenance of such certificated securities by such clearing corporation or its nominee
subject to the clearing corporation’s exclusive control, the sending of a confirmation by
the securities intermediary of the purchase by the Trust Collateral Agent of such securities
and the making by such securities intermediary of entries on its books and records
identifying such certificated securities as belonging to the Trust Collateral Agent (all of
the foregoing, “Physical Property”), and, in any event, any such Physical Property in
registered form shall be registered in the name of the Trust Collateral Agent or its nominee
or endorsed in blank; and such additional or alternative procedures as may hereafter become
appropriate to effect the complete transfer of ownership of any such Eligible Investment to
the Trust Collateral Agent, consistent with changes in applicable law or regulations or the
interpretation thereof;

(b) with respect to any security issued by the U.S. Treasury, the Federal Home Loan
Mortgage Corporation or by the Federal National Mortgage Association that is a book-entry
security held through the Federal Reserve System pursuant to Federal book-entry regulations,
the following procedures, all in accordance with applicable law, including applicable
federal regulations and Articles 8 and 9 of the UCC: book-entry registration of such
Eligible Investment to an appropriate book-entry account maintained with a Federal Reserve
Bank by a securities intermediary which is also a “depositary” pursuant to
applicable federal regulations and issuance by such securities intermediary of a deposit
advice or other written confirmation of such book-entry registration to the Trust Collateral
Agent of the purchase by the Trust Collateral Agent of such book-entry securities; the
making by such securities intermediary of entries in its books and records identifying such
book-entry security held through the Federal Reserve System pursuant to Federal book-entry
regulations as belonging to the Trust Collateral Agent and indicating that such securities
intermediary holds such Eligible Investment solely as agent for the Trust Collateral Agent;
and such additional or alternative procedures as may hereafter become appropriate to effect
complete transfer of ownership of any such Eligible Investment to the Trust Collateral
Agent, consistent with changes in applicable law or regulations or the interpretation
thereof; and

(c) with respect to any Eligible Investment that is an uncertificated security under
Article 8 of the UCC and that is not governed by clause (b) above, registration on the books
and records of the issuer thereof in the name of the Trust Collateral Agent or its nominee
or the securities intermediary, the sending of a confirmation by the securities intermediary
of the purchase by the Trust Collateral Agent or its nominee of such uncertificated
security, and the making by such securities intermediary of entries on its books and records
identifying such uncertificated certificates as belonging to the Trust Collateral Agent.

In furtherance of the foregoing, any Eligible Investments held by the Trust Collateral Agent
through a securities intermediary shall be held only pursuant to a control agreement entered into
among the Seller, the Trust Collateral Agent and the securities intermediary, pursuant to which the
securities intermediary agrees to credit all financial assets (as defined in Section 8-102(a)(9) of
the UCC) purchased (as defined in Section 1-201(32) of the UCC) at the direction of the Trust
Collateral Agent to the securities account maintained by the securities intermediary for the
benefit of the Trust Collateral Agent and agrees to comply with entitlement orders (as defined in
Section 8-102(a)(8) of the UCC) of the Trust Collateral Agent without the further consent of the
Seller and pursuant to which the securities intermediary waives any prior lien on all financial
assets credited to such securities account to which it might otherwise be entitled. Such control
agreement shall initially be governed by New York law and the Trust Collateral Agent shall not
amend the initial control agreement or enter into a control agreement with a successor securities
intermediary which in either event provides that the laws of a State other than New York shall
govern, without first obtaining a continuation of perfection and priority opinion under the laws of
such new state.

“Determination Date” means the fourth Business Day prior to the related Distribution
Date.

“Discretionary Amortization Event” has the meaning assigned to such term in
Section 2.02(c) hereof.

“Distribution Date” means, for each Collection Period, the 15th day of the following
month, or if the 15th day is not a Business Day, the next following Business Day, commencing with
the First Distribution Date.

“Early Amortization Event” means, collectively, Automatic Amortization Events and
Declared Discretionary Amortization Events.

“Eligible Account” shall mean a non-interest bearing segregated trust account or
accounts maintained with an institution whose deposits are insured by the FDIC, the unsecured and
uncollateralized long term debt obligations of which institution shall be rated “AA-” or higher by
S&P and “Aa3” or higher by Moody’s and in the highest short term rating category by the Rating
Agencies, and which is (i) a federal savings and loan association duly organized, validly existing
and in good standing under the federal banking laws, (ii) an institution duly organized, validly
existing and in good standing under the applicable banking laws of any state, (iii) a national
banking association duly organized, validly existing and in good standing under the federal banking
laws, or (iv) a principal subsidiary of a bank holding company.

“Eligible Contract” means each Eligible Dealer Loan Contract and each Eligible
Purchased Loan Contract.

“Eligible Dealer Agreement” means each Dealer Agreement:

(a) which was originated by the Originator in compliance with all applicable
requirements of law and which complies with all applicable requirements of law;

(b) with respect to which all material consents, licenses, approvals or authorizations
of, or registrations or declarations with, any Governmental Authority required to be
obtained, effected or given by the Seller, by the Originator or by the Servicer in
connection with the origination of such Dealer Agreement or the execution, delivery and
performance by the Seller, by the Originator or by the Servicer of such Dealer Agreement
have been duly obtained, effected or given and are in full force and effect;

(c) as to which at the time of the sale of rights thereunder to the Trust, the Seller
will have good and marketable title thereto, free and clear of all Liens;

(d) the Originator’s rights under which have been the subject of a valid grant by the
Originator of a first priority perfected security interest in such rights and in the
proceeds thereof in favor of the Seller;

(e) which will at all times be the legal, valid and binding obligation of the Dealer
party thereto (it being understood that recourse for such payment obligation shall be
limited to the extent set forth in the Dealer Agreement), enforceable against such Dealer in
accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws, now or hereafter
in effect, affecting the enforcement of creditors’ rights in general and except as such
enforceability may be limited by general principles of equity (whether considered in a suit
at law or in equity);

(f) which constitutes either a “general intangible” or “tangible chattel paper” under
and as defined in Article 9 of the UCC;

(g) which, at the time of the sale of the rights to payment thereunder to the Trust, no
rights to payment thereunder have been waived or modified;

(h) which is not subject to any right of rescission, setoff, counterclaim or other
defense (including the defense of usury), other than defenses arising out of applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights in general;

(i) as to which the Originator, the Servicer and the Seller have satisfied all
obligations to be fulfilled at the time the rights to payment thereunder are transferred to
the Trust;

(j) as to which the related Dealer has not asserted that such agreement is void or
unenforceable;

(k) as to which the related Dealer is not an Affiliate of an executive of Credit
Acceptance or an Affiliate of Credit Acceptance;

(l) as to which the related Dealer is located in the United States;

(m) as to which the related Dealer is not bankrupt or insolvent; and

(n) as to which none of the Originator, the Servicer nor the Seller has done anything,
at the time of the sale of the rights to payment thereunder to the Trust, to impair the
rights of the Trust therein.

“Eligible Dealer Loan” means each Dealer Loan, at the time of its transfer to the
Seller under the Sale and Contribution Agreement:

(a) which has arisen under a Dealer Agreement that, on the day the Dealer Loan was
created, qualified as an Eligible Dealer Agreement;

(b) which was created in compliance with all applicable requirements of law and
pursuant to an Eligible Dealer Agreement which complies with all applicable requirements of
law;

(c) with respect to which all material consents, licenses, approvals or authorizations
of, or registrations or declarations with, any Governmental Authority required to be
obtained, effected or given by the Originator, in connection with the creation of such
Dealer Loan or the execution, delivery and performance by the Originator, of the related
Eligible Dealer Agreement have been duly obtained, effected or given and are in full force
and effect;

(d) as to which at the time of the sale of such Dealer Loan to the Trust, the Seller
will have good and marketable title thereto, free and clear of all Liens;

(e) as to which a valid first priority perfected security interest in such Dealer Loan,
related security and in the Proceeds thereof has been granted by the Originator in favor of
the Seller, by the Seller in favor of the Issuer and by the Issuer in favor of the Indenture
Trustee;

(f) which will at all times be the legal, valid and binding payment obligation of the
Obligor thereof (it being understood that recourse for such payment obligation shall be
limited to the extent set forth in the Dealer Agreement), enforceable against such Obligor
in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws, now or hereafter
in effect, affecting the enforcement of creditors’ rights in general and except as such
enforceability may be limited by general principles of equity (whether considered in a suit
at law or in equity);

(g) which constitutes a “general intangible” under and as defined in Article 9 of the
UCC;

(h) which is denominated and payable in United States dollars;

(i) which, at the time of its sale to the Trust, has not been waived or modified;

(j) which is not subject to any right of rescission (subject to the rights of the
related Dealer to repay the outstanding balance thereof and terminate the related Dealer
Agreement), setoff, counterclaim or other defense (including the defense of usury), other
than defenses arising out of applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights in general;

(k) as to which the Originator, the Servicer and the Seller have satisfied all
obligations to be fulfilled at the time it is pledged to the Trust;

(l) as to which the related Dealer has not asserted that the related Dealer Agreement
is void or unenforceable;

(m) as to which the related Dealer is not bankrupt or insolvent;

(n) as to which none of the Originator, the Servicer nor the Seller has done anything,
at the time of its sale to the Trust and subsequent pledge to the Indenture Trustee, to
impair the rights of the Trust or the Indenture Trustee, as the case may be;

(o) has not become subject to the payment of a Purchase Amount in accordance with
Section 3.02 hereof or Section 4.07 hereof (regardless of whether such
Purchase Amount is actually paid); and

(p) the proceeds of which were used to finance the purchases of used automobiles and/or
light-duty trucks and related products.

“Eligible Dealer Loan Contract” means each Dealer Loan Contract which, at the time of
its pledge by the applicable Dealer to the Originator, satisfied the requirements for “Qualifying
Receivable” set forth in the related Dealer Agreement; provided, however, that an Eligible Dealer
Loan Contract that has become subject to the payment of a Purchase Amount in Accordance with
Section 3.02 hereof or Section 4.07 hereof (regardless of whether such Purchase
Amount is actually paid) shall not constitute an “Eligible Contract”.

“Eligible Investments” means any one or more of the following types of investments
which mature no later than the Business Day preceding each Distribution Date:

(i) direct obligations of, and obligations fully guaranteed as to timely payment by,
the United States of America;

(ii) demand deposits, time deposits or certificates of deposit of any depository
institution (including any Affiliate of the Seller, the Servicer, the Trust Collateral
Agent, the Indenture Trustee or the Owner Trustee) or trust company incorporated under the
laws of the United States of America or any state thereof or the District of Columbia (or
any domestic branch of a foreign bank) and subject to supervision and examination by Federal
or state banking or depository institution authorities (including depository receipts issued
by any such institution or trust company as custodian with respect to any obligation
referred to in clause (i) above or a portion of such obligation for the benefit of the
holders of such depository receipts); provided, however, that at the time of
the investment or contractual commitment to invest therein (which shall be deemed to be made
again each time funds are reinvested following each Distribution Date), the commercial paper
or other short-term senior unsecured debt obligations (other than such obligations the
rating of which is based on the credit of a Person other than such depository institution or
trust company) of such depository institution or trust company shall have a credit rating
from Standard & Poor’s of at least A-1+ and from Moody’s of Prime-1;

(iii) repurchase obligations with respect to any security that is a direct obligation
of, or fully guaranteed by, the United States of America or any agency or instrumentality
thereof the obligations of which are backed by the full faith and credit of the United
States of America, in either case entered into with a depository institution or trust
company (acting as principal) referred to in clause (ii) above;

(iv) commercial paper (including commercial paper of any affiliate of the Seller, the
Servicer, the Trust Collateral Agent, the Indenture Trustee or the Owner Trustee) having,
at the time of the investment or contractual commitment to invest therein, a rating from
Standard & Poor’s of at least A-1+ and from Moody’s of Prime-1;

(v) investments in money market funds (including funds for which the Seller, the
Servicer, the Trust Collateral Agent, the Indenture Trustee or Owner Trustee or any of their
respective Affiliates is investment manager or advisor) having a rating from Standard &
Poor’s of AAA-m or AAAm-G and from Moody’s of Aaa;

(vi) bankers’ acceptances issued by any depository institution or trust company
referred to in clause (ii) above; and

(vii) money market deposit accounts, certificates of deposit, demand or time deposits,
savings deposits, bankers acceptances, or federal funds, in each case as defined in
Regulation D of the Board of Governors of the Federal Reserve System and issued by or sold
by or offered by, any domestic office of any commercial bank or any depository institution
or trust company (including the Indenture Trustee or the Owner Trustee or their successors)
incorporated or organized under the laws of the United States or any States thereof which
has a combined capital and surplus and undivided profits of not less than $250,000,000 and
the deposits of which are fully insured by FDIC and which has from Moody’s a short-term
rating of not lower than P-1 or long-term rating of not lower than A-2.

Any of the foregoing Eligible Investments may be purchased from, by or through the Owner
Trustee, the Indenture Trustee or the Trust Collateral Agent or any of their respective Affiliates.

“Eligible Loan”: means each Eligible Dealer Loan and each Eligible Purchased Loan.

“Eligible Purchased Loan Contract”: means each Purchased Loan Contract which at the
time of its purchase from the applicable Dealer by the Originator, evidenced an Eligible Purchased
Loan.

“Eligible Purchased Loans”: Each Purchased Loan, at the time of its transfer to the
Seller under the Sale and Contribution Agreement:

(a) which has been originated in the United States by a Dealer for the retail sale of a
Financed Vehicle in the ordinary course of such Dealer’s business and is evidenced by a
fully and properly executed Purchased Loan Contract of which there is only one original
executed copy;

(b) which creates a valid, subsisting, and enforceable first priority perfected
security interest for the benefit of the Originator in the Financed Vehicle, which security
interest has been, in turn, assigned by the Originator to the Seller, by the Seller to the
Issuer and by the Issuer to the Indenture Trustee;

(c) which contains customary and enforceable provisions such that the rights and
remedies of the holder thereof shall be adequate for realization against the collateral of
the benefits of the security;

(d) which provides for, in the event that such Purchased Loan is prepaid in full, a
prepayment that fully pays the Outstanding Balance of such Purchased Loan (net of all
rebates for the unused portion of any ancillary products and net of all unearned finance
charges);

(e) which was created in material compliance with all applicable requirements of law;

(f) which will at all times be the legal, valid and binding payment obligation of the
Obligor thereof, enforceable against such Obligor in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws, now or hereafter in effect, affecting the enforcement of
creditors’ rights in general and except as such enforceability may be limited by general
principles of equity (whether considered in a suit at law or in equity);

(g) which is not subject to any right of rescission, setoff, counterclaim or other
defense (including the defense of usury), other than defenses arising out of applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights in general;

(h) the Obligor thereon is not the United States, any State or any agency, department,
or instrumentality of the United States or any State;

(i) the Obligor thereon is a natural person;

(j) with respect to which, to the best of the Originator’s knowledge, no liens or
claims have been filed for work, labor, materials, taxes or liens that arise out of
operation of law relating to the applicable Financed Vehicle that are prior to, or equal
with, the security interest in the Financed Vehicle granted by the related Purchased Loan
Contract;

(k) with respect to which, to the best of the Originator’s knowledge, there was no
material misrepresentation by the Obligor thereon on such Obligor’s credit application;

(l) which has not been originated in, and is not subject to the laws of, any
jurisdiction under which the sale, transfer and assignment of such Purchased Loan under this
Agreement or pursuant to the transfer of the related Purchased Loan Contract shall be
unlawful, void or voidable;

(m) which (i) constitutes either “tangible chattel paper” or a “payment intangible,”
each as defined in the UCC and (ii) if “tangible chattel paper,” shall be maintained in its
original “tangible” form, unless the Indenture Trustee has consented in writing to such
chattel paper being maintained in another form or medium;

(n) which is payable and denominated in United States dollars and the Obligor thereon
is an individual who is a United States resident;

(o) which satisfies in all material respects the requirements under the Credit
Guidelines;

(p) with respect to which the collection practices used with respect thereto have
complied in all material respects with the Collection Guidelines;

(q) with respect to which there are no proceedings pending, or to the best of the
Originator’s knowledge, threatened, wherein the Obligor thereon or any governmental agency
has alleged that such Purchased Loan is illegal or unenforceable;

(r) with respect to which the Originator has duly fulfilled all obligations to be
fulfilled on the lender’s part under or in connection with the origination, acquisition and
assignment of such Purchased Loan, including giving any notices or consents necessary to
effect the acquisition of such Purchased Loan by the Seller, and has done nothing to impair
the rights of the Seller, or the Trust in payments with respect thereto;

(s) which was purchased by the Originator from a Dealer pursuant to a Purchase
Agreement;

(t) with respect to which the Dealer from whom the Originator purchased such Purchased
Loan has not engaged in any conduct constituting fraud or misrepresentation with respect to
such Purchased Loan;

(u) with respect to which, at the time such Purchased Loan was originated the proceeds
thereof were fully disbursed and there is no requirement for future advances thereunder, and
all fees and expenses in connection with the origination of such Purchased Loan have been
paid;

(v) with respect to which, if applicable state law requires or permits the Servicer to
hold the certificate of title in respect of a Financed Vehicle financed by a Purchased Loan
Contract, the Servicer holds the certificate of title (or if an electronic certificate of
title is issued in lieu of a paper certificate of title by the relevant governmental
department or agency, Credit Acceptance is listed as lienholder on such electronic
certificate of title) or the application for a certificate of title for the related Financed
Vehicles as of the date on which the related Purchased Loan Contract is transferred to the
Seller and will obtain within one hundred eighty (180) days of such date certificate of
title (or ensure that an electronic certificate of title is issued in lieu of a paper
certificate of title by the relevant governmental department or agency on which Credit
Acceptance is listed as lienholder) with respect to such Financed Vehicle as to which the
Servicer holds only such application;

(w) with respect to which the related Purchased Loan Contract has not been extended or
rewritten and is not subject to any forbearance, or any other modified payment plan other
than in accordance with the Credit Guidelines or the Collection Guidelines;

(x) as to which the Originator, the Servicer and the Seller have satisfied all
obligations to be fulfilled at the time it is pledged to the Trust; and

(y) as to which none of the Originator, the Servicer or the Seller has done anything,
at the time of its Sale to the Trust and subsequent pledge to the Indenture Trustee, to
impair the rights of the Trust or the Indenture Trustee, as the case may be.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“ERISA Affiliate” means Credit Acceptance and each entity, whether or not
incorporated, which is affiliated with Credit Acceptance pursuant to Section 414(b), (c), (m) or
(o) of the Code.

“Errors” has the meaning given such term in the Backup Servicing Agreement.

“Final Score” means the final output from the Originator’s proprietary credit scoring
process, which, when divided by 1,000, represents the Originator’s expectations of the ultimate
collection rate on a Contract at inception.

“Financed Vehicle” means, with respect to a Contract, any used automobile, light-duty
truck, minivan or sport utility vehicle, together with all accessories thereto, securing the
related Obligor’s indebtedness thereunder.

“Financial Covenants” means the financial covenants of the Servicer set forth in
Exhibit A hereto, as such financial covenants are revised from time to time pursuant to the
Comerica Credit Agreement.

“First Distribution Date” means November 15, 2010.

“Forecasted Collections” means the expected amount of collections to be received with
respect to the Aggregate Outstanding Eligible Loan Balance each month as determined by Credit
Acceptance in accordance with its forecasting model, set forth on Schedule B hereto.

“GAAP” means generally accepted accounting principles as in effect from time to time
in the United States.

“Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
body or entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government and any court or arbitrator having jurisdiction over such Person.

“Incomplete Contract” means any Contract the original of which is not contained in the
related Contract File as of the date for the verification thereof set forth in Section
3.03(d) hereof.

“Indenture” means the Indenture dated as of the Closing Date, between the Issuer and
Wells Fargo Bank, National Association, as Indenture Trustee, as the same may be amended and
supplemented from time to time.

“Indenture Trustee Fee” means, as to each Distribution Date, $6,000, which, prior to
the Assumption Date, if any, shall include the Backup Servicing Fee.

“Independent” means a Person, who (1) is in fact independent of the Seller and any of
its Affiliates, (2) does not have any direct financial interest or any material indirect financial
interest in the Seller or in any Affiliate of the Seller, and (3) is not connected with the Seller
or Affiliate as an officer, employee, promoter, underwriter, trustee, partner, director, or person
performing similar functions.

“Independent Accountants” means a firm registered with the Public Company Accounting
Oversight Board that is Independent.

“Ineligible Contract” means each contract other than an Eligible Contract.

“Ineligible Loan” means each Loan other than an Eligible Loan; provided,
however, that a Dealer Loan relating to a Dealer that has become insolvent after the
transfer of such Dealer Loan to the Issuer shall continue to constitute an “Eligible Dealer Loan”
(assuming that such Dealer Loan would otherwise be an “Eligible Dealer Loan” on such date of
determination if the applicable Dealer had not become insolvent) for purposes of calculating the
“Collateral Amount” so long as (i) the characterization of such Dealer Loan as an “Eligible Dealer
Loan” would not cause the percentage of the aggregate Outstanding Balance of all Dealer Loans
relating to Dealers who are insolvent to exceed 2.5% of the Aggregate Outstanding Net Eligible Loan
Balance and (ii) no bankruptcy court has entered an order (whether or not final), which order has
not been vacated or overturned, stating that a person other than the Issuer (or the Servicer on the
Issuer’s behalf) is entitled to receive any collections on the Dealer Loans or the Dealer Loan
Contracts relating thereto.

“Initial Purchaser” means each of Wells Fargo Securities, LLC, a Delaware limited
liability company and Deutsche Bank Securities Inc.

“Initial Purchaser Agreement” means the Initial Purchaser Agreement dated October 27,
2010, by and among the Issuer, Credit Acceptance, the Seller, Wells Fargo Securities, LLC and
Deutsche Bank Securities Inc.

“Intercreditor Agreement” means the Amended and Restated Intercreditor Agreement,
dated as of November 4, 2010, among the Indenture Trustee, Credit Acceptance, CAC Warehouse Funding
Corporation II, CAC Warehouse Funding III, LLC, Credit Acceptance Funding LLC 2009-1, Credit
Acceptance Auto Loan Trust 2009-1, the Seller, the Issuer, Wells Fargo Securities, LLC (as
successor to Wachovia Capital Markets, LLC), as deal agent under the securitization documents
relating to CAC Warehouse Funding Corporation II, Wells Fargo Bank, National Association, as
indenture trustee and trust collateral agent under the securitization documents relating to Credit
Acceptance Auto Loan Trust 2009-1, Comerica Bank, as agent under that certain Fourth Amended and
Restated Credit Agreement, among Comerica Bank and other parties thereto, Fifth Third Bank, as
agent under the securitization documents relating to CAC Warehouse Funding III, LLC, and each other
Person who becomes a party thereto after the date hereto.

“Issuer” or “Trust” means Credit Acceptance Auto Loan Trust 2010-1, a Delaware
statutory trust.

“Late Fees” means if the Backup Servicer has become the successor Servicer, any late
fees collected with respect to any Contract in accordance with the Collection Guidelines.

“Lien” means with respect to a Loan, Dealer Agreement, Purchase Agreement or Contract
or other property any security interest, lien, charge, pledge, equity, or encumbrance of any kind
(other than tax liens, mechanics’ liens, liens of collection attorneys or agents collecting the
property subject to such tax or mechanics’ lien, and any liens which attach thereto by operation of
law).

“Loan” means any Dealer Loan or Purchased Loan.

“Loan Excess Advance Amount” means, with respect to any Eligible Loan on any
Distribution Date, the amount by which the Net Loan Balance of such Eligible Loan, on the date it
was originated, exceeds 70% of the Outstanding Balance of the related Eligible Contracts on their
dates of origination.

“Loan Loss Reserve” means the loan loss reserve, calculated in accordance with Credit
Acceptance’s accounting policies set forth in its periodic reports filed with the Securities and
Exchange Commission.

“Majority Noteholders” means the Holders of a majority by principal amount of the most
senior then outstanding class of Notes.

“Maximum Advance Rate” means 80.0%.

“Minimum Collateral Amount” means on any Distribution Date during the Revolving
Period, an amount equal to the Aggregate Note Balance divided by the Maximum Advance Rate.

“Minimum Weighted Average Spread Rate” means 16.5%.

“Moody’s” means Moody’s Investors Service, Inc., and its successors and assigns.

“Multiemployer Plan” means a multiemployer plan (within the meaning of Section
4001(a)(3) of ERISA) in respect of which an ERISA Affiliate makes contributions or has liability.

“Net Loan Balance” means, with respect to any Eligible Loan, the excess of the related
Outstanding Balance over the related Loan Loss Reserve.

“Note Distribution Account” means the Note Distribution Account established and
maintained pursuant to Section 5.01(a)(ii) hereof.

“Noteholder” or “Holder” means any Class A Noteholder, Class B Noteholder or
Class C Noteholder.

“Notes” means, collectively, the Class A Notes, the Class B Notes and the Class C
Notes.

“Obligor” means, with respect to any Contract, the person or persons obligated to make
payments with respect to such Contract, including any guarantor thereof.

“Officer’s Certificate” means a certificate signed by the chairman of the board, the
vice chairman, the president, the chief financial officer, any executive vice president, any vice
president, the treasurer, any assistant treasurer, the secretary, any assistant secretary or the
controller of the Seller or the Servicer, as appropriate.

“Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in this Agreement or as otherwise required by the Trust Collateral
Agent, be employees of or counsel to the Issuer and who shall be reasonably satisfactory to the
Trust Collateral Agent and which shall comply with any applicable requirements of Section 11.1 of
the Indenture, and shall be in form and substance reasonably satisfactory to the Trust Collateral
Agent.

“Optional Purchase” means the optional purchase of the Trust Property as set forth in
Section 10.01(a) hereof.

“Original Advance Rate” means, with respect to any Dealer, the ratio, expressed as a
percentage, where the numerator is equal to the sum of the Outstanding Balance of all Eligible
Loans of such Dealer on the dates such Eligible Loans were originated and the denominator is equal
to the sum of payments due under all Eligible Contracts related to such Dealer on their dates of
origination.

“Original Certificate Interest” means the percentage interest in the Trust represented
by the Certificate(s) initially authenticated and delivered by the Owner Trustee and which is 100%.

“Originator” means Credit Acceptance.

“Outstanding Balance” means (i) with respect to any Contract on any date of
determination, all amounts owing under such Contract (whether considered principal or as finance
charges), on such date of determination which shall be deemed to have been created at the end of
the day on the date of processing of such Contract and which shall be greater than or equal to
zero; (ii) with respect to any Dealer Loan on any date of determination, the aggregate amount
advanced under such Dealer Loan plus revenue accrued with respect to such Dealer Loan in accordance
with Credit Acceptance’s accounting policies set forth in its periodic reports filed with the
Securities and Exchange Commission, recoveries on Dealer Loans that have been written off and the
payment of monies to a Dealer under the related Dealer Agreement, less Collections on the related
Dealer Loan Contracts securing such Dealer Loan applied through such date of determination to the
reduction of the balance of such Dealer Loan and write-offs of such Dealer Loan; and (iii) with
respect to any Purchased Loan on any date of determination, the aggregate amount advanced under
such Purchased Loan plus revenue accrued with respect to such Purchased Loan in accordance with
Credit Acceptance’s accounting policies set forth in its periodic reports filed with the Securities
and Exchange Commission and recoveries on Purchased Loans that have been written off, less
Collections on the related Purchased Loan applied through the date of determination to the
reduction of the balance of such Purchased Loan and write-offs of such Purchased Loan.

“Overconcentration Loan Amount” means, with respect to any Dealer (or the ten largest
Dealers (measured by the Aggregate Outstanding Net Eligible Loan Balance of each such Dealer) in
the aggregate), the amount by which the Net Loan Balance of such Dealer’s Eligible Dealer Loans (or
the ten largest Dealers’ (measured by the Aggregate Outstanding Net Eligible Loan Balance of each
such Dealer) Eligible Dealer Loans in the aggregate), as of the Closing Date or any Distribution
Date during the Revolving Period on which the Issuer purchases one or more Dealer Loans, as the
case may be, exceeds the applicable Dealer Concentration Limit.

“Owner Trustee” means U.S. Bank Trust National Association, not in its individual
capacity but solely as Owner Trustee under the Trust Agreement, its successors in interest or any
successor Owner Trustee under the Trust Agreement.

“Owner Trustee’s Fees” means (i) a fee in the amount of $2,500, payable by the Issuer
to the Owner Trustee on the Closing Date in connection with the review and execution of the Basic
Documents and (ii) thereafter, an administration fee in the amount of $291.67 on each Distribution
Date, payable by the Issuer to the Owner Trustee until the Notes are paid in full, in each case,
plus reasonable out of pocket expenses not to exceed $50,000 annually incurred by the Owner Trustee
in fulfilling its duties under the Basic Documents, except for the reasonable and necessary
expenses of the Owner Trustee (including reasonable attorneys’ fees and costs) incurred by the
Owner Trustee in connection with any pending or threatened action, suit or proceeding, whether
civil, criminal, administrative or investigative, in which the Owner Trustee is identified as a
subject or named as a party and faces potential liability, censure or penalties, other than as the
result of the gross negligence or willful misconduct of the Owner Trustee.

“Permitted Incomplete Contracts” means (a) with respect to the 120th day after the
Closing Date and the 120th day after each Distribution Date during the Revolving Period, 2.0% of
the aggregate number of Contract Files required to be reviewed by each such date in accordance with
Section 3.03(d)(i) hereof, and (b) with respect to the 180th day after the Closing Date and
the 180th day after each Distribution Date during the Revolving Period, 2.0% of the aggregate
number of Contract Files required to be reviewed by each such date in accordance with Section
3.03(d)(ii) hereof.

“Person” means any individual, corporation, estate, partnership, joint venture,
association, joint stock company, trust, unincorporated organization, limited liability company, or
government or any agency or political subdivision thereof.

“Physical Property” has the meaning assigned to such term in the definition of
“Delivery” above.

“Principal Collection Account” means the account designated as such, established and
maintained pursuant to Section 5.01(a)(i) hereof.

“Proceeds” means, with respect to any portion of the Trust Property, all “proceeds”,
as such term is defined in Article 9 of the UCC, including whatever is receivable or received when
such portion of Trust Property is sold, liquidated, foreclosed, exchanged, or otherwise disposed
of, whether such disposition is voluntary or involuntary, and includes all rights to payment with
respect to any insurance relating thereto.

“Program” has the meaning set forth in Section 4.11(a) hereof.

“Purchase Agreement” means each agreement between Credit Acceptance and any Dealer in
substantially the form attached hereto as Exhibit D.

“Purchase Amount” means:

(i) with respect to an Ineligible Loan (or Loan with respect to which the payment of a
Purchase Amount is required or is to be made pursuant to Section 10.01(a)), an amount equal
to the product of: (A) the Net Loan Balance related to such Ineligible Loan (or Loan with respect
to which the payment of a Purchase Amount is required or is to be made pursuant to Section
10.01(a)) as of the last day of the preceding Collection Period; and (B) the Advance Rate in
effect on the Distribution Date during such preceding Collection Period;

(ii) with respect to any Ineligible Contract (other than any Incomplete Contract), the product
of: (A) the Outstanding Balance of such Ineligible Contract; and (B) the Contract Buy-Back Rate;
and

(iii) with respect to a Contract for which payment is required to be made in accordance with
Section 3.02(b)(B) hereof and with respect to each review period described in Section
3.03(d)(ii) and (iii) hereof, the product of: (A) the Outstanding Balance as of the
last day of the preceding Collection Period of all Incomplete Contracts for any such review period,
divided by the aggregate number of Contracts required to be reviewed by the end of such review
period, (B) the difference between (I) the total number of Incomplete Contracts for such review
period, and (II) the number of Permitted Incomplete Contracts for such review period, and (C) the
Contract Buy-Back Rate,

in each case, payable in the manner set forth in Section 5.04 hereof.

“Purchased Loan” means each motor vehicle retail installment loan relating to the sale
of a used automobile or light-duty truck originated by a Dealer, purchased by the Originator from
such Dealer and evidenced by a Purchased Loan Contract; provided, however, that the term “Purchased
Loan” shall, for purposes of this Agreement, include only those Purchased Loans identified from
time to time on Schedule A hereto.

“Purchased Loan Contract” means each motor vehicle retail installment sales contract,
in substantially one of the forms attached hereto as Exhibit G, relating to a Purchased
Loan.

“Rating Agencies” means, collectively, S&P, DBRS and any other nationally recognized
statistical rating organization requested by the Seller or an Affiliate thereof to rate any class
of Notes.

“Rating Agency Condition” means, with respect to any event or circumstance and any
Rating Agency, either (a) written confirmation to the Indenture Trustee by such Rating Agency that
the occurrence of such event or circumstance will not itself cause such Rating Agency to downgrade
or withdraw its rating assigned to any class of Notes or (b) that such Rating Agency shall have
been given notice of such event at least ten (10) days prior to the occurrence of such event (or,
if ten (10) days’ advance notice is impracticable, as much advance notice as is practicable) and
such Rating Agency shall not have issued any written notice to the Indenture Trustee that the
occurrence of such event will itself cause such Rating Agency to downgrade or withdraw its rating
assigned to any class of Notes.

“Records” means the Dealer Agreements, Purchase Agreements, Contracts, Contract Files
and all other documents, books, records and other information (including computer programs, tapes,
discs, punch cards, data processing software and related contracts, records and other media for
storage of information) maintained with respect to the Loans and the Contracts and the related
Obligors.

“Reliening Expenses” means any expenses incurred by the Backup Servicer, if it has
become the successor Servicer, in accordance with Sections 3.03(h)(ii) and 4.05
hereof, in connection with the retitling or reliening of the Financed Vehicles.

“Repossession Expenses” means, for any Collection Period, any expenses payable
pursuant to the terms of this Agreement, incurred by the Backup Servicer, if it has become the
successor Servicer, in connection with the liquidation or repossession of any Financed Vehicle, in
an aggregate amount not to exceed the cash proceeds received by the Backup Servicer, if it has
become the successor Servicer from the disposition of such Financed Vehicles during the related
Collection Period.

“Repurchased Loan” means a Loan with respect to which payment is required to be made
by the Seller, the Servicer or Credit Acceptance in accordance with Section 3.02 or
Section 4.07 hereof or Section 6.1 of the Sale and Contribution Agreement, as applicable.

“Reserve Account” means the account established and maintained pursuant to Section
5.01(a)(iv) hereof.

“Reserve Account Requirement” means, with respect to the Closing Date and any
Distribution Date, an amount equal to the lesser of: (A) 2.0% of the sum of (x) the initial Class A
Note Balance and (y) the initial Class B Note Balance; and (B) the sum of (x) the Class A Note
Balance on such Distribution Date and (y) the Class B Note Balance on such Distribution Date,
before giving effect to the payment of principal on such Distribution Date.

“Revolving Period” means the period beginning on the Closing Date and terminating the
day the Amortization Period begins.

“S&P” means Standard & Poor’s Rating Services, a Standard and Poor’s Financial
Services LLC business.

“Sale and Contribution Agreement” means the Sale and Contribution Agreement dated as
of even date herewith, relating to the sale and contribution by Credit Acceptance to the Seller of
the Conveyed Property, as defined therein.

“Securities” means the Notes and the Certificates.

“Securities Act” means the Securities Act of 1933, as amended.

“Seller” means Credit Acceptance Funding LLC 2010-1 and any permitted successor
thereto (in the same capacity).

“Seller Property” means, collectively, the Initial Seller Property and the Subsequent
Seller Property.

“Servicer” means Credit Acceptance, as the Servicer of the Loans and the Contracts,
and each successor to Credit Acceptance (in the same capacity) appointed pursuant to Section
7.03 or 8.02 hereof.

“Servicer Certificate” means a certificate substantially in the form of Exhibit
B hereto completed and executed by the Servicer by the chairman of the board, the vice
chairman, the president, any vice president, the treasurer, any assistant treasurer, the chief
financial officer, the secretary, any assistant secretary, the controller, or any assistant
controller of the Servicer pursuant to Section 4.09 hereof.

“Servicer Default” is as defined in Section 8.01 hereof.

“Servicer Expenses” means any expenses incurred by the Backup Servicer, if it has
become the successor Servicer hereunder, other than Repossession Expenses, Reliening Expenses or
Transition Expenses.

“Servicer’s Data Date” has the meaning set forth in Section 4.09(b) hereof.

“Servicer’s Data File” has the meaning set forth in Section 4.09(b) hereof.

“Servicing Fee” means, for each Distribution Date, a fee payable to the Servicer for
services rendered during the related Collection Period, equal to: (i) so long as Credit Acceptance
is the Servicer, the product of (A) 6.00% and (B) the total Collections for the related Collection
Period, and (ii) if the Backup Servicer is the Servicer, the sum of: (1) the greatest of: (a) the
product of 10.0% and total Collections for the related Collection Period; (b) actual costs incurred
by the Backup Servicer as successor Servicer; and (c) the product of (x) $30.00 and (y) the
aggregate number of Contracts serviced by it during the related Collection Period, plus
(2) without duplication, Late Fees and Servicer Expenses; provided, however, with
respect to each Distribution Date on which the Backup Servicer is the Servicer, the Servicing Fee
shall be at least equal to $5,000.

“State” means any state or commonwealth of the United States of America, or the
District of Columbia.

“Stated Final Maturity” means the Class C Stated Final Maturity Date.

“Subsequent Seller Property” has the meaning given to such term in Section
2.02(a) hereof.

“Subsequent Seller Property Purchase Price” means, as to the Subsequent Seller
Property purchased by the Trust on any Distribution Date during the Revolving Period, an amount
equal to the Aggregate Outstanding Net Eligible Loan Balance of the Loans transferred to the Trust
on such Distribution Date, in the form of cash and/or capital contribution.

“Transition Expenses” means, if the Backup Servicer has become the successor Servicer,
the sum of: (i) reasonable costs and expenses incurred by the Backup Servicer in connection with
its assumption of the servicing obligations hereunder, related to travel, Obligor welcome letters,
freight and file shipping plus (ii) a boarding fee equal to the sum of: (A) the product of
$7.50 and the number of Contracts to be serviced with respect to the first 10,000 Contracts to be
serviced; and (B) the product of $6.00 and the number of Contracts in excess of 10,000 to be
serviced with respect to any additional Contracts to be serviced; provided,
however, that the boarding fee shall not be less than $50,000.

“Treasury Regulations” shall mean regulations, including proposed or temporary
regulations, promulgated under the Code. References herein to specific provisions of proposed or
temporary regulations shall include analogous provisions of final Treasury Regulations or other
successor Treasury Regulations.

“Trust Accounts” means the Collection Account, the Principal Collection Account, the
Note Distribution Account and the Reserve Account.

“Trust Agreement” means the Amended and Restated Trust Agreement dated as of the
Closing Date, between the Seller and the Owner Trustee, as the same may be amended and supplemented
from time to time.

“Trust Property” means the assets conveyed to the Trust pursuant to Sections
2.01 and 2.02 hereof.

“UCC” means the Uniform Commercial Code as in effect in the respective jurisdiction,
and with respect to the definition of “Delivery” hereunder, refers to the UCC as adopted by the
State of New York.

“Weighted Average Final Score” means, with respect to each Distribution Date during
the Revolving Period, the ratio, expressed as a percentage, where (i) the numerator is equal to the
aggregate for all Dealers of the product of (a) the Final Score of each Dealer and (b) the
aggregate outstanding Net Loan Balance of all Eligible Loans for such Dealer and (ii) the
denominator is equal to the Aggregate Outstanding Net Eligible Loan Balance.

“Weighted Average Original Advance Rate” means, with respect to each Distribution Date
during the Revolving Period, the ratio, expressed as a percentage, where (i) the numerator is equal
to the aggregate for all Dealers of the product of: (a) the Original Advance Rate of each Dealer;
and (b) the aggregate outstanding Net Loan Balance of all Eligible Loans for such Dealer and (ii)
the denominator is equal to the Aggregate Outstanding Net Eligible Loan Balance.

“Weighted Average Spread Rate” means, with respect to each Distribution Date during
the Revolving Period, the difference between the Weighted Average Final Score and the Weighted
Average Original Advance Rate.

SECTION 1.02. 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 1.03. Closing Date and Record Date.

All references to the Record Date prior to the first Distribution Date in the life of the
Trust shall be to the Closing Date.

SECTION 1.04. Section References.

All section references shall be to Sections in this Agreement (unless otherwise provided).

SECTION 1.05. Compliance Certificates.

Upon any application or request by the Seller or the Servicer to the Trust Collateral Agent to
take any action under any provision herein, the Seller or the Servicer (as the case may be) shall
furnish to the Trust Collateral Agent an Officer’s Certificate stating that all conditions
precedent, if any, provided for herein relating to the proposed action have been complied with,
except that in the case of any other such application or request as to which the furnishing of such
documents is specifically required by any provision of this Agreement relating to such particular
application or request, no additional certificate need be furnished.

Every certificate with respect to compliance with a condition or covenant provided herein
shall include a statement that each individual signing such certificate has read such covenant or
condition and the definitions herein relating thereto.

ARTICLE II

CONVEYANCE OF SELLER PROPERTY; FURTHER ENCUMBRANCE THEREOF

SECTION 2.01. Sale of the Initial Seller Property to the Trust.

(a) In consideration of the Trust’s delivery to, or upon the order of, the Seller on the
Closing Date of the net proceeds from the initial sale of the Notes and the other amounts to be
distributed from time to time to the Seller in accordance with the terms of this Agreement, the
Seller does hereby convey, assign, sell and transfer without recourse, except as set forth herein,
to the Trust all of its right, title and interest in and to: (i) the Loans listed on Schedule
A hereto delivered to the Servicer, the Noteholders, the Backup Servicer and the Trust
Collateral Agent on the Closing Date; (ii) all rights under the Dealer Agreements and Purchase
Agreements related thereto (other than the Excluded Dealer Agreement Rights), including Credit
Acceptance’s right to service the Loans and the related Contracts and receive the related servicing
fee and receive reimbursement of certain recovery and repossession expenses, in accordance with the
terms of the Dealer Agreements and Purchase Agreements; (iii) Collections (other than Dealer
Collections) after the applicable Cut-off Date; (iv) an ownership interest in each Contract
evidencing a Purchased Loan and a security interest in each Contract securing each Dealer Loan; (v)
all records and documents relating to the Loans and the Contracts; (vi) all security interests
purporting to secure payment of the Loans; (vii) all security interests purporting to secure
payment of each Contract (including a security interest in each Financed Vehicle); (viii) all
guarantees, insurance (including insurance insuring the priority or perfection of any Contract) or
other agreements or arrangements securing the Contracts; (ix) the Seller’s rights under the Sale
and Contribution Agreement; and (x) all Proceeds of the foregoing (the “Initial Seller
Property”).

(b) Such sale shall be effective as of the Closing Date with respect to the Initial Seller
Property.

(c) In consideration of the sale of the Initial Seller Property, the Trust shall (i) pay or
cause to be paid to the Seller on the Closing Date a purchase price equal to the Aggregate
Outstanding Net Eligible Loan Balance of the Loans transferred to the Trust on the Closing Date, in
the form of cash (to the extent of the net proceeds from the sale on the Closing Date of the Notes)
and an increase to Seller’s capital in the Trust and (ii) deliver the Certificate to the Seller.
The Seller directs that an amount equal to the initial Reserve Account Requirement be deposited in
the Reserve Account from such purchase price.

(d) For the avoidance of doubt, the term “Initial Seller Property” with respect to any Loan
includes all rights arising after the Closing Date under such Loans which rights are attributable
to advances made under such Loan as the result of Contracts being added after the Closing Date to
the identifiable group of Contracts to which such Loan relates.

SECTION 2.02. Revolving Period; Principal Collection Account.

(a) On each Distribution Date during the Revolving Period, the Issuer shall receive Available
Funds after the payment of all amounts due and payable in Section 5.08(a)(i) through
(vi) and shall be required to use those amounts and any amounts on deposit in the Principal
Collection Account to purchase additional Loans and all collateral related thereto from the Seller
until the Collateral Amount equals the Minimum Collateral Amount. If on any Distribution Date
during the Revolving Period there are not sufficient Eligible Loans for purchase by the Issuer to
cause the Collateral Amount to equal the Minimum Collateral Amount, an amount necessary to cause
the Adjusted Collateral Amount to equal the Minimum Collateral Amount will remain on deposit in the
Principal Collection Account. Subject to the foregoing, and in consideration of the payment of the
Subsequent Seller Property Purchase Price, the Seller agrees to convey, assign, sell and transfer
without recourse, except as set forth in this Agreement, to the Trust all of its right, title and
interest in and to: (i) the Loans listed on the schedule delivered on each Distribution Date during
the Revolving Period to the Servicer, the Backup Servicer and the Trust Collateral Agent that have
not been previously sold to the Trust; (ii) rights under the Dealer Agreements and Purchase
Agreements related thereto (other than the Excluded Dealer Agreement Rights), including Credit
Acceptance’s right to service the Loans and the related Contracts and receive the related servicing
fee and receive reimbursement of certain recovery and repossession expenses, in accordance with the
terms of the Dealer Agreements and Purchase Agreements; (iii) Collections (other than Dealer
Collections) after the applicable Cut-off Date; (iv) an ownership interest in each Contract
evidencing a Purchased Loan and a security interest in each Contract securing each Loan; (v) all
records and documents relating to the Loans and the Contracts; (vi) all security interests
purporting to secure payment of the Loans; (vii) all security interests purporting to secure
payment of each Contract (including a security interest in each Financed Vehicle); (viii) all
guarantees, insurance (including insurance insuring the priority or perfection of any Contract) or
other agreements or arrangements securing the Contracts; (ix) the Seller’s rights under the Sale
and Contribution Agreement; and (x) all Proceeds of the foregoing (the “Subsequent Seller
Property”).

On each Distribution Date during the Revolving Period on which the Issuer purchases Subsequent
Seller Property, the Issuer shall deliver to the Servicer, the Backup Servicer and the Trust
Collateral Agent an updated Schedule A listing all the Loans, Contracts and the related
Dealer Agreements and Purchase Agreements that are included in the Trust Property as of such
Distribution Date after giving effect to such purchase of Subsequent Seller Property, including the
additional Loans purchased on such Distribution Date, and the Dealer Agreements, Purchase
Agreements and Contracts related thereto. Such updated Schedule A shall be deemed to replace any
existing Schedule A.

Notwithstanding the foregoing, the term “Subsequent Seller Property” with respect to any Loan
includes all rights arising after the end of the Revolving Period under such Loan, including a
security interest in each Contract securing such Loan, which rights are attributable to advances
made under such Loan as the result of Contracts being added after the last day of the last full
Collection Period during the Revolving Period to the identifiable group of Contracts to which such
Loan relates.

(b) The occurrence of any one of the following events shall constitute an “Automatic
Amortization Event”:

(i) there is a draw on the Reserve Account;

(ii) a Servicer Default occurs;

(iii) an Indenture Event of Default occurs;

(iv) on any Distribution Date, after giving effect to all purchases of Loans on such
date, the Adjusted Collateral Amount is less than the Minimum Collateral Amount, and such
deficiency continues for two (2) or more Business Days;

(v) cumulative Collections through the end of the related Collection Period, expressed
as a percentage of the cumulative Forecasted Collections through the end of the related
Collection Period, is less than 90.0% for any three (3) consecutive Collection Periods;

(vi) on any Distribution Date, after giving effect to the purchase of additional Loans
on such date, the amount on deposit in the Principal Collection Account is greater than 5.0%
of the Adjusted Collateral Amount, and such excess continues for two (2) or more Business
Days;

(vii) on any Distribution Date, the Weighted Average Spread Rate is less than the
Minimum Weighted Average Spread Rate; or

(viii) the Issuer fails to make a payment or deposit when required under this Agreement
or within any applicable grace or cure period.

(c) The occurrence of any one of the following events (each, a “Discretionary Amortization
Event”) shall constitute an Early Amortization Event (as such, a “Declared Discretionary
Amortization Event”) only if after any applicable grace or cure period the Indenture Trustee, at
the direction of the Majority Noteholders, upon written notice to the Issuer, the Servicer, the
Backup Servicer and the Trust Collateral Agent, declares that an Early Amortization Event has
occurred:

(i) the Issuer fails to observe or perform in any material respect any of its covenants
or agreements set forth in this Agreement and that failure continues unremedied for thirty
(30) days after the earlier of (A) a Responsible Officer of the Owner Trustee obtaining
actual knowledge of such failure and (B) written notice of such failure to the Issuer by the
Indenture Trustee, at the direction of Majority Noteholders;

(ii) any representation or warranty made by the Issuer in this Agreement or in any
certificate or document that the Issuer is required to deliver to the Indenture Trustee is
incorrect in any material respect for thirty (30) days after the earlier of (A) a
Responsible Officer of the Owner Trustee obtaining actual knowledge of such breach or (B)
written notice of that breach to the Issuer by the Indenture Trustee, at the direction of
the Majority Noteholders;

(iii) the Indenture Trustee does not have a valid and perfected first priority security
interest in the Trust Property, or the Issuer, Credit Acceptance or an affiliate of Credit
Acceptance makes that assertion;

(iv) (a) there is filed against Credit Acceptance, the Seller or the Issuer: (x) a
notice of federal tax lien from the IRS, (y) a notice of lien from the Pension Benefit
Guaranty Corporation under Section 412(n) of the tax code or Section 302(f) of ERISA for a
failure to make a required installment or other payment to a pension plan to which either of
those sections applies or (z) a notice of any other lien that, in the case of each of (x),
(y) and (z), could reasonably be expected to have a material adverse effect on the business,
operations or financial condition of the Issuer or the business, operations or financial
condition of Credit Acceptance and the Seller and (b) forty (40) days after such filing (x)
such notice has not been withdrawn, (y) such lien has not been released or discharged and
(z) such lien is not being contested in good faith with appropriate reserves established as
required by GAAP;

(v) one or more judgments or decrees are entered against the Seller or Credit
Acceptance involving in the aggregate liability, not paid or fully covered by insurance, of
$100,000 in the case of the Seller, and $5,000,000 in the case of Credit Acceptance, or more
and those judgments or decrees have not been vacated, discharged or stayed within thirty
(30) days from their entry; or

(vi) any of the Basic Documents ceases for any reason to be in full force and effect
other than in accordance with its terms.

(d) If a Responsible Officer of the Indenture Trustee shall have actual knowledge, or the
Indenture Trustee shall receive written notice from the Majority Noteholders, that an Early
Amortization Event has occurred, the Indenture Trustee shall promptly issue written notice of such
Early Amortization Event to the Servicer (who shall promptly provide a copy of such notice to the
Rating Agencies), the Backup Servicer, the Trust Collateral Agent, and the Noteholders, which
notice shall advise them of the nature of the Early Amortization Event, to the extent actually
known by the Indenture Trustee, and the date of the occurrence thereof.

(e) On the first Distribution Date during the Amortization Period, any amounts remaining on
deposit in the Principal Collection Account shall be deposited into the Collection Account and
treated as Available Funds.

SECTION 2.03. Title to Trust Property.

(a) Immediately upon the conveyance to the Trust by the Seller of any item of property
pursuant to Section 2.01 or 2.02, all right, title and interest of the Seller in
and to such item of property shall terminate, and all such right, title and interest shall vest in
the Trust, in accordance with the Trust Agreement and Sections 3802 and 3805 of the Statutory Trust
Act (as defined in the Trust Agreement).

(b) Immediately upon the vesting of the Trust Property in the Trust, the Trust shall have the
sole right to pledge or otherwise encumber, such Trust Property but only in accordance with the
terms of the Basic Documents. Pursuant to the Indenture, the Trust shall grant a security interest
in the Trust Property to the Indenture Trustee for the benefit of the Noteholders to secure the
repayment of the Notes.

(c) It is the intention of the Seller that the conveyance of the Seller Property by the Seller
to the Trust pursuant to this Agreement be construed as an absolute sale and conveyance of all of
the Seller’s right, title and interest in and to such Seller Property to the Trust and that the
Seller relinquishes control over, and all rights, title and interest (legal or equitable) in, any
Seller Property immediately upon the transfer of each such Seller Property under this Agreement.
Further, it is not the intention of the Seller and the Trust that such conveyance be deemed a grant
of a security interest in the Seller Property by the Seller to the Trust in the nature of a
consensual lien securing an obligation.

(d) Notwithstanding the foregoing, if and to the extent that the transfer of any of the Seller
Property is for any purpose characterized as a collateral transfer for security or the transaction
is characterized as a financing transaction, then it is intended that:

(i) This Agreement shall be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the UCC;

(ii) The conveyances provided for in Section 2.01 and Section 2.02
shall be deemed to be a grant by the Seller, and the Seller hereby grants, to the Trust a
first priority, perfected security interest in all of its right (including the power to
convey title thereto), title and interest, whether now owned or hereafter acquired, in and
to all assets and personal property of the Seller, including but not limited to, all of the
Seller’s accounts, chattel paper, goods, deposit accounts, documents, general intangibles,
instruments, investment property, letter of credit rights, money and supporting obligations
and all proceeds of the foregoing (as each such term is defined in the UCC), to secure the
obligation of the Seller to pay to the Trust an amount equal to the Issuer Secured
Obligations;

(iii) The possession by the Trust, or the Servicer as the Trust’s agent, of the Dealer
Agreements, Purchase Agreements, Loans and Contract Files and any other property which
constitute instruments, money, negotiable documents or chattel paper shall be deemed to be
“possession by the secured party” or possession by the purchaser or a person designated by
such purchaser, for purposes of perfecting the security interest pursuant to the UCC; and

(iv) Notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be deemed to be notifications to, or
acknowledgments, receipts or confirmations from, bailees or agents (as applicable) of the
Trust for the purpose of perfecting such security interest under the UCC.

(e) At such time as there are no Notes outstanding and all sums due to (i) the Indenture
Trustee pursuant to Section 6.7 of the Indenture, (ii) the Trust Collateral Agent pursuant to
Section 9.05 hereof, and (iii) the Backup Servicer hereunder and under the Backup Servicing
Agreement, have been paid, the Trust Collateral Agent shall, upon instructions from the Indenture
Trustee pursuant to Section 8.2 of the Indenture, release any remaining portion of the Trust
Property from the lien of the Indenture for distribution in accordance with the Trust Agreement.

ARTICLE III

THE LOANS AND THE CONTRACTS

SECTION 3.01. Representations and Warranties of Seller with respect to the Seller
Property.

The Seller makes the following representations and warranties as to the Dealer Agreements and
Purchase Agreements, Loans and the Contracts on which each of the Trust Collateral Agent and the
Backup Servicer relies in connection with performance of its obligations hereunder. Such
representations and warranties speak as of the execution and delivery of this Agreement on the
Closing Date and each Distribution Date on which the Trust purchases Seller Property, as the case
may be, and only with respect to the Seller Property conveyed to the Trust at the time given or
made (unless otherwise specified) but shall survive the sale, transfer, and assignment of the
Seller Property to the Trust and the pledge thereof to the Indenture Trustee pursuant to the
Indenture:

(i) Eligibility of Dealer Agreements. Each Dealer Agreement classified as an
“Eligible Dealer Agreement” (or included in any aggregation of balances of “Eligible Dealer
Agreements”) by the Seller or the Servicer in any document or report delivered hereunder
satisfied the requirements contained in the definition of Eligible Dealer Agreement on the
date so delivered.

(ii) Eligibility of Loans. Each Loan classified as an “Eligible Loan” (or
included in any aggregation of balances of “Eligible Loans”) by the Seller or the Servicer
in any document or report delivered hereunder satisfied the requirements contained in the
definition of Eligible Loan on the date so delivered.

(iii) Eligibility of Contracts. Each Contract classified as an “Eligible
Contract” (or included in any aggregation of balances of “Eligible Contracts”) by the Seller
or the Servicer in any document or report delivered hereunder satisfied the requirements
contained in the definition of Eligible Contract on the date so delivered.

(iv) Accuracy of Information. All information with respect to the Loans, the
Dealer Agreements, the Purchase Agreements, the Contracts and other Seller Property provided
to the Trust Collateral Agent by the Seller or the Servicer was true and correct in all
material respects as of the date such information was provided to the Trust Collateral
Agent.

(v) No Liens. Each Loan and the other Seller Property has been pledged to the
Trust Collateral Agent free and clear of any Lien of any Person, and in compliance, in all
material respects, with all Applicable Laws.

(vi) No Consents. With respect to each Loan and the other Seller Property, all
consents, licenses, approvals or authorizations of or registrations or declarations with any
Governmental Authority required to be obtained, effected or given by the Seller, in
connection with the pledge of such Dealer Agreement, Purchase Agreement, Loan, Contract or
other Collateral to the Trust Collateral Agent have been duly obtained, effected or given
and are in full force and effect;

(vii) Schedule of Loans, Dealer Agreements, Purchase Agreements and Contracts.
Schedule A to this Agreement and each supplement or addendum thereto is and will be
an accurate and complete listing of all Loans, the related Dealer Agreements, Purchase
Agreements and Contracts in all material respects on the date each such Loan and other
Seller Property was transferred to the Trust hereunder, and the information contained
therein is and will be true and correct in all material respects as of such date.

(viii) Adverse Selection. No selection procedure believed by the Seller to be
adverse to the interests of the Noteholders has been or will be used in selecting the Dealer
Agreements, Purchase Agreements, Loans or Contracts.

(ix) Sale and Contribution Agreement. The Sale and Contribution Agreement is
the only agreement pursuant to which the Seller purchases Loans from the Originator.

(x) Security Interest. The Seller has granted a security interest (as defined
in the UCC) to the Trust Collateral Agent, as agent for the Noteholders, in the Seller
Property, which is enforceable in accordance with Applicable Law upon the Closing Date.
Upon the filing of UCC-1 financing statements naming the Trust Collateral Agent as secured
party and the Seller as debtor, or upon the Trust Collateral Agent obtaining possession or
control, in the case of that portion of the Seller Property which constitutes chattel paper
or instruments, the Trust Collateral Agent, as agent for the secured parties under the
Indenture, shall have a first priority perfected security interest in the Seller Property.
All filings (including such UCC filings) as are necessary in any jurisdiction to perfect the
interest of the Trust Collateral Agent, as agent for the Trust, in the Seller Property have
been made.

(xi) Representations and Warranties in Sale and Contribution Agreement. The
representations and warranties made by the Originator to the Seller in the Sale and
Contribution Agreement are hereby remade by the Seller on each date to which they speak in
the Sale and Contribution Agreement as if such representations and warranties were set forth
herein. For purposes of this Section 3.01(xi), such representations and warranties
are incorporated herein by reference as if made by the Seller to the Trust Collateral Agent
under the terms hereof mutatis mutandis.

(xii) Survival. The representations and warranties set forth in this
Section 3.01 shall survive the Seller’s transfer and assignment of the Seller
Property to the Trust and the termination of the rights and obligations of the Servicer.

(xiii) Perfection Representations. The perfection representations, warranties
and covenants made by the Seller and set forth on Schedule C hereto shall be a part
of this Agreement for all purposes.

SECTION 3.02. Payment Upon Breach.

(a) The Seller, the Servicer, or the Trust Collateral Agent, as the case may be, shall inform
the other parties to this Agreement promptly in writing, upon the discovery (which, in the case of
the Trust Collateral Agent shall mean actual knowledge of a Responsible Officer of the Trust
Collateral Agent or receipt of written notice of such breach or failure): (i) of any breach of the
Seller’s representations and warranties pursuant to Sections 3.01(i), (ii),
(iii), (iv), (v), (vi), (vii), (viii), (x)
and (xiii) hereof without regard to any limitation set forth therein concerning the
knowledge of the Seller as to the facts stated therein; or (ii) with respect to each date by which
a review is required to be performed pursuant to Section 3.03(d) hereof, that the aggregate
number of Incomplete Contracts exceeds the number of Permitted Incomplete Contracts for such date.

(b) Unless any such breach of a representation or warranty described in clause (a)(i) of this
Section 3.02 shall have been cured by, or the number of Incomplete Contracts with respect
to any review period described in clause (a)(ii) of this Section 3.02 no longer exceeds the
number of Permitted Incomplete Contracts, as applicable, as of last day of the first full
Collection Period following the discovery thereof the Seller shall have the obligation, and the
Trust Collateral Agent shall, at the expense of the Seller, enforce such obligation of the Seller,
and if necessary, any obligation of the Originator under the Sale and Contribution Agreement, to
make a payment to the Collection Account of the applicable Purchase Amount in respect of: (A) all
Loans and Contracts with respect to which there is a breach of any such representations and
warranties, and (B) the aggregate number of Incomplete Contracts which exceeds the number of
Permitted Incomplete Contracts, which, in the case of each of (A) and (B), are materially and
adversely affected by such event or which materially and adversely affects the interests of the
Indenture Trustee therein as of such last day.

(c) The sole remedy of the Trust Collateral Agent, the Trust, the Noteholders and the
Certificateholders with respect to a breach of the Seller’s representations and warranties pursuant
to Section 3.01 hereof which materially and adversely affects the interests of the
Indenture Trustee and the Noteholders in the Contracts, Purchased Loans or Dealers Loans shall be
to require the Seller to make payments in respect of the related Loans pursuant to this Section or
to enforce any obligation of Credit Acceptance to repurchase such Loans pursuant to the Sale and
Contribution Agreement, and to require the Seller to make payments in respect of the related
Contracts pursuant to this Section or to enforce the obligation of Credit Acceptance to make such
payments pursuant to the Sale and Contribution Agreement. The Trust Collateral Agent shall have no
duty to conduct any affirmative investigation as to the occurrence of any condition requiring the
purchase of any Loan or payment in respect of any Contract pursuant to this Section. Any expenses
incurred by the Trust Collateral Agent in enforcing the obligations of the Seller or Credit
Acceptance shall be paid pursuant to Section 5.08(a) hereof.

(d) (i) Notwithstanding anything herein to the contrary, (A) during the Revolving
Period such payments of Purchase Amounts pursuant to Section 3.02(b) of this
Agreement shall not be required if the Adjusted Collateral Amount is equal to or greater
than the Minimum Collateral Amount, and (B) during the Amortization Period, such payments of
Purchase Amounts pursuant to Section 3.02(b) of this Agreement shall not be
required: (x) with respect to any Loan, so long as the aggregate Net Loan Balance of all
Loans which would be Ineligible Loans as a result of being subject to the foregoing payment
obligations during the Amortization Period is less than the sum of: (1) the product of (i)
the aggregate Net Loan Balance of all Eligible Loans transferred to the Issuer during the
Amortization Period and (ii) the then effective Advance Rate; and (2) all Purchase Amounts
which have been previously paid during the Amortization Period in respect of Ineligible
Loans (such sum, the “Amortization Period Additional Loan Collateral Amount”); and
(y) with respect to any Contract, so long as the aggregate Outstanding Balance of all
Contracts which would be Ineligible Contracts as a result of being subject to the foregoing
payment obligations during the Amortization Period is less than the sum of: (1) the product
of (i) the aggregate Outstanding Balance of all Eligible Contracts an interest in which is
transferred to the Issuer during the Amortization Period and (ii) a fraction, the numerator
of which is equal to the Aggregate Note Balance and the denominator of which is equal to the
Outstanding Balance of all Eligible Contracts; and (2) all Purchase Amounts which have been
previously paid during the Amortization Period in respect of Ineligible Contracts (such sum,
the “Amortization Period Additional Contract Collateral Amount”).

(ii) If such payments are required during the Amortization Period in accordance with
clause (d)(i) of this Section 3.02, they shall be made: (A) with respect to
Ineligible Loans, to the extent and in the amount by which the aggregate Net Loan Balance of
all Ineligible Loans which are subject to the foregoing payment obligations during the
Amortization Period exceeds the Amortization Period Additional Loan Collateral Amount; and
(B) with respect to Ineligible Contracts, to the extent and in the amount by which the
aggregate Outstanding Balance of all Ineligible Contracts which are subject to the foregoing
payment obligations during the Amortization Period exceeds the Amortization Period
Additional Contract Collateral Amount (the foregoing payment obligations, the
“Amortization Period Payment Obligations”).

(iii) If such payments are required during the Revolving Period in accordance with
clause (d)(i) of this Section 3.02, such payments shall be equal to the applicable Purchase
Amounts of the Ineligible Loans or Ineligible Contracts. Notwithstanding the foregoing,
with respect to any Ineligible Contracts, the Seller may repurchase the Loans related
thereto in lieu of such Ineligible Contracts and deposit into the Collection Account the
Purchase Amount of such Loans (as if such Loans were Ineligible Loans).

(iv) Notwithstanding the foregoing, the Seller’s obligation to make payments under
Section 3.02 hereof may be waived with the prior written consent of the Indenture
Trustee, at the direction of the Majority Noteholders. Any such waiver by the Indenture
Trustee, at the direction of the Majority Noteholders, as applicable, shall not require any
further waiver, action or consent by any other party. The party providing such waiver shall
give notice thereof to the Owner Trustee.

(e) Any Contract which is subject to a payment in accordance with Section
3.02(b), Section 3.03(d) or Section 4.07 of this Agreement shall be an
Ineligible Contract. Any Loan which is subject to a payment in accordance with Section
3.02(b), Section 3.03(d) or Section 4.07 of this Agreement shall be an
Ineligible Loan. Each Dealer Loan, Purchased Loan or Contract which is subject to a payment in
accordance with Section 3.02(b), Section 3.03(d) or Section 4.07 of this
Agreement, shall, upon payment in full of the related Purchase Amount, be released from the lien
created pursuant to the Indenture and shall no longer constitute Trust Property.

SECTION 3.03. Custody of Dealer Agreements, Purchase Agreements and Contract Files.

(a) The Trust hereby revocably appoints Credit Acceptance as custodian of the Dealer
Agreements, the Purchase Agreements, the Contract Files and the Certificates of Title related to
the Financed Vehicles. Credit Acceptance hereby accepts such appointment and agrees to hold, or
appoint an agent to hold, each Dealer Agreement, Purchase Agreement, Contract File and, in states
where it is required by applicable law, the original Certificate of Title related to each Financed
Vehicle under this Agreement as custodian for the Trust and the Trust Collateral Agent.

(b) (i) On or prior to the Closing Date and each Distribution Date during the Revolving
Period, the Servicer shall provide an Acknowledgment substantially in the form of
Exhibit E hereto dated as of the Closing Date or such Distribution Date, as
applicable, to the Owner Trustee and the Trust Collateral Agent confirming that the Servicer
has received and is in possession of the original of each Dealer Agreement listed on
Schedule A hereto (or such amendment or supplement to Schedule A relating to
each Distribution Date, as applicable).

(ii) If, on the 120th day after the Closing Date or the 120th day after each
Distribution Date during the Revolving Period, the Servicer has not verified the presence of
the original Contract related to the Contracts listed on Schedule A hereto (or such
amendment or supplement to Schedule A relating to each Distribution Date during the
Revolving Period, as applicable) with respect to at least 98.0% of the number of Contract
Files required to be reviewed by each such 120th day in accordance with Section
3.03(d) hereof, the Servicer shall provide notice to the Owner Trustee and the Trust
Collateral Agent as of such date indicating the number of Incomplete Contracts as of such
date.

(iii) On or prior to the 180th day after the Closing Date and the 180th day
after each Distribution Date during the Revolving Period, the Servicer shall provide an
Acknowledgment substantially in the form of Exhibit E hereto, dated as of such date,
to the Owner Trustee and the Trust Collateral Agent confirming that the Servicer has
verified the presence of the original contract related to at least 98.0% of the Contract
Files required to be reviewed by such date in accordance with Section 3.03(d)
hereof.

(c) To assure uniform quality in servicing the Loans and Contracts and to reduce
administrative costs, the Issuer hereby revocably appoints the Servicer and the Servicer hereby
accepts such appointment, to act as the agent of the Issuer and the Trust Collateral Agent as
custodian of the original Certificates of Title for each Financed Vehicle evidencing the security
interest of the Trust Collateral Agent in such Financed Vehicle, which are hereby constructively
delivered to the Trust Collateral Agent as of the Closing Date. The Servicer agrees to maintain
the Dealer Agreements, Purchase Agreements, Contract Files, Certificates of Title and Records which
are delivered to it at the offices of the Servicer as shall from time to time be identified to the
Trust Collateral Agent and the Backup Servicer by written notice. The Servicer shall maintain, or
shall appoint an agent to maintain, such Certificates of Title at its principal place of business
located at Silver Triangle Building, 25505 West Twelve Mile Road, Southfield, Michigan 48034-8339
or as otherwise notified in writing to the Trust Collateral Agent and the Backup Servicer. The
Trust Collateral Agent shall not be responsible for the acts or omissions of the Servicer acting as
custodian.

(d) The Servicer shall within: (i) one hundred twenty (120) days after the Closing Date and
one hundred twenty (120) days after each Distribution Date during the Revolving Period, review at
least 75.0% of the Contract Files related to the Loans transferred to the Trust on the Closing Date
or such Distribution Date, as applicable, to verify the presence of the original of the Contract;
and (ii) 180 days after the Closing Date and one hundred eighty (180) days after each Distribution
Date during the Revolving Period, review the remainder of the Contract Files related to the Loans
transferred to the Trust on the Closing Date or such Distribution Date, as applicable, to verify
the presence of the original of the Contract therein; provided, however, that in
the case of each of (i) and (ii) above, the Certificate of Title with respect to each Contract need
not be verified. If the number of Incomplete Contracts (or the number of originals of Contracts
that have not otherwise been delivered to the Servicer) exceeds the number of Permitted Incomplete
Contracts as of any such 120th or 180th day, as applicable, the Seller shall make the payment
required by Section 3.02(b) only with respect to the excess number of Incomplete Contracts,
in an amount equal to the related Purchase Amount, in accordance with the provisions of Section
3.02(b) hereof.

(e) Subject to the foregoing, Credit Acceptance may temporarily (or permanently, in the case
of a Loan or a Contract that is repurchased, liquidated or paid in full) move individual Dealer
Agreements, Purchase Agreements, Contract Files or Records, or any portion thereof without notice
as necessary to allow the Servicer to conduct collection and other servicing activities in
accordance with its customary practices and procedures.

(f) The Servicer shall have and perform the following powers and duties:

(i) hold the Dealer Agreements, Purchase Agreements, Contract Files and Records in
trust for the benefit of the Trust Collateral Agent and the Trust and maintain a current
inventory thereof; and

(ii) carry out such policies and procedures in accordance with its customary actions
with respect to the handling and custody of the Dealer Agreements, the Purchase Agreements,
Contract Files and Records so that the integrity and physical possession of the Dealer
Agreements, Purchase Agreements, Contract Files and Records will be maintained.

In performing its duties as custodian, the Servicer agrees to act with reasonable care, using that
degree of skill and care that it exercises with respect to similar Dealer Agreements, Purchase
Agreements, Contracts or Loans owned or held by it.

(g) The Servicer shall have the obligation (i) to physically segregate the Contract Files from
the other custodial files it is holding for its own account or on behalf of any other Person and
(ii) to physically mark the Contract folders to demonstrate the transfer of Contract Files and the
Trust Collateral Agent’s security interest hereunder.

(h) (i) If a Servicer Default occurs, the Trust Collateral Agent shall have the rights
set forth in Section 8.01 hereof, including, at the request of the Indenture
Trustee, at the direction of the Majority Noteholders, the right to terminate Credit
Acceptance as the custodian hereunder and the Trust Collateral Agent shall have the right to
appoint a successor custodian hereunder who shall assume all the rights and obligations of
the “custodian” hereunder. On the effective date of the termination of Credit Acceptance as
Servicer, Credit Acceptance shall be released of all of its obligations as custodian arising
on or after such date. The Dealer Agreements, the Purchase Agreements, Contract Files and
Records shall be delivered by Credit Acceptance to the successor custodian, on or before the
date which is two (2) Business Days prior to such date.

(ii) During the continuance of a Servicer Default, the Servicer and the Seller shall,
at the request of the Indenture Trustee, at the direction of the Majority Noteholders or the
Trust Collateral Agent, take all steps necessary to cause the Certificate of Title of each
Financed Vehicle to be revised to name the Trust Collateral Agent on behalf of the Trust as
lienholder. Any costs associated with such revision of the Certificate of Title shall be
paid by the Servicer and, and to the extent such costs are not paid by the Servicer such
unpaid costs shall be recovered as described in Section 5.08 hereof. In no event
shall the Trust Collateral Agent or the successor Servicer be required to expend funds in
connection with this Section 3.03(h). If the Backup Servicer has become the
successor Servicer, it shall be reimbursed for all Reliening Expenses (in accordance with
the provisions of Section 5.08(a) hereof) for any retitling effort associated with
the Financed Vehicles set forth in this Agreement.

(iii) The Servicer shall provide to the Trust Collateral Agent access to the Dealer
Agreements, the Purchase Agreements, Contract Files and Records and all other documentation
regarding the Dealer Agreements, Purchase Agreements, Contracts and the Loans and the
related Financed Vehicles in such cases where the Trust Collateral Agent is required in
connection with the enforcement of the rights or interests of the Trust, or by applicable
statutes or regulations to review such documentation, such access being afforded without
charge.

ARTICLE IV

ADMINISTRATION AND SERVICING OF LOANS AND CONTRACTS

SECTION 4.01. Appointment; Duties of Servicer.

(a) Servicing; Termination. The Seller and the Trust hereby appoint Credit Acceptance
as Servicer hereunder and Credit Acceptance hereby accepts such appointment and agrees to manage,
collect and administer each of the Loans as Servicer. Upon the occurrence of a Servicer Default,
the Indenture Trustee shall have the rights set forth in Section 8.01 hereof.

(b) Standard of Care; Types of Duties. The Servicer shall manage, service,
administer, and make collections on the Loans and the Contracts with reasonable care, using that
degree of skill and attention that the servicers in the retail automobile financing industry
exercise with respect to all comparable receivables that they service for themselves or others and
the same degree of care that the Servicer exercises with respect to any comparable loan or
automobile contracts that it holds for its own account. The Servicer’s duties shall include
collection and posting of all payments, responding to inquiries of Dealers and of Obligors on such
Contracts, investigating delinquencies, sending payment statements or coupons to Dealers and
Obligors, reporting tax information to Dealers and Obligors, accounting for collections, and
furnishing monthly and annual statements to the Trust Collateral Agent with respect to
distributions. The Servicer shall follow prudent standards, policies, and procedures in performing
its duties as Servicer. Without limiting the generality of the foregoing, the Servicer is hereby
granted a limited power of attorney by the Trust Collateral Agent to execute and deliver, on behalf
of itself, the Trust, the Noteholders, or the Trust Collateral Agent or any of them, any and all
instruments of satisfaction or cancellation, or partial or full release or discharge, and all other
comparable instruments, with respect to such Loans and Contracts or to the Financed Vehicles
securing such Contracts in accordance with the terms of this Agreement. If the Servicer shall
commence a legal proceeding to enforce a Loan or a Contract, the Trust Collateral Agent (in the
case of a Loan other than a Repurchased Loan) shall thereupon be deemed to have automatically
assigned, solely for the purpose of collection, such Loan or Contract to the Servicer. The
Servicer shall not make the Seller, the Trust, the Trust Collateral Agent or the Indenture Trustee
a party to any such legal proceeding without such party’s written consent. If in any enforcement
suit or legal proceeding it shall be held that the Servicer may not enforce a Loan or a Contract on
the ground that it shall not be a real party in interest or a holder entitled to enforce the Loan
or Contract, the Trust Collateral Agent shall be deemed to have automatically assigned such Loan or
Contract to the Servicer, solely for the purpose of collection. The Trust Collateral Agent shall
furnish the Servicer with any powers of attorney and other documents prepared by the Servicer
reasonably necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder. The Servicer, at its expense, shall obtain on behalf of the Trust
all licenses, if any, required by the laws of any jurisdiction to be held by the Trust in
connection with ownership of the Loans and the Purchased Loan Contracts and its security interest
in the Dealer Loan Contracts, and shall make all filings and pay all fees as may be required in
connection therewith during the term hereof. The Seller shall assist the Backup Servicer, as
successor Servicer, in connection with any reports related to distributions.

(c) Duties with Respect to the Basic Documents. Credit Acceptance shall perform all
its duties and, unless otherwise specified, the administrative duties of the Issuer under the Basic
Documents. In addition, Credit Acceptance shall consult with the Indenture Trustee, as Credit
Acceptance deems appropriate regarding the duties of the Issuer under the Basic Documents. Credit
Acceptance shall monitor the performance of the Trust and shall advise the Owner Trustee and
Indenture Trustee, when action is necessary to comply with the Trust’s duties under the Basic
Documents. The Seller (to the extent the Servicer does not) shall execute and deliver all Issuer
Orders and Officer’s Certificates required by the Trust under the Indenture. Notwithstanding
anything herein to the contrary, the Backup Servicer, as successor Servicer, shall not have an
obligation to perform such duties set forth in this Section 4.01(c).

(d) Duties with Respect to the Trust.

(i) In addition to the duties of the Servicer set forth in this Agreement or any of the
Basic Documents, the Servicer, as Administrator, shall perform such calculations, shall
execute and deliver all Issuer Orders and Officer’s Certificates required of the Issuer
under the Basic Documents, and shall prepare for execution by the Trust or the Owner Trustee
or shall cause the preparation by other appropriate Persons of all such documents, reports,
filings, instruments, certificates, opinions, financial statements and accounting books and
records as it shall be the duty of the Trust or the Owner Trustee to prepare, file or
deliver pursuant to this Agreement or any of the Basic Documents or under state and federal
tax and securities laws or any state regulatory filings required to be made by the Trust and
shall take all appropriate action that it is the duty of the Trust to take pursuant to this
Agreement or any of the Basic Documents, including pursuant to Section 5.1 (with
respect to the preparation and filing of tax returns) and Section 11.11 of the Trust
Agreement.

(ii) In carrying out the foregoing duties or any of its other obligations under this
Agreement, the Servicer may enter into transactions with or otherwise deal with any of its
Affiliates; provided, however, that such delegation shall not relieve the
Servicer of its obligations that the terms of any such transaction or dealings shall be in
accordance with any directions received from the Trust and shall be, in the Servicer’s
opinion, no less favorable to the Trust in any material respect.

Notwithstanding anything herein to the contrary, in the event that the Backup Servicer is acting as
successor Servicer, the Seller shall assist the Backup Servicer in performing the duties of the
Administrator set forth in this Section 4.01(d).

(e) Records. The Servicer shall maintain appropriate books of account and records
relating to its duties performed under Section 4.01(c) and (d) hereof, which books
of account and records shall be accessible for inspection and copy by the Owner Trustee, the
Indenture Trustee, the Backup Servicer or the Trust Collateral Agent at any time during normal
business hours at its offices and in a reasonable manner.

(f) Additional Information to be Furnished to the Trust. The Servicer shall furnish
to the Owner Trustee, the Indenture Trustee, the Trust Collateral Agent and the Backup Servicer
from time to time such additional information regarding the Trust or the Basic Documents as the
Owner Trustee, the Indenture Trustee, the Trust Collateral Agent or the Backup Servicer shall
reasonably request.

(g) Servicer as Independent Contractor. All services, duties and responsibilities of
the Servicer under this Agreement shall be performed and carried out by the Servicer as an
independent contractor for the benefit of the Trust, and none of the provisions of this Agreement
shall be deemed to make, authorize or appoint the Servicer as agent or representative of the
Seller, the Trust Collateral Agent, the Trust or any Noteholder except as provided in Section
3.03 hereof.

SECTION 4.02. Collection and Application of Payments on the Loans and Contracts.

The Servicer shall take or cause to be taken all such action as may be necessary or advisable
to collect all amounts due under the Loans and Contracts from time to time, all in accordance with
Applicable Laws, with reasonable care and diligence, and in accordance with the Collection
Guidelines (including selling or assigning defaulted contracts to third parties for collection), it
being understood that there shall be no recourse to the Servicer with regard to the Loans and
Contracts except as otherwise provided herein and in the other Basic Documents. In performing its
duties as Servicer, the Servicer shall use the same degree of care and attention it employs with
respect to similar contracts and loans which it services for itself or others. Each of the Issuer
and the Trust Collateral Agent hereby appoints as its agent the Servicer, from time to time
designated pursuant to the terms hereof, to enforce its respective rights and interests in and
under the Trust Property. The Servicer shall hold in trust for the Issuer and the Trust Collateral
Agent all Records and all Collections (other than Dealer Collections) and any other amounts it
receives in respect of the Trust Property. In the event that a successor Servicer is appointed,
the outgoing Servicer shall deliver to the successor Servicer and the successor Servicer shall hold
in trust for the Issuer and the Trust Collateral Agent all records which evidence or relate to all
or any part of the Trust Property.

SECTION 4.03. Realization Upon Contracts.

On behalf of the Trust and the Indenture Trustee, the Servicer shall use reasonable efforts,
in accordance with the Collection Guidelines and prudent servicing procedures, to repossess or
otherwise convert the ownership of the Financed Vehicle securing any Contract as to which the
Servicer shall have determined eventual payment in full is unlikely, as soon as practicable after
the Servicer makes such determination. The Servicer may also sell or otherwise assign defaulted
contracts for collection in an effort to realize upon such defaulted contracts. The Servicer shall
follow such prudent practices and procedures as would be deemed prudent in the servicing of
comparable receivables, consistent with the standard of care required by Section 4.01(b)
which may include reasonable efforts to sell the Financed Vehicle at public or private sale. If
the Backup Servicer has become the Servicer, it shall be entitled to receive Repossession Expenses
in accordance with Section 5.02 hereof.

SECTION 4.04. Physical Damage Insurance.

The Servicer, in accordance with prudent servicing procedures, shall require that each Obligor
on a Contract shall have obtained physical damage insurance covering the Financed Vehicle as of the
date of execution of the Contract, as may be required in accordance with the Credit Guidelines.

SECTION 4.05. Maintenance of Security Interests in Financed Vehicles.

The Servicer shall take such steps as are necessary to maintain perfection of the security
interest created by each Contract in the related Financed Vehicle, including taking such steps as
are reasonably necessary to maintain the Originator as noted lienholder on each Certificate of
Title relating to a Financed Vehicle in all states where such notation is a means of perfection
under applicable law. The Servicer shall take such steps as are necessary to reperfect such
security interest on behalf of the Indenture Trustee in the event of the relocation of a Financed
Vehicle or for any other reason. In the event that the assignment of a Contract to the Indenture
Trustee is insufficient without a notation on related Financed Vehicle’s Certificate of Title, or
without fulfilling any additional administrative requirements under the laws of the state in which
the Financed Vehicle is located, to perfect a security interest in the related Financed Vehicle in
favor of the Indenture Trustee, the parties hereto agree that the Originator’s designation as the
secured party on the Certificate of Title is, with respect to each secured party, as applicable, in
its capacity as agent of the Indenture Trustee. The Backup Servicer as successor Servicer shall be
entitled to reimbursement for all expenses incurred in connection with its duties under this
Section 4.05.

SECTION 4.06. Covenants of Servicer.

(a) Affirmative Covenants. From the date hereof until the Stated Final Maturity or,
if earlier, the date each class of Notes have been paid in full:

(i) Compliance with Law. The Servicer will comply in all material respects
with all Applicable Laws, including those with respect to the Loans, the Dealer Agreements,
the Purchase Agreements, the Contracts or any part thereof.

(ii) Preservation of Existence. The Servicer will preserve and maintain its
existence, rights, franchises and privileges in the jurisdiction of its formation, and
qualify and remain qualified in good standing as a foreign corporation in each jurisdiction
where the failure to preserve and maintain such existence, rights, franchises, privileges
and qualification has had, or could reasonably be expected to have, a material adverse
effect on the Loans, the Dealer Agreements, the Purchase Agreements, the Contracts or the
Notes.

(iii) Obligations and Compliance with Loans, Dealer Agreements and Purchase
Agreements. The Servicer will duly fulfill and comply with all obligations on the part
of the Seller to be fulfilled or complied with under or in connection with each Loan and
each Dealer Agreement and Purchase Agreement and will do nothing to impair the rights of the
Trust Collateral Agent, the Indenture Trustee or the Noteholders in, to and under the Trust
Property. The Backup Servicer as successor Servicer shall not have an obligation to perform
the obligations of the Servicer under this Section 4.06(a)(iii).

(iv) Keeping of Records and Books of Account. The Servicer will maintain and
implement administrative and operating procedures (including an ability to recreate records
consistent with standards or practices in the industry evidencing the Loans and the
Contracts in the event of the destruction of the originals thereof), and keep and maintain
all documents, books, records and other information reasonably necessary or advisable for
the collection of all Loans.

(v) Preservation of Security Interest. The Servicer will file such financing
and continuation statements and any other documents that may be required by any law or
regulation of any Governmental Authority to preserve and protect fully the security interest
of the Indenture Trustee for the benefit of the Noteholders in, to and under the Trust
Property. In its capacity as custodian, the Servicer will maintain possession of the Dealer
Agreements, Purchase Agreements and the Contract Files and Records, as custodian for the
Trust and the Trust Collateral Agent, as set forth in Section 3.03(a).

(vi) Collection Guidelines. The Servicer will (A) comply in all material
respects with the Collection Guidelines in regard to each Loan and Contract, and (B) furnish
to the Trust Collateral Agent quarterly, prompt notice of any material change in the
Collection Guidelines and will deliver a copy of such changes to the Trust Collateral Agent,
quarterly.

(vii) Books and Records. The Servicer shall keep, or cause to be kept, in
reasonable detail, books and records of account of: (A) its assets and business, and shall
clearly reflect therein the ownership of the Trust Property by the Issuer; and (B) any
statutory trust records of the Trust required in accordance with Section 4.1(c)(iv) of the
Trust Agreement.

(viii) Access to Records; Discussions with Officers. The Servicer shall, at
the Servicer’s expense upon the prior reasonable request of the Indenture Trustee, acting at
the direction of the Majority Noteholders, permit an authorized agent appointed by the
Majority Noteholders, access during normal business hours at its offices to (i) the
Servicer’s books of account, records, reports and other papers with respect to the Trust
Property and the Basic Documents and (ii) any of the properties of the Servicer, in order
to examine all of such books of account, records, reports and other papers, to make copies
and extracts therefrom and to discuss the Servicer’s affairs, finances and accounts with its
officers, employees, and subject to the agreement of such accountants, independent public
accountants. Such inspections and discussions shall be conducted at such reasonable times,
as often as may be reasonably requested and in a commercially reasonable manner.

(ix) ERISA. So long as the Seller or the Issuer are ERISA Affiliates of the
Servicer, the Servicer shall comply in all material respects with the provisions of ERISA,
the Code, and all other applicable laws, except where such non-compliance could not
reasonably be expected to result in a material adverse effect with respect to the Servicer
and its ERISA Affiliates or with respect to the Trust Property. Without limiting the
foregoing, the Servicer shall not, and shall not permit its ERISA Affiliates to: (i) engage
in any non-exempt prohibited transaction (within the meaning of the Internal Revenue Code
Section 4975 or ERISA Section 406) with respect to any Benefit Plan for which the Servicer
or its ERISA Affiliates would have a material liability; (ii) fail to satisfy the minimum
funding standards under Section 302(a) of ERISA and Section 412(a) of the Internal Revenue
Code with respect to any Benefit Plan or, in the case of a Multiemployer Plan, have an
accumulated funding deficiency within the meaning of Section 304 of ERISA or Section 431 of
the Code by an amount exceeding $500,000 or (iii) terminate any Benefit Plan or
Multiemployer Plan if such termination would result in any material liability for which the
Seller or Issuer would be liable as ERISA Affiliates.

(x) Financial Reporting. The Servicer shall furnish or cause to be furnished
to the Indenture Trustee and the Rating Agencies the following:

(A) Annual Financial Statements. As soon as available, and in any event within
one hundred and twenty (120) days after the close of each fiscal year of the Servicer, the
audited consolidated balance sheet of the Servicer as of the end of such fiscal year, and
the audited consolidated statements of income, shareholders’ equity and cash flows of the
Servicer for such fiscal year in reasonable detail and stating in comparative form the
respective figures for the corresponding date and period in the preceding fiscal year, in
each case prepared in accordance with GAAP, consistently applied, and accompanied by the
certificate of Independent Accountants and certified by an authorized officer of the
Servicer as being complete and correct in all material respects, in each case presenting the
financial condition and results of operations of the Servicer as of the dates and for the
periods indicated, in accordance with GAAP consistently applied.

(B) Quarterly Financial Statements. As soon as available, and in any event
within sixty (60) days after the close of the first three quarters of each fiscal year of
the Servicer, the unaudited consolidated balance sheet of the Servicer as of the end of each
such quarter, and the unaudited consolidated statements of income and cash flows of the
Servicer for the portion of the fiscal year then ended, in reasonable detail and stating in
comparative form the respective figures for the corresponding date and period in the
preceding fiscal year, prepared in accordance with GAAP, consistently applied (subject to
normal year-end adjustments), and certified by an authorized officer of the Servicer as
being complete and correct in all material respects and presenting the financial condition
and results of operations of the Servicer as of the dates and for the periods indicated, in
accordance with GAAP consistently applied (subject as to interim statements to normal
year-end adjustments).

(C) Certification Regarding Servicer Defaults. Concurrently with the delivery
of each financial report delivered under (A) or (B) above, a certification by the chief
financial officer or treasurer of the Servicer that no Servicer Default and no event which,
with the giving of notice or the passage of time, would become a Servicer Default has
occurred and is continuing or, if any such Servicer Default or other event has occurred and
is continuing, such a Servicer Default has occurred and is continuing, the action which the
Servicer has taken or proposes to take with respect thereto.

(D) Notices to Other Creditors. Concurrently with the delivery to the “Agent”
under the Comerica Credit Agreement, but in any event no later than when such reports and
notices are required to be given under such agreement, copies of any static pool analyses,
notices of default, SEC filings, notices disclosing adverse litigation or a material adverse
change in the Servicer’s financial condition, business or operations.

(E) Other Material Events. As soon as possible, and in any event within three
(3) Business Days after becoming aware of (i) any material adverse change in the financial
condition of the Servicer or any of its Subsidiaries, a certificate of a financial officer
setting forth the details of such change, or (ii) the submission of any claim or the
initiation of any legal process, litigation or administrative or judicial investigation
against the Servicer or any of its Subsidiaries in any federal, state or local court or
before any arbitration board, or any such proceeding threatened by any governmental agency,
which, if adversely determined, would be reasonably likely to cause a material adverse
effect on the Servicer’s financial condition or operations, its ability to perform its
obligations hereunder or on the collectibility of the Trust Property.

(F) Other Information. Promptly upon request, such other information
respecting the Trust Property or the Servicer as the Rating Agencies may reasonably request.

(b) Negative Covenants. From the date hereof until the Stated Final Maturity or, if
earlier, the date that each class of Notes have been paid in full:

(i) Mergers, Acquisition, Sales, etc. The Servicer will not consolidate with
or merge into any other Person or convey or transfer its properties and assets substantially
as an entirety to any Person, unless the Servicer is the surviving entity and unless:

(A) the Servicer has delivered to the Trust Collateral Agent, the Indenture Trustee,
the Owner Trustee and the Backup Servicer an Officer’s Certificate and an Opinion of Counsel
each stating that any consolidation, merger, conveyance or transfer and such supplemental
agreement comply with the terms of this Agreement and that all conditions precedent herein
provided for relating to such transaction have been complied with and, in the case of the
Opinion of Counsel, that such supplemental agreement is legal, valid and binding with
respect to the Servicer and such other matters as the Trust Collateral Agent may reasonably
request;

(B) the Servicer shall have delivered written notice of such consolidation, merger,
conveyance or transfer to the Trust Collateral Agent, the Indenture Trustee and the
Noteholders; and,

(C) after giving effect thereto, no Servicer Default or event that with notice or lapse
of time, or both, would constitute a Servicer Default shall have occurred.

(ii) Change of Name or Location of Records. Except as permitted under
Section 7.03, the Servicer shall not (A) change its name or its state of
organization, move the location of its principal place of business and chief executive
office, and the offices where it keeps records concerning the Loans from the location
referred to in Section 3.03(c), or (B) move the Records from the location thereof on
the Closing Date, unless the Records are moved pursuant to Section 3.03(e) or the Servicer
has given at least thirty (30) days’ written notice to the Trust Collateral Agent and the
Indenture Trustee and has taken all actions required under the UCC of each relevant
jurisdiction in order to continue the first priority perfected security interest of the
Trust Collateral Agent as agent for the Noteholders in the Trust Property.

(iii) Change in Payment Instructions to Obligors. The Servicer will not make
any change in its instructions to Obligors (other than pursuant to its Collection
Guidelines) regarding payments to be made directly or indirectly, unless the Trust
Collateral Agent with the consent of the Majority Noteholders has consented to such change
and has received duly executed documentation related thereto; provided,
however, any successor Servicer appointed Servicer hereunder, shall be permitted to
make changes to such instructions directing the Obligors to make payments to such successor
Servicer directly or indirectly upon its appointment, but any subsequent changes shall be
subject to the consent provisions of this clause (iii).

(iv) No Instruments. The Servicer shall take no action to cause any Loan to be
evidenced by any instrument (as defined in the UCC as in effect in the relevant
jurisdictions).

(v) No Liens. The Servicer shall not sell, pledge, assign or transfer to any
other Person, or grant, create, incur, assume or suffer to exist any Lien (other than in
favor of the Trust Collateral Agent or the Trust as specifically contemplated herein) on the
Trust Property or any interest therein; the Servicer will notify the Trust Collateral Agent
of the existence of any Lien on any portion of the Trust Property immediately upon discovery
thereof, and the Servicer shall defend the right, title and interest of the Trust Collateral
Agent on behalf of the Noteholders in, to and under the Trust Property against all claims of
third parties claiming through or under the Servicer.

(vi) Credit Guidelines and Collection Guidelines. The Servicer will not amend,
modify, restate or replace, in whole or in part, the Credit Guidelines or Collection
Guidelines, which change would materially impair the collectibility of any Loan or Contract
or otherwise materially adversely affect the interests or the remedies of the Trust
Collateral Agent or the Trust under this Agreement or any other Basic Document, without the
prior written consent of the Trust Collateral Agent with the consent of the Majority
Noteholders.

(vii) Release of Contracts. Except for a release to an insurer in exchange for
insurance proceeds paid by such insurer resulting from a claim for the total insured value
of a vehicle, the Servicer shall not release or direct the Trust Collateral Agent to release
the Financed Vehicle securing each such Contract from the security interest granted by such
Contract in whole or in part, except in the event of (i) payment in full by or on behalf of
the Obligor thereunder, (ii) settlement with the Obligor in respect of defaulted contracts
consistent with its Collection Guidelines or (iii) repossession, nor shall the Servicer
impair the rights of the Noteholders in the Contracts, except as may be required by
applicable law.

(c) Notwithstanding the foregoing, the Servicer may assign rights in and to defaulted
contracts to collection agents as part of the collection process under the Collection Guidelines.

SECTION 4.07. Payments in Respect of Loans or Contracts Upon Breach.

(a) The Servicer or the Trust Collateral Agent (provided that a Responsible Officer of the
Trust Collateral Agent has actual knowledge or has received written notice thereof) shall inform
the other parties to this Agreement promptly, in writing, upon the discovery of any breach of
Section 4.01, 4.02, 4.03, 4.04, 4.05 or 4.06 hereof
which materially and adversely affects the interest of the Issuer or the Indenture Trustee in the
Contracts, the Purchased Loans or the Dealer Loans. Unless the breach shall have been cured by the
last day of the first full Collection Period following such actual knowledge or receipt of notice
by an Authorized Officer of the Servicer, the Servicer shall, as of the Business Day preceding the
Determination Date relating to the respective Collection Period, make payments with respect to any
nonconforming Loan that is materially and adversely affected by such breach or which materially and
adversely affects the interests of the Noteholders, and shall prepay in full any nonconforming
Contract that is materially and adversely affected by such breach or which materially and adversely
affects the interests of the Noteholders; provided, however, if the Backup Servicer
is acting as successor Servicer, it shall not have any obligation to make payments with respect to
any Loans or prepay any Contracts. In connection with making a payment required pursuant to this
Section 4.07 in respect to a Loan or Contract, the Servicer shall remit the Purchase Amount.
Notwithstanding anything herein to the contrary, (i) during the Revolving Period, such payments
shall not be required if the Adjusted Collateral Amount is equal to or greater than the Minimum
Collateral Amount; and (ii) during the Amortization Period, such payments shall not be required:
(A) with respect to any Loan, so long as the aggregate Net Loan Balance of all Loans which would be
Ineligible Loans as a result of being subject to the foregoing payment obligations during the
Amortization Period is less than the Amortization Period Additional Loan Collateral Amount; and (B)
with respect to any Contract, so long as the aggregate Outstanding Balance of all Contracts which
would be Ineligible Contracts as a result of being subject to the foregoing payment obligations
during the Amortization Period is less than the Amortization Period Additional Contract Collateral
Amount.

(b) If such payments are required in accordance with clause (a) of this Section
4.07, they shall be made only with respect to the Amortization Period Payment Obligations.
Notwithstanding the foregoing, the Servicer’s obligation to make any payment under this
Section 4.07 may be waived with the prior written consent of the Indenture Trustee,
at the direction of the Majority Noteholders. The Trust Collateral Agent shall have no duty to
conduct any affirmative investigation or inquiry as to the occurrence of any condition requiring
payments to be made with respect to any Loan or Contract pursuant to this Section. Any such waiver
by the Indenture Trustee, at the direction of the Majority Noteholders, as applicable, shall not
require any further waiver, action or consent by any other party. The party providing such waiver
shall give notice thereof to the Owner Trustee.

SECTION 4.08. Servicer Fee.

The Servicer, including any successor Servicer, shall be entitled to payment of the Servicing
Fee as defined herein, which shall be payable in accordance with Section 5.08(a) hereof.
In no event shall the Indenture Trustee or the Trust Collateral Agent be responsible for the
Servicing Fee or for any differential between the Servicing Fee and the amount necessary to induce
a successor Servicer to assume the obligations of Servicer hereunder.

SECTION 4.09. Servicer’s Certificate.

(a) By the Determination Date in each calendar month, the Servicer shall deliver to the Trust
Collateral Agent, the Rating Agencies, and Wells Fargo Securities, LLC, a Servicer’s Certificate
substantially in the form of Exhibit B hereto containing all information necessary to make
the transfers, deposits and distributions pursuant to Sections 5.04 through 5.10
hereof for the Collection Period immediately preceding the date of such Servicer’s Certificate and
as of the last day of such Collection Period, and all information necessary for the Trust
Collateral Agent to make available statements to the Noteholders pursuant to Section 5.11
hereof. Upon receipt of the Servicer’s Certificate, the Trust Collateral Agent shall conclusively
rely (and shall be fully protected in so relying) on the information contained therein for the
purposes of making distributions and allocations as provided for herein. Each Servicer’s
Certificate shall be certified by a Responsible Officer of the Servicer. The Seller shall assist
the Trust Collateral Agent with its obligation to make distributions and allocations. Loans
purchased by the Trust shall be identified by the Servicer by the Dealer’s lot number and certain
other information with respect to such Loan (as specified in Schedule A to this Agreement).

(b) No later than 9:00 A.M. New York time on the third (3rd) Business Day of each
calendar month (the “Servicer’s Data Date”), the Servicer shall send to the Backup Servicer
a Computer Tape, detailing the Collections received during the prior Collection Period and all
other information in its possession relating to the Loans and the Contracts as may be necessary for
the complete and correct completion of the Servicer’s Certificate (the “Servicer’s Data
File”). Such Computer Tape shall be in the form and have the specifications as may be agreed
to between the Servicer and the Backup Servicer from time to time.

(c) No later than the end of the second (2nd) Business Day prior to each
Determination Date, the Servicer shall furnish to the Backup Servicer the Servicer’s Certificate
related to the prior Collection Period together with all other information necessary for the
preparation of such Servicer’s Certificate and necessary to determine the application of
Collections. The Backup Servicer shall review the information contained in the Servicer’s
Certificate against the information on the Servicer’s Data File, on an aggregate basis.

The Backup Servicer and the Servicer shall attempt to reconcile any material inconsistencies
and/or to furnish any omitted information and the Servicer shall amend the Servicer’s Certificate
to reflect the Backup Servicer’s computations or to include the omitted information. The Backup
Servicer shall in no event be liable to the Servicer with respect to any failure of the Backup
Servicer to discover or detect any errors, inconsistencies, or omissions by the Servicer with
respect to the Servicer’s Certificate and Servicer’s Data File except as specifically set forth in
this Section.

(d) The Servicer shall provide to the Backup Servicer, or its agent, monthly, or as frequently
as may be otherwise requested, information on the Loans and related Contracts sufficient to enable
the Backup Servicer to assume the responsibilities as successor Servicer and collect on the
Contracts.

(e) Except as provided in this Agreement, the Backup Servicer may accept and conclusively rely
on all accounting, records and work of the Servicer without audit, and the Backup Servicer shall
have no liability for the acts or omissions of the Servicer or for the inaccuracy of any data
provided, produced or supplied by the Servicer. If any Error exists in any information received
from the Servicer, and such Errors should cause or materially contribute to any Continued Errors,
the Backup Servicer shall have no liability for such Continued Errors; provided,
however, that this provision shall not protect the Backup Servicer against any liability
that would otherwise be imposed by reason of willful misconduct, bad faith or gross negligence in
discovering or correcting any Error or in the performance of its or their duties hereunder or under
this Agreement. In the event the Backup Servicer becomes aware of Errors or Continued Errors, the
Backup Servicer shall use its best efforts to reconstruct and reconcile such data as is
commercially reasonable to correct such Errors and Continued Errors and prevent future Continued
Errors. The Backup Servicer shall be entitled to recover its costs thereby expended from the
Servicer.

(f) The Backup Servicer and its officers, directors, employees and agent shall be indemnified
by the Servicer and the Issuer jointly and severally, from and against all claims, damages, losses
or expenses reasonably incurred by the Backup Servicer (including reasonable attorneys’ fees)
arising out of claims asserted against the Backup Servicer by third parties on any matter arising
out of this Agreement to the extent the act or omission giving rise to the claim accrues before the
date on which the Backup Servicer assumes the duties of Servicer hereunder, except for any claims,
damages, losses or expenses arising from the Backup Servicer’s own gross negligence, bad faith or
willful misconduct. Indemnification by the Servicer and the Issuer under this Section
4.09(f) shall survive the termination of this Agreement or the earlier removal or resignation
of the Backup Servicer.

(g) Other than as specifically set forth in this Agreement or in the Backup Servicing
Agreement, the Backup Servicer shall have no obligation to supervise, verify, monitor or administer
the performance of the Servicer and shall have no duty, responsibility, obligation, or liability
for any action taken or omitted by the Servicer.

SECTION 4.10. Annual Statement as to Compliance; Notice of Default.

(a) The Servicer shall deliver to the Trust Collateral Agent, the Owner Trustee, the Rating
Agencies, the Indenture Trustee and the Noteholders, on or before April 30th of each
year beginning in the year 2011, an Officer’s Certificate, dated as of the preceding December 31st,
stating that (i) a review of the activities of the Servicer during the preceding 12-month (or for
the initial certificate, for such shorter period as may have elapsed from the Closing Date to such
December 31st or, with respect to a successor Servicer, shorter period if a successor
Servicer becomes Servicer after the beginning of a calendar year) period and of its performance
under this Agreement has been made under such officer’s supervision and (ii) to the best of such
officer’s knowledge, based on such review, the Servicer has fulfilled all its obligations under
this Agreement throughout such period, or, if there has been a default in the fulfillment of any
such obligation, specifying each such default known to such officer and the nature and status
thereof.

(b) The Servicer shall deliver to the Trust Collateral Agent, the Indenture Trustee, the Owner
Trustee, the Backup Servicer and to the Rating Agencies, promptly after having obtained knowledge
thereof, but in no event later than five (5) Business Days thereafter, written notice in an
Officer’s Certificate of any event which with the giving of notice or lapse of time, or both, would
become a Servicer Default under Section 8.01. The Seller shall deliver to the Trust
Collateral Agent, the Indenture Trustee, the Owner Trustee, the Backup Servicer and to the Rating
Agencies, promptly after having obtained knowledge thereof, but in no event later than five (5)
Business Days thereafter, written notice in an Officer’s Certificate of any event which with the
giving of notice or lapse of time, or both, would become a Servicer Default under clause (ii) of
Section 8.01. The Trust Collateral Agent shall forward a copy of each Officer’s
Certificate so received to each Noteholder.

SECTION 4.11. Annual Independent Certified Public Accountant’s Report.

(a) The Servicer will deliver to the Trust Collateral Agent, the Owner Trustee, the Indenture
Trustee, each Noteholder and the Rating Agencies, on or before April 30th of each year
beginning in the year 2011, a copy of a report prepared by Independent Accountants, who may also
render other services to the Servicer or any of its Affiliates, or to the Seller, addressed to the
Board of Directors of the Servicer and the Indenture Trustee and dated during the current year, to
the effect that such firm has examined the Servicer’s policies and procedures and issued its report
thereon and expressing a summary of findings (based on the procedures to be performed on the
documents, records and accounting records set forth in clause (b) of this Section 4.11)
relating to the servicing of the Loans and the related Contracts and the administration of the
Loans and the related Contracts and of the Trust during the preceding calendar year and that such
servicing and administration was conducted in compliance with the terms of this Agreement, except
for (i) such exceptions as such firm shall believe to be immaterial and (ii) such other exceptions
as shall be set forth in such report and that such examination (1) was performed in accordance with
standards established by the American Institute of Certified Public Accountants, and (2) included
tests relating to auto loans serviced for others in accordance with the requirements of the Uniform
Single Attestation Program for Mortgage Bankers (the “Program”) to the extent the
procedures in the Program are applicable to the servicing obligations set forth in this Agreement.
For purposes of clause (i) of this Section 4.11(a), an amount shall be deemed “immaterial”
if it is less than $1,000 or 0.05%.

In the event such independent public accountants require the Trust Collateral Agent or the
Indenture Trustee to agree to the procedures to be performed by such firm in any of the reports
required to be prepared pursuant to this Section 4.11, the Servicer shall direct the Trust
Collateral Agent or the Indenture Trustee in writing to so agree; it being understood and agreed
that the Trust Collateral Agent or the Indenture Trustee will deliver such letter of agreement in
conclusive reliance upon the direction of the Servicer, and neither the Trust Collateral Agent nor
the Indenture Trustee has made any independent inquiry or investigation as to, and shall have no
obligation or liability in respect of, the sufficiency, validity or correctness of such procedures.

Such report shall also indicate that the firm is independent of the Servicer and its
Affiliates within the meaning of the Code of Professional Ethics of the American Institute of
Certified Public Accountants.

(b) The procedures to be performed by the Independent Accountants shall include: (i) a
comparison of the data contained in two (2) Servicer Certificates (which are to be selected at
random by the Independent Accountants from all of the Servicer Certificates delivered during the
applicable fiscal year) to (A) the Servicer’s internal reports derived from its loan servicing
system, (B) information obtained by the Servicer from the Indenture Trustee in compiling the
Servicer Certificates, and (C) such other information used in the preparation of the Servicer
Certificates, to confirm the calculation of the data contained in the Servicer Certificates; (ii) a
comparison of the Aggregate Outstanding Eligible Loan Balance contained on three (3) Servicer
Certificates (which are to be selected at random by the Independent Accountants from all of the
Servicer Certificates delivered during the applicable fiscal year) to the Servicer’s internal
reports derived from its accounting records, to confirm the calculation of such amount; (iii) an
audit of the Servicer’s cash collections procedures by testing a random sample of five (5) daily
cash receipts from the Servicer’s list of cash collections for the applicable fiscal year to
confirm that Collections received are deposited to the Collection Account within two (2) Business
Days of receipt; and (iv) such other procedures as may be mutually agreed upon by the Servicer, the
Indenture Trustee at the direction of the Majority Noteholders and the Independent Accountants
which are considered appropriate under the circumstances.

SECTION 4.12. Access to Certain Documentation and Information Regarding Loans and
Contracts.

The Servicer shall provide to each Noteholder, the Indenture Trustee and the Trust Collateral
Agent access to its records pertaining to the Loans and the related Contracts, upon reasonable
prior written request. Access shall be afforded without charge, but only during the normal
business hours at the offices of the Servicer. Nothing in this Section shall affect the obligation
of the Servicer to observe any Applicable Law prohibiting disclosure of information regarding the
Dealers or the Obligors, and the failure of the Servicer to provide access to information as a
result of such obligation shall not constitute a breach of this Section.

SECTION 4.13. Servicer Expenses.

The Servicer shall be required to pay all expenses incurred by it in connection with its
activities hereunder, including fees and disbursements of independent accountants, taxes imposed on
the Servicer and expenses incurred in connection with distributions and reports to the Noteholders,
the Indenture Trustee and the Trust Collateral Agent and with administering the duties of the Trust
and the Issuer. If the Backup Servicer has become the Servicer, it shall be entitled to be
reimbursed for all Servicer Expenses, Repossession Expenses, Reliening Expenses and Transition
Expenses in accordance with Section 5.08(a) hereof.

SECTION 4.14. Servicer Not to Resign as Servicer.

Subject to the provisions of Section 7.03 of this Agreement, the Servicer shall not
resign from the obligations and duties hereby imposed on it as Servicer under this Agreement except
upon determination that the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting the resignation of
the Servicer shall be communicated to the Trust Collateral Agent, the Rating Agencies, the Owner
Trustee and the Indenture Trustee within five (5) Business Days thereafter (and, if such
communication is not in writing, shall be confirmed in writing within five (5) Business Days
thereafter) and any such determination shall be evidenced by an Opinion of Counsel to such effect
delivered to the Trust Collateral Agent and the Indenture Trustee concurrently with or promptly
after such notice. No such resignation shall become effective until the successor Servicer,
appointed in accordance with Section 8.02 hereof, shall have taken the actions required by
the last paragraph of Section 8.01 of this Agreement and shall have assumed the
responsibilities and obligations of the predecessor Servicer in accordance with Section
8.02 of this Agreement. The Trust Collateral Agent shall forward a copy of each notice so
received to each Noteholder and the Rating Agencies.

SECTION 4.15. The Backup Servicer.

(a) Prior to assuming any of the Servicer’s rights and obligations hereunder the Backup
Servicer shall only be required to perform those duties specifically imposed upon it by the
provisions of this Agreement and the Backup Servicing Agreement, and no implied obligations shall
be read into this Agreement and therein against the Backup Servicer. Such duties generally relate
to following the provisions herein and therein which would permit the Backup Servicer to assume
some or all of the Servicer’s rights and obligations hereunder (as modified or limited herein or in
the Backup Servicing Agreement) with reasonable dispatch, following notice.

The Backup Servicer, prior to assuming any of the Servicer’s duties hereunder, may not resign
hereunder unless it arranges for a successor Backup Servicer reasonably acceptable to the Servicer
and the Seller, with not less than thirty (30) days’ notice delivered to the Servicer and the
Seller. The Backup Servicer shall have no obligations or duties under any agreement to which it is
not a party, including but not limited to the various agreements named herein.

(b) The Backup Servicer shall not be required to expend or risk its own funds or otherwise
incur liability (financial or otherwise) in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if the repayment of such funds or written indemnity
reasonably satisfactory to it against such risk or liability is not reasonably assured to it in
writing prior to the expenditure or risk of such funds or incurrence of financial liability.
Notwithstanding any provision to the contrary, the Backup Servicer, in its capacity as such, and
not in its capacity as successor Servicer, shall not be liable for any obligation of the Servicer
contained in this Agreement, and the parties shall look only to the Servicer to perform such
obligations.

(c) The Servicer shall have no liability, direct or indirect, to any party, for the acts or
omissions of the Backup Servicer, irrespective of when such acts or omissions may occur whenever
such acts or omissions occur, except as set forth in Section 4.09(f). The successor
Servicer shall not be liable for the acts or omissions of any predecessor Servicer.

SECTION 4.16. Fidelity Bond.

The Servicer hereby represents and covenants that the Servicer has obtained, and shall
continue to maintain in full force and effect, a fidelity bond covering the Servicer of a type and
in such amount as is customary for prudent servicers engaged in the business of servicing sub-prime
and non-prime motor vehicle retail installment sales contracts similar to the Contracts.

SECTION 4.17. Obligations in Respect of the Owner Trustee.

To the extent Credit Acceptance is no longer the Servicer hereunder, Credit Acceptance, in its
individual capacity, agrees to perform the obligations of the Servicer, as Administrator, described
in Section 4.01(d) and Section 4.06(a)(vii)(B) hereof and in Sections 5.1, 6.2 and
11.11 of the Trust Agreement.

ARTICLE V

TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS

SECTION 5.01. Establishment of Trust Accounts.

(a) (i) On or prior to the Closing Date, the Trust Collateral Agent, on behalf of the
Indenture Trustee, for the benefit of the Noteholders and, after the Note Termination Date,
the Certificateholders, shall establish and maintain in its own name two Eligible Accounts
(respectively, the “Collection Account” and the “Principal Collection
Account”) bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Trust Collateral Agent on behalf of the Indenture Trustee for
the benefit of the Noteholders and, after the Note Termination Date, the Certificateholders,
as their interests may appear. The Collection Account and the Principal Collection Account
shall initially be established with the Trust Collateral Agent.

(ii) The Trust Collateral Agent, on behalf of the Indenture Trustee, for the benefit of
the Noteholders and, after the Note Termination Date, the Certificateholders, shall
establish and maintain in its own name an Eligible Account (the “Note Distribution
Account”) bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Trust Collateral Agent on behalf of the Indenture Trustee for
the benefit of the Noteholders and, after the Note Termination Date, the Certificateholders,
as their interests may appear. The Note Distribution Account shall initially be established
with the Trust Collateral Agent.

(iii) The Trust Collateral Agent, on behalf of the Indenture Trustee, for the benefit
of the Certificateholders, shall establish and maintain in its own name an Eligible Account
(the “Certificate Distribution Account”) bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Trust Collateral Agent on
behalf of the Indenture Trustee for the benefit of the Certificateholders. The Certificate
Distribution Account shall initially be established with the Trust Collateral Agent.

(iv) The Trust Collateral Agent, on behalf of the Noteholders and, after the Note
Termination Date, the Certificateholders, as their interests may appear, shall establish and
maintain in its own name an Eligible Account (the “Reserve Account”) bearing a
designation clearly indicating that the funds deposited therein are held for the benefit of
the Trust Collateral Agent on behalf of the Indenture Trustee for the benefit of the
Noteholders and, after the Note Termination Date, the Certificateholders, as their interests
may appear. The Reserve Account shall initially be established with the Trust Collateral
Agent.

(b) Funds on deposit in the Collection Account, the Principal Collection Account and the
Reserve Account shall each be invested by the Trust Collateral Agent (or any custodian with respect
to funds on deposit in any such account) in Eligible Investments selected in writing by the
Servicer (pursuant to standing instructions or otherwise), bearing interest or sold at a discount,
and maturing, unless payable on demand, no later than the Business Day immediately preceding the
next Distribution Date; provided, however, it is understood and agreed that the
Trust Collateral Agent shall not be liable for any loss arising from such investment in Eligible
Investments unless the Eligible Investment was a direct obligation of the Trust Collateral Agent in
its commercial capacity or unless such loss was caused by the Trust Collateral Agent’s negligence
or willful misconduct (it being understood and acknowledged that no loss on any such Eligible
Investment which was made in conformity with this Agreement and the instructions of the Servicer
shall be considered “caused by the Trust Collateral Agent’s negligence or willful misconduct”). All
such Eligible Investments shall be held by or on behalf of the Trust Collateral Agent for the
benefit of the Indenture Trustee on behalf of the Noteholders and, after the Note Termination Date,
the Certificateholders, as their interests may appear. Funds deposited in the Collection Account
on the day immediately preceding a Distribution Date upon the maturity of any Eligible Investments
are not required to be invested overnight. On each Distribution Date, all interest and investment
income (net of investment losses and expenses) on funds on deposit in the Collection Account, as of
the end of the Collection Period shall be included in Available Funds; and all interest and other
investment income (net of investment losses and expenses) on funds on deposit in the Reserve
Account shall be deposited into the Reserve Account. On each Distribution Date during the
Revolving Period, all interest and other investment income (net of investment losses and expense)
on funds on deposit in the Principal Collection Account shall be deposited into the Principal
Collection Account; thereafter, such interest and other investment income (net of investment losses
and expense) shall be included in Available Funds in the Collection Account.

(c) If (i) the Servicer shall have failed to give investment directions for any funds on
deposit in the Collection Account, the Principal Collection Account or the Reserve Account to the
Trust Collateral Agent by 2:00 p.m. Eastern Time (or such other time as may be agreed by the Issuer
and Trust Collateral Agent) on any Business Day; or (ii) an Indenture Default or Indenture Event of
Default shall have occurred and be continuing with respect to the Notes but the Notes shall not
have been declared due and payable, or, if such Notes shall have been declared due and payable
following an Indenture Event of Default, but amounts collected or receivable from the Trust
Property are being applied as if there had not been such a declaration; then the Trust Collateral
Agent shall, to the fullest extent practicable, invest and reinvest funds in the Collection
Account, the Principal Collection Account or the Reserve Account, as the case may be, in Eligible
Investments described in clause (v) of the definition thereof.

(d) (i) Subject to the grant of the security interest pursuant to the Indenture in favor of
the Indenture Trustee, the Trust shall possess all right, title and interest in all funds on
deposit from time to time in the Trust Accounts (other than Dealer Collections) and in all proceeds
thereof and all such funds, investments, proceeds and income shall be part of the Trust Property.
Except as otherwise provided herein, the Trust Accounts shall be under the sole dominion and
control of the Trust Collateral Agent for the benefit of the Noteholders and, after the Note
Termination Date, the Certificateholders, as their interests may appear.

(i) (ii) With respect to any Eligible Investments held from time to time in any Trust
Account, the Trust Collateral Agent agrees that:

(A) any Eligible Investment that is held in deposit accounts shall be, except as
otherwise provided herein, subject to the exclusive custody and control of the Trust
Collateral Agent, and the Trust Collateral Agent shall have sole signature authority with
respect thereto;

(B) any Eligible Investment that constitutes Physical Property shall be delivered to
the Trust Collateral Agent in accordance with paragraph (a) of the definition of “Delivery”
and shall be held, pending maturity or disposition, solely by the Trust Collateral Agent or
a securities intermediary (as such term is defined in Section 8-102(a)(14) of the UCC)
acting solely for the Trust Collateral Agent;

(C) any Eligible Investment that is a book-entry security held through the Federal
Reserve System pursuant to Federal book-entry regulations shall be delivered in accordance
with paragraph (b) of the definition of “Delivery” and shall be maintained by the Trust
Collateral Agent, pending maturity or disposition, through continued book-entry registration
of such Eligible Investment as described in such paragraph;

(D) any Eligible Investment that is an “uncertificated security” under Article 8 of the
UCC and that is not governed by clause (C) above shall be delivered to the Trust Collateral
Agent in accordance with paragraph (c) of the definition of “Delivery” and shall be
maintained by the Trust Collateral Agent, pending maturity or disposition, through continued
registration of the Trust Collateral Agent’s (or its nominee’s) ownership of such security;
and

(E) not less than eight (8) days prior to each Distribution Date, the Trust Collateral
Agent shall give notice to each Eligible Institution that holds Eligible Investments in
money market deposit accounts that on such Distribution Date the Trust Collateral Agent may
be withdrawing all funds from the applicable Trust Account.

(e) The Servicer shall have the power, revocable by the Trust Collateral Agent, the Indenture
Trustee or the Owner Trustee, in the case of the Trust Collateral Agent or the Owner Trustee, with
the prior written consent of the Indenture Trustee, to instruct the Trust Collateral Agent to make
withdrawals and payments from the Trust Accounts for the purpose of permitting the Servicer and the
Trust Collateral Agent to carry out their respective duties hereunder.

(f) If ratings of the unsecured and uncollateralized long-term debt obligations of the Trust
Collateral Agent or its parent are lower than “AA-” by S&P and “Aa3” by Moody’s, then the Servicer
shall, with the Trust Collateral Agent’s assistance as necessary, cause the Trust Accounts to be
moved within five (5) Business Days to another institution where such Trust Accounts will be
Eligible Accounts.

SECTION 5.02. Collections; Allocation.

The Servicer shall remit to the Collection Account within two (2) Business Days of receipt all
Collections collected during each Collection Period. On the Closing Date, the Servicer shall
deposit in the Collection Account the foregoing amounts received with respect to the Loans and
Contracts since the initial Cut-off Date.

The Servicer shall determine each month the amount of Collections received during each
Collection Period which constitutes Dealer Collections and shall so notify the Trust Collateral
Agent in writing. Notwithstanding any other provision hereof, the Trust Collateral Agent, at the
written direction of the Servicer, shall distribute on each Distribution Date: (i) to the Issuer an
amount equal to the aggregate amount of Dealer Collections received during or with respect to the
prior Collection Period; and (ii) to the Backup Servicer, if it has become successor Servicer, an
amount equal to Repossession Expenses related to the prior Collection Period prior to the
distribution of Available Funds pursuant to Section 5.08(a) hereof. Upon receipt, the
Issuer shall remit all Dealer Collections to Credit Acceptance. In the event the Backup Servicer
is acting as successor Servicer, the Seller shall assist the Backup Servicer in the performance of
its obligations under this Section 5.02.

SECTION 5.03. Certain Reimbursements to the Servicer.

The Servicer will be entitled to be reimbursed from amounts on deposit in the Collection
Account with respect to a Collection Period for amounts previously deposited in the Collection
Account but later determined by the Servicer to have resulted from mistaken deposits or postings or
checks returned for insufficient funds. The amount to be reimbursed hereunder shall be paid to the
Servicer on the next succeeding Business Day(s) out of Collections on Loans and the related
Contracts to be remitted to the Collection Account to the extent the net amount to the Collection
Account is greater than zero.

SECTION 5.04. Additional Deposits.

(a) The Servicer or the Seller, as applicable, shall deposit or cause to be deposited in the
Collection Account each Purchase Amount paid hereunder. All such deposits with respect to a
Collection Period shall be made, in immediately available funds, on the Business Day immediately
preceding the Determination Date related to such Collection Period.

(b) The proceeds of any purchase or sale of the assets of the Trust described in Section
10.01 hereof shall be deposited or cause to be deposited by the Seller or the Servicer, as
applicable, in the Collection Account on or prior to the Business Day immediately preceding the
Distribution Date on which such purchase shall occur.

(c) Following the acceleration of the Notes pursuant to Section 5.2 of the Indenture, the
proceeds shall be deposited in the Collection Account to be distributed by the Indenture Trustee in
accordance with Section 5.2(b) of the Indenture.

SECTION 5.05. Reserve Account.

(a) On the Closing Date, the Seller shall direct the Trust Collateral Agent to deposit to the
Reserve Account a cash amount equal to the Reserve Account Requirement.

(b) With respect to each Distribution Date, on the fourth Business Day immediately preceding
such Distribution Date, the Servicer (provided, that in the event the Backup Servicer is acting as
successor Servicer, the Seller shall assist the Backup Servicer in the performance of its
obligations under this Section 5.05(b)) shall instruct the Trust Collateral Agent (based on
the information contained in the Servicer’s Certificate delivered to the Trust Collateral Agent in
respect of the related Determination Date pursuant to Section 4.09), prior to the making of
any transfers pursuant to Section 5.08 hereof, if required, to withdraw from the Reserve
Account to the extent available therein with respect to amounts payable on such Distribution Date,
the amounts specified below, and deposit such amounts in the Collection Account to be applied as
follows:

(i) first, an amount equal to the excess of (x) the Servicing Fee, up to the
Capped Servicing Fee, over (y) the Available Funds available to be applied pursuant to
Section 5.08(a)(i)(A) hereof on such Distribution Date;

(ii) second, an amount equal to the excess of (x) fees, indemnification amounts
and expenses due to the Backup Servicer, the Owner Trustee, the Indenture Trustee and the
Trust Collateral Agent, up to the Capped Backup Servicer and Trustee Fees and Expenses, over
(y) the Available Funds available to be applied pursuant to Section 5.08(a)(i)(B) and
(C) hereof on such Distribution Date;

(iii) third, an amount equal to the excess of (1) the Class A Interest
Distributable Amount plus the Class A Interest Carryover Shortfall, if any, over (2) the
Available Funds available to be applied to such amounts pursuant to Section
5.08(a)(ii)(A) hereof on such Distribution Date;

(iv) fourth, an amount equal to the excess of (1) the Class B Interest
Distributable Amount plus the Class B Interest Carryover Shortfall, if any, over (2) the
Available Funds available to be applied to such amounts pursuant to Section
5.08(a)(ii)(B) hereof on such Distribution Date;

(v) fifth, if the next Distribution Date is the Class A Stated Final Maturity
Date, an amount equal to the excess of (x) the Class A Note Balance over (y) the Available
Funds available to be applied to the Class A Note Balance pursuant to Section
5.08(a)(vi)(A) hereof on such Distribution Date;

(vi) sixth, if the next Distribution Date is the Class B Stated Final Maturity
Date, an amount equal to the excess of (x) the Class B Note Balance over (y) the Available
Funds available to be applied to the Class B Note Balance pursuant to Section
5.08(a)(vi)(B) hereof on such Distribution Date;

(vii) seventh, if the next Distribution Date is the Class C Stated Final
Maturity Date, an amount equal to the excess of (x) the Class C Note Balance over (y) the
Available Funds available to be applied to the Class C Note Balance pursuant to Section
5.08(a)(vi)(C) hereof on such Distribution Date; and

(viii) eighth, an amount equal to the excess of the funds remaining in the
Reserve Account after the withdrawals referred to in clauses (i) through
(vii) above over the Reserve Account Requirement on such Distribution Date.

(c) Notwithstanding the foregoing, all transfers of funds between accounts may occur on the
Business Day immediately preceding the Distribution Date related to such transfer; all
distributions from accounts shall occur on the Distribution Date.

(d) Amounts withdrawn from the Reserve Account pursuant to clause (b)(i)-(vii) above
shall be used solely for the amounts described in clause (b)(i)-(vii) above, as applicable.
Amounts withdrawn from the Reserve Account pursuant to clause (b)(viii) above shall
constitute Available Funds.

	 	 	 
	SECTION 5.06.

	 	Reserved.
	
 
	 	 
	SECTION 5.07.

	 	Reserved.
	
 
	 	 
	SECTION 5.08.

	 	Transfers and Distributions.
	
 
	 	 

(a) Unless the Notes have been accelerated in accordance with the terms of the Indenture, on
each Distribution Date, after making any transfers and distributions required by Sections
5.02, 5.03, 5.04 and 5.05(b) hereof, the Trust Collateral Agent shall
(based on the information contained in the Servicer’s Certificate delivered on the related
Determination Date) cause to be made the following transfers and distributions for such
Distribution Date from Available Funds and amounts deposited to the Collection Account from the
Reserve Account (such amounts from the Reserve Account to be applied in accordance with Section
5.05(b)), in the following order of priority:

(i) first, pari passu: (A) (1) to the Servicer, the Servicing
Fee and any Servicing Fee unpaid from any prior Distribution Date, or (2) if the Servicer
has been replaced pursuant to the terms of this Agreement, to the Backup Servicer, the
Servicing Fee and any Servicing Fee unpaid from any prior Distribution Date up to the Capped
Servicing Fee; and (B) to the Backup Servicer: (1) any Transition Expenses and (2) any
accrued and unpaid indemnification amounts owed to it up to $17,000; and (C) pari
passu, to the Backup Servicer, so long as it has not become the Servicer, any
accrued and unpaid Backup Servicing Fees, and to the Owner Trustee, the Indenture Trustee
and the Trust Collateral Agent, pari passu, their related accrued and unpaid
fees (including the Owner Trustee’s Fees or Indenture Trustee Fee), as applicable,
indemnification amounts and expenses, up to the Capped Backup Servicer and Trustee Fees and
Expenses;

(ii) second, to the Note Distribution Account, an amount to be applied
sequentially (A) first, to the Class A Noteholders, the Class A Interest
Distributable Amount due and payable on such Distribution Date and the Class A Interest
Carryover Shortfall, if any, from any prior Distribution Date and (B) second, to the Class B
Noteholders, the Class B Interest Distributable Amount due and payable on such Distribution
and the Class B Interest Carryover Shortfall, if any, from any prior Distribution Date;

(iii) third, to any successor Servicer, an amount equal to the Reliening
Expenses;

(iv) fourth, to the Reserve Account, the amount necessary to cause the amount
on deposit in the Reserve Account to equal the Reserve Account Requirement for such
Distribution Date;

(v) fifth, during the Revolving Period, to the Principal Collection Account for
application by the Issuer to purchase additional Loans from the Seller, the amount needed to
cause the Collateral Amount to equal the Minimum Collateral Amount, and if the Minimum
Collateral Amount cannot be reached due to an insufficient amount of Loans for purchase by
the Issuer, the amount needed to cause the Adjusted Collateral Amount to equal the Minimum
Collateral Amount;

(vi) sixth, during the Amortization Period, to the Note Distribution Account,
an amount to be applied sequentially (A) first, to the Class A Noteholders, the
Class A Principal Distributable Amount until the Class A Note Balance has been reduced to
zero, (B) second, to the Class B Noteholders, the Class B Principal Distributable Amount
until the Class B Note Balance has been reduced to zero, and (C) third, to the Class C
Noteholders, the Class C Principal Distributable Amount until the Class C Note Balance has
been reduced to zero;

(vii) seventh, pari passu, (A) to the Backup Servicer, any
amounts owed to the Backup Servicer pursuant to clause (i), to the extent not paid pursuant
to clause (i); and (B) pari passu, to the Owner Trustee, Indenture Trustee
and Trust Collateral Agent, any accrued fees, expenses or indemnification amounts to the
extent not paid pursuant to clause (i); and

(viii) eighth, following the payment in full of all distributable amounts and
after making all allocations set forth in clauses (i) through (vii) above, to the Indenture
Trustee for deposit in the Certificate Distribution Account any remaining Available Funds in
the Collection Account for distribution to the Certificateholder pursuant to Section
5.10 hereof.

(b) In the event that the Collection Account is maintained with an institution other than the
Trust Collateral Agent, the Servicer shall instruct the Trust Collateral Agent to instruct and
cause such institution to make all transfers, deposits and distributions pursuant to Section
5.08(a) hereof on the related Distribution Date.

(c) Notwithstanding the foregoing, all transfers of funds between accounts may occur on the
Business Day immediately preceding the Distribution Date related to such transfer; all
distributions from accounts shall occur on the Distribution Date.

SECTION 5.09. Distributions from the Note Distribution Account.

(a) On each Distribution Date, after making all transfers and distributions required to be
made on such Distribution Date by Sections 5.05 and 5.08 hereof, the Trust
Collateral Agent shall (based on the information contained in the Servicer’s Certificate delivered
on the related Determination Date) distribute all amounts on deposit in the Note Distribution
Account to Noteholders in the following amounts and in the following order of priority:

(i) to the Class A Noteholders the sum of (1) the Class A Interest Distributable Amount
for such Distribution Date and (2) the Class A Interest Carryover Shortfall, if any, for
such Distribution Date;

(ii) after the application of clause (i) above, to the Class B Noteholders the sum of
(1) the Class B Interest Distributable Amount for such Distribution Date and (2) the Class B
Interest Carryover Shortfall, if any, for such Distribution Date;

(iii) after the application of clauses (i)-(ii) above, and until the outstanding
principal balance of the Class A Notes is reduced to zero, to the Holders of the Class A
Notes, the Class A Principal Distributable Amount for such Distribution Date;

(iv) after the application of clauses (i)-(iii) above, and until the outstanding
principal balance of the Class B Notes is reduced to zero, to the Holders of the Class B
Notes, the Class B Principal Distributable Amount for such Distribution Date; and

(v) after the application of clauses (i)-(iv) above, and until the outstanding
principal balance of the Class C Notes is reduced to zero, to the Holders of the Class C
Notes, the Class C Principal Distributable Amount for such Distribution Date

(b) In the event that any withholding tax is imposed on the Trust’s payment (or allocations of
income) to any Noteholder, such withholding tax shall reduce the amount otherwise distributable to
such Noteholder in accordance with this Section 5.09. The Trust Collateral Agent is hereby
authorized and directed to retain from amounts otherwise distributable to the Noteholders
sufficient funds for the payment of any withholding tax that is legally owed by the Trust as
instructed by the Servicer, in writing in a Servicer’s Certificate (but such authorization shall
not prevent the Trust Collateral Agent from contesting at the expense of the Seller any such
withholding tax in appropriate proceedings, and withholding payment of withholding such tax, if
permitted by law, pending the outcome of such proceedings). The amount of any withholding tax
imposed with respect to any Noteholder shall be treated as cash distributed to such Noteholder at
the time it is withheld by the Trust and remitted to the appropriate taxing authority. If there is
a possibility that withholding tax is payable with respect to a distribution (such as a
distribution to a non-US Noteholder), the Trust Collateral Agent may withhold such amounts in
accordance with this clause (b). In the event that a Noteholder wishes to apply for a refund of
any such withholding tax, the Trust Collateral Agent shall reasonably cooperate with such
Noteholder in making such claim so long as such Noteholder agrees to reimburse the Trust Collateral
Agent for any out-of-pocket expenses incurred.

(c) Distributions required to be made to Noteholders on any Distribution Date shall be made to
each Noteholder of record on the preceding Record Date either by wire transfer, in immediately
available funds, to the account of such Holder at a bank or other entity having appropriate
facilities therefor, if (i) such Noteholder shall have provided to the Note Registrar appropriate
written instructions at least ten (10) Business Days prior to such Distribution Date or (ii) such
Noteholder is the Seller, or an Affiliate thereof, or, if not, by check mailed to such Noteholder
at the address of such holder appearing in the Note Register. Notwithstanding the foregoing, the
final distribution in respect of any Note (whether on the Stated Final Maturity or otherwise) will
be payable only upon presentation and surrender of such Note at the office or agency maintained for
that purpose by the Note Registrar pursuant to Section 2.7 of the Indenture.

SECTION 5.10. Certificate Distribution Account.

(a) On each Distribution Date, the Trust Collateral Agent shall (based on the information
contained in the Servicer’s Certificate delivered on the related Determination Date) distribute all
amounts on deposit in the Certificate Distribution Account to the Certificateholders.

(b) In the event that any withholding tax is imposed on the Trust’s payment (or allocations of
income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to the
Certificateholder in accordance with this Section. The Trust Collateral Agent is hereby authorized
and directed to retain from amounts otherwise distributable to the Certificateholders sufficient
funds for the payment of any tax that is legally owed by the Trust as instructed in writing by the
Servicer (but such authorization shall not prevent the Trust Collateral Agent from contesting, at
the expense of the Seller, any such tax in appropriate proceedings, and withholding payment of such
tax, if permitted by law, pending the outcome of such proceedings). The amount of any withholding
tax imposed with respect to a Certificateholder shall be treated as cash distributed to such
Certificateholder at the time it is withheld by the Trust and remitted to the appropriate taxing
authority. If there is a possibility that withholding tax is payable with respect to a
distribution (such as a distribution to a non-US Certificateholder), the Trust Collateral Agent may
withhold such amounts in accordance with this clause (b). In the event that a Holder wishes to
apply for a refund of any such withholding tax, the Trust Collateral Agent shall reasonably
cooperate with such Certificateholder in making such claim so long as such Certificateholder agrees
to reimburse the Trust Collateral Agent for any out-of-pocket expenses incurred.

(c) Distributions required to be made to Certificateholders on any Distribution Date shall be
made to each Certificateholder of record on the preceding Record Date either by wire transfer, in
immediately available funds, to the account of such Holder at a bank or other entity having
appropriate facilities therefor, if (i) such Certificateholder shall have provided to the
Certificate Registrar appropriate written instructions at least ten (10) Business Days prior to
such Distribution Date and such Holder’s Certificates in the aggregate evidence a denomination of
not less than $500,000 or (ii) such Certificateholder is the Seller, or an Affiliate thereof, or,
if not, by check mailed to such Certificateholder at the address of such holder appearing in the
Certificate Register. Notwithstanding the foregoing, the final distribution in respect of any
Certificate (whether on the Stated Final Maturity or otherwise) will be payable only upon
presentation and surrender of such Certificate at the office or agency maintained for that purpose
by the Certificate Registrar pursuant to Section 3.4 of the Trust Agreement.

(d) Notwithstanding the foregoing, all transfers of funds between accounts may occur on the
Business Day immediately preceding the Distribution Date related to such transfer; all
distributions from accounts shall occur on the Distribution Date.

SECTION 5.11. Statements to Certificateholders and Noteholders.

On or prior to each Distribution Date, the Servicer (provided, that in the event the Backup
Servicer is acting as successor Servicer, the Seller shall assist the Backup Servicer in the
performance of its obligations under this Section 5.11) shall provide to the Trust
Collateral Agent the Servicer’s Certificate (with copies to the Rating Agencies). The Trust
Collateral Agent will be required to make the Servicer’s Certificate related to such Distribution
Date available to the Noteholders, the Certificateholder, the Initial Purchasers and the Backup
Servicer. Each Servicer’s Certificate will include, among other things, the following information
with respect to the Notes with respect to the related Distribution Date, or the period since the
previous Distribution Date, as applicable.

(i) the amount of the related distribution allocable to principal;

(ii) the amount of the related distribution allocable to interest;

(iii) the amount of the related distribution payable out of the Reserve Account;

(iv) the Aggregate Outstanding Net Eligible Loan Balance, the Aggregate Outstanding
Eligible Loan Balance and the aggregate Outstanding Balance of all Eligible Contracts as of
the close of business on the last day of the preceding Collection Period (in each case,
calculated separately in respect of all Purchased Loans, all Dealer Loans and all Loans in
the aggregate);

(v) the Aggregate Note Balance, the Class A Note Balance, the Class B Note Balance and
the Class C Note Balance, in each case after giving effect to payments allocated to
principal reported under clause (i) above;

(vi) the amount of the Servicing Fee paid to the Servicer with respect to the related
Collection Period and/or due but unpaid with respect to such Collection Period or prior
Collection Periods, as the case may be;

(vii) the Class A Interest Carryover Shortfall, if any, and the Class B Interest
Carryover Shortfall, if any;

(viii) the total amount of Collections for the related Collection Period; and

(ix) the aggregate Purchase Amount for the Ineligible Loans and Ineligible Contracts,
if any, that was paid in such period.

The Trust Collateral Agent shall make such information and certain other documents, reports,
and Loan and Contract information provided by the Servicer’s Certificate available to each
Noteholder via the Indenture Trustee’s website. The Indenture Trustee’s internet website shall be
initially located at “www.CTSLink.com” or at such other address as shall be specified by the
Indenture Trustee from time to time in writing to the Noteholders. In connection with providing
access to the Indenture Trustee’s website, the Indenture Trustee may require registration and the
acceptance of a disclaimer. The Trust Collateral Agent will make no representation or warranties
as to the accuracy or completeness of such documents and will assume no responsibility therefor.

The Trust Collateral Agent shall not be liable for the dissemination of information received
and distributed in accordance with this Agreement.

ARTICLE VI

THE SELLER AND THE ISSUER

SECTION 6.01. Representations and Warranties of the Seller.

The Seller makes the following representations on which the Trust, the Indenture Trustee and
the Trust Collateral Agent relied in accepting the Trust Property in trust and in connection with
the performance by the Trust Collateral Agent and the Backup Server of their respective obligations
hereunder. The representations speak as of the execution and delivery of this Agreement on the
Closing Date but shall survive the sale of the Contracts to the Trust:

(i) Organization and Good Standing. The Seller is duly organized and validly
existing as a limited liability company in good standing under the laws of the State of
Delaware, with power and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted, and has and had at
all relevant times, full power, authority, and legal right to acquire and own the Loans and
the related Contracts.

(ii) Due Qualification. The Seller is duly qualified to do business as a
foreign limited liability company in good standing, and has obtained all necessary licenses
and approvals in all jurisdictions in which the ownership or lease of property or the
conduct of its business requires such qualifications.

(iii) Power and Authority. The Seller has the power and authority to execute
and deliver this Agreement and the other Basic Documents to which it is a party and to carry
out their respective terms. The Seller has full power and authority to sell and assign the
property to be sold and assigned to and deposited with the Trust and has duly authorized
such sale and assignment to the Trust by all necessary action; and the execution, delivery,
and performance of this Agreement and the other Basic Documents to which it is a party have
been duly authorized by the Seller by all necessary action and do not require any additional
approvals or consents or other action by or any notice to or any filing with, any Person.

(iv) Valid Sale; Binding Obligations. This Agreement evidences a valid sale,
transfer, and assignment of the Trust Property enforceable against creditors of and
purchasers from the Seller; and a legal, valid and binding obligation of the Seller
enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency,
reorganization, or other similar laws affecting the enforcement of creditors’ rights
generally and to general principles of equity.

(v) No Violation. The consummation of the transactions contemplated by this
Agreement and the other Basic Documents to which it is a party and the fulfillment of the
terms hereof and thereof does not conflict with, result in any breach of any of the terms
and provisions of, or constitute (with or without notice or lapse of time) a default under,
the Certificate of Formation, limited liability company agreement of the Seller, or any
indenture, agreement, or other instrument to which the Seller is a party or by which it is
bound; nor result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement, or other instrument; or violate any
law or, to the best of the Seller’s knowledge, any order, rule, or regulation applicable to
the Seller of any court or of any federal or state regulatory body, administrative agency,
or other governmental instrumentality having jurisdiction over the Seller or its properties.

(vi) No Proceedings. There are no proceedings or investigations pending, or to
the Seller’s best knowledge threatened, before any court, regulatory body, administrative
agency, or other governmental instrumentality having jurisdiction over the Seller or its
properties: (A) asserting the invalidity of this Agreement, any other Basic Document to
which it is a party or the Notes; (B) seeking to prevent the issuance of the Notes or the
consummation of any of the transactions contemplated by this Agreement or, any other Basic
Document to which it is a party; (C) seeking any determination or ruling that might
materially and adversely affect the performance by the Seller of its obligations under, or
the validity or enforceability of, this Agreement, any other Basic Document to which it is a
party or the Notes; or (D) relating to the Seller and which might adversely affect the
federal income tax attributes of the Notes.

(vii) Principal Place of Business; Jurisdiction of Organization. The principal
place of business of the Seller is located in Michigan. The Seller is organized under the
laws of Delaware as a limited liability company, and is not organized under the laws of any
other jurisdiction. “Credit Acceptance Funding LLC 2010-1” is the correct legal name of the
Seller indicated on the public records of the Seller’s jurisdiction of organization which
shows it to be organized.

(viii) [Reserved.]

(ix) Certificates, Statements and Reports. The officers’ certificates,
statements, reports and other documents prepared by the Seller and furnished by the Seller
to the Issuer, the Indenture Trustee or the Noteholders pursuant to this Agreement or any
other Basic Document to which the Seller is a party, and in connection with the transactions
contemplated hereby or thereby, when taken as a whole, do not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements
contained hereon or therein not misleading.

(x) Accuracy of Information. All information heretofore furnished by the
Seller to the Trust or its successors and assigns or to the Noteholders pursuant to or in
connection with any Basic Document or any transaction contemplated thereby is, and all such
information hereafter furnished by the Seller will be, true and accurate in every material
respect on the date such information is stated or certified and does not contain an material
misstatement of fact or omit to state a material fact or any fact necessary to make the
statements contained therein not misleading.

(xi) Ownership of Seller. Credit Acceptance is the sole owner of the
membership interests of the Seller, all of which are fully paid and nonassessable and owned
of record, free and clear of all mortgages, assignments, pledges, security interests,
warrants, options and rights to purchase.

(xii) Use of Proceeds. No proceeds of any sale of Seller Property will be used
(i) for a purpose that violates, or would be inconsistent with, Regulation T, U or X
promulgated by the Board of Governors of the Federal Reserve System from time to time or
(ii) to acquire any security in any transaction which is subject to Section 12, 13 or 14 of
the Securities Exchange Act of 1934, as amended.

(xiii) Taxes. The Seller has filed on or before their respective due dates,
all tax returns which are required to be filed in any jurisdiction or has obtained
extensions for filing such tax returns and has paid all taxes, assessments, fees and other
governmental charges against the Seller or any of its properties, income or franchises, to
the extent that such taxes have become due, other than any taxes or assessments, the
validity of which are being contested in good faith by appropriate proceedings and with
respect to which adequate provision has been made on the books of the Seller as may be
required by GAAP. To the best of the knowledge of the Seller, all such tax returns were
true and correct in all material respects and the Seller knows of any proposed material
additional tax assessment against it nor any basis therefor. Any taxes, assessments, fees
and other governmental charges payable by the Seller in connection with the execution and
delivery of the Basic Documents and the issuance of the Notes have been paid or shall have
been paid at or prior to Closing Date.

(xiv) Consolidated Returns. The Originator, the Seller and the Issuer will
file a consolidated federal income tax return at all times until the termination of the
Basic Documents.

(xv) ERISA. The Seller is in compliance in all material respects with ERISA.

(xvi) Compliance with Laws. The Seller has complied in all material respects
with all applicable, laws, rules, regulations, orders, writs, judgments, injunctions,
decrees or awards to which it may be subject.

(xvii) Material Adverse Change. Since the date of its formation, no event has
occurred that would have a material adverse effect on (i) the financial condition or
operations of the Seller, (ii) the ability of the Seller to perform its obligations under
the Basic Documents, or (iii) the collectibility of the Loans generally or any material
portion of the Loans.

(xviii) Special Purpose Entity.

(A) The capital of the Seller is adequate for the business and undertakings of the
Seller.

(B) Other than as provided in the Basic Documents, the Seller is not engaged in any
business transactions with Credit Acceptance.

(C) Other than in connection with the Basic Documents, the Seller has not incurred any
indebtedness or assumed or guarantied any indebtedness of any other entity.

(D) At least two directors of the board of directors of the Seller shall be persons who
(1) are not, and will not be, a director, officer, employee or holder of any equity
securities of Credit Acceptance or any of its Affiliates or Subsidiaries; provided that each
such person may be an independent director or manager of another special purpose entity
affiliated with the Servicer, and (2) have (x) prior experience as an “independent director”
for a corporation or limited liability company whose charter documents required the
unanimous consent of all independent directors thereof before such corporation or limited
liability company could consent to the institution of bankruptcy or insolvency proceedings
against it or could file a petition seeking relief under any applicable federal or state law
relating to bankruptcy and (y) at least three years of employment experience with one or
more entities that provide, in the ordinary course of their respective businesses, advisory,
management or placement services to issuers of securitization or structured finance
instruments, agreements or securities.

(E) Once identified as Seller funds and assets by the Servicer and separated in
accordance with the Servicer’s normal and customary business practices, the funds and assets
of the Seller are not, and will not be, commingled with the funds of any other Person,
except for Dealer Collections and erroneous deposits.

(F) The limited liability company agreement of the Seller requires it to maintain (A)
correct and complete minute books and records of account, and (B) minutes of the meetings
and other proceedings of its shareholders and board of directors.

(xix) Solvency; Fraudulent Conveyance. The Seller is solvent, is able to pay
its debts as they become due and will not be rendered insolvent by the transactions
contemplated by the Basic Documents and, after giving effect thereto, will not be left with
an unreasonably small amount of capital with which to engage in its business. The Seller
does not intend to incur, or believes that it has incurred, debts beyond its ability to pay
such debts as they mature. The Seller does not contemplate the commencement of insolvency,
bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver,
liquidator, conservator, trustee or similar official or any of its assets. The amount of
consideration being received by the Seller upon the sale of the Seller Property to the Trust
constitutes reasonably equivalent value and fair consideration for the Seller Property. The
Seller is not selling the Seller Property to the Trust, as provided in the Basic Documents,
with any intent to hinder, deal or defraud any of Credit Acceptance’s creditors.

(xx) Payment to Originator. The Seller has given reasonably equivalent value
and fair consideration for the Conveyed Property conveyed to the Seller under the Sale and
Contribution Agreement and such transfer was not made for or on account of an antecedent
debt. No transfer by the Originator of any originator property under the Sale and
Contribution Agreement is or may be voidable under any section of the Bankruptcy Code.

SECTION 6.02. Limitation on Liability of Seller and Others.

Neither the Seller nor any of the directors or officers or employees or agents of the Seller
shall be under any liability to the Trust, the Trust Collateral Agent, the Noteholders or the
Certificateholders, except as provided under this Agreement for any action taken or omitted to be
taken pursuant to this Agreement; provided, however, that this provision shall not
protect the Seller against any liability that would otherwise be imposed by reason of willful
misconduct or negligence in the performance of their respective duties under this Agreement. Each
of the Seller and any director or officer or employee or agent of the Seller may rely in good faith
on the advice of counsel, Opinion of Counsel, Officer’s Certificate, or on any document of any
kind, prima facie properly executed and submitted by any Person respecting any matters arising
hereunder. The Seller shall not be under any obligation to appear in, prosecute, or defend any
legal action that shall not be incidental to its obligations under this Agreement, and that in its
opinion may involve it in any expense or liability; provided, however, that the
Seller may undertake any reasonable action that it may deem necessary or desirable in respect of
this Agreement and the rights and duties of the parties to this Agreement and the interests of the
Noteholders and the Certificateholders under this Agreement. In such event, the legal expenses and
costs of such action and any liability resulting therefrom shall be expenses, costs, and
liabilities of the Seller.

SECTION 6.03. Seller May Own Notes.

The Seller and any Person controlling, controlled by, or under common control with the Seller
may in their individual or any other capacities become the owner or pledgee of the Notes with the
same rights as it would have if it were not the Seller or an affiliate thereof, except as otherwise
provided in the definition of “Class A Noteholder,” “Class B Noteholder,” and “Class C Noteholder”
specified in Section 1.01 and except as otherwise specifically provided herein. The Notes
of any class so owned by or pledged to the Seller or such controlling, controlled or commonly
controlled Person shall have an equal and proportionate benefit under the provisions of this
Agreement, without preference, priority, or distinction as among all of the Notes of such class.

SECTION 6.04. Additional Covenants of the Seller.

The Seller shall not do any of the following, without the prior written consent of the Trust
Collateral Agent, who shall, without any exercise of its own discretion, provide its written
consent to the Seller upon receipt by it of a copy of the written consent of the Majority
Noteholders:

(i) engage in any business or activity other than those set forth in the Certificate of
Formation or limited liability company agreement of the Seller or amend the Seller’s
Certificate of Formation or limited liability company agreement other than in accordance
with its terms as in effect on the date hereof;

(ii) incur any indebtedness, or assume or guaranty any indebtedness of any other
entity, other than (A) any indebtedness incurred in connection with the Notes, and (B) any
indebtedness to Credit Acceptance incurred in connection with the acquisition of the Loans,
which indebtedness shall be subordinated to all other obligations of the Seller and Credit
Acceptance; or

(iii) dissolve or liquidate, in whole or in part; consolidate or merge with or into any
other entity or convey or transfer its properties and assets substantially as an entirety to
any entity.

SECTION 6.05. Indemnities of the Issuer.

The Issuer shall be liable in accordance herewith only to the extent of the obligations
specifically undertaken by the Issuer under this Agreement and the other Basic Documents to which
it is a party and no implied duties or obligations shall be read into this Agreement or the other
Basic Documents against the Issuer.

(i) The Issuer shall defend, indemnify, and hold harmless the Trust Collateral Agent,
the Servicer, the Backup Servicer, the Indenture Trustee and the Owner Trustee and their
respective officers, directors, employees and agents, and the Trust from and against any and
all costs, expenses, losses, damages, claims, and liabilities, arising out of or resulting
from the use, ownership, or operation by the Issuer or any Affiliate thereof of a Financed
Vehicle.

(ii) The Issuer shall indemnify, defend, and hold harmless the Trust Collateral Agent,
the Indenture Trustee, the Owner Trustee, the Servicer, the Backup Servicer and their
respective officers, directors, employees and agents, and the Trust from and against any
taxes that may at any time be asserted against them with respect to the transactions
contemplated herein, including any sales, gross receipts, general corporation, tangible
personal property, privilege, or license taxes (but, in the case of the Trust, not including
any taxes asserted with respect to, and as of the date of, the sale of the Loans to the
Trust or the issuance and original sale of the Notes, or asserted with respect to ownership
of the Loans, or federal or other income taxes arising out of the transactions contemplated
by this Agreement) and costs and expenses in defending against the same.

(iii) The Issuer shall indemnify, defend, and hold harmless the Trust, the Servicer,
the Backup Servicer, the Trust Collateral Agent, the Owner Trustee, the Indenture Trustee
and each of their respective officers, directors, employees and agents, and the Noteholders
from and against any and all costs, expenses, losses, claims, damages, and liabilities to
the extent that such cost, expense, loss, claim, damage, or liability arose out of, or was
imposed upon such party through the breach by the Issuer of its obligations under this
Agreement or any other Basic Document to which it is a party, the negligence, willful
misconduct or bad faith of the Issuer in the performance of its duties under this Agreement
or any other Basic Document to which it is a party.

(iv) The Issuer shall indemnify, defend, and hold harmless the Trust Collateral Agent,
the Indenture Trustee, the Owner Trustee, the Servicer, the Backup Servicer and each of
their respective officers, directors, employees and agents from and against all costs,
expenses, losses, claims, damages, and liabilities arising out of or incurred in connection
with the acceptance or performance of the trusts and duties herein contained, except, with
respect to any such indemnified party, to the extent that such cost, expense, loss, claim,
damage, or liability: (a) shall be due to the willful misconduct, bad faith, or negligence
(or in the case of the Owner Trustee, gross negligence) of such indemnified party; or (b)
shall arise from such indemnified party’s breach of any of its representations or warranties
in any material respect set forth in this Agreement or any other Basic Document to which
such indemnified party is a party.

(v) The Issuer shall indemnify, defend, and hold harmless, the Indenture Trustee, the
Owner Trustee and each of their officers, directors, employees and agents from and against
all costs, expenses, losses, claims, damages, and liabilities arising out of or incurred in
connection with the acceptance or performance of the trusts and duties contained in the
Trust Agreement, except, as to any such party, to the extent that such cost, expense, loss,
claim, damage, or liability: (a) shall be due to the willful misconduct, bad faith or
negligence (or in the case of the Owner Trustee, gross negligence) of such party; or (b)
shall arise from such breach of any of its representations or warranties set forth in the
Trust Agreement. The indemnification of the Owner Trustee hereunder shall include
indemnification for the matters set forth in Section 8.2 of the Trust Agreement.

Indemnification under this Section 6.05 by the Issuer shall survive the termination of this
Agreement and shall include reasonable fees and expenses of counsel and expenses of litigation. If
the Issuer shall have made any indemnity payments pursuant to this Section and the recipient
thereafter collects any of such amounts from others, the recipient shall promptly repay such
amounts to the Issuer, without interest. Amounts payable by the Issuer pursuant to this
Section 6.05 shall only be payable: (i) in accordance with and only to the extent funds
are available therefor pursuant to Section 5.08(a) hereof; or (ii) to the extent the Issuer
receives additional funds designated for such purpose. No amount owing by the Issuer under this
Section 6.05 shall constitute a claim (as defined in Section 101(5) of the Bankruptcy Code)
against the Issuer and recourse to it.

ARTICLE VII

THE SERVICER

SECTION 7.01. Representations of Servicer.

Credit Acceptance makes the following representations on which the Trust, the Indenture
Trustee and the Trust Collateral Agent relies in accepting the Trust Property in trust and in
connection with the performance by the Trust Collateral Agent of its obligations hereunder. The
representations speak as of the execution and delivery of this Agreement on the Closing Date but
shall survive the sale of the Loans to the Trust:

(i) Organization and Good Standing. The Servicer is duly organized and is
validly existing as a corporation in good standing under the laws of the State of Michigan,
with power and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted, and has and had at
all relevant times, full power, authority, and legal right to acquire, own, sell, and
service the Loans and the related Contracts and to perform its other obligations under the
Basic Documents.

(ii) Due Qualification. The Servicer is duly qualified to do business as a
foreign corporation in good standing, and has obtained all necessary licenses and approvals
in all jurisdictions in which the ownership or lease of property or the conduct of its
business including the servicing of the Loans and the related Contracts as required by this
Agreement requires such qualifications except where such failure will not have a material
adverse effect.

(iii) Power and Authority. The Servicer has the power and authority to execute
and deliver this Agreement and the other Basic Documents to which it is a party and to carry
out their respective terms; and the execution, delivery, and performance of this Agreement
and the other Basic Documents to which it is a party have been duly authorized by the
Servicer by all necessary corporate action.

(iv) Binding Obligations. This Agreement and the other Basic Documents to
which it is a party constitute legal, valid, and binding obligations of the Servicer
enforceable in accordance with their respective terms, subject to the effects of bankruptcy,
insolvency, reorganization, or other similar laws affecting the enforcement of creditors’
rights generally and to general principles of equity.

(v) No Violation. The consummation of the transactions contemplated by this
Agreement and the other Basic Documents to which it is a party and the fulfillment of the
terms hereof and thereof do not: (A) conflict with, result in any breach of any of the terms
and provisions of, or constitute (with or without notice or lapse of time) a default under,
the Certificate of Incorporation or bylaws of the Servicer, or any indenture, agreement, or
other instrument to which the Servicer is a party or by which it may be bound; (B) result in
the creation or imposition of any Lien upon any of its properties pursuant to the terms of
any such indenture, agreement, or other instrument (other than this Agreement); or (C) to
the best of the Servicer’s knowledge, violate any law applicable to the Servicer or any
order, rule, or regulation applicable to the Servicer of any court or of any federal or
state regulatory body, administrative agency, or other governmental instrumentality having
jurisdiction over the Servicer or its properties or in any way materially adversely affect
the interest of the Noteholders, the Trust, the Trust Collateral Agent or the Indenture
Trustee in any of the Trust Property or adversely affect the Servicer’s ability to perform
its obligations under this Agreement or any other Basic Document to which it is a party.

(vi) No Proceedings. There are no proceedings or investigations pending, or,
to the Servicer’s best knowledge, threatened, before any court, regulatory body,
administrative agency, or other governmental instrumentality having jurisdiction over the
Servicer or its properties: (A) asserting the invalidity of this Agreement, any of the Basic
Documents to which it is a party or the Notes, (B) seeking to prevent the issuance of the
Notes or the consummation of any of the transactions contemplated by this Agreement or any
of the Basic Documents to which it is a party, (C) seeking any determination or ruling that
might materially and adversely affect the performance by the Servicer of its obligations
under, or the validity or enforceability of, this Agreement, any of the Basic Documents to
which it is a party or the Notes, or (D) relating to the Servicer and which might adversely
affect the federal income tax attributes of the Notes.

(vii) No Consents. The Servicer is not required to obtain the consent of any
other party or any consent, license, approval or authorization, or registration or
declaration with, any governmental authority, bureau or agency in connection with the
execution, delivery, performance, validity or enforceability of this Agreement or the other
Basic Documents to which it is a party.

(viii) Approvals. The Servicer: (A) is not in violation of any laws,
ordinances, governmental rules or regulations to which it is subject, which violation
materially and adversely affects the business or condition (financial or otherwise) of the
Servicer and its subsidiaries, the Servicer’s ability to perform its obligations hereunder
or under any other Basic Document or any of the Trust Property; (B) has not failed to obtain
any licenses, permits, franchises or other governmental authorizations necessary to the
ownership of its property or to the conduct of its business which failure to obtain will
materially and adversely affect the business or condition (financial or otherwise) of the
Servicer and its subsidiaries, the Servicer’s ability to perform its obligations hereunder
or under any other Basic Document or any of the Trust Property; and (C) is not in violation
of any term of any agreement, charter instrument, bylaw or instrument to which it is a party
or by which it may be bound, which violation or failure to obtain materially and adversely
affect the business or condition (financial or otherwise) of the Servicer and its
subsidiaries, the Servicer’s ability to perform its obligations hereunder or under any other
Basic Document or any of the Trust Property.

(ix) Investment Company. The Servicer is not an investment company which is
required to register under the Investment Company Act of 1940, as amended.

(x) Taxes. The Servicer has filed on a timely basis all material tax returns
required to be filed by it and paid all material taxes, to the extent that such taxes have
become due.

(xi) No Injunctions. There are no existing injunctions, writs, restraining
orders or other similar orders which might adversely affect the performance by the Servicer
or its obligations under, or the validity and enforceability of, this Agreement or any other
Basic Document to which it is a party.

(xii) Practices. The practices used or to be used by the Servicer, to monitor
collections with respect to the Trust Property and repossess and dispose of the Financed
Vehicles related to the Trust Property will be, in all material respects, in conformity with
the requirements of all applicable federal and State laws, rules and regulations, and this
Agreement. The Servicer is in possession of all State and local licenses (including all
debt collection licenses) required for it to perform its services hereunder, and none of
such licenses has been suspended, revoked or terminated, except where the failure to have
such licenses would not be reasonably likely to have material adverse effect on its ability
to service the Loans or Contracts or on the interest of the Indenture Trustee, the Trust
Collateral Agent or the Noteholders.

SECTION 7.02. Indemnities of Servicer.

The Servicer shall be liable in accordance herewith only to the extent of the obligations
specifically undertaken by the Servicer under this Agreement and the other Basic Documents to which
it is a party and no implied duties or obligations shall be read into this Agreement against or the
other Basic Documents the Servicer.

(i) The Servicer shall defend, indemnify, and hold harmless the Trust Collateral Agent,
the Backup Servicer, the Indenture Trustee and the Owner Trustee and their respective
officers, directors, employees and agents, and the Trust from and against any and all costs,
expenses, losses, damages, claims, and liabilities, arising out of or resulting from the
use, ownership, or operation by the Servicer or any Affiliate thereof of a Financed Vehicle.

(ii) The Servicer shall indemnify, defend, and hold harmless the Trust Collateral
Agent, the Indenture Trustee, the Owner Trustee, the Backup Servicer and their respective
officers, directors, employees and agents, and the Trust from and against any taxes that may
at any time be asserted against them with respect to the transactions contemplated herein,
including any sales, gross receipts, general corporation, tangible personal property,
privilege, or license taxes (but, in the case of the Trust, not including any taxes asserted
with respect to, and as of the date of, the sale of the Loans to the Trust or the issuance
and original sale of the Notes, or asserted with respect to ownership of the Loans, or
federal or other income taxes arising out of the transactions contemplated by this
Agreement) and costs and expenses in defending against the same.

(iii) The Servicer shall indemnify, defend, and hold harmless the Trust, the Backup
Servicer, the Trust Collateral Agent, the Owner Trustee, the Indenture Trustee and each of
their respective officers, directors, employees and agents, and the Noteholders from and
against any and all costs, expenses, losses, claims, damages, and liabilities to the extent
that such cost, expense, loss, claim, damage, or liability arose out of, or was imposed upon
such party through the breach by the Servicer of its obligations under this Agreement or any
other Basic Document to which it is a party, in its capacity as Servicer, or the negligence,
willful misconduct or bad faith of the Servicer in the performance of its duties under this
Agreement or any other Basic Document to which it is a party.

(iv) The Servicer shall indemnify, defend, and hold harmless the Trust Collateral
Agent, the Indenture Trustee, the Owner Trustee, the Backup Servicer and each of their
respective officers, directors, employees and agents from and against all costs, expenses,
losses, claims, damages, and liabilities arising out of or incurred in connection with the
acceptance or performance of the trusts and duties contained herein, except, with respect to
the any such indemnified party, to the extent that such cost, expense, loss, claim, damage,
or liability: (a) shall be due to the willful misconduct, bad faith, or negligence (or, in
the case of the Owner Trustee, gross negligence) of such indemnified party; (b) shall arise
from such indemnified party’s breach of any of its representations or warranties in any
material respect set forth in this Agreement or any other Basic Document o which such
indemnified party is a party; or (c) as to the Trust Collateral Agent, shall arise out of or
be incurred in connection with the performance by the Trust Collateral Agent of the duties
of successor Servicer hereunder.

(v) The Servicer shall indemnify, defend, and hold harmless, the Indenture Trustee, the
Owner Trustee and each of their officers, directors, employees and agents from and against
all costs, expenses, losses, claims, damages, and liabilities arising out of or incurred in
connection with the acceptance or performance of the trusts and duties contained in the
Trust Agreement, with respect to any such indemnified party, to the extent that such cost,
expense, loss, claim, damage, or liability: (a) shall be due to the willful misconduct, bad
faith or negligence (or in the case of the Owner Trustee, gross negligence) of such party;
or (b) shall arise from such indemnified party’s breach of any of its representations or
warranties set forth in the Trust Agreement. The Servicer agrees to the indemnification set
forth in Section 8.2 of the Trust Agreement, which provisions are incorporated by reference
herein.

(vi) The Servicer shall indemnify, defend, and hold harmless, the Backup Servicer and
its officers, directors, employees and agents from and against all costs, expenses, losses,
claims, damages, and liabilities to the extent that such cost, expense, claim, damage, or
liability arose out of, or was imposed upon the Backup Servicer resulting from the acts or
omissions of the Servicer in the performance of its duties in its capacity as Servicer under
this Agreement or any other Basic Document to which it is a party.

Indemnification under this Section by the Servicer, with respect to the period such Person was
(or was deemed to be) the Servicer, shall survive the termination of such Person as Servicer or a
resignation by such Person as Servicer as well as the termination of this Agreement and shall
include reasonable fees and expenses of counsel and expenses of litigation. If the Servicer shall
have made any indemnity payments pursuant to this Section and the recipient thereafter collects any
of such amounts from others, the recipient shall promptly repay such amounts to the Servicer,
without interest.

For purposes of this Section 7.02, in the event of the termination of the rights and
obligations of the Servicer (or any successor thereto pursuant to Section 7.03) as Servicer
pursuant to Section 8.01 or a resignation by such Servicer pursuant to this Agreement, such
Servicer shall remain the Servicer until a successor Servicer has accepted its appointment pursuant
to Section 8.02. The provisions of this paragraph shall in no way affect the survival
pursuant to the preceding paragraph of the indemnification by the Servicer.

Notwithstanding any other provision of this Agreement, the obligations of the Servicer
described in this Section shall not terminate or be deemed released upon the resignation or
termination of the Servicer and shall survive any termination of this Agreement to the extent that
such obligations arise from the Servicer’s actions hereunder while acting as Servicer.

SECTION 7.03. Merger or Consolidation of, or Assumption of the Obligations of, Servicer;
Resignation.

Any Person (i) into which the Servicer may be merged or consolidated, (ii) resulting from any
merger, conversion, or consolidation to which the Servicer shall be a party, or (iii) succeeding to
the business of the Servicer (or to substantially all of the Servicer’s business insofar as it
relates to the making of Loans and the servicing of the Loans and the related Contracts), which
corporation in any of the foregoing cases executes an agreement of assumption acceptable to the
Majority Noteholders (which acceptance shall be in writing) to perform every obligation of the
Servicer under this Agreement and the other Basic Documents to which it is a party, will be the
successor to the Servicer under this Agreement and the other Basic Documents to which it is a party
without the execution or filing of any paper or any further act on the part of any of the parties
to this Agreement; provided, however, that (x) the Servicer shall have delivered to
the Trust Collateral Agent, the Owner Trustee and the Indenture Trustee an Officer’s Certificate
and an Opinion of Counsel each stating that such consolidation, conversion, merger or succession
and such agreement of assumption comply with this Section and that all conditions precedent
provided for in this Agreement and the other Basic Documents to which it is a party relating to
such transaction have been complied with and (y) the Servicer shall have delivered to the Trust
Collateral Agent, the Owner Trustee and the Indenture Trustee an Opinion of Counsel either (A)
stating that, in the opinion of such Counsel, all financing statements and continuation statements
and amendments thereto have been filed that are necessary to preserve and protect fully the
interest of the Trust in the Contracts which secure certain of the Loans, and reciting the details
of such filings, or (B) stating that, in the opinion of such Counsel, no such action shall be
necessary to preserve and protect such interest and (z) the Rating Agency Condition shall have been
satisfied. The Servicer shall provide notice of any merger, conversion, consolidation or succession
pursuant to this Section to the Trust Collateral Agent and the Rating Agencies then providing a
rating for the Notes. The Trust Collateral Agent shall forward a copy of each such notice to each
Noteholder. Notwithstanding anything herein to the contrary, the execution of the foregoing
agreement of assumption and compliance with clauses (x), (y) and (z) above shall be conditions to
the consummation of the transactions referred to in clauses (i), (ii) or (iii) above.

SECTION 7.04. Limitation on Liability of Servicer and Others.

Subject to Section 7.02, neither the Servicer nor any of the directors or officers or
employees or agents of the Servicer shall be under any liability to the Trust, the Trust Collateral
Agent, the Noteholders or the Certificateholders, except as provided under this Agreement or any
other Basic Document to which it is a party, for any action taken or omitted to be taken pursuant
to this Agreement in the good faith business judgment of the Servicer; provided,
however, that this provision shall not protect the Servicer against any liability that
would otherwise be imposed by reason of bad faith, willful misconduct in the performance of duties,
or by reason of negligence in the performance of its duties under this Agreement or any other Basic
Document to which it is a party. The Servicer and any director, officer or employee or agent of
the Servicer may rely in good faith on any advice of counsel, Opinion of Counsel or on any
Officer’s Certificate of the Seller or certificate of auditors or other document of any kind
believed to be genuine and to have been signed by the proper party in respect of any matters
arising under this Agreement.

Except as provided in this Agreement, the Servicer shall not be under any obligation to appear
in, prosecute, or defend any legal action that shall not be incidental to its duties to service the
Loans and the related Contracts in accordance with this Agreement, and that in its opinion may
involve it in any expense or liability; provided, however, that the Servicer may
undertake any reasonable action that it may deem necessary or desirable in respect of this
Agreement and the rights and duties of the parties to this Agreement and the interests of the
Noteholders and the Certificateholders under this Agreement. In such event, the legal expenses and
costs of such action and any liability resulting therefrom shall be expenses, costs, and
liabilities of the Servicer.

SECTION 7.05. Delegation of Duties.

The Servicer may at any time perform specific duties or all the duties enumerated herein as
servicer under this Agreement through a sub-contractor; provided, that no such delegation
or subcontracting shall relieve the Servicer of its responsibilities with respect to such duties
and the Servicer shall remain primarily responsible with respect thereto.

SECTION 7.06. Certification Upon Satisfaction.

Upon the satisfaction and discharge of the Indenture pursuant to Section 4.1 thereof,
the Servicer shall deliver to the Owner Trustee a written certification of a Responsible Officer
stating, to the best knowledge of such Responsible Officer, that (a) no claims remain against the
Issuer, or (b) the only pending or threatened claims known to such Responsible Officer (including
contingent and unliquidated claims) are those listed on a schedule to such certification.

ARTICLE VIII

DEFAULT

SECTION 8.01. Servicer Defaults.

If any one of the following events (each, a “Servicer Default”) shall occur:

(i) any failure by the Servicer: (x) to deposit to the Collection Account (A) any
amount required to be deposited therein by the Servicer (other than any such failure
resulting from an administrative or technical error of the Servicer in the amount so
deposited); or (B) within one (1) Business Day after the Servicer becomes aware that, as a
result of an administrative or technical error of the Servicer, any amount previously
deposited by the Servicer to the Collection Account was less than the amount required to be
deposited therein by the Servicer, the amount of such shortfall; or (y) to deliver to the
Trust Collateral Agent the Servicer’s Certificate on the related Determination Date;

(ii) failure on the part of the Servicer duly to observe or to perform in any material
respect any other covenants or agreements of the Servicer set forth in any Basic Document,
or any representation or warranty of the Servicer made in this Agreement, any other Basic
Document or in any certificate or other writing delivered pursuant to any Basic Document
proving to have been incorrect in any material respect as of the time when the same shall
have been made, which default, if capable of cure, shall continue unremedied for a period of
thirty (30) days (or a longer period, not in excess of sixty (60) days, as may be reasonably
necessary to remedy such default, if the default is capable of remedy within sixty (60) days
or less and the Servicer delivers an Officer’s Certificate to the Indenture Trustee to the
effect that it has commenced, or will promptly commence and diligently pursue, all
reasonable efforts to remedy the default) after (x) there shall have been given written
notice of such failure, requiring the same to be remedied, (1) to the Servicer, by the Trust
Collateral Agent, or (2) to the Servicer by the Trust Collateral Agent at the direction of
the Majority Noteholders; or (y) discovery of such failure by an officer of the Servicer; or

(iii) the entry of a decree or order by a court or agency or supervisory authority
having jurisdiction in the premises for the appointment of a conservator, receiver, or
liquidator for the Servicer or any of its subsidiaries in any insolvency, readjustment of
debt, marshalling of assets and liabilities, or similar proceedings, or for the winding up
or liquidation of its respective affairs, and the continuance of any such decree or order
unstayed and in effect for a period of sixty (60) consecutive days or the entry of any
decree or order for relief in respect of the Servicer or any of its subsidiaries under any
bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, or
similar law, whether now or hereafter in effect, which decree or order for relief continues
unstayed and in effect for a period of sixty (60) consecutive days; or

(iv) the consent by the Servicer or any of its subsidiaries to the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling
of assets and liabilities, or similar proceedings of or relating to the Servicer or any of
its subsidiaries or relating to substantially all of its property; or the admission by the
Servicer or any of its subsidiaries in writing of its inability to pay its debts generally
as they become due, the filing by the Servicer or any of its subsidiaries of a petition to
take advantage of any applicable insolvency or reorganization statute, the making by the
Servicer or any of its subsidiaries of an assignment for the benefit of its creditors, or
the voluntarily suspension by the Servicer or any of its subsidiaries of payment of its
obligations;

(v) the Servicer breaches any Financial Covenants; or

(vi) the Originator or Servicer, if Credit Acceptance is the Servicer, fails to pay
when due Purchase Amounts in excess of $100,000;

then, and in each and every case, the Trust Collateral Agent, if so requested by the Majority
Noteholders by notice then given in writing to the Servicer, the Backup Servicer and the Trust
Collateral Agent, may terminate all of the rights and obligations of the Servicer under this
Agreement. Upon sending or receiving any such notice, the Trust Collateral Agent shall promptly
send a copy thereof to the Indenture Trustee, the Owner Trustee, the Servicer (who shall promptly
provide such notice to the Rating Agencies) and to each Noteholder. Within thirty (30) days after
the receipt by the Backup Servicer of such written notice (if such notice relates to terminating
the Servicer) and subject to Section 8.02(a), all authority and power of the Servicer under
this Agreement, whether with respect to the Notes or the Loans or Contracts or otherwise, shall,
without further action, pass to and be vested in the Backup Servicer or such successor Servicer as
may be appointed under Section 8.02; and the Backup Servicer is hereby authorized and
empowered to execute and deliver, on behalf of the predecessor servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement of the Loans and the Contracts and related documents, or
otherwise.

The predecessor Servicer shall cooperate with the successor Servicer and the Backup Servicer
in effecting the termination of the responsibilities and rights of the predecessor Servicer under
this Agreement, including the transfer to the Backup Servicer or the successor Servicer for
administration by it of all cash amounts that shall at the time be held by the predecessor servicer
for deposit, or shall thereafter be received with respect to a Loan or related Contract, and the
related accounts and records maintained by the Servicer. All Transition Expenses shall be paid by
the predecessor servicer upon presentation of reasonable documentation of such costs and expenses.
If such Transition Expenses are not paid to the successor Servicer by the predecessor Servicer,
such Transition Expenses shall be paid under Section 5.08(a)(i) hereof.

SECTION 8.02. Appointment of Successor.

(a) Upon the Servicer’s receipt of notice of termination pursuant to Section 8.01, or
the Servicer’s resignation in accordance with the terms of Section 4.14, the predecessor
servicer shall continue to perform its functions as Servicer under this Agreement, (i) in the case
of termination, only until the date specified in such termination notice or, if no such date is
specified in a notice of termination, until receipt of such notice and, (ii) in the case of
resignation, until the later of (x) the date thirty (30) days from the delivery to the Backup
Servicer, the Trust Collateral Agent and the Indenture Trustee of written notice of such
resignation (or the date of written confirmation of such notice prior to the expiration of the
thirty (30) days) in accordance with the terms of this Agreement and (y) the date upon which the
predecessor servicer shall become unable to act as Servicer, as specified in the notice of
resignation and accompanying Opinion of Counsel. In the event of the Servicer’s resignation or
termination hereunder, the Backup Servicer shall be the successor in all respects to the Servicer
in its capacity as servicer under this Agreement and the transactions set forth or provided for
herein and shall be subject to the responsibilities, duties and liabilities relating thereto placed
on the Servicer by the terms and provisions hereof, as modified or limited hereby or by the Backup
Servicing Agreement; provided, however, that the Backup Servicer shall not be
liable for any actions of any Servicer prior to such succession or for any breach by the Servicer
of any of its representations and warranties contained in this Agreement or in any related document
or agreement. Notwithstanding the above, if the Backup Servicer is legally unable to so act, the
Trust Collateral Agent shall appoint (after soliciting bids from potential servicers), or petition
a court of competent jurisdiction to appoint, a Servicer as the successor Servicer hereunder, in
the assumption of all or any part of the responsibilities, duties or liabilities of the outgoing
Servicer hereunder. In the event that Wells Fargo Bank, National Association, as Backup Servicer,
is legally unable to act as Servicer under this Agreement and another entity is appointed as
successor Servicer under this Section 8.02(a), Wells Fargo Bank, National Association shall
have no further obligation to perform the obligations of Servicer or Backup Servicer under this
Agreement. Pending appointment of a successor to the outgoing Servicer hereunder, if the Backup
Servicer is prohibited by law from so acting (as evidenced by an Opinion of Counsel to the Trust
Collateral Agent and the Indenture Trustee on behalf of the Noteholders), the outgoing Servicer
shall continue to act as Servicer hereunder until a successor Servicer is appointed and assumes the
obligations as successor Servicer. In the event the Backup Servicer assumes the responsibilities
of the Servicer pursuant to this Section 8.02, the Backup Servicer will make reasonable
efforts consistent with Applicable Law to become licensed, qualified and in good standing under the
laws which require licensing or qualification, in order to perform its obligations as Servicer
hereunder or, alternatively, shall retain an agent who is so licensed, qualified and in good
standing.

(b) Upon appointment, the Backup Servicer or the successor Servicer shall be the successor in
all respects to the predecessor servicer and shall be subject to the responsibilities, duties, and
liabilities arising thereafter relating thereto placed on the predecessor servicer, (subject to the
limitations and modifications thereto set forth herein or in the Backup Servicing Agreement) and
shall be entitled to (to the extent arranged in accordance with the following paragraph) the
Servicing Fee, Servicer Expenses, Reliening Expenses, Repossession Expenses and all of the rights
granted to the predecessor servicer, by the terms and provisions of this Agreement, provided that
neither the Backup Servicer nor the successor Servicer shall be liable for the acts or omissions of
any predecessor servicer. The Backup Servicer or any successor Servicer shall provide Credit
Acceptance with copies of all documents and information reasonably necessary for Credit Acceptance
to perform its obligations under Section 4.17 of this Agreement.

(c) In connection with such appointment, the Trust Collateral Agent may make such arrangements
for the compensation of such successor Servicer (including Transition Expenses) out of payments on
Loans and related Contracts as it, the Majority Noteholders and such successor Servicer shall
agree; provided, however, that no such compensation (excluding Transition Expenses,
Repossession Expenses and Reliening Expenses) shall be in excess of the Servicing Fee. The Backup
Servicer, the Trust Collateral Agent and any such successor Servicer shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such succession.

SECTION 8.03. Notification to Noteholders and Certificateholders.

Upon any termination of, or appointment of a successor to, the Servicer pursuant to this
Article VIII, the Trust Collateral Agent shall promptly upon its receipt of notice thereof give
prompt written notice thereof to the Noteholders and the Certificateholders at their respective
addresses appearing in the Note Register and the Certificate Register, to the Owner Trustee and to
the Servicer (who shall promptly provide such notice to each of the Rating Agencies then rating the
Notes).

SECTION 8.04. Waiver of Past Defaults.

The Majority Noteholders, may, on behalf of all Noteholders, waive any or all default(s) by
the Servicer or the Seller in the performance of its obligations hereunder and the consequences
thereof, except a default in making any required deposits to or payments from a Trust Account in
accordance with this Agreement. Upon any such waiver of a past default, such default shall cease
to exist, and any Servicer Default arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement. Notwithstanding anything herein to the contrary, the Indenture
Trustee, at the direction of the Majority Noteholders, shall have the right to waive the payment of
any Purchase Amount required hereunder.

ARTICLE IX

THE TRUST COLLATERAL AGENT

SECTION 9.01. Duties of the Trust Collateral Agent.

(a) The Issuer hereby appoints Wells Fargo Bank, National Association, as the Trust Collateral
Agent, and Wells Fargo Bank, National Association hereby accepts such appointment.

(b) (i) the Trust Collateral Agent undertakes to perform such duties and only such duties as
are specifically set forth in this Agreement and the Basic Documents and no implied covenants or
obligations shall be read into this Agreement or the Basic Documents against the Trust Collateral
Agent; and

(ii) in the absence of bad faith or willful misconduct on its part, the Trust
Collateral Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to
the Trust Collateral Agent and conforming to the requirements of this Agreement and the
Basic Documents; however, the Trust Collateral Agent shall examine the certificates and
opinions to determine whether or not they conform on their face to the requirements of this
Agreement and the Basic Documents.

(c) The Trust Collateral Agent may not be relieved from liability for its own negligent
actions, its own negligent failure to act or its own bad faith or willful misconduct, except that:

(i) this paragraph does not limit the effect of paragraph (b) of this Section; and

(ii) the Trust Collateral Agent shall not be liable for any error of judgment made in
good faith by a Responsible Officer of the Trust Collateral Agent unless it is proved that
the Trust Collateral Agent was negligent in ascertaining the pertinent facts.

(d) Money held in trust by the Trust Collateral Agent need not be segregated from other funds
except to the extent required by law or the terms of this Agreement.

(e) No provision of this Agreement shall require the Trust Collateral Agent to expend or risk
its own funds or otherwise incur liability (financial or otherwise) in the performance of any of
its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable
grounds to believe that repayment of such funds or indemnity satisfactory to it against such risk
or liability reasonably satisfactory to it is not reasonably assured to it.

(f) Every provision of this Agreement relating to the conduct or affecting the liability of or
affording protection to the Trust Collateral Agent shall be subject to the provisions of this
Section.

(g) Without limiting the generality of this Section, the Trust Collateral Agent shall have no
duty (A) to see to any recording, filing or depositing of this Agreement or any agreement referred
to herein or any financing statement or continuation statement evidencing a security interest in
the Contracts which secure certain of the Loans or the Financed Vehicles, or to see to the
maintenance of any such recording or filing or depositing or to any rerecording, refiling or
redepositing of any thereof, (B) to see to any insurance on the Financed Vehicles or Obligors or to
effect or maintain any such insurance, (C) to see to the payment or discharge of any tax,
assessment or other governmental charge or any Lien or encumbrance of any kind owing with respect
to, assessed or levied against any part of the Trust, (D) to confirm or verify the contents of any
reports or certificates delivered to the Trust Collateral Agent pursuant to this Agreement believed
by the Trust Collateral Agent to be genuine and to have been signed or presented by the proper
party or parties, or (E) to inspect the Contracts at any time or ascertain or inquire as to the
performance or observance of any of the Issuer’s, the Seller’s or the Servicer’s representations,
warranties or covenants or the Servicer’s duties and obligations as Servicer and as custodian of
the Dealer Agreements, the Purchase Agreements, the original Certificates of Title relating to the
Financed Vehicles and the Contracts under this Agreement.

(h) In no event shall Wells Fargo Bank, National Association, in any of its capacities
hereunder, be deemed to have assumed any duties of the Owner Trustee under the Delaware Statutory
Trust Act, common law, or the Trust Agreement.

(i) Wells Fargo Bank, National Association by its execution hereof accepts its appointment as
Trust Collateral Agent under the Indenture and this Agreement. The Trust Collateral Agent shall
act upon and in compliance with the written instructions of the Indenture Trustee delivered
pursuant to the Indenture promptly following receipt of such written instructions;
provided, however, that the Trust Collateral Agent shall not act in accordance with
any instructions: (i) which are not authorized by, or in violation of the provisions of, the
Indenture or this Agreement; (ii) that are in violation of any applicable law, rule or regulation;
or (iii) for which the Trust Collateral Agent has not received indemnity reasonably satisfactory to
it. Receipt of such instructions shall not be a condition to the exercise by the Trust Collateral
Agent of its express duties hereunder, except where the Indenture or this Agreement provides that
the Trust Collateral Agent is permitted to act only following and in accordance with such
instructions.

SECTION 9.02. Rights of the Trust Collateral Agent.

(a) Before the Trust Collateral Agent acts or refrains from acting, it may require an
Officer’s Certificate or an Opinion of Counsel. The Trust Collateral Agent shall not be liable for
any action it takes or omits to take in good faith in reliance on an Officer’s Certificate or
Opinion of Counsel.

(b) The Trust Collateral Agent may execute any of the trusts or powers hereunder or perform
any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee
and shall not be responsible for the misconduct or negligence of any agent, attorney, custodian or
nominee appointed with due care.

(c) The Trust Collateral Agent shall not be liable for any action it takes or omits to take in
good faith which it believes to be authorized or within its rights or powers; provided,
however, that the Trust Collateral Agent’s conduct does not constitute willful misconduct,
negligence or bad faith.

(d) The Trust Collateral Agent may consult with counsel, and the written advice or opinion of
counsel with respect to legal matters relating to this Agreement and the Notes or Certificates
shall be full and complete authorization and protection from liability in respect to any action
taken, omitted or suffered by it hereunder in good faith and in accordance with the written advice
or opinion of such counsel.

(e) The Trust Collateral Agent shall be under no obligation to exercise any of the rights and
powers vested in it by this Agreement or the other Basic Documents, or to institute, conduct or
defend any litigation under this Agreement or in relation to this Agreement, at the request, order
or direction of any of the Holders of Notes or Certificates or the instructing party, as the case
may be, pursuant to the provisions of this Agreement, unless it shall have been offered to the
Trust Collateral Agent security or indemnity reasonably satisfactory to it against the costs,
expenses and liabilities that may be incurred therein or thereby.

(f) The Trust Collateral Agent shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless requested in writing to
do so by the Majority Noteholders; provided, however, that if the payment within a
reasonable time to the Trust Collateral Agent of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of the Trust Collateral
Agent, not reasonably assured to the Trust Collateral Agent by the security afforded to it by the
terms of this Agreement, the Trust Collateral Agent may require indemnity reasonably satisfactory
to it against such cost, expense or liability as a condition to so proceeding; the reasonable
expense of every such examination shall be paid by the requesting Holders or the instructing party,
as the case may be, or, if paid by the Trust Collateral Agent, shall be reimbursed by the
requesting Holders upon demand.

(g) Delivery of any reports, information and documents to the Trust Collateral Agent provided
for herein is for informational purposes only (unless otherwise expressly stated herein) and the
Trust Collateral Agent’s receipt of such shall not constitute constructive knowledge of any
information contained therein or determinable from information contained therein, including the
Servicer’s, Seller’s or Issuer’s compliance with any of its representations, warranties or
covenants hereunder (as to which the Trust Collateral Agent is entitled to rely exclusively on
Officers’ Certificates).

(h) The Trust Collateral Agent shall not be deemed to have knowledge of a Servicer Default or
an Early Amortization Event unless a Responsible Officer of the Trust Collateral Agent has actual
knowledge or has received written notice thereof.

(i) In no event shall the Indenture Trustee be liable for any indirect, or consequential,
punitive or special damages, regardless of the form of action and whether or not any such damages
were foreseeable or contemplated.

(j) The Trust Collateral Agent may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval or other paper or document believed by it to be genuine
and to have been signed or presented by the property party or parties.

(k) In no event shall the Trust Collateral Agent be liable for any act or omission on the part
of the Issuer or the Servicer or any other Person. The Trust Collateral Agent shall not be
responsible for monitoring or supervising the Issuer or the Servicer.

SECTION 9.03. Individual Rights of Trust Collateral Agent.

The Trust Collateral Agent in its individual or any other capacity may become the owner or
pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not Trust Collateral Agent.

The Trust Collateral Agent and its Affiliates are permitted to receive additional compensation
that could be deemed to be in the Trust Collateral Agent’s economic self-interest for (i) serving
as investment adviser, administrator, shareholder servicing agent, custodian or sub-custodian with
respect to certain of the Eligible Investments, (ii) using Affiliates to effect transactions in
certain Eligible Investments and (iii) effecting transactions in certain Eligible Investments. The
Trust Collateral Agent does not guarantee the performance of any Eligible Investments.

In order to comply with the laws, rules, regulations and executive orders in effect from time
to time applicable to banking institutions, including those relating to the funding of terrorist
activities and money laundering, the Trust Collateral Agent is required to obtain, verify and
record certain information relating to individuals and entities which maintain a business
relationship with the Trust Collateral Agent. Accordingly, each of the parties hereto agree to
provide the Trust Collateral Agent upon its request from time to time such identifying information
and documentation as may be available for such party in order to enable the Trust Collateral Agent
to comply with such laws, rules, regulations and executive orders in effect from time to time
applicable to banking institutions.

SECTION 9.04. Reports by Trust Collateral Agent to Holders.

The Trust Collateral Agent shall on behalf of the Issuer deliver to each Noteholder such
information as may be reasonably required to enable such Holder to prepare its Federal and state
income tax returns.

SECTION 9.05. Compensation.

(a) The Issuer shall pay to the Trust Collateral Agent from time to time compensation provided
under this Agreement, as provided in a separate fee letter, and all reasonable out-of-pocket
expenses incurred or made by it, including costs of collection, in addition to the compensation for
its services, except any such expense as may be attributable to its willful misconduct, negligence
or bad faith. Such compensation and expenses shall be paid in accordance with Section
5.08(a) hereof. Such expenses shall include securities transaction charges relating to the
investment of funds on deposit in the Trust Accounts and the reasonable compensation and reasonable
expenses, disbursements and advances of the Trust Collateral Agent’s counsel and of all persons not
regularly in its employ; provided, however, that the securities transaction charges
referred to above shall, in the case of certain Eligible Investments selected by the Servicer, be
waived for a particular investment in the event that any amounts are received by the Trust
Collateral Agent from a financial institution in connection with the purchase of such Eligible
Investments.

(b) [Reserved.]

(c) The Issuer’s and the Servicer’s payment obligations to the Trust Collateral Agent pursuant
to this Section shall survive the discharge of this Agreement and any resignation or removal of the
Trust Collateral Agent. When the Trust Collateral Agent incurs expenses after the occurrence of an
Indenture Event of Default specified in Section 5.1(iv) or (v) of the Indenture with respect to the
Issuer, the expenses are intended to constitute expenses of administration under Title 11 of the
United States Code or any other applicable Federal or state bankruptcy, insolvency or similar law.
Notwithstanding anything else set forth in this Agreement or the Basic Documents, the Trust
Collateral Agent agrees that the obligations of the Issuer or the Seller (but not the Servicer) to
the Trust Collateral Agent hereunder and under the Basic Documents shall not be recourse to the
assets of the Issuer, the Seller or any Noteholder.

SECTION 9.06. Eligibility.

The Trust Collateral Agent under this Agreement shall at all times be a corporation or banking
association having an office in the same state as the location of the Corporate Trust Office as
specified in this Agreement; organized and doing business under the laws of such state or the
United States of America; authorized under such laws to exercise corporate trust powers; having a
combined capital and surplus of at least $100,000,000; having long-term unsecured debt obligations
rated at least “Baa2” by Moody’s and “BBB-” by Standard and Poor’s; and subject to supervision or
examination by federal or state authorities. If such corporation shall publish reports of
condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purpose of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Trust Collateral Agent shall cease to be
eligible in accordance with the provisions of this Section, the Trust Collateral Agent shall resign
immediately, provided that such resignation shall not be effective until a successor Trust
Collateral Agent accepts appointment in accordance with Section 9.10(d) hereof.

SECTION 9.07. Trust Collateral Agent’s Disclaimer.

The Trust Collateral Agent shall not be responsible for and make no representation as to the
validity, sufficiency or adequacy of this Agreement, the Trust Property or the Securities, shall
not be accountable for the Issuer’s use of the proceeds from the Securities, and shall not be
responsible for any statement of the Issuer in this Agreement or in any document issued in
connection with the sale of the Securities or in the Securities.

SECTION 9.08. Limitation on Liability.

Neither the Trust Collateral Agent nor any of its directors, officers or employees shall be
liable for any action taken or omitted to be taken by it or them hereunder, or in connection
herewith, except that the Trust Collateral Agent shall be liable for its negligence, bad faith or
willful misconduct; nor shall the Trust Collateral Agent be responsible for the validity,
effectiveness, value, sufficiency or enforceability against the Issuer of this Agreement or any of
the Trust Property (or any part thereof). Notwithstanding any term or provision of this Agreement,
the Trust Collateral Agent shall incur no liability to the Issuer for any action taken or omitted
by the Trust Collateral Agent in connection with the Trust Property, except for the negligence, bad
faith or willful misconduct on the part of the Trust Collateral Agent, and, further, shall incur no
liability to the Issuer except for negligence, bad faith or willful misconduct in carrying out its
duties to the Issuer. Subject to Section 9.09, the Trust Collateral Agent shall be
protected and shall incur no liability to any such party in relying upon the accuracy, acting in
reliance upon the contents, and assuming the genuineness of any notice, demand, certificate,
signature, instrument or other document reasonably believed by the Trust Collateral Agent to be
genuine and to have been duly executed by the appropriate signatory (absent actual knowledge of a
Responsible Officer of the Trust Collateral Agent to the contrary), and the Trust Collateral Agent
shall not be required to make any independent investigation or inquiry with respect thereto. The
Trust Collateral Agent shall at all times be free to establish independently to its reasonable
satisfaction, but shall have no duty to verify independently, the existence or nonexistence of
facts that are a condition to the exercise or enforcement of any right or remedy hereunder or under
any of the Basic Documents. The Trust Collateral Agent may consult with counsel, and shall not be
liable for any action taken or omitted to be taken by it hereunder in good faith and in accordance
with the written advice of such counsel.

SECTION 9.09. Reliance Upon Documents.

In the absence of bad faith or willful misconduct on its part, the Trust Collateral Agent
shall be entitled to conclusively rely on any communication, instrument, paper or other document
reasonably believed by it to be genuine and correct and to have been signed or sent by the proper
Person or Persons and shall have no liability in acting, or omitting to act, where such action or
omission to act is in reasonable reliance upon any statement or opinion contained in any such
document or instrument.

SECTION 9.10. Successor Trust Collateral Agent.

(a) Merger. Any Person into which the Trust Collateral Agent may be converted or
merged, or with which it may be consolidated, or to which it may sell or transfer its trust
business and assets as a whole or substantially as a whole, or any Person resulting from any such
conversion, merger, consolidation, sale or transfer to which the Trust Collateral Agent is a party,
shall (provided it is otherwise qualified to serve as the Trust Collateral Agent hereunder) be and
become a successor Trust Collateral Agent hereunder and be vested with all of the trusts, powers,
discretions, immunities, privileges and other matters as was its predecessor without the execution
or filing of any instrument or any further act, deed or conveyance on the part of any of the
parties hereto, anything herein to the contrary notwithstanding. The Trust Collateral Agent shall
give notice to the Indenture Trustee, on behalf of the Noteholders, and the Servicer (who shall
promptly provide such notice to the Rating Agencies) of any such transaction.

(b) Resignation. The Trust Collateral Agent and any successor Trust Collateral Agent
may resign at any time by giving sixty (60) days prior written notice to the Issuer (who shall
promptly provide such notice to the Rating Agencies); provided, that such resignation shall not be
effective until a successor Trust Collateral Agent is appointed and accepts appointment in
accordance with clause (d) below.

(c) Removal.

(i) The Issuer may remove the Trust Collateral Agent by written notice if:

(A) a court having jurisdiction over the Trust Collateral Agent in an
involuntary case or proceeding under federal or state banking or bankruptcy laws, as
now or hereafter constituted, or any other applicable federal or state bankruptcy,
insolvency or other similar law, shall have entered a decree or order granting
relief or appointing a receiver, liquidator, assignee, custodian, trustee,
conservator, sequestrator (or similar official) for the Trust Collateral Agent or
for any substantial part of the Trust Collateral Agent’s property, or ordering the
winding-up or liquidation of the Trust Collateral Agent’s affairs;

(B) an involuntary case under the federal bankruptcy laws, as now or hereafter
in effect, or another present or future federal or state bankruptcy, insolvency or
similar law is commenced with respect to the Trust Collateral Agent and such case is
not dismissed within sixty (60) days;

(C) the Trust Collateral Agent commences a voluntary case under any federal or
state banking or bankruptcy laws, as now or hereafter constituted, or any other
applicable federal or state bankruptcy, insolvency or other similar law, or consents
to the appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, conservator, sequestrator (or other similar official) for the
Trust Collateral Agent or for any substantial part of the Trust Collateral Agent’s
property, or makes any assignment for the benefit of creditors or fails generally to
pay its debts as such debts become due or takes any corporate action in furtherance
of any of the foregoing;

(D) the Trust Collateral Agent fails to comply with any material covenant
hereunder; or

(E) the Trust Collateral Agent otherwise becomes legally incapable of acting.

(ii) [Reserved.]

(iii) If the Trust Collateral Agent resigns or is removed or if a vacancy exists in the
office of Trust Collateral Agent for any reason (the Trust Collateral Agent in such event
being referred to herein as the retiring Trust Collateral Agent), the Issuer shall promptly
appoint a successor Trust Collateral Agent.

A successor Trust Collateral Agent shall deliver a written acceptance of its appointment to
the retiring Trust Collateral Agent and to the Issuer. Thereupon the resignation or removal of the
retiring Trust Collateral Agent shall become effective, and the successor Trust Collateral Agent
shall have all the rights, powers and duties of the retiring Trust Collateral Agent under this
Indenture subject to satisfaction of the Rating Agency Condition. The successor Trust Collateral
Agent shall mail a notice of its succession to the Noteholders, the Indenture Trustee and the
Rating Agencies. The retiring Trust Collateral Agent shall promptly transfer all property held by
it as Trust Collateral Agent to the successor Trust Collateral Agent.

If a successor Trust Collateral Agent does not take office within sixty (60) days after the
retiring Trust Collateral Agent resigns or is removed, the retiring Trust Collateral Agent may
petition any court of competent jurisdiction for the appointment of a successor Trust Collateral
Agent that meets the eligibility requirements set forth in Section 9.06 hereof.

If the Trust Collateral Agent fails to comply with Section 9.12, any Noteholder with
the prior written consent of the Indenture Trustee, may petition any court of competent
jurisdiction for the removal of the Trust Collateral Agent and the appointment of a successor Trust
Collateral Agent.

Any resignation or removal of the Trust Collateral Agent and appointment of a successor Trust
Collateral Agent pursuant to any of the provisions of this Section shall not become effective until
acceptance of appointment by the successor Trust Collateral Agent pursuant to this Section
9.10(c) and payment of all fees and expenses owed to the outgoing Trust Collateral Agent by the
Servicer and the Issuer.

Notwithstanding the replacement of the Trust Collateral Agent pursuant to this Section, the
Issuer’s and the Servicer’s obligations under Section 9.05 shall continue for the benefit
of the retiring Trust Collateral Agent.

(d) Acceptance by Successor. If the Trust Collateral Agent has resigned or has been
removed pursuant to this Section 9.10, the Owner Trustee shall have the sole right to
appoint each successor Trust Collateral Agent that meets the qualifications required hereunder.
Every temporary or permanent successor Trust Collateral Agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor and to the Owner Trustee, each Noteholder, each
Certificateholder, the Rating Agencies, the Indenture Trustee and the Issuer an instrument in
writing accepting such appointment hereunder and the relevant predecessor shall execute,
acknowledge and deliver such other documents and instruments as will effectuate the delivery of all
Collateral to the successor Trust Collateral Agent, whereupon such successor, without any further
act, deed or conveyance, shall become fully vested with all the estates, properties, rights,
powers, duties and obligations of its predecessor. Such predecessor shall, nevertheless, on the
written request of the Issuer, execute and deliver an instrument transferring to such successor all
the estates, properties, rights, powers, duties and obligations of such predecessor hereunder. In
the event that any instrument in writing from the Issuer is reasonably required by a successor
Trust Collateral Agent to more fully and certainly vest in such successor the estates, properties,
rights, powers, duties and obligations vested or intended to be vested hereunder in the Trust
Collateral Agent, any and all such written instruments shall, at the request of the temporary or
permanent successor Trust Collateral Agent, be forthwith executed, acknowledged and delivered by
the Owner Trustee or the Issuer, as the case may be. The designation of any successor Trust
Collateral Agent and the instrument or instruments removing any Trust Collateral Agent and
appointing a successor hereunder, together with all other instruments provided for herein, shall be
maintained with the records relating to the Trust Property and, to the extent required by
applicable law, filed or recorded by the successor Trust Collateral Agent in each place where such
filing or recording is necessary to effect the transfer of the Trust Property to the successor
Trust Collateral Agent or to protect or continue the perfection of the security interests granted
hereunder.

If no successor Trust Collateral Agent shall have been appointed and accepted the appointment
within sixty (60) days after the giving of notice of resignation, the resigning Trust Collateral
Agent may petition any court of competent jurisdiction for the appointment of a successor Trust
Collateral Agent that meets the qualifications required hereunder.

SECTION 9.11. Representations and Warranties of the Trust Collateral Agent.

The Trust Collateral Agent represents and warrants to the Issuer, the Indenture Trustee and
the Noteholders as follows:

(i) The Trust Collateral Agent is a national banking association, duly organized and
validly existing under the laws of the United States and is authorized to conduct and engage
in a banking and trust business under such laws.

(ii) The Trust Collateral Agent has full corporate power, authority, and legal right to
execute, deliver, and perform this Agreement and the other Basic Documents to which it is a
party, and has taken all necessary action to authorize the execution, delivery, and
performance, by it of this Agreement and the other Basic Documents to which it is a party.

(iii) This Agreement and the other Basic Documents to which it is a party have been
duly executed and delivered by the Trust Collateral Agent.

(iv) This Agreement and the other Basic Documents to which it is a party are the legal,
valid and binding obligations of the Trust Collateral Agent enforceable in accordance with
their respective terms, subject to the effects of bankruptcy, insolvency, reorganization, or
other similar laws affecting the enforcement of creditors’ rights generally and to general
principles of equity.

SECTION 9.12. Waiver of Setoffs.

Except with respect to the Certificate Distribution Account, the Trust Collateral Agent hereby
expressly waives any and all rights of setoff that the Trust Collateral Agent may otherwise at any
time have under applicable law with respect to any Trust Account and agrees that amounts in the
Trust Accounts shall at all times be held and applied solely in accordance with the provisions
hereof.

ARTICLE X

TERMINATION

SECTION 10.01. Optional Purchase.

(a) On the last day of any Collection Period as of which the sum of the Class A Note Balance
plus the Class B Note Balance shall be less than or equal to 10% of the sum of the initial Class A
Note Balance plus the initial Class B Note Balance, the Servicer shall have the option, upon no
less than ten (10) days prior written notice prior to the related Distribution Date to the Owner
Trustee, the Indenture Trustee and the Rating Agencies, to reacquire the Trust Property, other than
the Trust Accounts. To exercise such option, the Servicer shall deposit pursuant to Section
5.04 in the Collection Account an amount equal to the aggregate Purchase Amount for the Loans,
plus the appraised value of any other property held by the Trust (other than the Trust Accounts),
such value to be determined by an Independent appraiser selected by the Servicer. Notwithstanding
the foregoing, the Servicer shall not exercise such option unless the aggregate Purchase Amount is
sufficient to pay the full amount of principal and interest due and payable on each class of the
Notes, and all amounts due and payable to the Indenture Trustee, the Trust Collateral Agent, the
Backup Servicer and the Owner Trustee under the Basic Documents. Upon such deposit the Servicer
shall succeed to all interests in and to the Trust (other than the Trust Accounts).

(b) Notice of any termination of the Trust shall be given by the Servicer to the Owner
Trustee, the Indenture Trustee, the Trust Collateral Agent and the Rating Agencies as soon as
practicable after the Servicer has received notice of the occurrence of an event of termination
under Section 9.1(a) of the Trust Agreement.

SECTION 10.02. Termination.

Upon the earlier of (a) the payment of the full amount of principal and interest due and
payable on the Notes, and all amounts due and payable to the Indenture Trustee, the Trust
Collateral Agent, the Backup Servicer and the Owner Trustee under the Basic Documents and the
satisfaction and discharge of the Indenture, and (b) the payment in full or other liquidation of
the last outstanding Loan and the subsequent distribution of amounts in respect of such Loans as
provided in the Basic Documents and the satisfaction and discharge of the Indenture, this Agreement
shall terminate; provided that Section 7.06, Section 9.05(c), Section 11.13
and the indemnification obligations of the Issuer under Section 6.05 and of the Servicer
under Section 4.09(f) and Section 7.02 shall survive such termination.

ARTICLE XI

MISCELLANEOUS PROVISIONS

SECTION 11.01. Amendment.

This Agreement may be amended by the Seller, the Servicer, and the Trust Collateral Agent,
without the consent of any of the Noteholders (at the written direction of the Issuer) to: (i) cure
any ambiguity, to correct or supplement any provisions in this Agreement, or to add any other
provisions with respect to matters or questions arising under this Agreement that shall not be
inconsistent with the provisions of this Agreement; or (ii) reflect the succession of a successor
Servicer or successor Backup Servicer; provided, however, that in connection with
any amendment pursuant to clause (i), the action referred to therein shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of any Noteholder; and
provided, further, that in connection with any amendment pursuant to clause (ii) above, the
Servicer shall deliver to the Trust Collateral Agent and the Indenture Trustee a letter from each
Rating Agency, which then has a rating on the Notes, to the effect that such amendment will not
cause the then current ratings on the Notes to be qualified, reduced or withdrawn.

This Agreement may also be amended from time to time by the Seller, the Servicer, and the
Trust Collateral Agent (at the written direction of the Issuer) with the consent of the Majority
Noteholders (which consent of any Holder of a Note given pursuant to this Agreement or pursuant to
any other provision of this Agreement shall be conclusive and binding on such Holder and on all
future Holders of such Note and of any Note issued upon the registration of transfer thereof or in
exchange thereof or in lieu thereof whether or not notation of such consent is made upon the Note),
for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement, or of modifying in any manner the rights of the Holders of the Notes;
provided, however, that no such amendment shall (a) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, collections of payments on Contracts or
distributions that shall be required to be made on any class of Notes or change the Class A Note
Rate, Class B Note Rate, Class A Principal Distributable Amount, Class B Principal Distributable
Amount or Class C Principal Distributable Amount, or (b) reduce the percentage required to consent
to any such amendment, without the consent of each Holder of Notes then outstanding.
Notwithstanding the foregoing, however, no consent of any Noteholder shall be required in
connection with any amendment in order for the Certificateholders to sell, assign, transfer or
otherwise dispose of the excess interest, provided that the Certificateholders present evidence to
the Trust Collateral Agent that the ratings of the Notes shall not be reduced or withdrawn as a
result.

Prior to the execution of any such amendment or consent, the Servicer will provide and the
Trust Collateral Agent shall distribute written notification of the substance of such amendment or
consent to each Rating Agency then rating the Notes.

Promptly after the execution of any such amendment or consent, the Trust Collateral Agent
shall furnish a copy of the substance of such amendment or consent to each Noteholder and each
Certificateholder.

It shall not be necessary for the consent of Noteholders pursuant to this Section to approve
the particular form of any proposed amendment or consent, but it shall be sufficient if such
consent shall approve the substance thereof. The manner of obtaining such consents (and any other
consents of Noteholders provided for in this Agreement) and of evidencing the authorization of the
execution thereof by Noteholders shall be subject to such reasonable requirements as the Trust
Collateral Agent may prescribe.

Prior to the execution of any amendment to this Agreement, the Trust Collateral Agent shall be
entitled to receive and conclusively rely upon an Opinion of Counsel stating that the execution of
such amendment is authorized or permitted by this Agreement and the Opinion of Counsel referred to
in Section 11.02(i)(1). The Trust Collateral Agent may, but shall not be obligated to,
enter into any such amendment which affects the Trust Collateral Agent’s own rights, duties or
immunities under this Agreement or otherwise.

SECTION 11.02. Protection of Title to Trust.

(a) The Seller shall file such financing statements and cause to be filed such continuation
statements, all in such manner and in such places as may be required by law to preserve, maintain,
and protect fully the interest of the Noteholders, the Indenture Trustee and the Trust Collateral
Agent in the Loans and the related Contracts and in the proceeds thereof and the sale of accounts
and chattel paper. The Seller shall deliver (or cause to be delivered) to the Trust Collateral
Agent file-stamped copies of, or filing receipts for, any document filed as provided above, as soon
as available following such filing.

(b) None of the Originator, the Seller nor the Servicer shall change its name, identity, state
of incorporation or formation or corporate structure in any manner that would, could, or might make
any financing statement or continuation statement filed by the Seller in accordance with paragraph
(a) above seriously misleading within the meaning of §9-506 or §9-507 of the UCC, unless it shall
have given the Trust Collateral Agent at least five (5) days’ prior written notice thereof and
shall have promptly filed appropriate amendments to all previously filed financing statements or
continuation statements.

(c) The Seller, the Originator and the Servicer shall give the Trust Collateral Agent at least
sixty (60) days’ prior written notice of any relocation of its principal executive office or change
of its state of incorporation or formation if, as a result of any such change, the applicable
provisions of the UCC would require the filing of any amendment of any previously filed financing
or continuation statement or of any new financing statement and shall promptly file any such
amendment. The Servicer shall at all times maintain each office from which it shall service the
Loans and the related Contracts, and its principal executive office, within the United States of
America.

(d) The Servicer shall maintain accounts and records as to each Loan and Contract accurately
and in sufficient detail to permit (i) the reader thereof to know at any time the status of such
Loan and Contract, including payments and recoveries made and payments owing (and the nature of
each) and (ii) reconciliation between payments or recoveries on (or with respect to) each Loan and
Contract and the amounts from time to time deposited in the Collection Account in respect of such
Loan and Contract.

(e) The Servicer shall maintain its computer systems so that, from and after the time of sale
under this Agreement of the Loans and the related Contracts to the Trust, the Servicer’s master
computer records (including any back-up archives) that refer to a Loan or Contract shall indicate
clearly (including by means of tagging) the interest of the Trust in such Loan or Contract and that
such Loan or Contract is owned by the Trust. Indication of the Trust’s ownership of a Loan or
Contract shall be deleted from or modified on the Servicer’s computer systems when, and only when,
the Loan or Contract shall have been paid in full or repurchased.

(f) If at any time the Seller or the Servicer shall propose to sell, grant a security interest
in, or otherwise transfer any interest in automotive receivables to any prospective purchaser,
lender, or other transferee, the Servicer shall give to such prospective purchaser, lender, or
other transferee computer tapes, records, or print-outs (including any restored from back-up
archives) that, if they shall refer in any manner whatsoever to any Loan or Contract, shall
indicate clearly (including by means of tagging) that such Loan or Contract has been sold and is
owned by the Trust.

(g) The Servicer shall, upon reasonable prior notice, permit the Trust Collateral Agent and
its agents at any time during normal business hours to inspect, audit, and make copies of and
abstracts from the Servicer’s records regarding any Loan or Contract at the office of the Servicer
in a reasonable manner.

(h) Upon request, the Servicer shall furnish to the Trust Collateral Agent and the Indenture
Trustee, within twenty (20) Business Days, a list of all Loans and Contracts (by agreement or
contract number and name of Dealer or Obligor) then held as part of the Trust, together with a
reconciliation of such list to the schedule of Loans, Dealer Agreements, Purchase Agreements and
Contracts attached hereto as Schedule A and to each of the Servicer’s Certificates
furnished before such request indicating removal of Loans or Contracts from the Trust.

(i) The Seller shall deliver to the Trust Collateral Agent and the Indenture Trustee:

(1) upon the execution and delivery of this Agreement and of each amendment
thereto, an Opinion of Counsel either (A) stating that, in the opinion of such
counsel, all financing statements (and releases of financing statements) and
continuation statements have been filed that are necessary to preserve and protect
fully the interest of the Indenture Trustee and the Trust Collateral Agent in the
Loans and the related Contracts that comprise the Trust Property as of the Closing
Date, and reciting the details of the expected filings thereof or referring to prior
Opinions of Counsel in which such details are given, or (B) stating that, in the
opinion of such counsel, no such action shall be necessary to preserve and protect
such interest; and

(2) within thirty (30) days after the beginning of each quarter, beginning with
the first quarter after the Closing Date, an Opinion of Counsel, dated as of a date
during such 30-day period, with respect to the creation of the Seller’s security
interest under the Sale and Contribution Agreement and the perfection and creation
of the lien and security interest in favor of the Indenture Trustee in the
Subsequent Conveyed Property transferred from Credit Acceptance to the Seller during
such quarter; and

(3) within ninety (90) days after the beginning of each calendar year beginning
with 2012, an Opinion of Counsel, dated as of a date during such 90-day period,
stating that in the opinion of such counsel, the existing financing statement naming
the Issuer as debtor and the Indenture Trustee as secured party and any related
continuation statement or amendment (the “Financing Statement”) will remain
effective and no additional financing statements, continuation statements or
amendments with respect to the Financing Statement (other than a continuation
statement to be filed within the period that is six months prior to the expiration
of the Financing Statement, as applicable) will be required to be filed from the
date of such opinion through the date that is the one year anniversary of the date
of such opinion to maintain the perfection of the security interest of the Indenture
Trustee as such lien otherwise exists on the date of such opinion.. Such Opinion of
Counsel shall also describe the filing of any financing statements and continuation
statements that will, in the opinion of such counsel, be required to preserve and
protect the interest of the Indenture Trustee and the Trust Collateral Agent in the
Loans and the related Contracts, until the 90th day in the following
calendar year and (ii) specify any action necessary (as of the date of such opinion)
to be taken in the following calendar year to preserve perfection of such interest.

Each Opinion of Counsel referred to in clause (i)(1), (i)(2) or (i)(3) above shall specify any
action necessary (as of the date of such opinion) to be taken in the following calendar year to
preserve perfection of such interest.

(j) For the purpose of facilitating the execution of this Agreement and for other purposes,
this Agreement may be executed in any number of counterparts, each of which counterparts shall be
deemed to be an original, and all of which counterparts shall constitute but one and the same
instrument.

SECTION 11.03. Limitation on Rights of Noteholders.

No Noteholder shall have any right to vote (except as provided in this Agreement or in the
Indenture) or in any manner otherwise control the operation and management of the Trust, or the
obligations of the parties to this Agreement. Nothing set forth in this Agreement, nor contained
in the terms of the Notes, shall constitute the Noteholders as members of any partnership or
association. No Noteholder shall be under any liability to any third person by reason of any
action taken pursuant to any provision of this Agreement.

No Noteholder shall have any right by virtue or by availing itself of any provisions of this
Agreement to institute any suit, action, or proceeding in equity or at law upon or under or with
respect to this Agreement, unless such Holder previously shall have given to the Trust Collateral
Agent a written notice of default and of the continuance thereof, and unless (i) the default arises
from the Seller’s or the Servicer’s failure to remit payments when due hereunder, or (ii) the
Majority Noteholders shall have made written request upon the Trust Collateral Agent to institute
such action, suit or proceeding in its own name as Trust Collateral Agent under this Agreement and
such Holder shall have offered to the Trust Collateral Agent such indemnity as it may reasonably
require against the costs, expenses, and liabilities to be incurred therein or thereby, and the
Trust Collateral Agent, for thirty (30) days after its receipt of such notice, request, and offer
of indemnity, shall have neglected or refused to institute any such action, suit or proceeding and
during such 30-day period no request or waiver inconsistent with such written request has been
given to the Trust Collateral Agent pursuant to this Section 11.05 or Section 8.04;
no one or more Holders of Notes or Certificates shall have any right in any manner whatsoever by
virtue or by availing itself or themselves of any provisions of this Agreement to affect, disturb,
or prejudice the rights of the Holders of any other of the Notes or the Certificates, or to obtain
or seek to obtain priority over or preference to any other such Holder (but subject to the
priorities of payment set forth herein), or to enforce any right, under this Agreement except in
the manner provided in this Agreement and for the equal, ratable, and common benefit of all
Noteholders and all Certificateholders. For the protection and enforcement of the provisions of
this Section, each Noteholder, each Certificateholder and the Trust Collateral Agent shall be
entitled to such relief as can be given either at law or in equity.

In the event the Trust Collateral Agent shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes, each representing less than the required
amount of the applicable Class of Notes, the Indenture Trustee in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of this Agreement.

SECTION 11.04. Governing Law.

THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

SECTION 11.05. Notices.

All demands, notices, and communications upon or to the Seller, the Servicer, the Trust Collateral
Agent, the Backup Servicer, the Owner Trustee, the Indenture Trustee or any Rating Agency under
this Agreement shall be in writing, personally delivered, electronically delivered or mailed by
certified mail, return receipt requested, and shall be deemed to have been duly given upon receipt:
(a) in the case of the Seller at the following address: Attention: Credit Acceptance Funding LLC
2010-1/Doug Busk, Silver Triangle Building, 25505 West Twelve Mile Road, Southfield, Michigan
48034-8339; phone: (248) 353-2700 (ext. 4432); fax: (866) 249-3138; (b) in the case of the Servicer
at the following address: Attention: Credit Acceptance Corporation/Doug Busk, Silver Triangle
Building, 25505 West Twelve Mile Road, Southfield, Michigan 48034-8339; phone: (248) 353-2700 (ext.
4432); fax: (866) 249-3138; (c) in the case of the Backup Servicer, Trust Collateral Agent and
Indenture Trustee, at MAC #9311-161, Sixth Street and Marquette Avenue, Minneapolis, Minnesota
55479, Attention: Corporate Trust Services — Asset-Backed Administration, phone: (612) 667-8058;
fax: (612) 667-3464; (d) in the case of the Owner Trustee, at: 300 Delaware Avenue, 9th Floor,
Wilmington, Delaware 19801, Attn: Annette Morgan, phone: (302) 576-3706; fax: (302) 576-3717; (e)
in the case of S&P, via electronic delivery to Servicer—reports@sandp.com (or for any information
not available in electronic format, send hard copies to: Standard & Poor’s Rating Services, ABS
Surveillance Group, 55 Water Street, New York, New York 10041 or to such other address as shall be
designated by written notice to the other parties); and (f) in the case of DBRS,
abs—surveillance@dbrs.com (or for any information not available in electronic format, send hard
copies to: DBRS, Inc., ABS Surveillance, 140 Broadway, New York, NY 10005 or to such other address
as shall be designated by written notice to the other parties). Any notice required or permitted
to be mailed to a Noteholder or Certificateholder, as the case may be shall be given by first class
mail, postage prepaid, at the address of such Holder as shown in the Note or Certificate Register.
Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to
have been duly given, whether or not the Noteholders or the Certificateholder, as the case may be,
shall receive such notice. Where this Agreement provides for notice or delivery of documents to
the Rating Agencies, failure to give such notice or deliver such documents shall not affect any
other rights or obligations created hereunder.

SECTION 11.06. Severability of Provisions.

If any one or more of the covenants, agreements, provisions, or terms of this Agreement shall
be for any reason whatsoever held invalid, then any such covenant, agreement, provision, or term
shall be deemed severable from the remaining covenants, agreements, provisions, or terms of this
Agreement and shall in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Securities or the rights of the Holders thereof.

SECTION 11.07. Assignment.

Notwithstanding anything to the contrary contained herein, except as provided in Section
7.03 and as provided in the provisions of this Agreement concerning the resignation of the
Servicer, this Agreement may not be assigned by the Seller or the Servicer without the prior
written consent of the Trust Collateral Agent acting at the direction of the Majority Noteholders.

SECTION 11.08. Further Assurances.

The Seller and the Servicer agree to do and perform, from time to time, any and all acts and
to execute any and all further instruments required or reasonably requested by the Trust Collateral
Agent or the Indenture Trustee acting at the direction of the Majority Noteholders more fully to
effect the purposes of this Agreement and the other Basic Documents, including the execution of any
financing statements or continuation statements relating to the Loans or the related Contracts for
filing under the provisions of the UCC of any applicable jurisdiction.

SECTION 11.09. No Waiver; Cumulative Remedies.

No failure to exercise and no delay in exercising, on the part of the Trust Collateral Agent,
the Indenture Trustee, the Noteholders or the Certificateholders, any right, remedy, power or
privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges therein provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law.

SECTION 11.10. Third-Party Beneficiaries.

This Agreement will inure to the benefit of and be binding upon the parties hereto, the
Indenture Trustee, the Noteholders and the Certificateholders, respectively, and their respective
successors and permitted assigns. Except as may be otherwise provided in this Agreement, no other
person will have any right or obligation hereunder.

SECTION 11.11. Actions by Noteholders.

(a) Wherever in this Agreement a provision is made that an action may be taken or a notice,
demand, or instruction given by Noteholders, such action, notice, demand or instruction may be
taken or given by any Noteholder, unless such provision requires a specific percentage or class of
Noteholders.

(b) Wherever in this Agreement a Person is seeking an action be taken by or notice, demand, or
instruction be given by the Noteholders, the Person seeking such action, notice, demand or
instruction may contact the Indenture Trustee to obtain such action, notice, demand or instruction
from the Noteholders.

(c) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Agreement to be taken or given by Noteholders, may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such Noteholders, in person or by
an agent duly appointed in writing.

(d) The fact and date of the execution by any Noteholder or any Certificateholder of any
instrument or writing may be proved in any reasonable manner which the Trust Collateral Agent deems
sufficient.

(e) Any request, demand, authorization, direction, notice, consent, waiver, or other act by a
Noteholder shall bind such Noteholder and every subsequent holder of such Note issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything
done or omitted to be done by the Trust Collateral Agent, the Seller or the Servicer in reliance
thereon, whether or not notation of such action is made upon such Note.

(f) The Trust Collateral Agent may require such additional proof of any matter referred to in
this Section as it shall deem necessary.

SECTION 11.12. Corporate Obligation.

No recourse may be taken, directly or indirectly, against any partner, incorporator,
subscriber to the capital stock, stockholder, director, officer or employee of the Seller or the
Servicer with respect to their respective obligations and indemnities under this Agreement or any
certificate or other writing delivered in connection herewith.

SECTION 11.13. Covenant Not to File a Bankruptcy Petition.

The parties hereto agree that until one year and one day after such time as the Notes issued
under the Indenture are paid in full, they shall not (i) institute the filing of a bankruptcy
petition against the Seller or the Trust based upon any claim in its favor arising hereunder or
under the Basic Documents; (ii) file a petition or consent to a petition seeking relief on behalf
of the Seller or the Trust under the Bankruptcy Law; or (iii) consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or similar official) of the Seller or the
Trust or any portion of the property of the Seller or the Trust. The parties hereto agree that all
obligations of the Issuer and the Seller are non-recourse to the Trust Property except as
specifically set forth in the Basic Documents.

SECTION 11.14. Multiple Roles.

The parties expressly acknowledge and consent to Wells Fargo Bank, National Association acting
in the possible dual capacity of successor Servicer and in the capacities of Indenture Trustee and
Trust Collateral Agent. Wells Fargo Bank, National Association may, in such dual capacity,
discharge its separate functions fully, without hindrance or regard to conflict of interest
principles, duty of loyalty principles or other breach of fiduciary duties to the extent that any
such conflict or breach arises from the performance by Wells Fargo Bank, National Association of
express duties set forth in this Agreement or any other Basic Document in any of such capacities,
all of which defenses, claims or assertions are hereby expressly waived by the other parties hereto
except in the case of negligence (other than errors in judgment) and willful misconduct by Wells
Fargo Bank, National Association.

IN WITNESS WHEREOF, the Issuer, Seller, Credit Acceptance, as Servicer and in its
individual capacity, Backup Servicer, the Indenture Trustee and the Trust Collateral Agent have
caused this Agreement to be duly executed by their respective officers as of the day and year first
above written.

CREDIT ACCEPTANCE FUNDING

LLC 2010-1, as Seller

By: /s/ Douglas W. Busk

Name: Douglas W. Busk

Title: Treasurer

CREDIT ACCEPTANCE CORPORATION, as Servicer and in its individual

capacity

By: /s/ Douglas W. Busk

Name: Douglas W. Busk

Title: Treasurer

CREDIT ACCEPTANCE AUTO LOAN TRUST 2010-1, as Issuer

By: U.S. Bank Trust National Association, not in its individual

capacity but solely as Owner Trustee on behalf of the Trust

By: /s/ Annette Morgan

Name: Annette E. Morgan

Title: Assistant Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Backup Servicer, Trust

Collateral Agent and Indenture Trustee

By: /s/ Marianna Stershic

Name: Marianna C. Stershic

Title: Vice President

EXHIBIT A

FINANCIAL COVENANTS

AND RELATED DEFINITIONS

1. Maintain Asset Coverage Ratio. The Servicer shall, on a consolidated basis, maintain at
all times, Consolidated Net Assets at a level greater than or equal to Consolidated Funded Debt at
a level greater than or equal to 1.10 to 1.00.

2. Maintain Funded Debt Ratio Level. The Servicer shall, on a Consolidated basis, maintain
as of the end of each fiscal quarter a ratio of Consolidated Funded Debt (including in the
calculation thereof, all Debt incurred by a Special Purpose Subsidiary, whether or not included
therein under GAAP) to the Servicer’s Consolidated Tangible Net Worth equal to or less than 3.25 to
1.00.

3. Maintain Minimum Net Income. The Servicer shall, on a Consolidated basis, maintain as
of the end of each fiscal quarter calculated for the two fiscal quarters then ending, Consolidated
Net Income of not less than $1.00.

4. Maintain Fixed Charge Coverage Ratio. The Servicer shall, on a Consolidated basis,
maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio of not less than 2.00
to 1.0.

DEFINITION

Other than the term “Servicer” which shall have the meaning given to it in this Agreement,
capitalized terms used in this Exhibit A shall have the meanings given such terms in the
Comerica Credit Agreement as in effect on the date of this Agreement.

EXHIBIT B

Credit Acceptance Auto Loan Trust 2010-1

Servicer’s Certificate

EXHIBIT C

FORM OF DEALER AGREEMENT

EXHIBIT D

FORM OF PURCHASE AGREEMENT

EXHIBIT E

FORM OF

SERVICER’S ACKNOWLEDGMENT

Credit Acceptance Corporation (the “Servicer”) under the Sale and Servicing Agreement,
dated as of November 4, 2010 (the “Sale and Servicing Agreement”) among Credit Acceptance
Auto Loan Trust 2010-1, Credit Acceptance Funding LLC 2010-1, Wells Fargo Bank, National
Association and Credit Acceptance Corporation, as the Servicer and in its individual capacity,
pursuant to which the Servicer holds on behalf of the Trust, in each case for the benefit of the
Noteholders and the Trust Collateral Agent certain [Dealer Agreements / Purchase Agreements]
[Contracts] as described in the Sale and Servicing Agreement, hereby acknowledges receipt thereof,
listed on Schedule A to said Sale and Servicing Agreement except as noted in the Exception
List attached as Schedule I hereto.

IN WITNESS WHEREOF, the Servicer has caused this acknowledgment to be executed by its duly
authorized officer as of this        day of       , 20      .

CREDIT ACCEPTANCE CORPORATION,

as Servicer

By:

Name:

Title:

EXHIBIT F

[RESERVED]

EXHIBIT G

FORM OF DEALER LOAN CONTRACT AND PURCHASED LOAN CONTRACT

2

EXHIBIT H

CREDIT AND COLLECTION GUIDELINES

SCHEDULE A

to Sale and

Servicing Agreement

Loans, Dealer Agreements, Purchase Agreements and Contracts

SCHEDULE B

to Sale and

Servicing Agreement

Forecasted Collections

	 	 	 	 	 
	Collection Period	 	Credit Acceptance Cumulative	Forecasted Collections

SCHEDULE C

to Sale and

Servicing Agreement

Perfection Representations, Warranties And Covenants

In addition to the representations, warranties and covenants contained in the Agreement, the
Seller hereby represents, warrants, and covenants to the Trust and the Indenture Trustee as follows
on the Closing Date and on each Distribution Date on which the Trust purchases Loans, in each case
only with respect to the Seller Property conveyed to the Trust on such Closing Date or the relevant
Distribution Date:

General

1. The Agreement creates a valid and continuing security interest (as defined in UCC Section 9-102)
in the Seller Property in favor of the Trust, which security interest is prior to all other Liens,
and is enforceable as such as against creditors of and purchasers from and assignees of the Seller.

2. Each Contract constitutes “tangible chattel paper” or a “payment intangible”, within the meaning
of UCC Section 9-102. Each Dealer Loan constitutes a “payment intangible” or a “general
intangible” within the meaning of UCC Section 9-102.

3. Each Dealer Agreement and Purchase Agreement constitutes either a “general intangible” or
“tangible chattel paper” within the meaning of UCC Section 9-102.

4. The Seller has taken or will take all necessary actions with respect to the Loans to perfect its
security interest in the Loans and in the property securing the Loans.

Creation

1. The Seller owns and has good and marketable title to the Initial Seller Property or Subsequent
Seller Property, as applicable, free and clear of any Lien, claim or encumbrance of any Person,
excepting only liens for taxes, assessments or similar governmental charges or levies incurred in
the ordinary course of business that are not yet due and payable or as to which any applicable
grace period shall not have expired, or that are being contested in good faith by proper
proceedings and for which adequate reserves have been established, but only so long as foreclosure
with respect to such a lien is not imminent and the use and value of the property to which the Lien
attaches is not impaired during the pendency of such proceeding.

Perfection

1. The Seller has caused or will have caused, within ten (10) days after the effective date of the
Indenture, the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the conveyance and sale of the
Conveyed Property from the Originator to the Seller, the transfer and sale of the Seller Property
from the Seller to the Issuer, and the security interest in the Collateral granted to the Indenture
Trustee under the Indenture.

2. With respect to Seller Property that constitutes tangible chattel paper, such tangible chattel
paper is in the possession of the Servicer, in its capacity as custodian for the Trust and the
Trust Collateral Agent, and the Trust Collateral Agent has received a written acknowledgment from
the Servicer, in its capacity as custodian, that it is holding such tangible chattel paper solely
on its behalf and for the benefit of the Trust Collateral Agent, the Seller, the Trust and the
relevant Dealer(s). All financing statements filed or to be filed against the Seller in favor of
the Issuer or its assignee in connection with this Agreement describing the Seller Property contain
a statement to the following effect: “A purchase of or security interest in any collateral
described in this financing statement will violate the rights of the Secured Party.”

Priority

1. Other than the security interest granted to the Issuer pursuant to this Agreement, the Seller
has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the
Seller Property. None of the Originator, the Servicer nor the Seller has authorized the filing of,
or is aware of any financing statements against either the Seller, the Originator or the Trust that
includes a description of the Seller Property and proceeds related thereto other than any financing
statement: (i) relating to the sale of Conveyed Property by the Originator to the Seller under the
Sale and Contribution Agreement, (ii) relating to the security interest granted to the Trust
hereunder, (iii) relating to the security interest granted to the Trust Collateral Agent under the
Indenture; or (iv) that has been terminated or amended to reflect a release of the Seller Property.

2. Neither the Seller, the Originator nor the Trust is aware of any judgment, ERISA or tax lien
filings against either the Seller, the Originator or the Trust.

3. None of the tangible chattel paper that constitutes or evidences the Contracts, the Dealer
Agreements or the Purchase Agreements has any marks or notations indicating that it has been
pledged, assigned or otherwise conveyed to any Person other than the Originator, the Servicer, the
Seller, the Trust, a collection agent or the Trust Collateral Agent.

Survival of Perfection Representations

1. Notwithstanding any other provision of the Agreement, the Sale and Contribution Agreement, the
Indenture or any other Basic Document, the Perfection Representations, Warranties and Covenants
contained in this Schedule shall be continuing, and remain in full force and effect
(notwithstanding any replacement of the Servicer or termination of Servicer’s rights to act as
such) until such time as all obligations under the Sale and Servicing Agreement, Sale and
Contribution Agreement and the Indenture have been finally and fully paid and performed.

No Waiver

1. The parties hereto: (i) shall not, without obtaining a confirmation of the then-current ratings
of the Notes, waive any of the Perfection Representations, Warranties or Covenants; (ii) shall
provide the Rating Agencies with prompt written notice of any breach of the Perfection
Representations, Warranties or Covenants, and shall not, without obtaining a confirmation of the
then-current ratings of the Notes as determined after any adjustment or withdrawal of the ratings
following notice of such breach, waive a breach of any of the Perfection Representations,
Warranties or Covenants.

3

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