Document:

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                                                                        4(e)(08)

                  SEVENTH AMENDMENT TO NOTE PURCHASE AGREEMENT
                                       RE:
                          CREDIT ACCEPTANCE CORPORATION
                           SECOND AMENDED AND RESTATED
                     9.27% SENIOR NOTES DUE OCTOBER 1, 2001

                                                        Dated as of June 7, 2001

To the Noteholders listed on Annex I hereto

Ladies and Gentlemen:

         Credit Acceptance Corporation, a Michigan corporation (together with
its successors and assigns, the "Company"), hereby agrees with you as follows:

SECTION 1.   INTRODUCTORY MATTERS.

         1.1 DESCRIPTION OF OUTSTANDING NOTES. The Company currently has
outstanding its Second Amended and Restated 9.27% Senior Notes due October 1,
2001 (collectively, the "Notes") which it issued pursuant to the separate Note
Purchase Agreements, each dated as of March 25, 1997 (collectively, as amended
by the First Amendment to Note Purchase Agreement, dated as of December 12,
1997, the Second Amendment to Note Purchase Agreement, dated as of July 1, 1998,
the Third Amendment to Note Purchase Agreement, dated as of April 13, 1999, the
Fourth Amendment, dated as of December 1, 1999, the Fifth Amendment, dated as of
April 27, 2000, and the Sixth Amendment, dated as of March 8, 2001, the
"Agreement"), entered into by the Company with each of the original holders of
the Notes listed on Annex 1 thereto, respectively. Terms used herein but not
otherwise defined herein shall have the meanings assigned thereto in the
Agreement, as amended hereby.

         1.2 PURPOSE OF AMENDMENT. The Company and you desire to amend the
Agreement as set forth in Section 2 hereof.

SECTION 2.   AMENDMENT TO THE AGREEMENT.

         Pursuant to Section 10.5 of the Agreement, the Company hereby agrees
with you that the Agreement shall be amended by this Sixth Amendment to Note
Purchase Agreement (this "Seventh Amendment") in the following respects:

         2.1 SECTION 6.6. Subclause (D) of Section 6.6(a)(i) is amended by
adding the words", CAC of Canada Limited and Credit Acceptance Corporation
Ireland Limited" immediately after the words "CAC UK" in such subclause (D).

<PAGE>   2

         2.2 SECTION 9.1. The definition of "Total Restricted Subsidiary Debt"
in Section 9.1 is hereby amended by adding the following at the end thereof
(before the "."):

             ; and (iii) Total Restricted Subsidiary Debt does not include the
             amount of Debt of any Restricted Subsidiary attributable to any
             liabilities secured by any Lien on assets owned by such Restricted
             Subsidiary if such Lien is granted in favor of the "Collateral
             Agent" (as defined in the Intercreditor Agreement) for the benefit
             of the Banks, the holders of Notes and "Future Debt Holders" (as
             defined in the Intercreditor Agreement) and subject to the
             Intercreditor Agreement

SECTION 3.   MISCELLANEOUS

         3.1 COUNTERPARTS. This Seventh Amendment may be executed in any number
of counterparts, each executed counterpart constituting an original, but all
together only one Seventh Amendment.

         3.2 HEADINGS. The headings of the sections of this Seventh Amendment
are for purposes of convenience only and shall not be construed to affect the
meaning or construction of any of the provisions hereof.

         3.3 GOVERNING LAW. This Seventh Amendment shall be governed by and
construed in accordance with the internal laws of the State of New York.

         3.4 EFFECT OF AMENDMENT. Except as expressly provided herein (a) no
other terms and provisions of the Agreement shall be modified or changed by this
Seventh Amendment and (b) the terms and provisions of the Agreement, as amended
by this Seventh Amendment, shall continue in full force and effect. The Company
hereby acknowledges and reaffirms all of its obligations and duties under the
Agreement, as modified by this Seventh Amendment, and the Notes.

         3.5 REFERENCES TO THE AGREEMENT. Any and all notices, requests,
certificates and other instruments executed and delivered concurrently with or
after the execution of the Seventh Amendment may refer to the Agreement without
making specific reference to this Seventh Amendment but nevertheless all such
references shall be deemed to include, to the extent applicable, this Seventh
Amendment unless the context shall otherwise require.

         3.6 COMPLIANCE. The Company certifies that all necessary actions have
been taken by the Company to authorize the execution and delivery of this
Seventh Amendment, and immediately before and after giving effect to this
Seventh Amendment, no Default or Event of Default exists or would exist after
giving effect hereto.

<PAGE>   3

         3.7 EFFECTIVENESS OF AMENDMENTS. The amendments to the Agreement
contemplated by Section 2 hereof shall (in accordance with Section 10.5(a) of
the Agreement) become effective, if at all, at such time as the Company and the
Required Holders of the Notes shall have indicated their written consent to such
amendments by executing and delivering the applicable counterparts of this
Seventh Amendment. It is understood that any holder of Notes may withhold its
consent for any reason, including, without limitation, any failure of the
Company to satisfy all of the following conditions:

             (a) This Seventh Amendment shall have been executed and delivered
         by the Company and each of the Required Holders of the Notes.

             (b) The execution, delivery and effectiveness of an agreement,
         signed by the Company and the requisite holders of the Company's Second
         Amended and Restated 9.49% Senior Notes due July 1, 2001 issued under
         Note Purchase Agreements dated as of August 1, 1996, containing an
         amendment to such Note Purchase Agreements identical in substance to
         the amendment set forth in Section 2 hereof.

             (c) The execution, delivery and effectiveness of an agreement,
         signed by the Company and the requisite holders of the Company's Second
         Amended and Restated 10.37% Senior Notes due November 1, 2001 issued
         under Note Purchase Agreements dated as of October 1, 1994, containing
         an amendment to such Note Purchase Agreements identical in substance to
         the amendment set forth in Section 2 hereof.

             (d) The Company shall have paid the statement for reasonable fees
         and disbursements of Bingham Dana LLP, your special counsel, presented
         to the Company on or prior to the effective date of this Seventh
         Amendment.

         3.8 FULL DISCLOSURE. The Company warrants and represents to you that,
as of the effective date hereof, none of the written statements, documents or
other written materials furnished by, or on behalf of, the Company to you in
connection with the negotiation, execution and delivery of this Seventh
Amendment contain any untrue statement of a material fact or omit a material
fact necessary to make the statements contained therein or herein not misleading
in light of the circumstances in which they were made. There is no fact of which
any of the Company's executive officers has actual knowledge which the Company
has not disclosed to you which materially affects adversely or, so far as the
Company can now reasonably foresee, will materially affect adversely the
business, prospects, profits, Properties or condition (financial or otherwise)
of the Company and the Subsidiaries, taken as a whole, or the ability of the
Company to perform its obligations set forth in the Agreement (after giving
effect to this Seventh Amendment) and the Notes.

         [Remainder of page intentionally blank. Next page is signature page.]

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         If this Seventh Amendment is satisfactory to you, please sign the form
of acceptance on the enclosed counterpart of this letter and return the same to
the Company, whereupon this Seventh Amendment shall become binding between us in
accordance with its terms.

                                        Very truly yours,

                                        CREDIT ACCEPTANCE CORPORATION

                                        By /S/ Douglas W. Busk
                                           -------------------------------------
                                                Name: Douglas W. Busk
                                                Title: Chief Financial Officer

  [Signature Page to Seventh Amendment to Note Purchase Agreement in respect of
    9.27% Senior Notes Due October 1, 2001 of Credit Acceptance Corporation]

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<PAGE>   5

ACCEPTED:
                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR AMERICAN
                                        PIONEER LIFE INSURANCE COMPANY OF
                                        NEW YORK

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR AMERICAN
                                        PROGRESSIVE LIFE AND HEALTH
                                        INSURANCE COMPANY OF NEW YORK

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR FEDERATED
                                        RURAL ELECTRIC INSURANCE CORP.

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR TOWER
                                        LIFE INSURANCE COMPANY

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR MUTUAL
                                        PROTECTIVE INSURANCE COMPANY

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

  [Signature Page to Seventh Amendment to Note Purchase Agreement in respect of
    9.27% Senior Notes Due October 1, 2001 of Credit Acceptance Corporation]

<PAGE>   6

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR PHYSICIANS
                                        LIFE INSURANCE COMPANY VISTA 500

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR WORLD
                                        INSURANCE COMPANY

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR VESTA
                                        FIRE INSURANCE CORPORATION

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR MEDICO
                                        LIFE INSURANCE COMPANY

                                        By /S/ Kathy Lange
                                           -------------------------------------
                                                 Name: Kathy Lange
                                                 Title:

  [Signature Page to Seventh Amendment to Note Purchase Agreement in respect of
    9.27% Senior Notes Due October 1, 2001 of Credit Acceptance Corporation]

<PAGE>   7

                                     ANNEX I
                 SECOND AMENDED AND RESTATED 9.27% SENIOR NOTES
                               DUE OCTOBER 1, 2001

American Pioneer Life Insurance Company of New York
American Progressive Life and Health Insurance Company of New York
Federated Rural Electric Insurance Corp.
Tower Life Insurance Company
Physicians Life Insurance Company Vista 500
World Insurance Company
Vesta Fire Insurance Corporation
Mutual Protective Insurance Company
Medico Life Insurance Company<PAGE>   1
                                                                        4(f)(16)

                               AMENDMENT NO. 5 TO
                             NOTE PURCHASE AGREEMENT

                  AMENDMENT NO. 5 TO NOTE PURCHASE AGREEMENT (this "Amendment"),
dated as of July 20, 2001, among KITTY HAWK FUNDING CORPORATION, a Delaware
corporation, as a secured party (together with its successors and assigns, the
"Company"), CAC FUNDING CORP., a Nevada corporation, as issuer (together with
its successors and assigns, the "Issuer") and BANK OF AMERICA, N.A., a national
banking association ("Bank of America"), individually and as agent for the
Company and the Bank Investors (together with its successors and assigns in such
capacity, the "Agent"), amending that certain Note Purchase Agreement (as
amended to the date hereof, the "Note Purchase Agreement"), dated as of July 7,
1998, among the Company, the Issuer and Bank of America (known under the Note
Purchase Agreement as "NationsBank, N.A."), individually and as the Agent.

                  WHEREAS, on the terms and conditions set forth herein, the
parties thereto wish to amend the Note Purchase Agreement as provided herein.

                  NOW, THEREFORE, the parties HEREBY AGREE AS FOLLOWS:

                  SECTION 1. DEFINED TERMS. AS USED IN THIS AMENDMENT
CAPITALIZED TERMS HAVE THE SAME MEANINGS ASSIGNED THERETO IN THE NOTE PURCHASE
AGREEMENT.

                  SECTION 2.  AMENDMENTS.

         (1)      SECTION 1.1 OF THE NOTE PURCHASE AGREEMENT IS HEREBY AMENDED
BY DELETING THE REFERENCE TO "MARCH 11, 2002" IN THE DEFINITION OF "COMMITMENT
TERMINATION DATE" AND REPLACING SUCH REFERENCE WITH "JULY 19, 2002".

         (2)      Section 1.1 of the Note Purchase Agreement is hereby amended
by deleting THE REFERENCE TO "MARCH 11, 2002" IN CLAUSE (VIII) OF THE DEFINITION
OF "TERMINATION DATE" AND REPLACING SUCH REFERENCE WITH "JULY 19, 2002".

         (3) Section 2.1(e)(i)(4) of the Note Purchase Agreement is hereby
amended by deleting the reference to "June 30, 2009" and replacing such
reference with "October 30, 2009".

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                  SECTION 3. Representations and Warranties. The Issuer hereby
makes to the Agent, the Company and the Bank Investors, on and as of the date
hereof, all of the representations and warranties set forth in Section 4.1 of
the Note Purchase Agreement and Sections 3.1 and 3.2 of the Security Agreement,
except that to the extent that any of such representations and warranties
expressly relate to an earlier date, such representations and warranties shall
be true and correct as of such earlier date.

                  SECTION 4. Effectiveness. This Amendment shall become
effective on July 20, 2001.

                  SECTION 5. CONDITION PRECEDENT TO SUBSEQUENT FUNDING. PRIOR TO
THE SUBSEQUENT FUNDING ON OR NEXT SUCCEEDING THE DATE HEREOF, THE DEBTOR SHALL
OBTAIN AND, UNLESS OTHERWISE CONSENTED TO BY THE AGENT, HAVE AT ALL TIMES IN
EFFECT, AN INTEREST RATE CAP AGREEMENT (THE "INTEREST RATE CAP") WITH A
FINANCIAL INSTITUTION (THE "CAP COUNTERPARTY"), WHICH SHALL AT ALL TIMES DURING
THE TERM OF THE INTEREST RATE CAP BE ACCEPTABLE TO THE AGENT AND SHALL HAVE AT
ALL TIMES A RATING OF AT LEAST "A3" FROM MOODY'S AND "A-" FROM STANDARD & POOR'S
AND WHICH HAS IRREVOCABLY AND UNCONDITIONALLY AGREED THAT, PRIOR TO THE DATE
WHICH IS ONE YEAR AND ONE DAY AFTER THE PAYMENT IN FULL OF ALL COMMERCIAL PAPER
ISSUED BY THE COMPANY, IT WILL NOT ACQUIESCE, PETITION OR OTHERWISE INVOKE OR
CAUSE THE DEBTOR TO INVOKE THE PROCESS OF ANY GOVERNMENTAL AUTHORITY FOR THE
PURPOSE OF COMMENCING OR SUSTAINING A CASE AGAINST THE DEBTOR UNDER ANY FEDERAL
OR STATE BANKRUPTCY, INSOLVENCY OR SIMILAR LAW OR APPOINTING A RECEIVER,
LIQUIDATOR, ASSIGNEE, TRUSTEE, CUSTODIAN, SEQUESTRATOR OR OTHER SIMILAR OFFICIAL
OF THE DEBTOR OR ANY SUBSTANTIAL PART OF ITS PROPERTY OR ORDERING THE WINDING-UP
OR LIQUIDATION OF THE AFFAIRS OF THE DEBTOR. THE INTEREST RATE CAP SHALL BE IN
FORM AND SUBSTANCE ACCEPTABLE TO THE AGENT AND SHALL PROVIDE (I) THAT ALL
AMOUNTS PAYABLE THEREUNDER SHALL BE PAID BY THE CAP COUNTERPARTY DIRECTLY TO THE
COLLECTION ACCOUNT, (II) THAT THE DEBTOR'S RIGHTS THEREUNDER HAVE BEEN
IRREVOCABLY ASSIGNED TO, AND A SECURITY INTEREST THEREIN HAS BEEN GRANTED TO,
THE COLLATERAL AGENT FOR THE BENEFIT OF THE SECURED PARTIES, (III) FOR A STRIKE
RATE OF NOT MORE THAN 7.50% PER ANNUM, AND (IV) THAT IT COVERS A NOTIONAL AMOUNT
CORRESPONDING TO AN AMORTIZATION SCHEDULE PROVIDED BY THE COLLATERAL AGENT AND
ATTACHED HERETO AS EXHIBIT A. NOTHING IN THIS SECTION SHALL BE INTERPRETED AS
LIMITING IN ANY WAY THE OTHER CONDITIONS TO FUNDING IN THE NOTE PURCHASE
AGREEMENT OR THE SECURITY AGREEMENT.

                  SECTION 6. COSTS AND EXPENSES. THE ISSUER SHALL PAY ALL OF THE
COMPANY'S, THE BANK INVESTORS' AND THE AGENT'S COST AND EXPENSES (INCLUDING OUT
OF POCKET EXPENSES AND REASONABLE ATTORNEYS FEES AND DISBURSEMENTS) INCURRED BY
THEM IN CONNECTION WITH THE PREPARATION, EXECUTION AND DELIVERY OF THIS

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AMENDMENT.

                  SECTION 7.  GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                  SECTION 8.  SEVERABILITY; COUNTERPARTS. THIS AMENDMENT MAY BE
EXECUTED IN ANY NUMBER OF COUNTERPARTS AND BY DIFFERENT PARTIES HERETO IN
SEPARATE COUNTERPARTS, EACH OF WHICH WHEN SO EXECUTED SHALL BE DEEMED TO BE AN
ORIGINAL AND ALL OF WHICH WHEN TAKEN TOGETHER SHALL CONSTITUTE ONE AND THE SAME
INSTRUMENT. ANY PROVISIONS OF THIS AMENDMENT WHICH ARE PROHIBITED OR
UNENFORCEABLE IN ANY JURISDICTION SHALL, AS TO SUCH JURISDICTION, BE INEFFECTIVE
TO THE EXTENT OF SUCH PROHIBITION OR UNENFORCEABILITY WITHOUT INVALIDATING THE
REMAINING PROVISIONS HEREOF, AND ANY SUCH PROHIBITION OR UNENFORCEABILITY IN ANY
JURISDICTION SHALL NOT INVALIDATE OR RENDER UNENFORCEABLE SUCH PROVISION IN ANY
OTHER JURISDICTION.

                  SECTION 9.  CAPTIONS. THE CAPTIONS IN THIS AMENDMENT ARE FOR
CONVENIENCE OF REFERENCE ONLY AND SHALL NOT DEFINE OR LIMIT ANY OF THE TERMS OR
PROVISIONS HEREOF.

                  SECTION 10. RATIFICATION. EXCEPT AS EXPRESSLY AFFECTED BY THE
PROVISIONS HEREOF, THE NOTE PURCHASE AGREEMENT AS AMENDED SHALL REMAIN IN FULL
FORCE AND EFFECT IN ACCORDANCE WITH ITS TERMS AND RATIFIED AND CONFIRMED BY THE
PARTIES HERETO. ON AND AFTER THE DATE HEREOF, EACH REFERENCE IN THE NOTE
PURCHASE AGREEMENT TO "THIS AGREEMENT", "HEREUNDER", "HEREIN" OR WORDS OF LIKE
IMPORT SHALL MEAN AND BE A REFERENCE TO THE AGREEMENT AS AMENDED BY THIS
AMENDMENT.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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                  IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED AND
DELIVERED THIS AMENDMENT NO. 5 TO THE NOTE PURCHASE AGREEMENT AS OF THE DATE
FIRST WRITTEN ABOVE.

                                CAC FUNDING CORP., AS ISSUER

                                BY: /S/ DOUGLAS W. BUSK
                                   ---------------------------------------------
                                    NAME:  CHIEF FINANCIAL OFFICER

                                KITTY HAWK FUNDING
CORPORATION,
                                 AS COMPANY

                                BY: /S/ ANDY YAN
                                   ---------------------------------------------
                                    NAME:  ANDY YAN
                                    TITLE: VICE PRESIDENT

                                BANK OF AMERICA, N.A., INDIVIDUALLY AND
                                 AS COLLATERAL AGENT

                                BY: /S/ CHRISTOPHER G. YOUNG
                                   ---------------------------------------------
                                    NAME:  CHRISTOPHER G. YOUNG
                                    TITLE: VICE PRESIDENT

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