UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934


      Date of Report (Date of earliest event reported): SEPTEMBER 20, 2006


                          CREDIT ACCEPTANCE CORPORATION
             (Exact name of registrant as specified in its charter)


                        Commission File Number 000-20202


                                                    
                   MICHIGAN                                         38-1999511
(State or other jurisdiction of incorporation)         (I.R.S. Employer Identification No.)

     25505 W. TWELVE MILE ROAD, SUITE 3000                          48034-8339
             SOUTHFIELD, MICHIGAN                                   (Zip Code)
    (Address of principal executive offices)


        Registrant's telephone number, including area code: 248-353-2700

                                   ----------

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

-     Written Communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)

-     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)

-     Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

-     Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))




ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

(a)   On September 20, 2006, Credit Acceptance Corporation (the "Company")
      completed a $50.0 million credit facility (the "Credit Facility") dated as
      of September 20, 2006, among the Company, Credit Acceptance Residual
      Funding LLC ("Residual Funding"), a wholly-owned subsidiary of the
      Company, and Variable Funding Capital Company LLC, a multi-seller
      commercial paper conduit administered by Wachovia Securities. The maturity
      of the Credit Facility is September 19, 2007. This facility will allow
      Residual Funding to finance its purchase of trust certificates from
      special purpose entities (the "Term SPEs") that purchased loans to
      dealer-partners under the Company's term securitization transactions. In
      connection with any such purchase of a trust certificate, the Company's
      right to repurchase the related dealer loans in a "clean-up call" will be
      assigned to Residual Funding, and the net proceeds from the purchase will
      be distributed by the relevant Term SPE to the Company. The Credit
      Facility is attached as Exhibit 4(f)(77) to this Form 8-K and incorporated
      herein by reference. On September 21, 2006, the Company issued a press
      release announcing the completion of the Credit Facility. The press
      release is attached as Exhibit 99.1 to this Form 8-K and incorporated
      herein by reference.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

      (c) Exhibits.

         4(f)(77) Certificate Funding Agreement, dated September 20, 2006,
                  between the Company, Credit Acceptance Residual Funding LLC,
                  Wachovia Bank, National Association, Variable Funding Capital
                  Company LLC, and Wachovia Capital Markets, LLC, and agreements
                  related thereto.

         99.1     Press Release dated September 21, 2006



                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                        CREDIT ACCEPTANCE CORPORATION
                                        (Registrant)

                                        By: /s/ Douglas W. Busk
                                        ---------------------------------
                                        Douglas W. Busk
                                        Treasurer

                                        September 22, 2006



                                 EXHIBITS INDEX

EXHIBIT NO.       DOCUMENT DESCRIPTION
-----------       ---------------------
 4(f)(77)         Certificate Funding Agreement, dated September 20, 2006,
                  between the Company, Credit Acceptance Residual Funding LLC,
                  Wachovia Bank, National Association, Variable Funding Capital
                  Company LLC, and Wachovia Capital Markets, LLC, and agreements
                  related thereto.

     99.1         Press Release dated September 21, 2006