8-K

         SECURITIES AND EXCHANGE COMMISSION

               Washington, D.C.  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):  October 22, 1997


            Credit Acceptance Corporation
(Exact name of registrant as specified in its charter)


                      Michigan
   (State or other jurisdiction of incorporation)


             000-20202                               38-1999511
      (Commission File Number)           (IRS Employer Indentification No.)

25505 West Twelve Mile Road, Suite 3000, Southfield, Michigan 48034-8339
 (Address of principal executive offices)   (Zip Code)


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

                   Not Applicable
(Former name or former address, if changed since last report)



































ITEM 5.  OTHER EVENTS. 

     On October 22, 1997, Credit Acceptance Corporation issued a press
release announcing, among other things, earnings information for the quarter
ended September 30, 1997 and information regarding certain non-cash charges
recorded for that quarter.  The press release (excluding the summary
financial information attached thereto) is attached hereto as Exhibit 99 and
is incorporated herein by reference.

           
ITEM 7:  FINANCIAL STATEMENTS AND EXHIBITS

Exhibit 99:Press Release, dated October 22, 1997 (excluding the summary
           financial information attached thereto).


                     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.


October 22, 1997                            CREDIT ACCEPTANCE CORPORATION


                                            /s/ Richard E. Beckman
                                            --------------------------------
                                            By: Richard E. Beckman
                                                President and Chief
                                                Operating Officer

EX-99

                                                   
                                                                  Exhibit 99


  Credit Acceptance Corp. Reports Financial Results

     SOUTHFIELD, Mich. -- Oct. 22, 1997 -- Credit Acceptance Corporation
(Nasdaq/ NMS: CACC) today reported a net loss for the quarter ended
September 30, 1997 of $(27,708,000) or $(.59) per share compared to net
income of $10,643,000 or $.23 per share for the same period in 1996.  The
loss for the quarter was generated as a direct result of a non-cash charge
recorded to reflect an enhancement in the Company's methodology for
estimating its reserve for advances made possible by a new loan servicing
system implemented during the quarter.  Utilizing the new information made
available upon the successful implementation of this new system, the Company
undertook an extensive review of its exposure related to dealer advances
using a static pool analysis on a per dealer basis.  In order to reflect the
impact of this analysis on the Company's advance reserve, a provision for
credit losses in the amount of $60 million was recorded.  In electing to
take a charge of this magnitude, the Company believes that it has reflected
the full impact of implementing the new loan servicing system and the
information now  available.  Consistent with Statement of Financial
Accounting Standards No. 114 "Accounting by Creditors for Impairment of a
Loan", one component of this charge, approximately $30 million, results from
the present valuing of  future cash flows used to determine the advance
reserve in order to achieve a level yield over the remaining term of the
advance equal to the expected yield at the origination of the impaired
advance.  While the Company believes its overall reserve for credit losses
on dealer advances is conservative in light of the practices of its
competitors in the sub prime consumer finance industry, it believes its
reserve methodology is prudent and appropriate as CAC continues to strive to
be an industry leader.  

     At the same time, the Company also announced that it changed its
policy relating to non-accrual loans in the third quarter to 90 days
measured on a recency basis from 120 days measured on a contractual basis. 
As a result of this change, and the resulting increase in non-accrual loans,
the third quarter reflects a higher provision for credit losses related to
earned but unpaid revenue on installment contracts receivable and a lower
finance charge yield.  The Company implemented this change in an effort to
more quickly identify unprofitable dealer relationships.

     The Company stated that it has obtained waivers from its lenders,
including the holders of its senior notes and the banks under its credit
agreement, of compliance with the fixed charge coverage ratio covenant in
agreements relating to the Company's indebtedness.  Such waivers will be
effective through December 15, 1997, and the Company intends to use this
time to negotiate longer term amendments.

     Donald A. Foss, Chairman and Chief Executive Officer of the Company,
stated that "the enhancement to the Company's reserve methodology results
from the Company's efforts to improve the level of operating information
available to senior management to more effectively manage the business and
its growth.  In that connection, the Company has recently deployed
proprietary management information and reporting software which allows for
the detailed analysis of the Company's portfolio on a dealer-by-dealer
basis, replacing technology which, while sophisticated in the consumer
finance industry, did not allow for the level of analysis that is now
possible."


     Richard E. Beckman, President of the Company, commented that "the
new level of information available to us will allow us to better identify
dealers that have not provided us with profitable business, allowing us to
focus our resources to enhance our services to our remaining dealers.  We
believe that this presents opportunities for the Company to grow while
mitigating risk that is inherent in our business.  At the same time it
allows us to manage our cash more efficiently without as much dependence on
borrowings to support contract originations."

     In an unrelated matter, the Company stated that Mr. Thomas A.
FitzSimmons, formerly a partner in William Blair & Company, LLC, the
investment banking firm that took the Company public in 1992 and a Director
of the Company since 1994, has been appointed an Executive Vice President of
the Company and Managing Director of Credit Acceptance Corporation UK
Limited, effective October 1, 1997.  Mr. FitzSimmons will continue to serve
as director of the Company.

     The statements made above with respect to expected provision levels,
profitability and expected reductions in the Company's dependence on
borrowings are "forward looking statements" within the meaning of the
Securities Exchange Act of 1934 and are subject to a number of risks and
uncertainties.  These include the potential for greater than expected
increase in non-accrual contracts, the potential for lower than expected
contract originations, the availability of financing to support the
Company's operations and the various other factors discussed in the
Company's annual and quarterly reports filed with the Securities and
Exchange Commission.

     Credit Acceptance Corporation is a specialized financial services
company which provides funding, receivables management, collection, sales
training and related products and services to automobile dealers selling
vehicles to consumers with limited access to traditional sources of consumer
credit.