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National Auto Credit Reaches Agreement with Lenders

5 June 1998

National Auto Credit Reaches Agreement with Lenders

    SOLON, Ohio, June 4 -- National Auto Credit, Inc.
(OTC BULLETIN BOARD: NAKD) announced that it has reached an agreement in
principle with its lenders to further extend the maturity date of the amounts
outstanding under its credit agreements, originally due on January 21, 1998,
until September 30, 1998.
    Pursuant to this agreement in principle with its lender group, the Company
has agreed, upon execution of a definitive extension agreement, to make a
principal payment of $9 million, and commencing this week, weekly payments of
$1 million principal and interest, at the prime rate plus two percent, through
September 30, 1998.
    The Company stated that since January 21, 1998, it has repaid
approximately $18.2 million  or 22 percent of its then outstanding principal
obligations, which presently total approximately $65.6 million.  The Company
maintains a positive cash position and continues to operate on internally
generated funds while it pursues alternative sources of capital.
    Interim CEO Tom Cross noted that he is "particularly pleased with the
level of cooperation and progress made with the Company's lender group and
believes that the agreement further positions the Company to accomplish its
turnaround objective."
    National Auto Credit, Inc. is a specialized financial services company
providing funding, receivables management and collection services to
automobile dealers who sell and finance the purchase of  vehicles to retail
consumers with limited access to consumer credit.
    The statements contained in this release that are not purely historical
are forward looking statements within the meaning of the Securities and
Exchange Act of 1934.  Among the factors that could cause actual results to
differ materially from the forward looking statements are the potential for
greater than anticipated non-performing contracts, the potential for lower
than anticipated recoverability of amounts advanced to the Company's member
dealers, availability of funds under the Company's financing arrangements, and
other factors as discussed in the Company's reports filed with the Securities
and Exchange Commission.