---

National Auto Credit Reaches New Extension Agreement With Lenders

7 October 1998

National Auto Credit Reaches New Extension Agreement With Lenders

    SOLON, Ohio, Oct. 6 -- National Auto Credit, Inc.
(OTC BULLETIN BOARD: NAKD) announced that it has reached an agreement in
principle with its lenders to further extend from September 30, 1998 to
April 30, 1999, the maturity date of the amounts outstanding under its credit
agreements, originally due on January 21, 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 $5 million and continue weekly payments of $1 million
principal and interest, at the prime rate plus two percent through
November 30, 1998 and $750,000 weekly thereafter.  In addition, the agreement
grants to the lender group a secured interest in the Company's receivable
portfolio.
    The Company stated that since January 21, 1998, it has repaid
approximately $43.5 million or 52 percent of its then outstanding principal
obligations, which presently total approximately $40.4 million.  The Company
maintains a positive cash position and continues to promptly meet its
operating obligations and fund note purchases under its new Dealer's Choice
program with internally generated funds.
    Interim CEO Tom Cross stated:  "We are particularly pleased with this
agreement and the cooperation afforded the Company by the lenders group.  We
believe the lenders group has given us the opportunity to obtain alternative
sources of capital and pursue our new business growth plan."
    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.