AUTOFINANCE GROUP REPORTS RECORD RESULTS FOR FIRST QUARTER ENDED SEPTEMBER 1994.

WESTMONT, Ill.--(BUSINESS WIRE)--Nov. 1, 1994--AutoFinance Group, Inc. (NASDAQ/NM:AUFN), an acquirer of automotive installment sales contracts from franchised new car dealers, today announced record results for the first quarter ended September 30, 1994.

Revenues for the first quarter increased 74% to a record $9.5 million from $5.5 million for the comparable prior-year period. Net income for the quarter more than doubled to a record $2.3 million from $1.2 million for the first quarter of fiscal 1994. Net income per share was $0.12 on 18.9 million average shares outstanding compared with $0.07 per year on 16.0 million average shares outstanding for the prior-year period. The increase in the average shares outstanding for the comparative periods largely resulted from the March 1994 offering of 2.6 million shares of common stock.

Commenting on the results, President A.E. Steinhaus said, "We had a strong first quarter as a result of continuing demand for automotive installment credit. During the quarter we acquired $45.9 million of automotive sales contracts, a 65% increase over the $27.8 million acquired in the same quarter last year. At September 30, 1994, the total principal outstanding of contracts owned and/or serviced by AFG was $186.1 million, a 103% increase from the $91.7 million outstanding a year ago and a 17% increase compared with the $159.4 million outstanding at June 30, 1994."

The Company also announced the opening of an Eastern regional office in Charlotte, North Carolina. Steinhaus added, "With the expansion that has taken place over the past year and our plans for continued growth, we recognized the need for an East Coast base of operations. The Charlotte office will enable us to be more responsive and provide better service to our dealers in the eastern U.S." AFG also has offices in the Chicago and Los Angeles metropolitan areas.

Headquartered in Westmont, AutoFinance Group works with franchised new car dealers in 20 states to provide indirect new and used car financing for non-prime customers. In addition, AFG offers servicing for third-party automotive receivable portfolios.

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                          AUTOFINANCE GROUP, INC.
                      Unaudited Financial Highlights
                   (in thousands, except per share data)

                                             Three Months Ended
                                                September 30,
                                             1994          1993

Revenues                                  $    9,546    $    5,478
Net income                                $    2,329    $    1,158
Net income per common
 and common equivalent share              $     0.12    $     0.07

Weighted average common shares
 outstanding                                  18,874        16,016

Portfolio Information:
 Number of Contracts Acquired
  (not in 000s)                                3,542         2,466
 Dollar Value of Contracts Acquired       $   45,851    $   27,820

At September 30:
 Principal Outstanding of
  Contracts Serviced                      $  186,132    $   91,714


                           AUTOFINANCE GROUP, INC.
                           Financial Highlights
                   (In thousands, except per share data)

                                       Three Months Ended Sept. 30,
                                             1994        1993
                                               (unaudited)
Revenues:
 Financing income                          $ 4,135      $ 2,043
 Securitization gains                        2,407        1,110
 Patent and royalty income                   1,438        1,676
 Fee-based services                            957          453
 Other income                                  609          196
  Total revenues                             9,546        5,478
Expenses:
 Financing costs                               590          425
 Operating costs                             2,795        1,589
 Provision for credit losses                 1,629          829
 Amortization of patents and royalties         613          692
  Total expenses                             5,627        3,535

Income before provision for income taxes     3,919        1,943
Provision for income taxes                   1,590          785

Net income                                 $ 2,329      $ 1,158

Net income per common and common
 equivalent share                          $  0.12      $  0.07

Weighted average common and common
 equivalent shares                          18,874       16,016

Portfolio information:
 Number of contracts acquired
  (not in thousands)                         3,542        2,466
 Dollar value of contracts acquired       $ 45,851      $27,820

At September 30:
 Principal outstanding of contracts
  owned and/or serviced                   $186,132      $91,714

Indirect receivables over 30 days
 delinquent as a percentage of
 principal outstanding                        0.67%        0.66%

Indirect receivables net losses
 as a percentage of average
 principal outstanding                        4.46%        3.59%

CONTACT: AutoFinance Group Inc., Westmont

Blair T. Nance, 708/655-7100