SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                  For the Third Quarter Ended January 31, 1996
                          Commission File Number 1-9471



                              CRUISE AMERICA, INC.

               State of Florida                   I.R.S. No. 59-1403609

                             11 West Hampton Avenue
                            Mesa, Arizona 85210-5258

                        Telephone Number: (602) 464-7300



Indicate  by check  mark  whether  the  registrant,  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the  preceding  twelve (12) months (or for such shorter  period that
the  registrant  was required to file such  reports) and (2) has been subject to
such filing requirements for the past ninety (90) days.

                         YES  X                   NO 
                             -----                  ----- 




                          Common Stock, $.01 Par Value

As of January 31, 1996,  5,727,068 of registrants  common stock were outstanding
       of which 4,143,547 were held by non-affiliates of the registrant.


<PAGE>

                                TABLE OF CONTENTS

                      CRUISE AMERICA, INC. AND SUBSIDIARIES



                                     PART I

                              FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS

         Condensed Consolidated Balance Sheets...............................  1

         Condensed Consolidated Statements of Operations.....................  3

         Condensed Consolidated Statements of Cash Flows.....................  4

         Notes to Condensed Consolidated Financial 
         Statements..........................................................  5

ITEM 2.  Management's Discussion and Analysis of 
         Consolidated Financial Condition and 
         Results of Operations.............................................  6-7
<PAGE>



PART I.           FINANCIAL INFORMATION
ITEM 1            FINANCIAL STATEMENTS

                      CRUISE AMERICA, INC. AND SUBSIDIARIES

                      Condensed Consolidated Balance Sheets

                                 (In thousands)

                                     ASSETS

                                                           (Unaudited)
                                                            1-31-96     4-30-95
                                                            -------     -------
Current Assets:

     Cash and Cash Equivalents.....................$        2,430       3,091

     Accounts Receivable, Net .......................       4,172       3,561

     Inventories ....................................      15,696      17,235

     Prepaid Expenses and Other Current Assets ......       1,453         837
                                                          -------     -------

     Total Current Assets ...........................      23,751      24,724
                                                          -------     -------

Rental Vehicles .....................................      77,724      63,713
     Less Accumulated Depreciation ..................      15,908      12,398
                                                          -------     -------
     Net Rental Vehicles ............................      61,816      51,315

Property and Equipment ..............................      17,347      16,795
     Less Accumulated Depreciation ..................       6,756       6,274
                                                          -------     -------
     Net Property and Equipment .....................      10,591      10,521

Deposits and Other Assets ...........................       2,654       2,818
                                                          -------     -------

                                                          $98,812      89,378
                                                          -------     -------



     See accompanying notes to condensed consolidated financial statements.
<PAGE>


                      CRUISE AMERICA, INC. AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                 (In thousands)

                                                                        (Unaudited)
                                                                          1-31-96     4-30-95
                                                                          -------     -------
Current Liabilities:

<S>                                                              <C>                     <C>
     Floor Plan Contracts........................................$       3,536           709
     Current Installments of Rental Vehicle Financing ............       8,962         7,394
     Current Installments of Long-Term Debt ......................       4,527         3,072
     Accounts Payable and Accrued Expenses .......................       3,382         2,042
     Customer Deposits ...........................................         503         6,380
     Income Taxes Payable ........................................          20            20
                                                                      --------      --------

         Total Current Liabilities ...............................      20,930        19,617
                                                                      --------      --------

Rental Vehicle Financing, Excluding Current Installments .........      27,193        23,228

Long-Term Debt, Excluding Current Installments ...................      22,263        23,892

Deferred Income Taxes ............................................       1,639           312

Stockholders' Equity:
     Preferred Stock $1.00 par value:  1,000,000 shares
       authorized, none issued or outstanding ....................        --            --
     Common Stock $.01 par value;  15,000,000 shares
       authorized, 5,727,000 and 5,694,000 issued and
       outstanding at January 31, 1996 and April 30,
       1995 respectively .........................................          57            57
     Additional Paid-in Capital ..................................      24,914        24,815
     Retained Earnings ...........................................       2,456        (1,908)
     Cumulative Translation Adjustment ...........................        (640)         (635)
                                                                      --------      --------

     Total Stockholders' Equity ..................................      26,787        22,329

Commitments and Other Matters ....................................    --------      --------
                                                                      $ 98,812        89,378
                                                                      --------      --------
</TABLE>


     See accompanying notes to condensed consolidated financial statements.

<PAGE>


                      CRUISE AMERICA, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Operations

                                   (Unaudited)
<TABLE>
<CAPTION>

                      (In thousands except per share data)

                                                         Three Months Ended                   Nine Months Ended
                                                         ------------------                   -----------------
                                                       1-31-96           1-31-95          1-31-96           1-31-95
                                                       -------           -------          -------           -------

<S>                                         <C>                            <C>             <C>               <C>   
Rental Revenue..............................$            3,234             2,670           41,291            32,806
Sales.......................................            10,613             7,655           34,779            38,302
                                                        ------             -----           ------            ------

         Total Revenue......................            13,847            10,325           76,070            71,108
                                                        ------            ------           ------            ------

Cost of Rentals.............................             2,885             2,001           16,568            13,337
Cost of Sales...............................             9,891             6,467           31,486            34,047
                                                        ------             -----           ------            ------

         Total Costs........................            12,776             8,468           48,054            47,384
                                                        ------            ------           ------            ------

Gross Profit From Operations................             1,071             1,857           28,016            23,724

Interest Expense............................             1,830             1,611            5,608             4,386

Selling, General, and Administrative
  Expenses..................................             4,464             4,658           16,717            15,734
                                                        ------            ------           ------            ------

Earnings (Loss) Before Income
  Taxes  ...................................            (5,223)           (4,412)           5,691             3,604

Income Tax Expense (Benefit)................            (1,219)             (831)           1,327               756
                                                        -------          --------          ------           -------

Net Earnings (Loss).........................$           (4,004)           (3,581)           4,364             2,848

Earnings (Loss) Per Share...................$             (.70)             (.63)             .76               .50
                                                       --------          --------        --------          --------

Average Common Shares Outstanding...........             5,719             5,694            5,709             5,694
                                                       -------            ------           ------            ------

</TABLE>


     See accompanying notes to condensed consolidated financial statements.
<PAGE>

                      CRUISE AMERICA, INC. AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows

                                   (Unaudited)
<TABLE>
<CAPTION>

                                 (In thousands)
                                                                      Nine Months Ended
                                                                      -----------------
                                                                 1-31-96         1-31-95
                                                                 -------         -------
Cash Flows from Operating Activities:
<S>                                                        <C>                    <C>  
     Net Earnings..........................................$      4,364           2,848
     Depreciation and Amortization.........................      10,385           9,141
     Increase in Deferred Income Taxes.....................       1,327             756
     Gain on Sale of Rental Vehicles.......................      (1,014)           (751)
     Increase in Accounts Receivable.......................        (611)           (852)
     Decrease in Inventories...............................       1,539           3,308
     Increase in Accounts Payable and Accrued Expenses.....       1,340           1,065
     Gain on Sale of Property and Equipment................        ---             (106)
     Increase (Decrease) in Floor Plan Contracts...........       2,827             319 
     Decrease in Customer Deposits.........................      (5,877)         (3,723)
     Other, Net............................................        (679)            149
                                                               ---------        -------
                                                                 13,601          12,154
                                                                 ------          ------
Cash Flows from Financing Activities:
     Proceeds from Rental Vehicle Borrowing................      41,934          30,435
     Repayment of Rental Vehicle Borrowing.................     (36,401)        (32,096)
     Repayment of Long Term Borrowing......................        (174)         (1,689)
     Issuance of Stock.....................................          99            ---
                                                               --------         -------
                                                                  5,458          (3,350)
                                                                -------         -------
Cash Flows from Investing Activities:
     Purchase of Rental Vehicles...........................     (41,275)        (30,158)
     Proceeds from Rental Vehicle Sales....................      22,107          19,183
     Purchase of Property and Equipment....................        (552)           (134)
     Proceeds from Sale of Property & Equipment............      ---                242
                                                               --------         -------
                                                                (19,720)        (10,867)
                                                               ---------        -------

Increase in Cash & Cash Equivalents........................        (661)         (2,063)

Cash and Cash Equivalents at April 30......................       3,091           4,261
                                                               --------         -------

Cash and Cash Equivalents at January 31....................$      2,430           2,198
                                                               --------         -------

</TABLE>

     See accompanying notes to condensed consolidated financial statements.
<PAGE>

                      CRUISE AMERICA, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                       Nine Months Ended January 31, 1996

NOTE 1.

In the opinion of management,  the accompanying unaudited condensed consolidated
financial  statements  contain all the  adjustments  (principally  consisting of
normal recurring accruals) necessary to present fairly the financial position of
Cruise America,  Inc. and Subsidiaries  (the Company) as of January 31, 1996 and
the  results of  operations  for the three  month and nine month  periods  ended
January 31, 1996 and 1995.

Certain items in the prior year financial  statements have been  reclassified to
conform with the current period presentations.

Effective May 1, 1995,  the Company began  allocating the cost of new motorhomes
between the chassis and house  components  and is  depreciating  the  components
using the  straight-line and mileage methods over 9 year lives with residuals of
10% to 25%.  The  impact  of this  change  is not  expected  to be  material  to
operating results for the year.

NOTE 2.

Supplemental disclosures of cash flow information (in thousands):

                                                   Nine Months Ended January 31,
                                                   -----------------------------
                                                       1996               1995
                                                       ----               ----
Cash paid during the period for:
         Interest on Borrowings.............$         4,755              4,317

NOTE 3.

The Company is a party to various claims,  legal actions and complaints  arising
in  the  ordinary  course  of  business.  In  the  opinion  of  management,  the
disposition  of these  matters  will not have a material  adverse  effect on the
financial condition of the Company.
<PAGE>


PART I.
ITEM 2

                      CRUISE AMERICA, INC. AND SUBSIDIARIES

              Management's Discussion and Analysis of Consolidated
                  Financial Condition and Results of Operations
                       Nine Months Ended January 31, 1996

SEASONALITY

The Company's business is seasonal. In the first and second fiscal quarters, the
Company  historically  records profits.  In the third and fourth  quarters,  the
Company  historically  records losses. The Company's purchases of motorhomes for
the rental fleet are also seasonal, with the majority of purchases being made in
the first fiscal quarter. Due to the seasonality of rental and sales operations,
certain accounts fluctuate from quarter to quarter.

LIQUIDITY AND CAPITAL RESOURCES

As of  January  31,  1996,  the  Company  had  working  capital in the amount of
$2,821,000. The Company's working capital, as presented,  includes a significant
portion of rental vehicle  financing.  The Company's  working  capital does not,
however,  include  any  portion of the related  assets - rental  vehicles,  even
though a  significant  portion of these  vehicles are expected to be sold during
the year through the Company's normal fleet rotation. The Company believes that,
during the next year,  cash  generated from  operations  and existing  financing
available from banks and other financial institutions will be sufficient for its
capital and operating  needs. At January 31, 1996, the Company believes it is in
compliance  with all  debt  covenants  associated  with  its  various  financing
agreements.

NINE MONTHS ENDED JANUARY 31, 1996 AS COMPARED WITH
NINE MONTHS ENDED JANUARY 31, 1995

Rental  Revenue for the nine  months  ended  January  31,  1996 was  $41,291,000
compared  to  $32,806,000  for the nine months  ended  January  31,  1995.  This
increase was due primarily to a 30% increase in revenue  days,  which was offset
slightly by a 4% decline in revenue per day.

Sales for the nine months ended  January 31, 1996 were  $34,779,000  compared to
$38,302,000  for the same period a year ago. Sales revenue  declined for several
reasons.  Fewer  rental  vehicles  were  available  for sale  due to high  fleet
utilization  rates  during  the  peak  summer  season;  the  number  of RV sales
facilities  operated  by the  Company  has been  reduced  from 19 to 15; and new
vehicle  sales have  continued  to be affected by an  industry-wide  slowdown in
demand.

Cost of Rentals as a  percentage  of Rental  Revenue was 40% for the nine months
ended January 31, 1996 compared to 41% in 1995. This slight  improvement was due
primarily to an increase in vehicle utilization.

Cost of Sales as a percentage  of Sales  increased  slightly to 91% in 1996 from
89% in 1995.  This  increase  was a result of a slight shift in the mix of sales
toward lower margin rental vehicle sales.

Interest  expense for the nine  months  ended  January  31, 1996 was  $5,608,000
compared to $4,386,000 in 1995. The increase was due primarily to an increase in
average interest rates as well as slightly higher average borrowings.

Selling,  general, and administrative expenses remained stable at 22% of revenue
in 1996  and in  1995.  Incremental  expenses  incurred  in  order  to meet  the
Company's increased rental demand during 1996 were offset by higher revenues.

THREE MONTHS ENDED JANUARY 31, 1996 AS COMPARED WITH
THREE MONTHS ENDED JANUARY 31, 1995

Rental Revenue for the quarter ended January 31, 1996 was $3,234,000 compared to
$2,670,000  reported for the quarter ended  January 31, 1995.  This increase was
due to a 19% increase in revenue  days,  as well as a 1% increase in revenue per
day.

Sales for the  quarter  ended  January  31,  1996 were  $10,613,000  compared to
$7,655,000 for the same period a year ago. Higher sales of rental fleet vehicles
during the quarter were offset in part by a decline in new vehicle  sales.  High
rental fleet utilization in the second quarter delayed the sale of a significant
number of vehicles until the third quarter.

Cost of Rentals as a percentage  of Rental  Revenue was 89% in 1996  compared to
75% in 1995.  Although  Rental  Revenue  increased  compared  to the prior year,
holding  costs also  increased as a result of a larger fleet being  carried over
from the second quarter.

Cost of Sales as a  percentage  of Sales  increased  to 93% in 1996  from 84% in
1995. This was primarily due to an increase in lower margin rental vehicle sales
as a percentage of total sales.

Interest Expense for the quarter  increased to $1,830,000 from $1,611,000 in the
prior year as a result of higher interest rates and higher average borrowings.

Selling,  general,  and  administrative  expenses decreased to 32% of revenue in
1996 from 45% of revenue in 1995.  This  decrease is due to  expenses  declining
slightly while revenues increased.
<PAGE>

                                   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 thereunto duly authorized.



                                          CRUISE AMERICA, INC.



March 8, 1996                             /s/  Eric R. Bensen
                                          -------------------
                                          Eric R. Bensen
                                          Vice President
                                          Chief Financial Officer



March 8, 1996                             /s/  Randall Smalley
                                          --------------------
                                          Randall Smalley
                                          President
                                          Chief Executive Officer