<PAGE>




                                                                   Exhibit 13(f)
                                                                   Page 1 of 2




REPORT OF MANAGEMENT

Management  of  Navistar  Financial  Corporation  ("NFC")  is  responsible  for
establishing  and  maintaining  an internal control  structure  over  financial
reporting  of  the servicing  procedures provided by NFC under the Pooling  and
Servicing Agreement dated as of December 1, 1990 and June 8, 1995 (collectively
known as the  "Agreements")  for the Dealer Note Trust 1990 and the Dealer Note
Master Trust  Series 1995-1,  1997-1  and  1998-1  (collectively  known  as the
"Trusts"),  respectively,  which is designed to provide reasonable assurance to
NFC's management and Board of Directors regarding the  preparation  of reliable
published financial reports.  The structure contains self-monitoring mechanisms
and  actions  taken  to  correct deficiencies as they are identified.   Even an
effective internal control structure, no matter how well-designed, has inherent
limitations,  including  the possibility  of the circumvention or overriding of
controls, and therefore, can provide only reasonable assurance with  respect to
financial statement preparation.   Further,  because  of changes in  condition,
internal control structure effectiveness may vary over time.

Management  assessed  NFC's  internal  control structure as of and for the year
ended October 31, 1998,  in relation to criteria for effective internal control
over  financial  reporting  based  on  criteria  established   in   the   AICPA
Professional Standards Section  319,  "Consideration of  Internal  Control in a
Financial Statement Audit."  Based on this assessment, management believes that
as of  and for the year ended  October 31, 1998,  NFC maintained  an  effective
internal control structure over financial reporting of the servicing procedures
provided by NFC under the Agreements for the Trusts.




/s/ R. W. CAIN
    R. W. CAIN
    Vice President & Treasurer



/s/ P. E. COCHRAN
    P. E. COCHRAN
    Vice President & Controller


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                                                                Exhibit 13 (f)
                                                                Page 2 of 2



INDEPENDENT ACCOUNTANTS' REPORT


To the Board of Directors
Navistar Financial Corporation


We  have  examined management's  assertion  that, as of and for the year ended
October 31, 1998, Navistar Financial Corporation ("NFC"), maintained effective
internal  control  over  the  servicing  procedures  provided by NFC under the
Pooling and Servicing Agreements dated December 1, 1990,  and June 8, 1995 and
the Series  Supplements dated June 8, 1995, August 19, 1997  and July 17, 1998
(collectively  known as the "Agreements")  for the  Dealer Note Trust 1990 and
the Dealer Note Master Trust (collectively known as the "Trusts")  referred to
in the accompanying Report of Management.

Our  examination  was  made in  accordance  with  standards established by the 
American Institute of Certified Public Accountants and,  accordingly, included
obtaining  an  understanding  of  internal  control over financial  reporting,
testing  and  evaluating  the design  and  operating effectiveness of internal
control as it pertains to the servicing procedures referred to in management's
assertion,  and  such  other  procedures  as  we  considered  necessary in the 
circumstances.   We  believe that our  examination provides a reasonable basis
for our opinion.

Because  of inherent limitations in internal control, error or fraud may occur
and not be detected.   Aslo, projections of any evaluation of internal control
to future  periods are subject  to the risk  that internal  control may become
inadequate because of changes in conditions,  or that the degree of compliance
with the policies or procedures may deteriorate.

In  our opinion,  management's  assertion that,  as of  and for the year ended
October 31, 1998, NFC maintained effective internal control over the servicing
procedures  provided by  NFC under  the  Agreements  is fairly stated,  in all
material  respects,  based on  criteria established  in the AICPA Professional 
Standards  Section 319,  "Consideration  of  Internal  Control  in a Financial
Statement Audit."



 /s/DELOITTE & TOUCHE LLP
    DELOITTE & TOUCHE LLP
    Chicago, Illinois
    December 14, 1998