<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                             -----------------------

                                   FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934

                  For the Quarterly period ended March 31, 2001

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

        For the transition period from ______________ to ______________

        Commission file number 000-28195

                                CARSUNLIMITED.COM, INC.
             (Exact name of registrant as specified in its charter)

             Nevada                                      11-3535204
(State or other jurisdiction of               (IRS Employer Identification No.)
incorporation or organization)

                     10 Cedar Swamp Rd. Glen Cove, NY 11542
                    (Address of principal executive offices)

                                 (516) 671-4466
                           (Issuer's telephone number)


The number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date:

                Class                                March 31, 2001
                -----                                --------------

    Common stock, $ 0.001 par value                    25,500,000

<PAGE>



                             CARSUNLIMITED.COM, INC.

                                TABLE OF CONTENTS


                                                                        PAGE NO.
                                                                        --------
PART I.  FINANCIAL INFORMATION

         ITEM 1 - Condensed Unaudited Financial Statements

         Balance Sheets as of March 31, 2001 and 2000
         (Unaudited).....................................................   3

         Statements of Operations for the Three Months Ended
         March 31, 2001 and 2000 (Unaudited).............................   4

         Statements of Cash Flows for the Three Months
         Ended March 31, 2001 and 2000 (Unaudited).......................   5

         Notes to Condensed Unaudited Financial Statements...............   6-7

         ITEM 2

         Management's Plan of Operations.................................   8-11

PART II. OTHER INFORMATION

         ITEM 1

         Legal Proceedings...............................................   12

         ITEM 6

         Exhibits and Reports on Form 8-K................................   12


         Signatures......................................................   13


                                       2
<PAGE>
                             CARSUNLIMITED.COM, INC.
                          (A Development Stage Company)
                                 BALANCE SHEETS
                             MARCH 31, 2001 AND 2000
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                     ASSETS
                                                                              2001         2000
                                                                           ---------    ---------
<S>                                                                        <C>          <C>
Cash                                                                       $     264    $   8,567
Commissions receivable                                                         9,007            -
                                                                           ---------    ---------
Total Current Assets                                                           9,271        8,567
                                                                           ---------    ---------

Equipment and furniture, net                                                   9,112       15,315
Security deposits                                                              1,522        2,400
Other assets                                                                      --        7,998
                                                                           ---------    ---------
Total Assets                                                               $  19,905    $  34,280
                                                                           =========    =========


                     LIABILITIES AND STOCKHOLDERS' (DEFICIT)

Account payable and accrued expenses                                       $  25,908    $   1,780
Salaries payable - officer                                                    15,411           --
Payable to business consultant                                                33,000           --
Payroll taxes payable                                                          1,017           --
                                                                           ---------    ---------
Total Current Liabilities                                                     75,336        1,780
                                                                           ---------    ---------

Stockholders' (Deficit):
Common stock, $0.001 par value; 50,000,000 shares authorized
   and 25,500,000 shares issued and outstanding                               25,500          443
Additional paid-in capital                                                   486,250       43,857
(Less) subscriptions receivable                                                 (200)     (11,800)
(Deficit) accumulated during the development stage                          (566,981)          --
                                                                           ---------    ---------
Total Stockholders' (Deficit)                                                (55,431)      32,500
                                                                           ---------    ---------
Total Liabilities and Stockholders' (Deficit)                              $  19,905    $  34,280
                                                                           =========    =========
</TABLE>


             See notes to condensed unaudited financial statements.

                                       3
<PAGE>

                             CARSUNLIMITED.COM, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                       AND
         FOR THE PERIOD FROM MARCH 7, 2000 (INCEPTION) TO MARCH 31, 2001
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                FOR THE
                                              FROM               FROM         PERIOD FROM
                                           JAN. 1, 2001      MAR. 7, 2000     MAR. 7, 2000
                                                TO                TO               TO
                                           MAR. 31, 2001     MAR. 31, 2000    MAR. 31, 2001
                                          --------------    --------------   --------------
<S>                                       <C>               <C>              <C>
Revenues:
Sales Commissions                         $       42,967    $           --   $      179,812
Interest                                              50                --              196
                                          --------------    --------------   --------------
    Total Revenues                                43,017                --          180,008
                                          --------------    --------------   --------------

Costs and Expenses:
    Salaries and related taxes                     6,270                --          133,642
    Consultant fees:
       Directors and officers                         --                --          140,000
       Other consultants                          13,564                --          260,152
    Commissions                                       --                --           43,797
    Advertising and Internet marketing             1,004                --           38,143
    Costs associated with raising capital             --                --           11,500
    Rents                                          4,755                --           17,934
    Start-up costs                                 1,000                --           27,598
    Office                                         5,168                --           27,194
    Travel and entertainment                       8,502                --           31,508
    Telephone                                      1,751                --            6,019
    Insurance                                      2,147                --            7,348
    Other                                            569                --            2,154
                                          --------------    --------------   --------------
       Total Costs and Expenses                   44,730                --          746,989
                                          --------------    --------------   --------------
Net (Loss)                                $       (1,713)   $           --   $     (566,981)
                                          ==============    ==============   ==============
Basic and diluted net (loss)
  per common share                        $        (0.00)   $        (0.00)  $          N/A
                                          ==============    ==============   ==============
Weighted average common shares                25,500,000                --              N/A
                                          ==============    ==============   ==============
</TABLE>

             See notes to condensed unaudited financial statements.

                                       4
<PAGE>


                             CARSUNLIMITED.COM, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS
         FOR THE PERIOD FROM MARCH 7, 2000 (INCEPTION) TO MARCH 31, 2001
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                    From              From       For The Period From
                                                                Jan. 1, 2001      Mar. 7, 2000     March 7, 2000
                                                                     To                To                To
                                                               Mar. 31,  2001    Mar. 31,  2000    March 31, 2001
                                                               --------------    --------------    --------------
<S>                                                            <C>               <C>               <C>
Cash Flows From Operating Activities:
    Net (loss)                                                 $       (1,713)   $           --    $     (566,981)
                                                               --------------    --------------    --------------
       Adjustments to Reconcile Net (Loss) to
               Net Cash (Used) by Operating Activities:
       Depreciation and amortization                                       --                --               565
       Stock issued for services                                           --             5,000           317,000
       (Increase) in commissions receivable                                --                --            (9,006)
       Increase in accounts payable and accrued expenses                   --             1,780            25,908
       Increase in salaries payable - officer                              --                --            15,411
       Increase in payable to business consultant                          --                --            33,000
       Increase in payroll taxes payable                                   --                --             1,017
       (Increase) in security deposits                                     --            (2,400)           (1,522)
       (Increase) in other assets                                          --            (7,998)               --
                                                               --------------    --------------    --------------
             Net Cash (Used) by Operating Activities                   (1,713)           (3,618)         (184,608)
                                                               --------------    --------------    --------------

Cash Flows From Investing Activities:
    Purchase equipment                                                     --           (15,315)           (9,677)
                                                               --------------    --------------    --------------
      Cash Flows (Used) by Investing Activities                            --           (15,315)           (9,677)
                                                               --------------    --------------    --------------

Cash Flows From Financing Activities:
    Issue common stock for cash                                            --            27,500           194,550
                                                               --------------    --------------    --------------
      Cash Flows Provided by Financing Activities                          --            27,500           194,550
                                                               --------------    --------------    --------------

Net increase in cash                                                   (1,713)            8,567               264

Cash at beginning of period                                             1,977                --                --
                                                               --------------    --------------    --------------

Cash at end of period                                          $          264    $        8,567    $          264
                                                               ==============    ==============    ==============

Supplemental Cash Disclosures:
    Stock issued for services                                  $           --    $        5,000    $      317,000
                                                               ==============    ==============    ==============
</TABLE>


             See notes to condensed unaudited financial statements.

                                       5
<PAGE>

                             CARSUNLIMITED.COM, INC.
                          (A Development Stage Company)
                NOTES TO CONDENSED UNAUDITED FINANCIAL STATEMENTS
                                 MARCH 31, 2001


BASIS OF PRESENTATION

         The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB of item 310(b)
of Regulation S-B. Accordingly they do not include all of the information and
footnotes necessary for a fair presentation of financial condition, results of
operations and cash flows in conformity with generally accepted accounting
principles. In the opinion of management, the interim condensed financial
statements included herewith contain all adjustments (consisting of normal
recurring accruals and adjustments) necessary for their fair presentation. The
unaudited interim condensed financial statements should be read in conjunction
with the Company's annual financial statement in Form SB-2, effective May
2001,which contains the audited financial statements and notes thereto for the
period from March 7, 2000 to December 31, 2000.

NATURE OF OPRATIONS

CARSUNLIMITED.COM, INC. (The Company) was formed in Nevada on March 7,2000. The
Company is a development stage company with limited operations and revenues and
only nominal assets. Its intended purpose is to offer users the ability to
search a database that contains products and information about the Automobile
Industry, new and used car sales (classified ads), as well as automotive
products such as extended warranty information and anti-theft body part marking.
The Company has adopted December 31 as its year end.

As the Company develops its website, its operations are currently limited to
marketing various lease products directly through automobile dealers. The
Company arranges for the dealer to market the products to their automotive
customers and collect the costs and fees. The Company receives commissions from
the third party administrators.

The Company is a development stage company with limited operations and revenues
and only nominal assets. The company's ability to commence its intended
operations is based on the successful placement of 1,500,000 units at a price of
$0.10 per unit, each unit consisting of 1 share of common stock valued at $0.10
per share, and, an option to purchase 3 warrants exercisable at $0.30 per
warrant. The Private Placement Memorandum (PPM) is being offered without
registration under the exemption from registration afforded by Section 4(2) of
the Securities Act 1933, as amended.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
which affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues an expenses during the
reporting period. Actual results could differ from those estimates.

Commissions Receivable

Commissions receivable represent the Company's commissions for sales of
automotive products (extended warranties, GAP insurance and other lease
products) through automobile dealers (dealers). These dealers have agreed to
market the Company's automotive products directly to their customers and to
collect the fees and costs. The Company is responsible for servicing the dealer
and transmitting the checks to a third party administrator. No provision for
uncollectibles has been recorded as the Company believes none is necessary.


                                       6
<PAGE>


Common Stock

The Company offered 389,000 shares at $0.10 per share through a promissory note
wherein the Company received the proceeds of the notes and in return agreed to
issue the shares upon the note holder completing a subscription agreement from
the PPM. Through December 31, 2000, the Company collected $38,900 in cash.

The Company intends to raise $1,500,000 by offering 1,500,000 units at a price
of $0.10 per unit, each unit consisting of one share of common stock valued at
$0.10 per share and an option to purchase three warrants exercisable at $0.30
per warrant. The Private Placement Offering (PPM) is being offered without
registration under the Securities Act of 1933 or under the securities laws of
any state. Through December 31, 2000, the Company raised $150,000 in the first
round of financing and expects to have the warrants exercised at $0.30 per
warrant in the coming year. The company is dependent upon maximum exercise of
all option in order to raise the full $ 1,500,000.

Fair Value of Financial Instruments

Substantially all of the Company's assets and liabilities are carried at fair
value or contracted amounts which approximate fair value.

(Loss) Per Common Share

Net (loss) per common share is based on the weighted average of common shares
outstanding during the period.

Income Taxes

The Company has a net operating loss (NOL) carryforward expiring in 2021. No tax
benefit has been reported in the financial statements because the potential tax
benefit of the net operating loss carryforwards are completely offset by a
valuation allowance of the same amount because of the uncertainty of the Company
realizing future taxable income. Deferred taxes on the differences between book
and tax accounting are immaterial.

GOING CONCERN

The Company is a development stage company with limited operations, no
substantial, continuing source of revenues, only nominal assets, and working
capital and stockholders' deficits. The Company's intended operations will
require substantial capital and until revenues are sufficient to fund ongoing
operations, the Company will be highly dependent on external sources of
financing. The Company has no internal sources of liquidity and does not expect
to generate any positive cash flows in the immediate future. These conditions
raise substantial doubt about its ability to continue as a going concern.

The Company has begun to raise $1,500,000 through a Private Placement Memorandum
(PPM) as more fully discussed under "Common Stock", the company through December
31, 2000, raised $150,000 and expects to raise the balance or $1,350,000 in the
coming year from the exercise of 100% of the options ($0.90 per option X's
l,500,000 units).

Although the Company believes that it can successfully complete the PPM there
can be no assurance that it will do so or even if completed it will be
sufficient to permit the Company to implement its intended operations.


                                       7
<PAGE>


Item 2.  Management's Discussion and Analysis

         The following discussion should be read along with our financial
statements, which are included in another section of this 10-QSB. This
discussion contains forward-looking statements about our expectations for our
business and financial needs. These expectations are subject to a variety of
uncertainties and risks that may cause actual results to vary significantly from
our expectations. The cautionary statements made in this Report should be read
as applying to all forward-looking statements in any part of this 10-QSB.

         We were incorporated on March 7, 2000 as a Nevada Corporation. We have
adopted December 31 as our year end. We are a development stage company with
limited operations and revenues and only nominal assets. Any reference in this
document to "the Company," "our", "we" or "us" refers to CarsUnlimited.com, Inc.

         We provide products and information related to the auto industry to our
customers through our Web site using classified ads and affiliate link programs.
We offer new and used car classified advertising as well as products such as
automotive warranties. We currently have two revenue streams. The first is from
our Internet site and the second is from our automotive wholesale products
division, which sells automotive products to auto dealerships, leasing companies
and credit unions. We sell benefit roadside assistance packages to corporations,
companies and credit unions. We sell this product in the Northeastern portion of
the United States. We receive commissions on the sales we make. We expect to
expand our operations into franchised car care centers in the months ahead. Each
car care center will provide care repair services, automobile accessories and
rental cars. As we grow, we expect our car care centers to be the primary growth
sector of our business.

         Our goal is to become a market leader in providing top quality content
and information about automobile related needs from around the world. Our
business strategy includes developing an attractive Internet presence that is
easy to us and meets the customer's needs. In the months ahead we hope to
attract new product suppliers and broaden our market.

         It will be important to expand our customer base in the months ahead.
To achieve this will allow automobile producers, cooperative dealers, parts
producers and warranty suppliers to be listed on our website free of charge for
a limited time. After an initial servicing period, we will charge a monthly fee
to each of these vendors. Our strategy will focus on instituting an intensive
marketing and promotional campaign to increase traffic to our site and sales of
our products. We will enter advertising agreements with on-line companies with
similar target audiences. In addition, as funding becomes available, we intend
to advertise in trade journals and set up promotional booths at automobile
shows.

Analysis of Financial Condition.

         As of March 31, 2001, we had cash reserves of $264 and a commissions
receivable of $9,007 for total current assets of $9,271 and no other liquid
assets or resources. By comparison, as of the period ending March 31, 2000 we
had cash reserves of $8,567 and no other current assets. On March 31, 2001 we
had total current liabilities of $75,336 compared with $1,780 on


                                       8
<PAGE>

March 31, 2000. Our liabilities include accounts payable of $25,908, unpaid
salaries to officers of $15,411, and a payable to a business consultant of
$33,000.

         We will need additional capital to implement our business plan
successfully. If we are not able to raise sufficient capital through the sale of
equity or debt, we may not be able to successfully implement our business plan.

         Results of Operations

         We realized revenue of $43,017 for the period ending March 31, 2001. We
realized no revenue from March 7, 2000, (our date of inception), to March 31,
2000. Our revenue was produced primarily form of sales commissions for the sale
of products and services and through our Web site. We incurred expenses totaling
$44,730 for the period ending March 31, 2001. Our expenses for the same quarter
of 2000 were zero.

         We had a net loss of $1,713 for the period ending March 31, 2001 and a
net loss of $0.00 for the period ending March 31, 2000. This represents a loss
of less than $0.01 per share for the period ending March 31, 2001. We have very
limited liquidity and will be required to find additional sources of capital to
succeed.

         Plan of Operations

         We plan to focus on the acquisition of additional operating capital in
the months ahead in order to provide adequate funding for operations. In
addition to continuing to develop our Web presence, we hope to enter into an
agreement to participate with a popular New York area car care franchise in
order to roll out a number of their franchises in other markets under
CarsUnlimited.com. We expect to begin with a franchise in New Jersey and expand
throughout the North Eastern U.S. Our goal is to establish ten franchises in the
next 18-24 months.

         Despite our efforts, we may not be successful in implementing our
vision based on the recent trends within the Internet industry, particularly
with respect to consumer oriented e-commerce companies. Beginning in early 2000
and continuing into 2001, a significant number of these companies began to
experience financial difficulties, which included dropping share prices, layoffs
or closures and lack of profits. In addition, many Internet companies have
sought combination with their competitors or with more traditional
"brick-and-mortar" companies in an effort to survive. Many Internet companies
are running deep losses and have spent heavily on marketing, customer
acquisition, personnel and product development only to experience cash shortages
prior to reaching profitability. We may be affected by similar market
conditions.

         Liquidity and Capital Resources

         Since inception, we have used more cash than we have generated. Because
of the continued need for substantial amounts of working capital to fund the
growth of the business, we expect to experience negative operating cash flow for
the foreseeable future. In 2000 and the first quarter of 2001, we recorded a
total of $511,750 in capital from common stock and additional paid in capital.
As of March 31, 2001, we had total assets of $19,905 and $75,336 in


                                       9
<PAGE>


current liabilities with negative shareholder equity of $(55,431). As of March
31, 2000, we had total assets of 34,280 and $1,780 in current liabilities with
shareholder's equity of $32,500.

         We will have to succeed in our debt and equity financing activities in
the year ahead in order to complete and execute on our business plan. Our
working capital requirements and cash flow from operations are expected to vary
from quarter to quarter, depending on the success of marketing activities,
operating expenses, capital expenditures and other factors. We will need to
raise substantial additional capital in order to succeed and to continue in
business. Since inception, we have experienced negative cash flow from
operations and will continue to experience negative cash flow for some time in
the future. It is not expected that the internal source of liquidity will
improve until significant net cash is provided by operating activities, and
until then, we intend to rely upon external sources for liquidity. As of March
31, 2001, our sources of external and internal financing are limited.

         During the three months ending March 31, 2001, we received no funds
from the issuance of common stock. We have raised $150,000 through a Regulation
D, Rule 506 offering that was Initiated on May 10, 2000 and closed on June 10,
2000. The offering was for purchase of 1,500,000 units with each unit consisting
of one share of common stock valued at $0.10 per share and, 3 warrants
exercisable at $0.30 per warrant, par value $.001 per share. We may receive
additional funds if and when the warrants associated with the Regulation D, Rule
506 offering are exercised. We did not receive any cash from financing
activities in the first quarter of 2001. Cash on hand at the conclusion of the
three months ending March 31, 2001 was $264.

            As of March 31, 2001, none of the warrants had been exercised and
none has been exercised as of the date of this filing. Subsequent to the period
ending March 31, 2001, we have focused our business plan on the expansion of our
car care centers and expect to grow our business primarily through the expansion
of the car care center operations.

         Our financial statements are prepared using principles applicable to a
going concern, which contemplates the realization of assets and liquidation of
liabilities in the normal course of business. However, we do not have
significant cash or other material liquid assets, nor do we have an established
source of revenue sufficient to cover our operating costs and to allow us to
continue as a going concern. We may, in the future, experience significant
fluctuations in our results of operations. We will be required to obtain
additional debt and equity financing or our illiquidity could suppress the value
and price of our shares if and when a market for those shares becomes available.
However, our offerings of securities may not be undertaken, and if undertaken,
may not be successful or the proceeds derived from these offerings may be less
than anticipated and/or may be insufficient to fund operations and meet the
needs of our business plan. Our current working capital is not sufficient to
cover cash requirements for the balance of the current fiscal year or to bring
us to a positive cash flow position. If we are unable to continue operations,
our assets may be worth considerably less than the net book value reported on
our balance sheet.


                                       10
<PAGE>

  FORWARDING-LOOKING STATEMENTS

This quarterly report on Form 10-QSB includes "forward-looking statements"
within the meaning of SECTION 27A of the Securities Act of 1933 and SECTION 21E
of the Securities Exchange Act of 1934. These forward-looking statements may
relate to such matters as anticipated financial performance, future revenues or
earnings, business prospects, projected ventures, new products and services,
anticipated market performance and similar matters. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for forward-looking
statements. To comply with the terms of the safe harbor, we caution readers that
a variety of factors could cause our actual results to differ materially from
the anticipated results or other matters expressed in our forward-looking
statements. These risks and uncertainties, many of which are beyond our control,
include (i) the sufficiency of our existing capital resources and our ability to
raise additional capital to fund cash requirements for future operations, (ii)
uncertainties involved in the rate of growth and acceptance of the Internet,
(iii) adoption by our target customer community of electronic technology for
gathering information, facilitating e-commerce transactions, and providing new
products, websites, and services, (iv) volatility of the stock market,
particularly within the technology sector, and (v) general economic conditions.
Although we believe that the expectations reflected in these forward-looking
statements are reasonable, the expectations reflected in these forward-looking
statements may prove to have been incorrect.

We cannot guarantee any future results, levels of activity, performance or
achievements. Except as required by law, we undertake no obligation to update
any of the forward-looking statements in this Form 10-QSB after the date of this
quarterly report.


                                       11
<PAGE>


                                  CARSUNLIMITED
                                    PART II.
                                OTHER INFORMATION

Item 1. Legal Proceedings

        None

Item 6. Exhibits and Reports on Form 8-K

        None


                                       12
<PAGE>

                                   SIGNATURES


        Pursuant to the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



                                       CARSUNLIMITED



                                       By: /s/ Anthony Genova
                                           -------------------------------------
                                           President and Director



Dated: August 29, 2001


                                       13