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                                                                EXHIBIT 10.42

                              EMPLOYMENT AGREEMENT

        AGREEMENT made as of the 14th day of July 1999, by and between Central
Financial Acceptance Corporation, a Delaware corporation with its principal
offices at 5480 East Ferguson Drive, Commerce, California 90022 (the
"Corporation"), and Gary M. Cypres (the "Executive").

                              W I T N E SS E T H :

        In consideration of the mutual covenants contained herein, the parties
hereto agree as follow:

        1.     TERM: The Corporation hereby employs the Executive as Chairman
               of the Board and Chief Executive Officer of the Corporation, and
               the Executive agrees to serve the Corporation as such, upon the
               terms and conditions hereof for a period of five years
               commencing on the date hereof.

        2.     DUTIES:

               (a) Executive shall serves as the Chairman of the Board of the
               Corporation, with such duties and authority as are generally
               incident to such positions, or shall serve in such other senior
               management positions as the Corporation shall determine, provided
               that such other positions shall be comparable in authority and
               responsibility to the positions specified above. The Executive
               will hold such senior offices in the Corporation and/or its
               subsidiaries or affiliates to which he may be elected or
               appointed from time to time, provided that such offices shall not
               be inconsistent with his duties and authority as aforesaid.

               (b) The Executive agrees that he will devote substantially all of
               his time and attention to the affairs of the Corporation, and
               will use his best efforts to promote the business and interests
               of the Corporation. It is understood, however, that the foregoing
               will not prohibit the Executive from engaging, conducting, or
               participating, either directly or indirectly, in businesses that
               do business with or are related to Banner's Central Electric,
               Inc., West Coast Private Equity Partners, L.P., Central Rents
               Holdings, Inc., Central Rents, Inc. and/or any of their
               subsidiaries or affiliates. It is further understood that the
               terms of this Agreement will not prohibit the Executive from
               engaging in personal investment and business activities for
               himself and his family which do not interfere with the
               performance of his duties hereunder.

        3.     COMPENSATION: The Corporation will pay the Executive a salary as
               set forth below, payable in equal installments in accordance with
               customary payroll practices for senior executives of the
               Corporation, in consideration for all services to be rendered by
               the Executive hereunder (including, without limitation, all
               services to be rendered by him as an officer of the Corporation
               and/or its Subsidiaries and affiliates).

                                                                 BASE SALARY
                                                                 -----------
               September 16, 1999 to September 15, 2000            $245,000
               September 16, 2000 to September 15, 2001            $270,000
               September 16, 2001 to September 15, 2002            $295,000
               September 16, 2002 to September 15, 2003            $320,000


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               September 16, 2003 to September 15, 2004            $345,000

               The Company may also pay the Executive an annual bonus with
               respect to each fiscal year of the Corporation, either on an "ad
               hoc" basis, or pursuant to any bonus plan or arrangement for
               senior executives of the Corporation as may be established at the
               Corporation's discretion.

               Nothing contained herein shall prohibit the Board of Directors of
               the Corporation, in its sole discretion, from increasing the
               compensation payable to the Executive pursuant to this Agreement
               and/or making available to the Executive other benefits in
               addition to those benefits which the Executive is entitled to
               hereunder.

        4.     EXPENSES: The Executive shall be entitled to reimbursement by the
               Corporation, in accordance with the Corporation's policies then
               applicable to senior executives at the Executive's level, against
               appropriate vouchers or other receipts for authorized travel,
               entertainment and other business expenses reasonably incurred by
               him in the performance of his duties hereunder.

        5.     EXECUTIVE BENEFITS:

               (a) SERP PLAN BENEFITS: The Executive shall continue to
               participate in the Corporation's Supplemental Executive
               Retirement Plan (the "SERP Plan"), and is fully vested in the
               SERP Plan (including credit for five Post-Effective Date Years of
               Service, as such term is defined in the SERP Plan) and his Normal
               Retirement Date for all purposes shall be deemed to be December
               31, 2000. If the Executive is terminated without "cause", as
               defined in Paragraph 8 below, becomes disabled, or dies at any
               time after the date hereof, then the Corporation will commence
               immediately to pay the Executive or his estate under the SERP
               Plan a benefit equal to his full vested interest (including
               credit for five Post-Effective Date Years of Service) as if he
               had worked to his Normal Retirement Date (the first day of the
               month after the Executive attains age 60). Thus, by way of
               example of the above contained provisions, if Executive retires
               on December 31, 2000, the numerator of the fraction referred to
               in the definition of Accrued Benefits in Section 2 (a) of the
               SERP Plan shall be 13 and the denominator shall be 13. Further,
               for purposes of the definition of Final Average Compensation in
               Section 2 (j) of the SERP Plan, if the Executive's Final Average
               Compensation must be calculated before July 14, 2004, his Final
               Average Compensation shall be the higher of (i) as determined
               pursuant to the SERP Plan and the provisions of this Agreement;
               (ii) if he dies or becomes disabled, $245,000, or his then
               current salary on an annualized basis, plus a pro rata estimate
               of his bonus award for the current year pursuant to the Company's
               Incentive Bonus Plan; or, (iii) if he is terminated without
               cause, $345,000, plus an estimate of his bonus award for the
               current year pursuant to the Company's Incentive Bonus Plan, but
               in no event shall the bonus be less than $30,000. To the extent
               of any inconsistency between this Agreement and the SERP Plan,
               the terms of this Agreement shall prevail.

               (b) GENERAL BENEFITS: The Executive shall be entitled to
               participate in, and receive benefits under, any pension, profit
               sharing, insurance, hospitalization, medical,

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               disability, vacation or other employee benefit plan, program or
               policy of the Corporation which may be in effect at any time
               during the course of his employment by the Corporation, and which
               shall be generally available to senior executives of the
               Corporation occupying positions of comparable status or
               responsibility, subject to the terms of such plans, programs or
               policies. Notwithstanding the foregoing, the Corporation may in
               its discretion and at any time, change or evoke any of its
               employee benefits plans, programs or policies, other than the
               SERP Plan and the Executive shall not be deemed, by virtue of
               this Agreement, to have any vested interest in any such plans,
               programs or policies, except as otherwise provided herein. The
               Corporation will also provide the Executive, at the Corporation's
               expense, with an automobile reasonably appropriate to the
               Executive's position, as determined by the Corporation, for use
               by the Executive in connection with the performance of his duties
               hereunder.

               (c) STOCK OPTIONS: The Executive is awarded an additional grant
               of 100,000 at $5.00 per share, stock options pursuant to the
               provision of the Company's 1996 Stock Option Plan, as amended.
               Vesting in such options shall accrue over a five year period in
               equal yearly amounts. Should the Company terminate the Executive
               without cause during the term of the contract, then the remaining
               unvested portion of such options shall vest immediately.

        6.     WITHHOLDING: All payment required to be made by the Corporation
               to the Executive hereunder shall be subject to the withholding
               of such amounts relating to taxes and other governmental
               assessments as the Corporation may reasonable determine it is
               obligated to withhold pursuant to any applicable law, rule or
               regulation.

        7.     DEATH; PERMANENT DISABILITY: This Agreement shall terminate upon
               the death of the Executive during the term of this Agreement,
               except as otherwise provided herein. If the Executive fails to
               perform the services required hereunder during the term of this
               Agreement because of illness or other incapacity for any
               consecutive period of more than 180 days, or for shorter periods
               aggregating more than 180 days in any consecutive twelve-month
               period (any such illness or incapacity being hereinafter
               referred to as "permanent disability"), then the Corporation, in
               its discretion, may at any time thereafter terminate this
               Agreement upon not less than 10 days written notice thereof to
               the Executive, and this agreement shall terminate and come to an
               end upon the date set forth in said notice as if said date were
               the termination date of this Agreement; provided, however, that
               such termination shall not become effective if, prior to the
               date when such notice is given, the Executive's illness or
               incapacity shall end and he shall be physically and mentally
               able to perform the services required hereunder, and shall have
               taken up and begun performing such duties.

               If the Executive's employment shall be terminated by reason of
               his death or permanent disability, the Corporation shall be
               obligated to pay the Executive or his estate, commencing
               immediately, (i) a lump sum payment equal to the Executive's
               base salary for the remaining term of this Agreement; (ii) a pro
               rata portion of any annual bonus which the Executive would
               otherwise have been entitled to receive


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               pursuant to any bonus plan or arrangement for senior executives
               of the Corporation (such pro rata portion to be payable at the
               time such annual bonus would otherwise have been payable to the
               Executive); and, (iii) subject to the terms thereof, any
               benefits which may be due to the Executive on the date of
               termination by reason of death or disability under the
               provisions of this Agreement, or any employee benefit plan,
               program or policy.

        8.     TERMINATION:

               (a) TERMINATION FOR CAUSE: The Corporation may at any time during
               the term of this Agreement terminate the employment of the
               Executive for cause. Termination for cause shall be by written
               notice which specifies the cause for termination, and termination
               of employment shall be immediately effective upon the Corporation
               giving the Executive such notice. For purposes of this Agreement,
               "cause" shall mean (i) willful failure, gross neglect, or
               unreasonable refusal to perform the Executive's duties hereunder;
               and, (ii) conviction in connection with any felony involving
               moral turpitude. If the Executive is terminated for cause, the
               Corporation will be obligated to pay the Executive (i) only his
               base salary up to the date upon which the Corporation notifies
               him of his termination for cause, and (ii) subject to the terms
               thereof, any benefits which may be due to the Executive under the
               provisions of this Agreement, or any employee benefit plan,
               program, or policy.

               (b) TERMINATION WITHOUT CAUSE: If the Executive is terminated
               without cause, then the Corporation will be obligated to pay him
               or his estate, commencing immediately, his base salary, plus a
               reasonable estimate of the Executive's bonus pursuant to the
               Company's Incentive Bonus Plan for the remaining term of this
               Agreement, in addition to any other compensation and /or benefits
               herein provided. If the Executive becomes disabled or dies, then
               the Company will be obligated to pay him or his estate,
               commencing immediately, a lump sum payment equal to his base
               salary for the remaining term of this Agreement, in addition to
               any other compensation and/or benefits herein provided.

        9.     INSURANCE:

               The Executive agrees that the Corporation may insure the life of
               the Executive in such amounts as the Corporation may in its
               discretion determine, and may designate the Corporation as the
               beneficiary under such policy or policies. The Executive agrees
               that he will submit to a physical examination upon the
               Corporation's request, and will execute any applications or other
               documents as may be required to procure such life insurance.

        10.    NON-COMPETITION; SOLICITATION:

               (a) The Executive agrees that during his employment with the
               Corporation and for any period following his termination which
               period is greater than 12 months and for which the Executive has
               been paid a lump sum by the Corporation in accordance with this
               Agreement, he shall not, without the written consent of the
               Corporation and except as otherwise provided herein, directly or
               indirectly, either individually or as


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               an employee, agent, partner, shareholder, option holder, lender
               of money, or guarantor, participate in, engage in or have a
               financial interest or management position or other interest in
               any business, firm, corporation or management position or other
               interest in any business, firm, corporation or other entity if
               it competes directly with any business operation conducted by
               the Corporation or its subsidiaries or affiliates or any
               successor or assignor thereof, during the employment period or
               at the time of termination. The foregoing provisions of this
               Section 10(a) shall not prohibit the ownership by the Executive
               of 10% or less of any class of capital stock of a corporation
               which is regularly traded on a national securities exchange or
               over-the-counter on the NASDAQ System.

               (b) The Executive further agrees that at any time during his
               employment with the Corporation and for any period following his
               resignation or termination which period is greater than 12 months
               and for which the Executive has been paid a lump sum by the
               Corporation in accordance with this Agreement, he shall not
               solicit (or assist or encourage the solicitation of ) any
               employee of the Corporation or any of its subsidiaries or
               affiliates to work for Executive or for any business, firm,
               corporation or other entity in which the Executive, directly or
               indirectly, in any capacity described in Section 10(a) hereof,
               participates or engages (or expects to participate or engage) or
               has (or expects to have) a financial interest or management
               position.

               (c) If any covenant contained in this Section 10, or any part
               thereof, is held by a court of competent jurisdiction to be
               unenforceable because of the duration of such provision, the
               activity limited by such provision, or the subject and /or area
               covered by such provision, then the court making such
               determination shall construe such restriction so as to thereafter
               limit or reduce the scope or duration of such provision or part
               thereof to be valid and enforceable to the greatest extent
               permissible under applicable law.

        11.    TRADE SECRETS, ETC.: The Executive agrees that he shall not,
               during or after the termination of this Agreement, divulge,
               furnish or make accessible to any person, firm, corporation or
               other business entity, any information, trade secrets, technical
               data or know-how relating to the business, business practices,
               methods, products, processes, equipment, clients' prices or
               other confidential or secret aspect of the business of the
               Corporation and/or any subsidiary or affiliate, except as may be
               required in good faith in the course of his employment with the
               Corporation or by law, without the prior written consent of the
               Corporation, unless such information shall become public
               knowledge (other than by reason of Executive's breach of the
               provisions hereof).

        12.    ACCEPTANCE BY EXECUTIVE: The Executive accepts all of the terms
               and provisions of this Agreement and agrees to perform all of
               the covenants on his part to be performed hereunder.

        13.    EQUITABLE REMEDIES: The Executive acknowledges that he has been
               employed for his unique talents and that his leaving the employ
               of the Corporation would seriously hamper the business of the
               Corporation and that the Corporation will suffer irreparable
               damage if any provisions of Sections 10 or 11 hereof are not
               performed strictly in accordance with their terms or are
               otherwise breached. The Executive

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                hereby expressly agrees that the Corporation shall be entitled
                as a matter of right to injunctive or other equitable relief, in
                addition to all other remedies permitted by law, to prevent a
                breach or violation by the Executive and to secure enforcement
                of the provisions of Sections 10 or 11 hereof. Resort to such
                equitable relief, however, shall not constitute a waiver or any
                other rights or remedies which the Corporation may have.

        14.     ENTIRE AGREEMENT: This Agreement constitutes the entire
                agreement between the parties hereto and there are no other
                terms other than those contained herein. No variation hereof
                shall be deemed valid unless in writing and signed by the
                parties hereto, and no discharge of the terms hereof shall be
                deemed valid unless by full performance of the parties hereto or
                by a writing signed by the parties hereto. No waiver by the
                Corporation or any breach by the Executive of any provision or
                condition of this agreement to be performed by him shall be
                deemed a waiver of a breach of a similar or dissimilar provision
                or condition at the same time or any prior or subsequent time.

        15.     SEVERABILITY: The validity and enforceability of the remaining
                provisions of this Agreement shall not in any way be affected or
                impaired in the event that any provision in this agreement shall
                be declared invalid, illegal or unenforceable by any court of
                competent jurisdiction.

        16.     NOTICES: All notices, request, demands and other communications
                provided for by this Agreement shall be in writing and shall be
                deemed to have been given at the time when mailed in the United
                States enclosed in a registered or certified post-paid envelope,
                return receipt requested, and addressed to the appropriate
                parties at the address stated below, or to such changed
                addresses as such parties may designate by notice;

                      Correspondence to:    5480 E. Ferguson Drive, 3rd Floor
                                            Commerce, CA  90022

                provided, however, that any notice of change of address shall be
                effective only upon receipt.

        17.     SUCCESSORS AND ASSIGNS: This Agreement in personal in its nature
                and neither of the parties hereto shall, without the consent of
                the other, assign or transfer this Agreement or any rights or
                obligations hereunder (except for an assignment or transfer by
                the Corporation to a successor as contemplated by the following
                proviso); provided, however, that the provisions hereto shall
                inure to the benefit of, and be binding upon, any successor of
                the Corporation, whether by merger, consolidation, transfer of
                all or substantially all of the assets of the Corporation, or
                otherwise, and upon the Executive, his heirs, executors,
                administrators and legal representatives.

        18.     GOVERNING LAW: This agreement and its validity, construction and
                performance shall be governed in all respects by the internal
                laws of the State of California without giving effect to any
                principles of conflict of laws.


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        19.     HEADINGS: The headings in this agreement are for convenience of
                reference only and shall not control or affect the meaning or
                construction of this Agreement.

                IN WITNESS WHEREOF, the parties hereto have hereunder set their
                hands and seals the day and year first above written.

                                    CENTRAL FINANCIAL ACCEPTANCE CORPORATION

                                    By:
                                       -----------------------------------------
                                          Gary M. Cypres, Chairman of the Board

                                          --------------------------------------
                                          Executive


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