================================================================================


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                 ---------------

                                   FORM 10-Q/A
                                (Amendment No. 1)

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

                                       or

[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                  For the quarterly period ended: June 30, 1999

                        Commission File Number 000-20841

                            UGLY DUCKLING CORPORATION
             (Exact name of registrant as specified in its charter)

                     Delaware                      86-0721358
           (State or other jurisdiction of      (I.R.S. employer
            incorporation or organization)       Identification
                                                      no.)

          2525 E. Camelback Road, Suite 500,
                   Phoenix, Arizona                  85016
           (Address of principal executive         (Zip Code)
                       offices)

                                 (602) 852-6600
              (Registrant's telephone number, including area code)

    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  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 90 days.

                                 [X] Yes [ ] No
                                 ---------------

    INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE:

    At August 6, 1999,  there  were  approximately  14,879,000  shares of Common
Stock, $0.001 par value, outstanding.

    This  document  serves both as a resource for  analysts,  shareholders,  and
other  interested  persons,  and as the  quarterly  report  on Form 10-Q of Ugly
Duckling  Corporation (Ugly Duckling) to the Securities and Exchange Commission,
which has taken no action to approve or  disapprove  the report or pass upon its
accuracy or adequacy.  Additionally,  this document is to be read in conjunction
with the  consolidated  financial  statements and notes thereto included in Ugly
Duckling's Annual Report on Form 10-K, for the year ended December 31, 1998.
================================================================================

<PAGE>



                            UGLY DUCKLING CORPORATION

                                   FORM 10-Q/A
                                (Amendment No. 1)

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                                   Page
                         Part I. -- FINANCIAL STATEMENTS
<S>                                                                                                                <C>
  Item 1.  FINANCIAL STATEMENTS...........................................................................
    Condensed Consolidated Balance Sheets-- June 30, 1999 and December 31, 1998...........................           1
    Condensed Consolidated Statements of Operations-- Three and Six Months Ended June 30, 1999 and June 30, 1998     2
    Condensed Consolidated Statements of Cash Flows-- Six Months Ended June 30, 1999 and June 30, 1998....           3
    Notes to Condensed Consolidated Financial Statements..................................................           4
  SIGNATURES..............................................................................................          10

</TABLE>


                                TEXT OF AMENDMENT
Explanatory Note:

The above listed Item is hereby amended by deleting the Item in its entirety and
replacing it with the Item attached hereto and filed herewith.

The purpose of this  amendment  is to amend our 10-Q for the period  ending June
30, 1999 (the  "Original  Filing") to reflect a  correction  on Page 2 Condensed
Consolidated Statement of Operations for the Three and Six Months Ended June 30,
1999 and June 30,  1998.  In the column for the Six Months  Ended June 30, 1999,
the line for Shares Used in Computation "Basic" is now consistent with Note 5 of
the  Notes  to  Condensed  Consolidated   Financial  Statements,   Common  Stock
Equivalents.   The  results  for  Earnings  per  Common  Share  from  Continuing
Operations "Basic" and Net Earnings per Common Share "Basic" have not changed.



<PAGE>

                                     ITEM 1.

                   UGLY DUCKLING CORPORATION AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)




<TABLE>
<CAPTION>
                                                       June 30,      December 31,
                                                         1999            1998
                                                     -------------  ----------------
                                      ASSETS
<S>                                                   <C>             <C>
Cash and Cash Equivalents ........................       $  1,302        $    2,751
Finance Receivables, Net .........................        307,199           163,209
Notes Receivable, Net ............................         21,317            28,257
Inventory ........................................         37,810            44,167
Property and Equipment, Net ......................         34,750            32,970
Intangible Assets, Net ...........................         14,985            15,530
Other Assets .....................................         22,997            20,575
Net Assets of Discontinued Operations ............         24,817            38,516
                                                     -------------  ----------------
                                                         $465,177        $  345,975
                                                     =============  ================


       LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
Accounts Payable .................................       $  4,892        $    2,479
Accrued Expenses and Other Liabilities ...........         30,992            19,694
Notes Payable ....................................        232,952           117,294
Subordinated Notes Payable .......................         36,943            43,741
                                                     -------------  ----------------
Total Liabilities: ...............................        305,779           183,208
                                                     -------------  ----------------
Stockholders' Equity
Common Stock .....................................             19                19
Additional Paid in Capital .......................        173,864           173,809
Retained Earnings ................................          5,339             3,449
Treasury Stock ...................................       (19,824)          (14,510)
                                                    -------------  ----------------
Total Stockholders' Equity .......................        159,398           162,767
                                                     -------------  ----------------
                                                         $465,177        $  345,975
                                                     =============  ================
</TABLE>

     See accompanying notes to Condensed Consolidated Financial Statements.
























                                     Page 1
<PAGE>



                   UGLY DUCKLING CORPORATION AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                Three and Six Months Ended June 30, 1999 and 1998
                (In thousands, except earnings per share amounts)
<TABLE>
<CAPTION>
                                                                        Three Months Ended                Six Months Ended
                                                                             June 30,                         June 30,
                                                                   -----------------------------     ---------------------------
                                                                       1999           1998               1999           1998
                                                                   -------------  --------------     -------------   -----------

<S>                                                                <C>              <C>              <C>           <C>
Sales of Used Cars ..............................................      $ 97,876         $69,523          $204,319      $142,496
Less:

Cost of Used Cars Sold ..........................................        55,559          39,237           115,656        78,968
Provision for Credit Losses .....................................        26,635          14,988            55,196        30,350
                                                                   -------------  --------------     -------------   -----------
 ................................................................        15,682          15,298            33,467        33,178
                                                                   -------------  --------------     -------------   -----------
Other Income:
Interest Income .................................................        20,186           6,024            34,236        12,230
Gain on Sale of Finance Receivables .............................             -           3,659                 -         8,273
Servicing and Other Income ......................................         7,670           9,531            17,295        13,442
                                                                   -------------  --------------     -------------   -----------
 ................................................................        27,856          19,214            51,531        33,945
                                                                   -------------  --------------     -------------   -----------
Income before Operating Expenses ................................        43,538          34,512            84,998        67,123
Operating Expenses:
Selling and Marketing ...........................................         5,887           4,274            12,495         9,195
General and Administrative ......................................        27,022          22,567            55,381        41,353
Depreciation and Amortization ...................................         2,321           1,352             4,458         2,525
                                                                   -------------  --------------     -------------   -----------
 ................................................................        35,230          28,193            72,334        53,073
                                                                   -------------  --------------     -------------   -----------
Operating Income ................................................         8,308           6,319            12,664        14,050

Interest Expense ................................................         5,817           1,369             9,473         2,871
                                                                   -------------  --------------     -------------   -----------


Earnings before Income Taxes ....................................         2,491           4,950             3,191        11,179

Income Taxes ....................................................         1,021           2,007             1,301         4,507
                                                                   -------------  --------------     -------------   -----------

Income from Continuing Operations ...............................         1,470           2,943             1,890         6,672
Discontinued Operations:
Loss from Operations of Discontinued Operations, net of
income tax benefit of $492 ......................................             -               -                 -         (768)
Loss on Disposal of Discontinued Operations net of income
tax benefit of $3,024 ...........................................             -               -                 -       (4,827)
                                                                   =============  ==============     =============   ===========
Net Earnings ....................................................      $  1,470         $ 2,943          $  1,890       $ 1,077
                                                                   =============  ==============     =============   ===========
Earnings per Common Share from Continuing Operations:
Basic ...........................................................      $   0.10         $  0.16          $   0.12       $  0.36
                                                                   =============  ==============     =============   ===========
Diluted .........................................................      $   0.10         $  0.16          $   0.12       $  0.35
                                                                   =============  ==============     =============   ===========
Net Earnings per Common Share:
Basic ...........................................................      $   0.10         $  0.16          $   0.12       $  0.06
                                                                   =============  ==============     =============   ===========
Diluted .........................................................      $   0.10         $  0.16          $   0.12       $  0.06
                                                                   =============  ==============     =============   ===========
Shares Used in Computation:
Basic ...........................................................        14,940          18,590            15,292        18,570
                                                                   =============  ==============     =============   ===========
Diluted .........................................................        15,210          18,980            15,495        18,930
                                                                   =============  ==============     =============   ===========
</TABLE>

     See accompanying notes to Condensed Consolidated Financial Statements.






                                     Page 2
<PAGE>


                   UGLY DUCKLING CORPORATION AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                     Six Months Ended June 30, 1999 and 1998
                                 (In thousands)
<TABLE>
<CAPTION>

                                                                             1999           1998
                                                                         -------------   ------------
 <S>                                                                     <C>             <C>
 Cash Flows from Operating Activities:
 Net Earnings .......................................................     $  1,890        $ 1,077
 Adjustments to Reconcile Net Earnings to Net Cash Provided
   by Operating Activities:
   Provision for Credit Losses ......................................       55,196         30,350
   Gain on Sale of Finance Receivables ..............................            -        (8,273)
   Depreciation and Amortization ....................................        4,458          2,525
   Loss from Discontinued Operations ................................            -          5,595
   Purchase of Finance Receivables Held for Sale ....................            -      (161,018)
   Increase in Deferred Income Taxes ................................      (5,188)        (1,260)
   Proceeds from Sale of Finance Receivables ........................            -        109,711
   Collections of Finance Receivables ...............................            -         26,026
   (Increase) Decrease in Inventory .................................        6,357        (2,370)
   (Increase) Decrease in Other Assets ..............................        1,172        (3,143)
   Increase in Accounts Payable, Accrued Expenses and Other
      liabilities ...................................................       13,922          7,733

   Increase in Income Taxes Payable .................................        2,926            703
                                                                      -------------   ------------
 Net Cash Provided by Operating Activities ..........................       80,733          7,656
                                                                      -------------   ------------
 Cash Flows Used in Investing Activities:
   Purchase of Finance Receivables Held for Investment ..............    (256,684)              -
   Collections of Finance Receivables Held for Investment ...........       62,148              -
   Increase in Investments Held in Trust ............................      (5,983)        (7,537)
   Advances under Notes Receivable ..................................      (5,195)       (24,312)
   Repayments of Notes Receivable ...................................       12,135         26,727
   Proceeds from Disposal of Property and Equipment .................            -         21,893
   Purchase of Property and Equipment ...............................      (5,692)       (12,759)
                                                                      -------------   ------------
 Net Cash Provided by (Used in) Investing Activities ................    (199,271)          4,012
                                                                      -------------   ------------
 Cash Flows from Financing Activities:
   Additions to Notes Payable .......................................      199,336         30,000
   Repayment of Notes Payable .......................................     (84,088)       (46,631)
   Net Issuance (Repayment) of Subordinated Notes Payable ...........      (6,798)         13,000
   Proceeds from Issuance of Common Stock ...........................           55             40
   Acquisition of Treasury Stock ....................................      (5,314)              -
   Other, Net .......................................................          199          (182)
                                                                      -------------   ------------
 Net Cash Provided by (Used in) Financing Activities ................      103,390        (3,773)
                                                                      -------------   ------------
 Cash Provided by (Used in) Discontinued Operations .................       13,699        (9,780)
                                                                      -------------   ------------
 Net Decrease in Cash and Cash Equivalents ..........................      (1,449)        (1,885)
 Cash and Cash Equivalents at Beginning of Period ...................        2,751          3,537
                                                                      -------------   ------------
 Cash and Cash Equivalents at End of Period .........................     $  1,302        $ 1,652
                                                                      =============   ============
 Supplemental Statement of Cash Flows Information:
 Interest Paid ......................................................     $ 10,180        $ 2,706
                                                                      =============   ============
 Income Taxes Paid ..................................................     $  3,315        $ 1,106
                                                                      =============   ============

</TABLE>

     See accompanying notes to Condensed Consolidated Financial Statements.









                                     Page 3
<PAGE>



                            UGLY DUCKLING CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1.  Basis of Presentation

    Our accompanying  unaudited condensed consolidated financial statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim  financial  information  and  pursuant to rules and  regulations  of the
Securities and Exchange Commission.  Accordingly, they do not include all of the
information and footnotes required by generally accepted  accounting  principles
for a complete financial statement presentation.  In our opinion, such unaudited
interim  information  reflects  all  adjustments,   consisting  only  of  normal
recurring  adjustments,  necessary to present our financial position and results
of operations for the periods  presented.  Our results of operations for interim
periods are not necessarily  indicative of the results to be expected for a full
fiscal year.  Our Condensed  Consolidated  Balance Sheet as of December 31, 1998
was derived from our audited  consolidated  financial statements as of that date
but does not include all the  information  and  footnotes  required by generally
accepted  accounting  principles.  We suggest that these condensed  consolidated
financial  statements  be read in  conjunction  with  the  audited  consolidated
financial  statements  included in our Annual Report on Form 10-K,  for the year
ended December 31, 1998.

Note 2.  Summary of Finance Receivables

Following is a summary of our Finance Receivables,  Net, as of June 30, 1999 and
December 31, 1998 (in thousands):
<TABLE>
<CAPTION>

                                                            June 30, 1999                                    December 31, 1998
                                              -------------------------------------------  ----------------------------------------
                                                                 Non                                         Non
                                               Dealership     Dealership                   Dealership    Dealership
                                               Operations     Operations        Total      Operations    Operations      Total
                                              ------------- ---------------  ------------  ------------  ------------ -------------
<S>                                           <C>           <C>              <C>          <C>            <C>          <C>
Installment Sales Contract Principal Balances   $  256,645    $     77,366     $ 334,011    $   93,936     $  51,282    $ 145,218
Add: Accrued Interest .......................        2,755             868         3,623           877           473        1,350
Loan Origination Costs ......................        4,450              --         4,450         2,237            --        2,237
                                              ------------- ---------------  ------------  ------------  ------------ -------------
Principal Balances, Net .....................      263,850          78,234       342,084        97,050        51,755      148,805
Residuals in Finance Receivables Sold .......       22,559           2,625        25,184        33,331         2,625       35,956
Investments Held in Trust ...................       35,249              --        35,249        20,564            --       20,564
                                              ------------- ---------------  ------------  ------------  ------------ -------------
                                                   321,658          80,859       402,517       150,945        54,380      205,325
Allowance for Credit Losses .................      (66,905)         (2,990       (69,895)      (24,777)       (2,024)     (26,801)
Discount on Acquired Loans ..................           --         (25,423)      (25,423)           --       (15,315)     (15,315)
                                              ------------- ---------------  ------------  ------------  ------------ -------------
Finance Receivables, Net ....................   $  254,753    $     52,446     $ 307,199    $  126,168     $  37,041    $ 163,209
                                              ============= ===============  ============  ============  ============ =============

Classification of Principal Balances:
Finance Receivables Held for Investment .....   $   99,049    $     77,366     $ 176,415    $   26,852     $  51,282    $  78,134
Finance Receivables Held as Collateral for
  Securitization Notes Payable ..............      157,596              --       157,596        67,084            --       67,084
                                              -------------------------------------------------------------------------------------
Installment Sales Contract Principal Balances   $  256,645    $     77,366     $ 334,011    $   93,936     $  51,282    $ 145,218
                                              ============= ===============  ============  ============  ============ =============
</TABLE>














                                     Page 4
<PAGE>


As of June 30, 1999 and December 31, 1998, our Residuals in Finance  Receivables
Sold from dealership operations were comprised of the following (in thousands):
<TABLE>
<CAPTION>

                                                                 June 30,         December 31,
                                                                   1999               1998
                                                             -----------------  -----------------
<S>                                                          <C>                <C>
Retained interest in subordinated securities (B
  Certificates) .........................................      $      33,080      $       51,243
Net interest spreads, less present value discount .......             14,596              25,838
Reduction for estimated credit losses ...................            (25,117)            (43,750)
                                                             -----------------  -----------------
Residuals in finance receivables sold ...................      $      22,559             $33,331
                                                             =================  =================
Securitized principal balances outstanding ..............      $     126,945      $      198,747
                                                             =================  =================
Estimated credit losses as a % of securitized principal
  balances outstanding ..................................               19.8%              22.0%
                                                             =================  =================
</TABLE>

         The following table reflects a summary of activity for our Residuals in
Finance  Receivables Sold from dealership  operations for the periods ended June
30, 1999 and 1998, respectively (in thousands):
<TABLE>
<CAPTION>

                                     Three Months Ended            Six Months Ended
                                          June 30,                     June 30,
                                 ---------------------------   --------------------------
                                    1999           1998           1999          1998
                                 ------------   ------------   -----------   ------------
<S>                              <C>            <C>            <C>           <C>
Balance, Beginning of Period .     $  28,480     $  24,741       $ 33,331     $  13,277
Additions ....................            --        10,396             --        24,254
Amortization .................        (5,921)       (6,719)       (10,772)       (9,113)
                                 ------------   ------------   -----------   ------------
Balance, End of Period .......     $  22,559     $  28,418       $ 22,559     $  28,418
                                 ============   ============   ===========   ============
</TABLE>


Note 3.  Notes Receivable

    Our  Cygnet  dealer  program  has  various  notes  receivable  from used car
dealers.  Under Cygnet's asset based loan program, our commitments for revolving
notes receivable totaled $9.6 million at June 30, 1999.

    In July 1997, First Merchants Acceptance Corporation (First Merchants) filed
for bankruptcy.  Immediately  subsequent to the bankruptcy filing, we executed a
loan agreement to provide First  Merchants  with debtor in possession  financing
(DIP facility).  The maximum commitment under the DIP facility was $11.5 million
at June 30, 1999.  The  outstanding  balance on the DIP facility  totaled  $11.5
million and $12.2 million at June 30, 1999 and December 31, 1998, respectively.

    Following is a summary of Notes Receivable at June 30, 1999 and December 31,
1998 (in thousands):
<TABLE>
<CAPTION>
                                                                           June 30,        December 31,
                                                                             1999              1998
                                                                         --------------   ----------------
<S>                                                                      <C>              <C>
Notes Receivable under the asset based loan program, net of
   allowance for doubtful accounts of $103, and $500, respectively ....    $     7,433      $       8,311
First Merchants Debtor in Possession Note Receivable ..................         11,502             12,228
First Merchants Bank Group Participation ..............................          1,279              6,856
Other Notes Receivable ................................................          1,103                862
                                                                         --------------   ----------------
Notes Receivable, Net .................................................    $    21,317      $      28,257
                                                                         ==============   ================
</TABLE>










                                     Page 5
<PAGE>


Note 4.  Notes Payable

    The  following  is a summary of Notes  Payable at June 30, 1999 and December
31, 1998 (in thousands):
<TABLE>
<CAPTION>

                                                                                         June 30,       December 31,
                                                                                           1999             1998
                                                                                      ---------------- ---------------
<S>                                                                                   <C>              <C>
Revolving Facility with GE Capital ..................................................  $      76,647    $      51,765
Securitization Notes Payable ........................................................        119,325           50,607
Note Payable Collateralized by the Common Stock of our Securitization Subsidiaries ..         37,500           12,234
Mortgage Loan with Finance Company ..................................................             --            3,386
Others ..............................................................................            735              967
                                                                                      ---------------- ---------------
Subtotal ............................................................................        234,207          118,959
Less:  Unamortized Loan Fees ........................................................          1,255            1,665
                                                                                      ---------------- ---------------
Notes Payable .......................................................................  $     232,952    $     117,294
                                                                                      ================ ===============
</TABLE>


Note 5.  Common Stock Equivalents

    Net  Earnings per common  share  amounts are based on the  weighted  average
number of common shares and common stock equivalents outstanding for the periods
ended June 30,  1999,  and 1998 as follows (in  thousands,  except for per share
amounts):
<TABLE>
<CAPTION>
                                                                             Three Months Ended        Six Months Ended
                                                                                  June 30,                 June 30,
                                                                          -------------------------  ---------------------
                                                                            1999          1998         1999       1998
                                                                          ----------  -------------  ---------- ----------
<S>                                                                       <C>          <C>           <C>         <C>
Income from Continuing Operations ......................................   $  1,470     $    2,943    $ 1,890     $6,672
                                                                          ==========  =============  ========== ==========
Net Earnings ...........................................................   $  1,470     $    2,943    $ 1,890     $1,077
                                                                          ==========  =============  ========== ==========
Basic EPS-Weighted Average Shares Outstanding ..........................     14,940         18,590     15,292     18,570
                                                                          ==========  =============  ========== ==========
Basic Earnings Per Share from:
Continuing Operations ..................................................   $    0.10    $     0.16    $  0.12     $ 0.36
                                                                          ==========  =============  ========== ==========
Net Earnings ...........................................................   $    0.10    $     0.16    $  0.12     $ 0.06
                                                                          ==========  =============  ========== ==========

Basic EPS-Weighted Average Shares Outstanding ..........................     14,940         18,590     15,292     18,570

Effect of Diluted Securities:
Warrants ...............................................................         --             44         --         35
Stock Options ..........................................................        270            346        203        325
                                                                          ----------  -------------  ---------- ----------
Dilutive EPS-Weighted Average Shares Outstanding .......................     15,210         18,980     15,495     18,930
                                                                          ==========  =============  ========== ==========
Diluted Earnings Per Share from:
Continuing Operations ..................................................   $    0.10    $     0.16    $  0.12     $ 0.35
                                                                          ==========  =============  ========== ==========
Net Earnings ...........................................................   $    0.10    $     0.16    $  0.12     $ 0.06
                                                                          ==========  =============  ========== ==========
Warrants Not Included in Diluted EPS Since Antidilutive ................      1,439          1,214      1,510        715
                                                                          ==========  =============  ========== ==========

Stock Options Not Included in Diluted EPS since Antidilutive ...........        905            571      1,035         96
                                                                          ==========  =============  ========== ==========
</TABLE>


Note 6.  Business Segments

    We have two divisions:  dealership operations and non-dealership operations.
Within  our  divisions,  we have six  distinct  business  segments.  Within  the
dealership  operations  division,  the  segments  consist  of  retail  car sales
operations  (company  dealerships),   the  income  generated  from  the  finance
receivables  generated at the Ugly Duckling  dealerships and corporate and other
operations.  Under the non-dealership  operations division, the segments consist
of the Cygnet dealer program, bulk purchasing and loan servicing,  and corporate
and other operations.



                                     Page 6
<PAGE>

    A summary of operating  activity by business  segment for the periods  ended
June 30, 1999 and 1998 follows (in thousands):
<TABLE>
<CAPTION>

                                             Dealership Operations               Non Dealership Operations
                                     -------------------------------------- -------------------------------------
                                                   Company
                                       Company   Dealership    Corporate       Cygnet     Cygnet Loan  Corporate
                                     Dealerships Receivables   and Other       Dealer      Servicing   and Other    Total
                                     ----------- ------------ ------------- ------------- ------------ ---------- ----------

<S>                                   <C>         <C>          <C>           <C>                                   <C>
Three months ended June 30, 1999:
Sales of Used Cars .................  $  97,876   $       --   $        --   $        --   $       --   $     --   $ 97,876
Less:  Cost of Used Cars Sold ......     55,559           --            --            --           --         --     55,559
  Provision for Credit Losses ......     20,131        5,658            --           846           --         --     26,635
                                     ----------- ------------ ------------- ------------- ------------ ---------  ----------
                                         22,186       (5,658)           --          (846)          --         --     15,682
                                     ----------- ------------ ------------- ------------- ------------ ---------  ----------

Interest Income ....................         --       15,647           109         4,114          315          1     20,186

Servicing and Other Income .........          6        2,296           133            --         5,235        --      7,670
                                     ----------- ------------ ------------- ------------- ------------ ---------  ----------
Income before Operating Expenses ...     22,192       12,285           242         3,268         5,550         1     43,538
                                     ----------- ------------ ------------- ------------- ------------ ---------  ----------
Operating Expenses:
Selling and Marketing ..............      5,864           --            --            23            --        --      5,887
General and Administrative .........     11,101        4,567         4,621           974         4,196       773     27,022
Depreciation and Amortization ......        859          280           537           107           370       168      2,321
                                     ----------- ------------ ------------- ------------- ------------ ---------  ----------
                                         17,824        4,847         5,158         1,104         5,356       941     35,230
                                     ----------- ------------ ------------- ------------- ------------ ---------  ----------
Operating Income (Loss) ............  $   4,368   $    7,438   $    (4,916)  $     2,164           194      (940)  $  8,308
                                     =========== ============ ============= ============= ============ =========  ==========


Three months ended June 30, 1998:
Sales of Used Cars .................  $  69,523   $       --   $        --   $        --   $       --   $     --   $ 69,523
Less:  Cost of Used Cars Sold ......     39,237           --            --            --           --         --     39,237
  Provision for Credit Losses ......     14,263           10            --           715           --         --     14,988
                                     ----------- ------------ ------------- ------------- ------------ ---------- ----------
                                         16,023          (10)           --          (715)          --         --     15,298
                                     ----------- ------------ ------------- ------------- ------------ ---------- ----------

Interest Income ....................         --        3,506            54         2,012          452         --      6,024
Gain on Sale of Loans ..............         --        3,659            --            --           --         --      3,659
Servicing and Other Income .........         17        4,015            56            --        5,443         --      9,531
                                     ----------- ------------ ------------- ------------- ------------ ---------- ----------
Income before Operating Expenses ...     16,040       11,170           110         1,297        5,895         --     34,512
                                     ----------- ------------ ------------- ------------- ------------ ---------- ----------

Operating Expenses:
Selling and Marketing ..............      4,218           --            --            44           12         --      4,274
General and Administrative .........      9,329        4,279         3,456           593        4,203        707     22,567
Depreciation and Amortization ......        615          311           249            23          154         --      1,352
                                     ----------- ------------ ------------- ------------- ------------ ---------- ----------
                                         14,162        4,590         3,705           660        4,369        707     28,193
                                     ----------- ------------ ------------- ------------- ------------ ---------- ----------
Operating Income (Loss) ............  $   1,878   $    6,580   $    (3,595)  $       637   $    1,526   $   (707)  $  6,319
                                     =========== ============ ============= ============= ============ ========== ==========
</TABLE>




















                                     Page 7
<PAGE>

<TABLE>
<CAPTION>
                                             Dealership Operations               Non Dealership Operations
                                     ------------------------------------    ----------------------------------
                                                    Company
                                      Company     Dealership    Corporate      Cygnet     Cygnet Loan  Corporate
                                     Dealerships  Receivables   and Other      Dealer      Servicing   and Other    Total
                                     ----------   ----------   -----------   ----------    ---------   ---------   ---------
<S>                                   <C>         <C>          <C>           <C>           <C>          <C>        <C>
  Six months ended June 30, 1999:
  Sales of Used Cars .............    $ 204,319   $       --   $        --   $       --    $       --   $     --   $ 204,319
  Less: Cost of Used Cars Sold ...      115,656           --            --           --            --         --     115,656
  Provision for Credit Losses ....       42,024       11,529            --        1,643            --         --      55,196
                                         46,639      (11,529)           --       (1,643)           --         --      33,467

  Interest Income ................           --       25,959           170        7,478           627          2      34,236
  Servicing and Other Income .....           13        5,178           178           --        11,926         --      17,295
  Income before Operating Expenses       46,652       19,608           348        5,835        12,553          2      84,998

  Operating Expenses:
    Selling and Marketing ........       12,433           --            --           59             3         --      12,495
    General and Administrative ...       22,010        9,150         9,959        1,937        10,807      1,518      55,381
    Depreciation and Amortization         1,653          562         1,058          185           692        308       4,458
                                         36,096        9,712        11,017        2,181        11,502      1,826      72,334
  Operating Income (Loss) ........    $  10,556   $    9,896   $   (10,669)  $    3,654    $    1,051   $ (1,824)  $  12,664
                                      =========   ==========   ===========   ==========    ==========   ========   =========


  Six months ended June 30, 1998:
  Sales of Used Cars .............    $ 142,496   $       --   $        --   $       --    $      --    $     --   $  142,49
  Less: Cost of Used Cars Sold ...       78,968           --            --           --            --         --      78,968
  Provision for Credit Losses ....       29,297           10            --        1,043            --         --      30,350
                                         34,231          (10)           --       (1,043)           --         --      33,178

  Interest Income ................           --        7,323           118        3,610         1,179         --      12,230
  Gain on Sale of Loans ..........           --        8,273            --           --            --         --       8,273
  Servicing and Other Income .....           58        7,839           102                      5,443         --      13,442
  Income before Operating Expenses       34,289       23,425           220        2,567         6,622         --      67,123

  Operating Expenses:
    Selling and Marketing ........        9,096           --            --           87            12         --       9,195

    General and Administrative ...       19,835        8,834         6,075        1,108         4,203      1,298      41,353
    Depreciation and Amortization         1,228          648           450           45           154         --       2,525
                                         30,159        9,482         6,525        1,240         4,369      1,298      53,073
  Operating Income (Loss) ........    $   4,130   $   13,943   $    (6,305)  $    1,327    $    2,253   $ (1,298)  $  14,050
                                      ==========  ===========  ============  ===========   ==========   =========  ==========
</TABLE>


Note 7.  Discontinued Operations

    In February  1998,  we announced  our  intention to close our branch  office
network,  through which we purchased  retail  installment  contracts  from third
party  dealers,  and exit this line of business.  We completed the branch office
closure as of March 31, 1998. As a result of the branch office network  closure,
we  reclassified  the results of operations of the branch office  network in the
accompanying  condensed  consolidated balance sheets and condensed  consolidated
statements of operations to discontinued operations.





















                                     Page 8
<PAGE>

     The components of Net Assets of Discontinued Operations as of June 30, 1999
and December 31, 1998 follow (in thousands):
<TABLE>
<CAPTION>
                                                 June 30,       December 31,
                                                   1999             1998
                                              ---------------- ---------------
<S>                                            <C>              <C>
Finance Receivables, net ...................   $      19,195    $      30,649
Residuals in Finance Receivables Sold ......           4,503            7,875
Investments Held in Trust ..................           2,638            3,665
Other Assets, net of Accounts Payable and
     Accrued Liabilities ...................           1,569            2,351
Disposal Liability .........................          (3,088)          (6,024)
                                              ================ ===============
Net Assets of Discontinued Operations ......   $      24,817    $      38,516
                                              ================ ===============
</TABLE>

Note 8.  Use of Estimates

    The preparation of our consolidated financial statements requires us to make
estimates  and  assumptions  that  affect  the  reported  amount of  assets  and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting period.
Actual results could differ from our estimates.

Note 9.  Certain Bankruptcy Remote Entities

    Ugly Duckling  Receivables  Corporation (UDRC) and Ugly Duckling Receivables
Corporation   II  (UDRC  II)   (collectively   referred  to  as   Securitization
Subsidiaries),   are  our  wholly-owned   special  purpose   "bankruptcy  remote
entities." Their assets, including assets classified as Discontinued Operations,
include  Residuals in Finance  Receivables  Sold and Investments  Held In Trust.
Total  assets for UDRC and UDRC II are  approximately  $183.4  million  and $5.3
million, respectively, at June 30, 1999. These amounts would not be available to
satisfy claims of our creditors on a consolidated basis.

Note 10.  Reclassifications

    We have made certain reclassifications to previously reported information to
conform to the current presentation.

































                                     Page 9
<PAGE>




                                    SIGNATURE

    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.

                                    UGLY DUCKLING CORPORATION

                                    /s/ STEVEN T. DARAK
                                    Steven T. Darak
                                    Senior Vice President and
                                    Chief Financial Officer
                                    (Principal Financial and Accounting Officer)

Date: October 25, 1999