FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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

For Quarter Ended: MARCH 31, 2000

Commission File Number: 0-14786

                                 AUTOINFO, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

        DELAWARE                                       13-2867481
--------------------------------------------------------------------------------
(State or other jurisdiction of          (I.R.S. Employer Identification number)
incorporation or organization)

                     P.O. Box 4383, Stamford, CT 06907-0383
--------------------------------------------------------------------------------
                     (Address of principal executive office)

                                 (203) 595-0005
--------------------------------------------------------------------------------
              (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.

                                 YES |X| NO |_|

      Number of shares outstanding of the registrant's common stock as of May
      10, 2000: 7,756,953 shares of common stock, $.01 par value.

<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES

                                      INDEX

Part I. Financial Information:

      Item 1. Financial Statements:                                         Page

            Balance Sheets -
            March 31, 2000 (unaudited) and December 31, 1999.................. 3

            Statements of Discontinued Operations (unaudited)-
            Three months ended March 31, 2000 and 1999........................ 4

            Statements of Cash Flows from Discontinued Operations
            (unaudited)- Three months ended March 31, 2000 and 1999........... 5

            Notes to Unaudited Financial Statements........................... 6

       Item 2. Management's Discussion and Analysis of Financial
               Condition and Results of Operations............................10

Part II. Other Information....................................................14

Signatures....................................................................15


                                       2
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
                                 BALANCE SHEETS

                                                    March 31,      December 31,
                                                      2000            1999
                                                  ------------     ------------
                                                   Unaudited         Audited
ASSETS

Cash                                              $    415,271     $    584,949
Short-term investments                                 399,000          399,000
Other assets                                            14,364           16,520
                                                  ------------     ------------

                                                  $    828,635     $  1,000,469
                                                  ============     ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities subject to compromise (see note 3):
     Subordinated notes and other debt            $  9,393,572     $  9,393,572
     Accounts payable and accrued
       liabilities                                   1,498,859        1,265,159
                                                  ------------     ------------
          Total liabilities                         10,892,431       10,658,731
                                                  ------------     ------------

Stockholders' equity
     Common stock - authorized 20,000,000
       shares $.01 par value; issued and
       outstanding - 7,756,953 shares as of
       March 31, 2000 and December 31, 1999             77,570           77,570
     Additional paid-in capital                     17,772,431       17,772,431
     Deferred compensation under stock
       bonus plan                                     (268,086)        (271,889)
     Retained deficit                              (27,645,711)     (27,236,374)
                                                  ------------     ------------
        Total stockholders' equity                 (10,063,796)      (9,658,262)
                                                  ------------     ------------

                                                  $    828,635     $  1,000,469
                                                  ============     ============

              See notes to condensed unaudited financial statements


                                       3
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF DISCONTINUED OPERATIONS
                                   (Unaudited)

                                                        Three Months Ended
                                                             March 31,
                                                      2000             1999
                                                  ------------     ------------

 Investment income                                $     18,337     $     35,502
                                                  ------------     ------------

Costs and expenses:
   Interest expense                                    233,700          246,488
   Operating expenses                                  123,047          249,366
   Reorganization expenses                              70,927               --
   Depreciation & amortization                              --           19,266
                                                  ------------     ------------
       Total operating expenses                        427,674          515,120
                                                  ------------     ------------

Net loss                                          $   (409,337)    $   (479,618)
                                                  ============     ============

Basic and diluted net loss per share:             ($       .05)    ($       .06)
                                                  ============     ============

Weighted average number of common
    and common equivalent shares                     7,756,953        7,756,953
                                                  ------------     ------------

              See notes to condensed unaudited financial statements


                                       4
<PAGE>

                             AUTOINFO, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF CASH FLOWS FROM DISCONTINUED OPERATIONS
                                       (Unaudited)

                                                           Three Months Ended
                                                                March 31,
                                                            2000         1999
                                                         ---------    ---------
Cash flows from operating activities:
Net (loss) income                                        $(409,337)   $(479,618)
Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:
     Depreciation and amortization                              --       19,266
     Amortization of deferred compensation                   3,803        3,802
Changes in assets and liabilities:
     Other assets                                            2,156       69,929
     Accounts payable and accrued liabilities              233,700       48,720
                                                         ---------    ---------

Net cash (used in) provided by operating activities       (169,678)    (337,901)
                                                         ---------    ---------

Cash flows from investing activities:
     Proceeds from sale of short-term investments               --      973,285
                                                         ---------    ---------
Net cash provided by (used in) investing activities             --      973,285
                                                         ---------    ---------

Cash flows from financing activities:
     Decrease in borrowings, net                                --     (634,528)
                                                         ---------    ---------
Net cash used in financing activities                           --     (634,528)
                                                         ---------    ---------

Net (decrease) increase in cash                           (169,678)         856
Cash at beginning of period                                584,949      116,570
                                                         ---------    ---------

Cash at end of period                                    $ 415,271    $ 117,426
                                                         =========    =========

              See notes to condensed unaudited financial statements


                                       5
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS

                           Forward Looking Statements

Certain statements made in this Quarterly Report on Form 10-Q are
"forward-looking statements"(within the meaning of the Private Securities
Litigation Reform Act of 1995) regarding the plans and objectives of management
for future operations. Such statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. The forward-looking statements included herein are
based on current expectations that involve numerous risks and uncertainties. Our
plans and objectives are based, in part, on assumptions involving judgments with
respect to, among other things, future economic, competitive and market
conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that our assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could prove inaccurate and,
therefore, there can be no assurance that the forward-looking statements
included in this report will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein
particularly in view of the current state of our operations, the inclusion of
such information should not be regarded as a statement by us or any other person
that our objectives and plans will be achieved. Factors that could cause actual
results to differ materially from those expressed or implied by forward-looking
statements include, but are not limited to, the factors set forth in "Certain
Factors That May Affect Future Growth," under Part I, Item 1, of the Company's
Annual Report on Form 10-K for the year ended December 31, 1999 as filed with
the Securities and Exchange Commission.

Note 1. - Business and Summary of Significant Accounting Policies

Business

      During 1998, AutoInfo, Inc. (the "Company") ceased to operate as an
automobile finance company. On January 29, 1999, the Company's wholly-owned
subsidiary, CarLoanCo., Inc. ("CLC"), filed a voluntary petition under Chapter 7
of the United States Bankruptcy Code.

      During 1999, the Company negotiated the termination of its lease in
Montvale, New Jersey and relocated to temporary space in Stamford, Connecticut
as part of its continuing effort to reduce operating expenses and preserve
corporate capital. The Company's main business focus became the challenge to
seek out business opportunities in furtherance of its plan to rebuild and create
shareholder value. These efforts were inhibited by a negative net worth and
remaining subordinated debt of $9.3 million. Therefore, the Company commenced
discussions with its noteholders regarding the restructuring of this debt to
enhance the possibility of consummating a transaction to return to an operating
status and create shareholder value.

      Accordingly, on February 2, 2000, the Company filed a disclosure statement
and reorganization plan (the "Plan") pursuant to Chapter 11 of Title 11 of the
United States Bankruptcy Code. The Plan provides for the issuance of one share
of its common stock and a cash payment of $ 0.03 for each dollar of
approximately $9.5 million of unsecured debt. At the time of filing, the
requisite number and dollar amount of the unsecured creditor group had voted to
support the Plan. Preliminary hearings were held to consider compliance with the
disclosure requirements. Certain objections and issues have been raised by the
court and other interested parties. These issues will be addressed in an amended
disclosure statement that the Company intends to file. A hearing to consider its
amended disclosure statement and compliance with the disclosure requirements has
been scheduled for May 31, 2000. No assurances can be given that the Plan will
be


                                       6
<PAGE>

confirmed by the Bankruptcy Court. All documents on file in our bankruptcy
proceeding, case no. 00-10368, can be viewed on the Bankruptcy Court's Internet
site at: http://ecf.nysb.uscourts.gov/index.html

      Assuming confirmation of the Plan, the Company anticipates having cash and
short-term investments of approximately $500,000 and no debt. In contemplation
of confirmation, efforts are continuing to identify new business opportunities
in furtherance of the plan to rebuild the Company and create shareholder value.

      The accompanying financial statements have been prepared assuming the
Company will continue as a going concern. The foregoing factors raise
substantial doubt about the Company's ability to continue as a going concern.
The accompanying consolidated financial statements do not include any
adjustments that might be necessary should the Company be unable to continue as
a going concern. Accordingly, the carrying amounts of our assets and liabilities
do not purport to represent realizable or settlement amounts. The Company has
discontinued its operations. Therefore, the accompanying financial statements
present the results of operations of the Company as the Statement of
Discontinued Operations. The ongoing expenses of the Company consists of the
salary and related expenses of its sole remaining employee, Mr. Wunderlich,
President and administrative expenses.

Summary of Significant Accounting Policies

Basis of Presentation

      The financial statements of the Company have been prepared using the
accrual basis of accounting under generally accepted accounting principles
("GAAP"). The accounting policies of the Company conform with GAAP.
Principles of Consolidation

      The financial statements include the accounts of the Company and its
subsidiaries, all of which are wholly-owned. All significant intercompany
balances and transactions have been eliminated in consolidation.

Short-term Investments

      Short-term investments, consisting of marketable securities as of March
31, 2000 and December 31, 1999, are carried at market value. Gains and losses on
disposition of securities are recognized on the specific identification method
in the period in which they occur. Unrealized holding gains and losses on
trading securities based upon the fair market value as of the balance sheet
date, if material, would be included in earnings in the period in which they
occur. There were no losses on dispositions of securities or unrealized holding
losses for the three month periods ended March 31, 2000 and 1999.

Fixed Assets

      Fixed assets are carried at cost less accumulated depreciation.
Depreciation of fixed assets is provided on the straight-line method over the
estimated useful lives of the related assets which range from three to five
years. As of December 31, 1998, fixed assets consisted predominantly of
furniture, fixtures and equipment at the Company's Montvale, New Jersey
headquarters facility. During the quarter ended June 30, 1999, the Company
terminated its lease and vacated the premises. Accordingly, the remaining fixed
assets were written-off.

Loss Per Share


                                       7
<PAGE>

      In 1997, the Company adopted SFAS No. 128, "Earnings Per Share," which
replaced the calculation of primary and fully diluted earnings per share with
basic and diluted earnings per share. Unlike primary earnings per share, basic
earnings per share excludes any dilutive effects of options, warrants and
convertible securities. Diluted earnings per share is similar to the previously
reported fully diluted earnings per share. All earnings per share amounts for
prior periods have been restated to conform to the new requirements.

      Basic loss per share is based on net loss divided by the weighted average
number of common shares outstanding. Common stock equivalents outstanding were
antidilutive for the three month periods ended March 31, 2000 and 1999.

Use of Estimates

      The preparation of these financial statements in conformity with generally
accepted accounting principles requires management to make certain estimates and
assumptions. These estimates and assumptions affect the reported amounts of
assets, liabilities and contingent liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the periods
presented. The Company believes that all such assumptions are reasonable and
that all estimates are adequate, however, actual results could differ from those
estimates.

Income Taxes

      The Company utilizes the asset and liability method for accounting for
income taxes. Under the asset and liability method, deferred tax assets and
liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be
recovered or settled. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period that includes the
enactment date.

      As of March 31, 2000, the Company has a net operating loss carryforward of
approximately $27 million for federal income tax purposes which expires in 2014.
Any benefit from the utilization of these net operating loss carryforwards has
been fully reserved for in the accompanying financial statements.

Note 2 - General

      The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and the instructions for Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments consisting
of normal recurring accruals considered necessary for a fair presentation have
been included. Operating results for the three months ended March 31, 2000 and
1999 are not necessarily indicative of the results that may be expected for a
full fiscal year. For further information, refer to the financial statement and
footnotes thereto included in the Company's report on Form 10-K for the year
ended December 31, 1999.

Note 3 - Liquidity and capital resources and filing pursuant to Chapter 11 of
the United States Bankruptcy Code

      The Company has outstanding $9.3 million of notes due in 2007 and 2008,
comprised of $8.2 million of 12% notes, included with the liabilities assumed
with the acquisition of FALK Finance Company, Inc. ("FFC") in December 1995,
plus accrued interest of $1.1 million through December 31, 1998. Interest on
these notes is due quarterly at the option of the Company at the rate of 10% if
paid in cash and 12% if paid in common shares of the Company. Interest on the
notes from January 1, 1999 through March 31, 2000 has been accrued but not paid.
Representatives of these note holders designated three members of the Company's
Board of Directors, one of whom subsequently resigned.


                                       8
<PAGE>

      The Company's liquid assets amounted to approximately $ 800,000 as of
March 31, 2000.

      On February 2, 2000, the Company filed a disclosure statement and
reorganization plan (the "Plan") pursuant to Chapter 11 of the United States
Bankruptcy Code. The Plan provides for the issuance of one share of Common Stock
and a cash payment of $ 0.03 for each dollar of approximately $9.5 million of
unsecured debt. At the time of filing, the requisite number and dollar amount of
the unsecured creditor group had voted to support the Plan. Preliminary hearings
were held to consider compliance with the disclosure requirements. Certain
objections and issues have been raised by the court and other interested
parties. The Company intends to address these issues in an amended disclosure
statement. A hearing to consider the amended disclosure statement and compliance
with the disclosure requirements has been scheduled for May 31, 2000. No
assurances can be given that the Plan will be confirmed by the Bankruptcy Court.

      Pursuant to the Plan, the 7,756,953 shares of the Company's Common Stock
outstanding at the time of filing will be deemed New Common Shares and
approximately 9.5 million additional New Common Shares will be issued. Upon
confirmation as currently contemplated, the Company will have 17.3 million
shares of its Common Stock outstanding.

      Assuming confirmation of the Plan, substantially all of the liabilities of
the Company as of March 31, 2000 are subject to compromise. The following
pro-forma Balance Sheet as of March 31, 2000 gives effect to the adjustments
resulting from the assumed confirmation of the Plan:

                                                    Pro Forma
                                     As Stated      Adjustments     As Adjusted
                                    ------------    ------------    ------------

Total assets                        $    829,000    $   (285,000)   $    544,000
                                    ------------    ------------    ------------

Liabilities                         $ 10,892,000    $(10,710,000)   $    182,000
Equity                               (10,063,000)     10,425,000         362,000
                                    ------------    ------------    ------------

Total liabilities and equity        $    829,000    $   (285,000)   $    544,000
                                    ------------    ------------    ------------

      The Company is in the process of identifying new business opportunities in
furtherance of its plan to rebuild the Company and create shareholder value. If
the Plan is not confirmed and the Company is unsuccessful in identifying and
consummating such a transaction, the Company does not have sufficient liquid
assets and available lines of credit to meet its short and long-term capital
requirements.

Note 4 - Debt Settlement

      On March 23, 1999, the Company paid $585,000 representing full payment,
net of a $25,000 discount, of principal and accrued interest on a note which had
been previously declared in default by the lender.


                                       9
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES

                     Management's Discussion and Analysis of
                  Financial Condition And Results of Operations

General

      In December 1995, we acquired the operating assets of Falk Finance Company
("FFC"), a Norfolk, Virginia based specialty financial services company for
$5,125,000 in cash and the assumption of liabilities and debt approximating
$34,000,000. As a result, we became a specialized consumer finance company that
acquired and serviced automobile receivables from automobile dealers selling new
and used vehicles to non-prime customers. In July 1996, we commenced operations
of our northeast regional center in Norwalk, Connecticut to provide a complete
range of services to dealers in the Northeast.

      During 1997 and 1998, several non-prime automobile finance companies,
including the Company, experienced poor loan performance, higher delinquency
rates and increased credit losses on their portfolio assets. In addition, during
this period, a number of non-prime automobile finance companies made strategic
decisions to exit the market-place. This trend was the direct result of several
factors including: (a) the impact of increased levels of competition on loan
acquisition discounts; (b) the heightened demand created by the increased supply
of capital and used automobile inventories; (c) the need to attract consumers
with lower credit qualifications to meet this additional demand; (d) economic
uncertainties and financial difficulties within the non-prime automobile
industry as well as management upheavals at certain industry leaders; and (e)
the increased levels of outstanding consumer debt and personal bankruptcies.
These factors contributed to a significant reduction in available warehouse
lines of credit and a material decline in financial markets investments into the
non-prime automobile industry through the sale of equity securities,
subordinated debt instruments and securitized notes.

      We experienced material operating losses during 1996, 1997 and 1998. As a
result of these losses, the adverse changes in the non-prime automobile finance
industry and the deterioration in the our financial condition, we determined to
discontinue the operation of our non-prime automotive finance business.

      As a result of these factors, we were unable to maintain adequate levels
of net worth to satisfy the loan covenant requirement under our warehouse
facility agreement and similar covenants pursuant to securitized notes issued in
October 1996. As of December 31, 1997, our warehouse lender was no longer
funding the acquisition of non-prime automobile receivables we generated.
Accordingly among other actions, we restructured operations and significantly
reduced overhead and successfully completed the sale of approximately $58
million of automobile receivables and repaid $47 million under our warehouse
line. Additionally, in conjunction with a July 1998 sale of approximately $8
million of automobile receivables which collateralized our securitized notes,
the remaining balance outstanding on these notes of approximately $7 million was
paid in full.

      During the fourth quarter of 1997, we closed our northeast regional center
in Norwalk, Connecticut.

      During the fourth quarter of 1998, we sold all remaining repossessed
vehicles, closed our Norfolk, Virginia operating facility, further reduced
overhead and completed the restructuring of outstanding debt under our warehouse
facility and with our subordinated note holders. After the sale of all of our
automobile receivables, we owed the warehouse lender approximately $4.5 million
which agreed to a reduction of $2.25 million and we paid the remaining balance
of approximately $2.3 million in cash. We also granted the warehouse lender a
five year warrant to purchase 1,357,467 common shares at $ .03 per share.
Further, the holders of our $8.2 million of 12% subordinated notes, due in 1999
and 2000, exchanged such notes for new notes totaling approximately $9.35
million due in 2007 and 2008 (the


                                       10
<PAGE>

"New Notes"). The New Notes include the capitalization of interest of
approximately $1.15 million through December 31, 1998 to principal. Interest on
these new notes is due quarterly at our option at the rate of 10% if paid in
cash and 12% if paid in our common shares. In addition, representatives of these
note holders have designated three members of our board of directors, one of
whom subsequently resigned.

      On January 29, 1999, our wholly-owned subsidiary, CarLoanCo., Inc.
("CLC"), filed a voluntary petition under Chapter 7 of the United States
Bankruptcy Code. CLC's carrying amount in the December 31, 1998 consolidated
financial statements has been written off in 1999 as a result of the bankruptcy
filing.

      During 1999, we continued to reduce operating overhead by negotiating the
termination of its lease in Montvale, New Jersey and vacating the premises.

      On February 2, 2000, we filed a disclosure statement and reorganization
plan (the "Plan") pursuant to Chapter 11 of the United States Bankruptcy Code.
The Plan provides for the issuance of one share of common stock and a cash
payment of $ 0.03 for each dollar of approximately $9.5 million of unsecured
debt. At the time of filing, the requisite number and dollar amount of the
unsecured creditor group had voted to support the Plan. Preliminary hearings
were held to consider compliance with the disclosure requirements. Certain
objections and issues have been raised by the court and other interested
parties. The Company intends to address these issues in an amended disclosure
statement. A hearing to consider the amended disclosure statement and compliance
with the disclosure requirements has been scheduled for May 31, 2000. No
assurances can be given that the Plan will be confirmed by the Bankruptcy Court.

      We are in the process of identifying new business opportunities in
furtherance of our rebuilding plan in our continuing effort to create
shareholder value. The foregoing factors raise substantial doubt about our
ability to continue as a going concern. The accompanying consolidated financial
statements do not include any adjustments that might be necessary should we be
unable to continue as a going concern. Accordingly, the carrying amounts of our
assets and liabilities do not purport to represent realizable or settlement
amounts.

Results of Operations

Three Months Ended March 31, 2000 and 1999

Revenues

      Revenues for the three month periods ended March 31, 1999 and 1998 of
$18,000 and $36,000, respectively, consisted of interest and dividends on
short-term investments. The decline is directly related to the decrease in
short-term investments.

Costs and Expenses

      Interest expense for the three month periods ended March 31, 2000 and 1999
($234,000 and $246,000, respectively) was related to subordinated debt and other
bank debt. The decrease is directly related to the repayment of debt during the
three month period ended March 31, 1999.

      Operating expenses for the three months ended March 31, 2000 and 1999
($123,000 and $249,000, respectively) consisted primarily of corporate overhead.
The decrease is directly related to reduction in corporate staff and the cost
reduction plan implemented by the Company.


                                       11
<PAGE>

      Reorganization expenses for the three month period ended March 31, 2000 of
$71,000 consists of legal and other costs related to the February 2, 2000 filing
pursuant to Chapter 11 of the United States Bankruptcy Code.

      Depreciation and amortization expense for the three months ended March 31,
1999 of $19,000 consisted of the depreciation of fixed assets.

Loss from Operations

      Loss from operations for the three month period ended March 31, 2000 was
($409,000) compared with ($480,000) in the prior year period. The decrease is
the result of the reduction in operating expenses. There is no income tax
benefit for the three month periods ended March 31, 2000 and 1999 as the Company
has recorded the utilization of its available income tax carrybacks as of
December 31, 1997.

Liquidity and Capital Resources

Trends and Uncertainties

      During 1998, we ceased to operate as an automobile finance company. On
January 29, 1999, our wholly-owned subsidiary, CarLoanCo., Inc. ("CLC"), filed a
voluntary petition under Chapter 7 of the United States Bankruptcy Code.

      During 1999, we negotiated the termination of our lease in Montvale, New
Jersey and relocated to temporary space in Stamford, Connecticut as part of our
continuing effort to reduce operating expenses and preserve corporate capital.
Our main business focus became the challenge to seek out business opportunities
in furtherance of our plan to rebuild the company and create shareholder value.
These efforts were inhibited by the negative net worth and remaining
subordinated debt of $9.3 million. Therefore, we commenced discussions with our
noteholders regarding the restructuring of this debt to enhance the possibility
of consummating a transaction to return us to an operating status and create
value.

            Accordingly, on February 2, 2000, we filed a disclosure statement
and reorganization plan (the "Plan") pursuant to Chapter 11 of Title 11 of the
United States Bankruptcy Code. The Plan provides for the issuance of one share
of our common stock and a cash payment of $ 0.03 for each dollar of
approximately $9.5 million of unsecured debt. At the time of filing, the
requisite number and dollar amount of the unsecured creditor group had voted to
support the Plan. Preliminary hearings were held to consider compliance with the
disclosure requirements. Certain objections and issues have been raised by the
court and other interested parties. The Company intends to address these issues
in an amended disclosure statement. A hearing to consider the amended disclosure
statement and compliance with the disclosure requirements has been scheduled for
May 31, 2000. No assurances can be given that the Plan will be confirmed by the
Bankruptcy Court. All documents on file in our bankruptcy proceeding, case no.
00-10368, can be viewed on the Bankruptcy Court's Internet site at:
http://ecf.nysb.uscourts.gov/index.html

      The foregoing factors raise substantial doubt about our ability to
continue as a going concern.

Liquidity and Capital Resources

      At March 31, 2000, we had outstanding $9.3 million of subordinated debt
outstanding comprised of $8.2 million of 12% notes, included with the
liabilities assumed with the acquisition of FALK Finance Company, Inc. in
December 1995, plus accrued interest of $1.1 million through December 31,1998.

      The Company's cash and short-term investments amounted to approximately
$800,000 as of March 31, 2000.


                                       12
<PAGE>

      The total amount of debt outstanding as of March 31, 2000 and December 31,
1990 was $9.4 million. This following table presents the Company's debt
instruments and weighted average interest rates on such instruments as of March
31, 2000 and December 31, 1998:

                                     Weighted
                                      Average
                           Balance     Rate
                           ------------------
        Subordinated debt   $9.3      12.0%
        Other debt           $.1       8.5%

      Inflation and changing prices had no material impact on revenues or the
results of operations for the period ended March 31, 2000.


                                       13
<PAGE>

                         AUTOINFO, INC. AND SUBSIDIARIES
                           Part II - OTHER INFORMATION


Item 1 - 3:      Inapplicable

Item 4:          Submission of Matters to a Vote of Security Holders:  None

Item 5:          Inapplicable

Item 6 (a):      None

Item 6 (b):      During the quarter ending March 31, 2000, the Company filed a
                 report on Form 8-K pursuant to Item 4 thereof reporting the
                 retention of independent auditors.


                                       14
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
authorized.

                                 AUTOINFO, INC.
                                  (Registrant)

                      -----------------------------------
                            /s/ William I. Wunderlich
                      -----------------------------------
                              William I. Wunderlich
                       President and Principal Financial
                                     Officer

Date: May 11, 2000