| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934. |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

|   | For                the quarterly period ended June 30,                2007 |
|--------|----------------------------------------------------------------------------|

| o | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

|   | For                the transition period from to |
|--------|--------------------------------------------------|

**NORTHEAST      AUTO ACCEPTANCE CORP.**

| **FLORIDA**                                                                                         | **65-0637308**                                                            |
|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|
| **(State                or Other Jurisdiction of****Incorporation                or Organization)** | **(I.R.S.                Employer Identification                Number)** |

**2174      HEWLETT AVENUE, SUITE 206**

**MERRICK,      NY 11566**

**(Address      of Principal Executive Offices)**

**(Zip      Code)**

**(516)      377-6311**

**Registrant’s      Telephone Number including area code)**

----

| Large                  accelerated filer  o | Accelerated                  filer  o | Non-accelerated                  filer  x |
|--------------------------------------------------|--------------------------------------------|------------------------------------------------|

----

| **NORTHEAST                AUTO ACCEPTANCE CORP.** |
|----------------------------------------------------|
|                                               |
| **BALANCE                SHEETS**                  |
|                                               |

|                                                                                                                                                                                                             |   | June                  30, |       | December                  31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|------------|-------------------------------|--------|
| ASSETS                                                                                                                                                                                                           |   | 2007                      |       | 2006                          |   |
|                                                                                                                                                                                                             |   | (unaudited)               |       |                          |   |
| Current                  Assets:                                                                                                                                                                                 |   |                      |       |                          |   |
| Cash                                                                                                                                                                                                             |   | $                         | 416,960    |                          | $      | 188,037 |   |
| Inventory                  (Note 4)                                                                                                                                                                              |   |                      | 4,520,026  |                          |   | 3,656,059 |   |
| Accounts                  receivable                                                                                                                                                                             |   |                      | 625,156    |                          |   | 695,181 |   |
| Total                  Current Assets                                                                                                                                                                            |   |                      | 5,562,142  |                          |   | 4,539,277 |   |
|                                                                                                                                                                                                             |   |                      |       |                          |   |   |   |
| Equipment,                  net (Note 5)                                                                                                                                                                         |   |                      | -          |                          |   | - |   |
| Other                  assets (Note 6)                                                                                                                                                                           |   |                      | 4,217      |                          |   | 39,491 |   |
|                                                                                                                                                                                                             |   |                      |       |                          |   |   |   |
| TOTAL                  ASSETS                                                                                                                                                                                    |   | $                         | 5,566,359  |                          | $      | 4,578,768 |   |
|                                                                                                                                                                                                             |   |                      |       |                          |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                                                                                                            |   |                      |       |                          |   |   |   |
| Current                  Liabilities:                                                                                                                                                                            |   |                      |       |                          |   |   |   |
| Accounts                  payable                                                                                                                                                                                |   | $                         | 564,920    |                          | $      | 263,650 |   |
| Note                  payable to bank (Note 7)                                                                                                                                                                   |   |                      | 100,000    |                          |   | 100,000 |   |
| Credit                  line (Note 7)                                                                                                                                                                            |   |                      | 214,228    |                          |   | 160,480 |   |
| Demand                  loans payable (Note 7)                                                                                                                                                                   |   |                      | 1,716,576  |                          |   | 1,307,331 |   |
| Credit                  Card loan payable (Note 7)                                                                                                                                                               |   |                      | 152,923    |                          |   | 155,848 |   |
| Due                  to stockholders (Note 7)                                                                                                                                                                    |   |                      | 1,322,424  |                          |   | 1,201,996 |   |
| Accrued                  expenses                                                                                                                                                                                |   |                      | 550,374    |                          |   | 375,760 |   |
| Payroll                  taxes withheld and accrued                                                                                                                                                              |   |                      | 16,660     |                          |   | 181,718 |   |
| Total                  Current Liabilities                                                                                                                                                                       |   |                      | 4,638,105  |                          |   | 3,746,783 |   |
|                                                                                                                                                                                                             |   |                      |       |                          |   |   |   |
| Commitments                  and contingencies (Note 12)                                                                                                                                                         |   |                      | -          |                          |   | - |   |
|                                                                                                                                                                                                             |   |                      |       |                          |   |   |   |
| Stockholders'                  equity                                                                                                                                                                            |   |                      |       |                          |   |   |   |
| Preferred                  stock, no par value , 1,000,000 shares authorized, none issued                  and                  outstanding                                                                      |   |                      | -          |                          |   | - |   |
| Common                  stock, no par value , 100,000,000 shares authorized, 26,618,586                  shares                  issued and outstanding December 31, 2006 and December 31,                  2005 |   |                      | 3,457,917  |                          |   | 3,457,917 |   |
| Deficit                                                                                                                                                                                                          |   |                      | (2,528,487 | )                             |   | (2,624,756 | ) |
|                                                                                                                                                                                                             |   |                      | 929,430    |                          |   | 833,161 |   |
| Less:                  Treasury stock (200,000 common shares)                                                                                                                                                    |   |                      | (1,176     | )                             |   | (1,176 | ) |
| Total                  Stockholders' Equity                                                                                                                                                                      |   |                      | 928,254    |                          |   | 831,985 |   |
|                                                                                                                                                                                                             |   |                      |       |                          |   |   |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                      |   | $                         | 5,566,359  |                          | $      | 4,578,768 |   |

----

| **NORTHEAST                  AUTO ACCEPTANCE CORP.**           |   |
|----------------------------------------------------------------|--------|
|                                                           |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS**     |   |
|                                                           |   |   |   |   |   |   |   |   |   |
|                                                           |   | Three |   | Three |   | Six |   | Six |   |
|                                                           |   | Months |   | Months |   | Months |   | Months |   |
|                                                           |   | Ended |   | Ended |   | Ended |   | Ended |   |
|                                                           |   | June                  30, |   | June                  30, |   | June                  30, |   | June30, |   |
|                                                           |   | 2007 |   | 2006 |   | 2007 |   | 2006 |   |
|                                                           |   | (unaudited) |   | (unaudited) |   | (unaudited) |   | (unaudited) |   |
|                                                           |   |   |   |   |   |   |   |   |   |
| Net                  sales                                     |   | $ | 19,162,353 |   | $ | 20,327,927 |   | $ | 39,573,108 |   | $ | 36,701,939 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  of sales                                 |   |   | 18,819,033 |   |   | 19,779,074 |   |   | 38,632,080 |   |   | 35,504,012 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                  profit                                  |   |   | 343,320 |   |   | 548,853 |   |   | 941,028 |   |   | 1,197,927 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Officers                  salaries                             |   |   | 129,756 |   |   | 119,756 |   |   | 292,579 |   |   | 302,579 |   |
| Consulting                  fees                               |   |   | - |   |   | 49,000 |   |   | - |   |   | 98,000 |   |
| Stock                  based consulting fees                   |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Interest                  expense                              |   |   | 74,489 |   |   | 68,706 |   |   | 154,037 |   |   | 137,917 |   |
| Selling,                  general and administrative           |   |   | 167,419 |   |   | 143,455 |   |   | 390,564 |   |   | 353,964 |   |
| Total                  operating expenses                      |   |   | 371,664 |   |   | 380,917 |   |   | 837,180 |   |   | 892,460 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit                  (Loss) from operations                 |   |   | (28,344 | ) |   | 167,936 |   |   | 103,848 |   |   | 305,467 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  Income                               |   |   | - |   |   | - |   |   | 1,848 |   |   | - |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  taxes (Note 11)                        |   |   | (5,115 | ) |   | 108,865 |   |   | 9,427 |   |   | 122,684 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  profit (loss)                             |   | $ | (23,229 | ) | $ | 59,071 |   | $ | 96,269 |   |   | 182,783 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss per share basic and diluted          |   | $ | (0.00 | ) | $ | 0.00 |   | $ | 0.00 |   |   | 0.01 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of shares outstanding |   |   | 26,618,586 |   |   | 26,618,586 |   |   | 26,618,586 |   |   | 26,618,586 |   |

| **See                Notes to Financial                Statements** |
|---------------------------------------------------------------------|

----

| **NORTHEAST                AUTO ACCEPTANCE CORP.** |
|----------------------------------------------------|
|                                               |
| **STATEMENTS                OF CASH FLOWS**        |
|                                               |

|                                                                                                        |   | Six                     |       | Six                     |   |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|-------------------------|--------|
|                                                                                                        |   | Months                  |       | Months                  |   |
|                                                                                                        |   | Ended                   |       | Ended                   |   |
|                                                                                                        |   | June                30, |       | June                30, |   |
|                                                                                                        |   |  2007              |       |  2006              |   |
|                                                                                                        |   | (unaudited)             |       | (unaudited)             |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                        |   |                    |       |                    |   |
| Net                profit                                                                                   |   | $                       | 96,269     |                    | $      | 182,778 |   |
| Adjustments                to reconcile net profit to net cash used by operating                activities: |   |                    |       |                    |   |   |   |
| Depreciation                and amortization                                                                |   |                    | -          |                    |   | 98,000 |   |
| Changes                in operating assets and liabilities:                                                 |   |                    |       |                    |   |   |   |
| (Increase)                decrease in accounts receivable                                                   |   |                    | 70,025     |                    |   | (1,875,141 | ) |
| (Increase)                decrease in inventory                                                             |   |                    | (863,967   | )                       |   | (927,593 | ) |
| (Increase)                decrease in other assets                                                          |   |                    | 35,274     |                    |   | 37,493 |   |
| Increase                (decrease) in accounts payable                                                      |   |                    | 301,270    |                    |   | 871,386 |   |
| Increase                (decrease) in accrued expenses                                                      |   |                    | 174,614    |                    |   | - |   |
| Increase                (decrease) in payroll taxes                                                         |   |                    | (165,058   | )                       |   | (110,995 | ) |
| Total                adjustments                                                                            |   |                    | (447,842   | )                       |   | (1,906,850 | ) |
| CASH                USED BY OPERATING ACTIVITIES                                                            |   |                    | (351,573   | )                       |   | (1,724,072 | ) |
|                                                                                                        |   |                    |       |                    |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                        |   |                    |       |                    |   |   |   |
| Proceeds                of line of credit                                                                   |   |                    | 4,511,552  |                    |   | 3,273,054 |   |
| Repayment                of line of credit                                                                  |   |                    | (4,457,803 | )                       |   | (2,582,564 | ) |
| Proceeds                of stockholders loans                                                               |   |                    | 170,931    |                    |   | 142,178 |   |
| Repayment                of stockholders loan                                                               |   |                    | (50,503    | )                       |   | (76,924 | ) |
| Proceeds                of demand loans                                                                     |   |                    | 417,245    |                    |   | 486,030 |   |
| Repayment                of demand loans                                                                    |   |                    | (8,000     | )                       |   | - |   |
| Proceeds/(Repayments)                on credit card loan                                                    |   |                    | (2,925     | )                       |   | (1,698 | ) |
| CASH                PROVIDED BY FINANCING ACTIVITIES                                                        |   |                    | 580,497    |                    |   | 1,240,076 |   |
|                                                                                                        |   |                    |       |                    |   |   |   |
| NET                INCREASE (DECREASE) IN CASH                                                              |   |                    | 228,924    |                    |   | (483,996 | ) |
|                                                                                                        |   |                    |       |                    |   |   |   |
| CASH                                                                                                        |   |                    |       |                    |   |   |   |
| Beginning                of year                                                                            |   |                    | 188,037    |                    |   | 536,534 |   |
|                                                                                                        |   |                    |       |                    |   |   |   |
| End                of year                                                                                  |   | $                       | 416,961    |                    | $      | 52,538 |   |
|                                                                                                        |   |                    |       |                    |   |   |   |
| SUPPLEMENTAL                CASH FLOW INFORMATION                                                           |   |                    |       |                    |   |   |   |
| Cash                paid for:                                                                               |   |                    |       |                    |   |   |   |
| Income                tax payments                                                                          |   | $                       | -          |                    | $      | 2,357 |   |
| Interest                payments                                                                            |   | $                       | 154,037    |                    | $      | 137,917 |   |

| **See                Notes to Financial                Statements.** |
|----------------------------------------------------------------------|

----

| **NORTHEAST                AUTO ACCEPTANCE CORP.**                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                      |
| **NOTES                TO FINANCIAL STATEMENTS**                                                                                                          |
| **(Amounts                and Disclosures at and for the Three and Six Months Ended June 30,                2007                and 2006 are unaudited)** |

**NOTE      1 - ORGANIZATION AND NATURE OF BUSINESS**

**NOTE      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Accounting      Estimates**

**Inventory**

**Depreciation**

**Principles      of Consolidation**

**Revenue      Recognition**

**Income      Taxes**

**Recently      Issued Accounting Standards**

----

**Interim      Financial Information**

----

| **NORTHEAST                AUTO ACCEPTANCE CORP.**                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                      |
| **NOTES                TO FINANCIAL STATEMENTS**                                                                                                          |
| **(Amounts                and Disclosures at and for the Three and Six Months Ended June 30,                2007                and 2006 are unaudited)** |

**NOTE      3 - ACCOUNTS RECEIVABLE**

|                               |   | June                30, |    | December                31, |   |
|------------------------------------|--------|-------------------------|---------|-----------------------------|--------|
|                               |   | 2007                    |    | 2006                        |   |
|                               |   |                    |    |                        |   |
| Accounts                receivable |   | $                       | 625,156 |                        | $      | 695,181 |   |

**NOTE      4 - INVENTORIES**

| Inventory                consists of the following: |   | June                30, |      | December                31, |   |
|-----------------------------------------------------|--------|-------------------------|-----------|-----------------------------|--------|
|                                                |   | 2007                    |      | 2006                        |   |
|                                                |   |                    |      |                        |   |
| Automobiles                purchased for resale     |   | $                       | 4,520,026 |                        | $      | 3,656,059 |   |

**NOTE      5 - OFFICE EQUIPMENT**

| The                following is a summary of equipment: |   | June                30, |    | December                31, |   |
|---------------------------------------------------------|--------|-------------------------|---------|-----------------------------|--------|
|                                                    |   | 2007                    |    | 2006                        |   |
| Equipment                                               |   | $                       | 4,243   |                        | $      | 4,243 |   |
| Office                equipment                         |   |                    | 4,327   |                        |   | 4,327 |   |
| Office                furniture                         |   |                    | 1,258   |                        |   | 1,258 |   |
| Leasehold                improvements                   |   |                    | 2,700   |                        |   | 2,700 |   |
| Total                                                   |   |                    | 12,528  |                        |   | 12,528 |   |
| Less:                Accumulated depreciation           |   |                    | (12,528 | )                           |   | (12,528 | ) |
|                                                    |   | $                       | -       |                        | $      | - |   |

**NOTE      6 - OTHER ASSETS**

| Other                assets consists of the following: |   | June                30, |   | December                31, |   |
|--------------------------------------------------------|--------|-------------------------|--------|-----------------------------|--------|
|                                                   |   | 2007                    |   | 2006                        |   |
| Prepaid                federal corporate taxes         |   | $                       | -      |                        | $      | 29,980 |   |
| Prepaid                state corporate taxes           |   |                    | 2,417  |                        |   | 7,711 |   |
| Prepaid                consulting fees                 |   |                    | -      |                        |   | - |   |
| Security                deposit                        |   |                    | 1,800  |                        |   | 1,800 |   |
|                                                   |   | $                       | 4,217  |                        | $      | 39,491 |   |

----

| **NORTHEAST                AUTO ACCEPTANCE CORP.**                                                                                                        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                      |
| **NOTES                TO FINANCIAL STATEMENTS**                                                                                                          |
| **(Amounts                and Disclosures at and for the Three and Six Months Ended June 30,                2007                and 2006 are unaudited)** |

**NOTE      7 - NOTES AND LOANS PAYABLE**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | June                  30, |      | December                  31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|-----------|-------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |  2007                |      |  2006                    |   |
| Line                  of credit - On October 4, 2004, the Company was approved for a                  line of                  credit of $975,000, as an inventory financing ("Floor Plan") loan                  with                  interest set at 2% above the Wall Street Journal Prime rate. The                  agreement                  requires any advances to be repaid for a vehicle on the earliest                  of forty                  eight (48) hours from the time of sale or within twenty four (24)                  hours                  from the time the Company receives payment by or on behalf of the                  purchase                  of such vehicle or demand. The agreement is personally guaranteed                  by the                  officers and their respective spouses. The collateral for the loan                  is any                  vehicle owned by the Company. |   | $                         | 214,228   |                          | $      | 160,480 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      |      |                          |   |   |   |
| Note                  payable bank - note payable to bank due February 2007, is an open                  line of                  credit interest payable monthly at 1% over the prime rate, secured                  by a                  lien on all of the Company's assets and personally guaranteed by                  the                  officers. Interest is paid monthly on account.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      | 100,000   |                          |   | 100,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      |      |                          |   |   |   |
| 9%                  convertible demand notes -The 9% convertible demand notes in the                  amounts                  of $150,000, $250,000 and $300,000, issued September 15, 2004,                  December                  19, 2005 and June 15, 2007 respectively, are convertible at $0.25                  per                  share. Interest is payable monthly.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      | 700,000   |                          |   | 400,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      |      |                          |   |   |   |
| 9%                  unsecured demand notes payable. Interest is payable                  monthly.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      | 1,016,576 |                          |   | 907,331 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      |      |                          |   |   |   |
| Credit                  cards payable - Credit cards payable are unsecured, pay interest                  from                  4.99% to 13.25% per annum and are payable in monthly installments.                  The                  average rate is 9.36%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      | 152,923   |                          |   | 155,848 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      |      |                          |   |   |   |
| Due                  to stockholders - The stockholder loans are unsecured, pay interest                  at 9%                  per annum, are subordinated to the bank loan and have no specific                  terms of                  repayment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                      | 1,322,424 |                          |   | 1,201,996 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                         | 3,506,152 |                          | $      | 2,925,655 |   |

**NOTE      8 - RELATED PARTY TRANSACTIONS**

**NOTE      9 - INCOME (LOSS) PER COMMON SHARE**

----

**NOTE      10 - OFF BALANCE SHEET RISK**

----

**Overview**

----

**For      the Three Months Ended June 30, 2007 and June 30, 2006**

|                                                      | Three                Months ended June 30, |
|-----------------------------------------------------------|--------------------------------------------|
|                                                      | 2007                                       | 2006 |
| Percentage                of net revenues:                |                                       |   |
| Net                revenues                               | 100%                                       | 100% |
| Cost                of revenues                           | 98.2%                                      | 97.3% |
| Gross                profit                               | 1.8%                                       | 2.7% |
|                                                      |                                       |   |
| Sales,                general and administrative expenses | 0.9%                                       | 0.7% |
| Other                operating expenses                   | 1.1%                                       | 1.2% |
| Total                operating expenses                   | 1.9%                                       | 1.9% |
| Profit                Loss from operations                | -0.1%                                      | 0.8% |

**Revenues**

**Cost      of Sales and Gross Profit Margin**

*Operating        Expenses*

*Sale,        General and Administrative*

----

*Other        Expenses*

|                               |   | Three                  Month Period EndedJune                  30, 2007 |    | Three                  Month Period EndedJune                  30, 2006 |   |  Change |   |  Percent                  Change |     |
|------------------------------------|--------|-------------------------------------------------------------------------|---------|-------------------------------------------------------------------------|--------|--------------|--------|---------------------------------------|----------|
| Officers                  Salaries |   | $                                                                       | 129,756 |                                                                    | $      | 119,756      |   |                                  | ($10,000 | ) |   | (8.4 | %) |
| Interest                  Expense  |   | $                                                                       | 74,489  |                                                                    | $      | 68,706       |   | $                                     | 10,000   |   |   | 8.4 | % |

**Operating        Gain (Loss)**

**For        the Six Months Ended June 30, 2007 and June 30, 2006**

|                                                        | Three                  Months Ended June 30, |
|-------------------------------------------------------------|----------------------------------------------|
|                                                        | 2007                                         | 2006 |
| Percentage                  of net revenues:                |                                         |   |
| Net                  revenues                               | 100%                                         | 100% |
| Cost                  of revenues                           | 97.6%                                        | 96.7% |
| Gross                  profit                               | 2.4%                                         | 3.3% |
|                                                        |                                         |   |
| Sales,                  general and administrative expenses | 1.0%                                         | 1.0% |
| Other                  operating expenses                   | 1.1%                                         | 1.5% |
| Total                  operating expenses                   | 2.2%                                         | 2.5% |
| Profit                  Loss from operations                | 0.3%                                         | 0.8% |

**Revenues**

----

**Cost        of Revenues and Gross Profit Margin**

*Operating        Expenses*

*Sale,        General and Administrative*

*Other        Expenses*

|                               |   | Six                  Month Period EndedJune                  30, 2007 |    | Six                  Month Period EndedJune                  30, 2006 |   |  Change |   |  Percent                  Change |     |
|------------------------------------|--------|-----------------------------------------------------------------------|---------|-----------------------------------------------------------------------|--------|--------------|--------|---------------------------------------|----------|
| Officers                  Salaries |   | $                                                                     | 292,579 |                                                                  | $      | 302,579      |   |                                  | ($10,000 | ) |   | (3.3 | %) |
|                               |   |                                                                  |         |                                                                  |   |         |   |                                  |     |   |   |   |   |
| Interest                  Expense  |   | $                                                                     | 154,037 |                                                                  | $      | 137,917      |   | $                                     | 16,120   |   |   | 11.7 | % |

----

**Operating        Gain (Loss)**

**Limitations        on the Effectiveness of Internal Controls **

----

**Economic        Conditions and Gasoline Prices May Affect Sales**

**Our        Business is Highly Competitive**

----

**Retail        and Wholesale Prices May Vary Depending Upon Factors Beyond the Company’s        Control. **

**There        are Risks Associated with Purchasing Inventory.**

**We        are Highly Dependant Upon Our Management and Workforce. **

**We        are Dependant Upon Our Information Systems. **

**Our        Availability to Capital May Vary. **

**Our        Purchases and Sales are Geographically Concentrated. **

----

**We        Currently Have Just One Director**

**Control        of the Company by Our Majority Stockholder**

**Our        Costs Are Partially Dependant Upon Fuel Costs. **

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| NORTHEAST                AUTO ACCEPTANCE CORP. |                                               |
|------------------------------------------------|----------------------------------------------------|
|                                           |                                               |
|  Date: August 17, 2007                    |  By: /s/ William Solko                        |
|                                           | William                Solko, Chief Executive      |
|                                           | Officer and Chief Financial                Officer |
|                                           |                                               |

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