Filed Under Rule 424 (b)(3)
                             Registration Statement No. 33-61003

    SUPPLEMENT NO. 51 TO PROSPECTUS DATED SEPTEMBER 20, 1995 
                (AS SUPPLEMENTED OCTOBER 19, 1995)

AT&T CAPITAL CORPORATION

Medium Term Notes, Series 3

Due Nine Months or More From Date of Issue.

Issue Price: 100%
  (as a percent of principal amount)

                  Fixed and Floating Rate Notes

                                                  Interest Rate
Range of Maturities                                 Per Annum 
- -------------------                               -------------

From 9 Months to less than 1 year ................... Float%

SETTLEMENT DATE:              05/15/96
INITIAL PAYMENT DATE:          08/15/96
MATURITY DATE:           05/15/97
DAYCOUNT:                ACTUAL/360
INDEX:                   Prime - 2.78%
SOURCE:                  Federal Reserve H.15 Release
RESET FREQUENCY:              Daily
PAYMENT FREQUENCY:       Quarterly
PAYMENT:                 15th of Aug. & Nov. 1996, Feb. 1997 and Maturity
INTEREST DETERMINATION:       Daily Reset, Weighted Average, paid quarterly -,
                              1 N.Y. Business Day prior to period end dates
REDEMPTION:                   Non-Call Life
AMOUNT OF SALE:               $50,000,000
CUSIP NUMBER:            00206HZW7

Date of Sale: May 10, 1996