CONSENT OF INDEPENDENT AUDITORS

     We consent to the reference to our firm under the caption  "Experts" and to
the use of our reports dated  September 13, 1995 and July 18, 1996, with respect
to the consolidated balance sheet of ATEL Financial Corporation at July 31, 1996
and the balance sheet of ATEL Capital Equipment Fund VII, L.P. at July 17, 1996,
respectively,  included  in the  Registration  Statement  (Form S-1) and related
Prospectus  of ATEL  Capital  Equipment  Fund VII L.P. for the  registration  of
15,000,000 units of limited partnership interests.


                                                  ERNST & YOUNG  LLP


San Francisco, California
October 4, 1996