EXHIBIT 23.1






                         CONSENT OF INDEPENDENT AUDITORS



We consent to the  reference to our firm under the caption  "Experts" and to the
use of our report  dated  September  19, 1997 with  respect to the  consolidated
balance sheet of ATEL Financial  Corporation  and subsidiary at July 31, 1997 in
the Registration Statement (Form S-1 to be filed on August 27, 1998) and related
Prospectus of ATEL Capital  Equipment  Fund VIII,  LLC for the  registration  of
15,000,000 limited liability company units.


                                                              Ernst & Young, LLP


San Francisco, California
August 25, 1998