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CONTACTS:                  Steven T. Darak
                           Senior Vice President and Chief Financial Officer

                           (602) 852-6600

                           Investor Relations
                           Ugly Duckling Corporation
                           Investor-relations@uglyduckling.com

FOR IMMEDIATE RELEASE

               UGLY DUCKLING CONFIRMS RECEIPT OF OFFER TO PURCHASE

                    COMPANY FROM CHAIRMAN/LARGEST SHAREHOLDER

     PHOENIX - April 16, 2001 - Ugly  Duckling  Corporation  (Nasdaq NM:  UGLY),
today confirmed that its chairman and largest shareholder,  Mr. Ernest C. Garcia
II,  has  made an  offer  to the  Board  of  Directors  to  purchase  all of the
outstanding  shares of common  stock of the  company  not  already  owned by Mr.
Garcia. Mr. Garcia currently owns approximately 56% of the company's outstanding
shares of common stock.

     Under the terms of the  offer,  the  holders of the  outstanding  shares of
common  stock  would  receive  $7.00  per  share,  $2.00  in cash  and  $5.00 in
subordinated  debentures from the acquiring company. The subordinated debentures
would have interest payable at 10%,  interest only payments  semiannually  until
maturity and a ten year term. Mr. Garcia's offer also states that Greg Sullivan,
chief executive officer and president of the company, would receive an option to
purchase a 20% interest in the acquiring company.

     The company  anticipates  the Board of Directors  will  establish a special
transaction  committee of the board,  composed of  disinterested  directors,  to
evaluate  the  proposal  and  make a  recommendation  to the  full  board on the
proposal.

     Mr. Garcia made a similar offer to the board on October 3, 2000. Under that
proposal, Mr. Garcia offered $2.50 in cash and $6.00 in subordinated  debentures
to holders of the outstanding  shares of the company's  common stock. Mr. Garcia
withdrew  that  offer  on  October  27,  2000,  although  in  subsequent  public
securities  filings he indicated a continuing  interest in making another offer.
At the time of the previous  offer,  the  company's  common stock was trading at
approximately  $5.75 per share. As of the close of market Thursday,  April 12th,
the company's common stock was trading at $4.10 per share.

About Ugly Duckling Corporation

     Headquartered in Phoenix, Arizona, Ugly Duckling Corporation is the largest
operator of used car dealerships  focused  exclusively on the sub-prime  market.
The Company underwrites,  finances and services sub-prime contracts generated at
its 77 Ugly  Duckling  dealerships,  located in 11  metropolitan  areas in eight
states.

    This press  release  includes  statements  that  constitute  forward-looking
statements  within the meaning of the safe harbor  provisions of the Private and
Securities  Litigation  Reform  Act of 1995.  We  claim  the  protection  of the
safe-harbor for our forward looking statements.  Forward-looking  statements are
often characterized by the words "may," "anticipates,"  "believes," "estimates,"
"projects,"  "expects"  or similar  expressions  and do not  reflect  historical
facts.  Factors that could cause or contribute to differences from these forward
looking   statements   include  factors   detailed  in  the  sections   entitled
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations  -- Risk  Factors,"  "Factors  That May  Affect  Future  Results  and
Financial  Condition" and "Factors That May Affect Future Stock  Performance" in
our most  recent  reports  on Form  10-K and Form  10-Q  (including  Exhibit  99
attached to any such Form 10-Q) and  elsewhere  in our  Securities  and Exchange
Commission filings. In addition,  the foregoing factors may affect generally our
business,  results of operations and financial position. There may also be other
factors that we are currently  unable to identify or quantify,  but may arise or
become known in the future. Forward looking statements speak only as of the date
the statement was made. By making these forward-looking statements, we undertake
no obligation to update these statements for revisions or changes after the date
of this report.  References to Ugly Duckling Corporation as the largest chain of
buy-here  pay-here used car  dealerships  in the United  States is  management's
belief  based  upon  the  knowledge  of the  industry  and  not  on any  current
independent third party study.



    There can be no  assurance  that the proposed  transaction  described in the
press  release  will be  accepted  by the  company in its  proposed  form or any
revised form or, that even if accepted, the transaction will close.

    In the event that the proposed  transaction is accepted by the company,  the
acquiring  company  and Ugly  Duckling  will  likely be required to file a joint
proxy  statement/prospectus  and to make certain  other  filings  regarding  the
proposed transaction with the Securities and Exchange Commission.  Investors and
security  holders are advised to read all such  filings  regarding  the proposed
transaction,  when and if the  transaction  proceeds  and such filings are made,
because they will contain important information.  Investors and security holders
may obtain free copies of any such filings  (when and if they become  available)
and other  documents filed by Ugly Duckling  Corporation  with the Commission at
the Commission's website at www.sec.gov. Information concerning any participants
in any  solicitation  of Ugly Duckling  stockholders  that is made in connection
with the proposed transaction will be disclosed when available.