Onyx Acceptance Corporation (Nasdaq: ONYX - news) announced today its financial and operational results for the quarter ended June 30, 2000. Net income and earnings per diluted share were $1.6 million and $0.25 respectively, compared to $2.4 million and $0.37 for the same period in 1999. Total revenues increased by 7.0% to $24.3 million from $22.7 million in the second quarter of 1999. The reduction in net income and earnings per share was the result of an increase in the loss reserve rate coupled with interest rate spread compression on contracts securitized in the second quarter.

During the second quarter, the company issued $12 million in unsecured, subordinated notes. The notes pay interest quarterly at a coupon rate of 12 1/2% and were issued at a 4% discount to par without warrants. Principal on the notes is due at maturity in June 2006. Net proceeds from the issuance are being used for general corporate purposes and were used to pay down an existing line of credit that Onyx used to finance residual interests from its securitizations.

The increase in revenues was principally due to the growth of the Company's servicing portfolio and volume of contracts purchased resulting from the continued development of business with its dealer relationships in new and existing markets. Service fee income increased 77% to $10.3 million for the second quarter 2000 compared to $5.8 million for the same period in 1999. Service fee income comprised 42.3% of total second quarter revenues, up from 25.6% during the second quarter of 1999. The increase is due primarily to higher amounts of contractual service fees, late fees and document fees related to the growth in the servicing portfolio. Contract purchases increased by 16% to $434.1 million for the quarter ended June 30, 2000, compared to $374.1 million for the same quarter in 1999. The reduction in net interest income was primarily due to the prefunded structure of the securitization executed during the second quarter. A prefunded securitization reduces the time period that the contracts are held for sale, and as a result, reduces the interest income earned on the related contracts. A prefunded structure allows the Company to mitigate its interest rate risk in a rising rate environment by locking in the rate for future fixed rate contract acquisitions. Additionally, it permits the Company to time its securitizations earlier in the quarter when transaction volumes are lower, thus enabling the Company to take advantage of market conditions. Higher market interest rates and an increase in the loss reserve rate resulted in lower net margins on the sale of contracts. Management believes that the increase in the loss reserve rate on its securitized contracts was warranted given the inherent risk a rising interest rate environment has on credit quality. Onyx recorded a gain on sale of $14.0 million (3.1% of the issue amount) on its second quarter securitization of $450 million, compared to a gain of $14.5 million (4.1% of the issue amount) on $350 million of contracts securitized during the same period of 1999.

Total operating expenses as a percentage of average servicing portfolio declined to 3.5% for the second quarter 2000, compared to 4.5% for the quarter ended June 30, 1999. Total delinquencies as a percentage of the period-end servicing portfolio declined to 2.57% from 3.24% at year-end 1999, while annualized net charge-offs as a percent of the average servicing portfolio increased to 2.23% during the second quarter of 2000, from 1.71% for the same period in 1999. Off balance sheet reserves as a percentage of securitized assets were 4.3% as of June 30, 2000.

During the second quarter, the Company purchased approximately 891,000 shares of its Common Stock as a part of its stock repurchase program authorized by its Board of Directors in May. The Company has expended approximately $4.1 million of the authorized $7.5 million in connection with this program. Repurchases may continue from time to time at prevailing market prices, through open market or unsolicited negotiated transactions, depending upon market conditions. The Company may discontinue purchases at any time that management determines additional purchases are not warranted.

Onyx Acceptance Corporation is a specialized automobile finance company based in Foothill Ranch, CA. Onyx provides financing to franchised and select independent dealerships throughout the United States.

This news release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The most significant among these risks and uncertainties are (a) the Company's level of delinquencies, gross charge-offs and net losses, (b) the Company's ability to achieve adequate interest rate spreads, (c) the effects of economic factors on consumer debt, and (d) the continued availability of liquidity sources. Other important factors are detailed in the Company's annual report on Form 10-K for the year ended December 31, 1999, and on Form 10-Q for the quarter ended March 31, 2000.

For information about Onyx Acceptance Corporation, please visit the Investor Relations section of our web site at www.onyxco.com.


ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION



(UNAUDITED)     (AUDITED)

June 30, December 31,
2000 1999
ASSETS
CASH & CASH EQUIVALENTS $11,063,593 $5,190,271
CONTRACTS HELD FOR SALE -
Net of Allowance (1) 235,500,653 229,991,667
CREDIT ENHANCEMENT ASSETS 121,065,478 142,883,970
OTHER ASSETS 12,987,818 15,769,202

TOTAL ASSETS $380,617,542 $393,835,110


LIABILITIES AND EQUITY
LIABILITIES
DEBT $285,865,667 $298,167,249
OTHER LIABILITIES 42,483,313 42,559,837

TOTAL LIABILITIES 328,348,980 340,727,086

TOTAL EQUITY 52,268,562 53,108,024

TOTAL LIABILITIES AND EQUITY $380,617,542 $393,835,110

(1) Net of Unearned Discounts



ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
REVENUES:

Net Interest
Income $25,862 $2,391,960 $2,537,655 $3,923,129
Gain on Sale
of Contracts 13,988,845 14,469,784 26,745,499 26,797,368
Service Fee
Income 10,278,442 5,811,182 18,957,873 11,520,535

Total Revenues 24,293,149 22,672,926 48,241,027 42,241,032


EXPENSES:

Provision for
Credit Losses 284,893 249,068 718,457 748,982
Operating
Expenses 21,333,819 18,323,539 41,988,696 33,677,667

Total Expenses 21,618,712 18,572,607 42,707,153 34,426,649

NET INCOME BEFORE
INCOME TAXES 2,674,437 4,100,319 5,533,874 7,814,383
INCOME TAXES 1,109,800 1,701,633 2,296,460 3,242,969
NET INCOME $1,564,637 $2,398,686 $3,237,414 $4,571,414

NET INCOME PER
SHARE - BASIC $0.26 $0.39 $0.53 $0.74
NET INCOME PER
SHARE - DILUTED $0.25 $0.37 $0.51 $0.71
BASIC SHARES
OUTSTANDING 6,072,656 6,171,034 6,126,289 6,171,034
DILUTED SHARES
OUTSTANDING 6,224,764 6,512,022 6,287,141 6,463,234


ONYX ACCEPTANCE CORPORATION and SUBSIDIARIES

DELINQUENCY AND LOSS RATES

(UNAUDITED)

(In Thousands)



June 30,                  December 31,
2000 1999

Delinquency
Experience Number of Number of
Contracts $ Contracts $

Servicing Portfolio 248,006 $2,500,207 209,745 $2,133,460


Serviced Delinquency

31 to 59 days 3,933 $37,600 3,963 $38,376
60 to 89 days 1,440 14,097 1,671 16,596
90 days or more 1,216 12,634 1,383 14,203

Total 6,589 $64,331 7,017 $69,175

Delinquency as a
percentage of
number and amount
of contracts 2.66% 2.57% 3.35% 3.24%


Three Months Ended Six Months Ended
June 30, June 30,
Loss Experience 2000 1999 2000 1999

Average Contracts
Serviced
during the
period $2,415,843 $1,629,129 $2,326,950 $1,532,269

Gross Charge-offs $15,895 $8,062 $30,950 $15,102

Recoveries $2,456 $1,108 $4,459 $1,927

Net Charge-offs $13,439 $6,954 $26,491 $13,175

Net Charge-offs as
a percentage
of contracts
outstanding during
the period 2.23% 1.71% 2.28% 1.72%



Onyx Acceptance Corporation

Static Pool Information for securitized pools outstanding for the period

from the date of securitization through June 30, 2000


Trust:              96-1       96-2    96-3     96-4      97-1     97-2

Month
1 0.00% 0.01% 0.00% 0.00% 0.00% 0.00%
2 0.03% 0.07% 0.02% 0.02% 0.00% 0.00%
3 0.05% 0.20% 0.07% 0.05% 0.03% 0.02%
4 0.11% 0.33% 0.16% 0.14% 0.06% 0.07%
5 0.23% 0.46% 0.43% 0.24% 0.13% 0.22%
6 0.40% 0.78% 0.54% 0.38% 0.26% 0.32%
7 0.69% 0.98% 0.74% 0.53% 0.37% 0.59%
8 0.82% 1.15% 0.97% 0.81% 0.52% 0.80%
9 0.93% 1.39% 1.13% 0.98% 0.60% 0.91%
10 1.15% 1.52% 1.32% 1.18% 0.76% 1.07%
11 1.25% 1.69% 1.47% 1.43% 0.92% 1.26%
12 1.47% 1.94% 1.60% 1.63% 1.02% 1.42%
13 1.65% 2.08% 1.77% 1.73% 1.13% 1.58%
14 1.79% 2.34% 1.94% 1.87% 1.23% 1.68%
15 2.02% 2.52% 2.09% 2.07% 1.40% 1.80%
16 2.25% 2.76% 2.27% 2.23% 1.56% 1.97%
17 2.43% 2.89% 2.42% 2.33% 1.68% 2.10%
18 2.59% 3.10% 2.57% 2.49% 1.75% 2.23%
19 2.77% 3.14% 2.70% 2.62% 1.85% 2.35%
20 2.93% 3.30% 2.83% 2.73% 1.92% 2.48%
21 3.06% 3.47% 2.94% 2.84% 1.98% 2.59%
22 3.15% 3.60% 3.00% 2.93% 2.09% 2.72%
23 3.21% 3.70% 3.08% 3.02% 2.17% 2.81%
24 3.28% 3.81% 3.17% 3.10% 2.22% 2.85%
25 3.40% 3.93% 3.28% 3.22% 2.31% 2.93%
26 3.43% 4.06% 3.38% 3.29% 2.38% 2.96%
27 3.55% 4.13% 3.43% 3.39% 2.44% 3.09%
28 3.60% 4.22% 3.54% 3.46% 2.50% 3.17%
29 3.73% 4.23% 3.59% 3.58% 2.55% 3.22%
30 3.75% 4.29% 3.69% 3.61% 2.63% 3.26%
31 3.79% 4.31% 3.77% 3.64% 2.67% 3.33%
32 3.85% 4.33% 3.75% 3.72% 2.73% 3.39%
33 3.88% 4.37% 3.77% 3.74% 2.77% 3.48%
34 3.90% 4.39% 3.79% 3.77% 2.84% 3.51%
35 3.94% 4.39% 3.81% 3.79% 2.86% 3.54%
36 3.94% 4.42% 3.83% 3.81% 2.85% 3.54%
37 3.94% 4.42% 3.84% 3.83% 2.89% 3.56%
38 3.97% 4.43% 3.88% 3.85% 2.91%
39 3.99% 4.45% 3.92% 3.89% 2.96%
40 3.96% 4.46% 3.92% 3.89% 2.99%
41 3.96% 4.45% 3.92% 3.89%
42 3.95% 4.45% 3.91% 3.89%
43 3.96% 4.45% 3.91% 3.89%
44 3.94% 4.48% 3.91%
45 3.97% 4.49% 3.90%
46 3.95% 4.52% 3.89%
47 3.92% 4.51%
48 3.90% 4.49%
49 3.89% 4.47%
50 3.86% 4.46%
51 3.86%
52 3.84%
53 3.84%
54 3.83%


Trust: 97-3 97-4 98-1 98-A 98-B 98-C

Month
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 0.00% 0.00% 0.01% 0.01% 0.00% 0.02%
3 0.02% 0.01% 0.02% 0.03% 0.02% 0.02%
4 0.09% 0.04% 0.08% 0.07% 0.08% 0.04%
5 0.13% 0.11% 0.14% 0.14% 0.19% 0.15%
6 0.24% 0.20% 0.24% 0.23% 0.33% 0.27%
7 0.36% 0.28% 0.40% 0.37% 0.45% 0.46%
8 0.47% 0.43% 0.53% 0.42% 0.61% 0.57%
9 0.62% 0.55% 0.68% 0.51% 0.82% 0.74%
10 0.73% 0.72% 0.85% 0.70% 0.95% 0.94%
11 0.81% 0.87% 1.04% 0.85% 1.10% 1.12%
12 0.94% 0.95% 1.20% 1.01% 1.20% 1.30%
13 1.10% 1.08% 1.33% 1.17% 1.36% 1.54%
14 1.23% 1.19% 1.46% 1.37% 1.48% 1.73%
15 1.38% 1.36% 1.61% 1.48% 1.64% 1.90%
16 1.58% 1.42% 1.71% 1.59% 1.89% 2.10%
17 1.68% 1.52% 1.88% 1.76% 2.05% 2.28%
18 1.77% 1.64% 2.01% 1.96% 2.22% 2.51%
19 1.91% 1.75% 2.17% 2.07% 2.37% 2.71%
20 2.04% 1.85% 2.25% 2.25% 2.50% 2.83%
21 2.11% 1.97% 2.41% 2.37% 2.67%
22 2.20% 2.08% 2.52% 2.48% 2.79%
23 2.31% 2.12% 2.63% 2.65%
24 2.41% 2.23% 2.75% 2.76%
25 2.51% 2.36% 2.86% 2.81%
26 2.59% 2.41% 2.98%
27 2.71% 2.52% 3.06%
28 2.79% 2.55% 3.15%
29 2.92% 2.62%
30 2.94% 2.71%
31 3.01% 2.77%
32 3.04%
33 3.08%
34 3.11%


Trust: 99-A 99-B 99-C 99-D 00-A 00-B

Month
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 0.00% 0.00% 0.01% 0.00% 0.00% 0.00%
3 0.02% 0.03% 0.03% 0.01% 0.02% 0.02%
4 0.05% 0.07% 0.06% 0.04% 0.04%
5 0.11% 0.14% 0.16% 0.09% 0.11%
6 0.21% 0.27% 0.28% 0.15%
7 0.35% 0.43% 0.47% 0.24%
8 0.49% 0.60% 0.64% 0.43%
9 0.63% 0.85% 0.83% 0.59%
10 0.81% 1.07% 1.09%
11 1.04% 1.34% 1.31%
12 1.29% 1.56%
13 1.49% 1.79%
14 1.72% 1.90%
15 1.90%
16 2.10%
17 2.26%